Canada Post hikes rates on small businesses

98 per cent of small and medium-sized businesses rely on Canada Post every month

TORONTO, March 31, 2014 /CNW/ - Small businesses will see their mailing costs rise today, despite measures announced by Canada Post two weeks ago to soften the impact. According to the Canadian Federation of Independent Business (CFIB), the price hikes will affect the 98 per cent of small firms that send Lettermail every month.

"While we acknowledge that Canada Post has taken measures to reduce the pressure on business owners who rely on Lettermail, these changes don't outweigh the added costs," said Dan Kelly, CFIB's president. Two weeks ago, Canada Post announced a number of measures to offset the higher costs, including temporary discounts on stamps and making bulk mail pricing more accessible to small businesses.

It may surprise Canadians to know that many small firms continue to use the mail as an important part of everyday operations. In a recent survey of nearly 8,000 small businesses, 40 per cent indicated they send at least 50 pieces of Lettermail per month. Equally important, 46 per cent of businesses continue to rely on payments from their customers by cheque.

"From connecting with customers to invoicing or paying suppliers, the need isn't going away any time soon," added Kelly. "In the end, CFIB believes the rate hikes will hasten, rather than slow, the decline in Canada Post usage for small business. Rather than focus on raising prices for its customers, Canada Post should be allowed to reduce its costs more aggressively to ensure its relevance for the future."

Since the rate changes were announced last December, CFIB has appeared before the House of Commons parliamentary committee reviewing the changes. A report was also submitted to federal Transport Minister Lisa Raitt, including the results of our member survey on the rate changes and the overall importance of Canada Post to small businesses.

The report can be found at www.cfib.ca.

CFIB is Canada's largest association of small and medium-sized businesses with 109,000 members across every sector and region.

SOURCE: Canadian Federation of Independent Business

or to arrange an interview with Dan Kelly, contact Gisele Lumsden at 416 222-8022 or email [email protected].