Order Amending Schedule III to the Financial Administration Act (Canada Post Corporation): SOR/2018-187
Canada Gazette, Part II, Volume 152, Number 20
Registration
September 26, 2018
FINANCIAL ADMINISTRATION ACT
P.C. 2018-1188 September 24, 2018
Her Excellency the Governor General in Council, on the recommendation of the Minister of Public Works and Government Services, pursuant to subsection 3(3) of the Financial Administration Act footnote a, makes the annexed Order Amending Schedule III to the Financial Administration Act (Canada Post Corporation).
Order Amending Schedule III to the Financial Administration Act (Canada Post Corporation)
Amendments
1 Part I of Schedule III to the Financial Administration Act footnote 1 is amended by adding the following in alphabetical order:
Canada Post Corporation
Société canadienne des postes
2 Part II of Schedule III to the Act is amended by deleting the following:
Canada Post Corporation
Société canadienne des postes
Coming into Force
3 This Order comes into force on the day on which it is registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Order.)
Issues
Canada Post Corporation (Canada Post) was listed in Part II of Schedule III to the Financial Administration Act in 1989. As per the Financial Administration Act, at the time, the Governor in Council would have been satisfied that the Corporation operates in a commercial environment, is not ordinarily dependent on appropriations for operating purposes, ordinarily earns a return on equity, and there is a reasonable expectation that the Corporation will pay dividends.
A two-phase review of Canada Post was initiated by the Minister of Public Services and Procurement in May 2016. Phase 1 of the review was conducted by a four-member independent Task Force mandated to undertake an analysis of Canada Post’s services and current financial situation and prepare a discussion paper to present viable options, costs and associated implications for Canada Post services. Phase 2 of the review was conducted by the Standing Committee on Government Operations and Estimates (the Committee) in fall 2016. The Committee made 45 recommendations, including that “Canada Post be maintained as a universal public service for all Canadians and conduct its operations on a self-sustaining financial basis while ensuring any profits generated are reinvested within the Corporation.”
As a result of the review, on January 24, 2018, the Government announced a service-focused vision for renewal: Canada Post will provide high-quality service at a reasonable price to Canadians, no matter where they live. It will adapt to meet challenges and take advantage of opportunities created by demographic change, new technologies, and evolving expectations of its customers. As a valued Canadian enterprise that will serve our country for decades to come, Canada Post must be efficient and financially sustainable for the long term, generating revenues that support current and future services, and enable ongoing innovations.
Objectives
Reflect the Government’s vision for Canada Post as a more service-focused organization that is expected to reinvest any profits in the Corporation’s products and services.
Description
The Order moves Canada Post Corporation from Part II of Schedule III of the Financial Administration Act to Part I of Schedule III.
“One-for-One” Rule
The “One-for-One” Rule does not apply to this Order, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply, as there are no costs on small business.
Consultation
The two-phase review process was aimed at giving as many Canadians as possible the opportunity to share their views on the future of Canada Post. From May 5 to July 31, 2016, the Task Force carried out extensive engagement with Canadians to help inform its discussion paper presenting options for the future of Canada Post. A website with information about the review, supported by a social media strategy, ensured that Canadians had an opportunity to provide feedback through several channels (e.g. email, letter mail). Public opinion research was conducted, surveying close to 4 000 Canadians, businesses and Indigenous peoples. The Task Force also held over 40 face-to-face meetings with key stakeholders including Canada Post and its unions, industry clients and competitors, municipalities, associations, academics and other postal experts.
This was followed by national public consultations with Canadians in 22 communities (September 26 to November 3, 2016) led by the Standing Committee on Government Operations and Estimates. The Committee heard from over 200 witnesses representing a broad cross-section of stakeholders with an interest in postal services. In addition, the Committee hosted an online survey through which 5 332 Canadians and Canadian organizations shared their views.
Rationale
The change removes Canada Post Corporation’s legal obligation to annually submit a dividend proposal to the Government, instead, the Corporation is expected to reinvest any profits in service initiatives and innovations. Per the Canada Post Corporation Act, Canada Post will still be expected to be financially self-sustaining.
As a Crown corporation now listed in Part I of Schedule III to the Financial Administration Act, Canada Post will be legally obliged to submit an annual operating budget for Treasury Board approval, a summary of which would be tabled in both Houses of Parliament.
This proposal is a technical change that is not anticipated to have any financial, environmental, or intergovernmental implications.
Contact
Phil Pedersen
Acting Director
CPC Review Secretariat
Telephone: 873-469-4147