A Canada Post office in Prince Rupert. (Alex Kurial / The Northern View)

Canada Post has unfair advantage in distributing flyers: news group

Crown corporation argues newspapers, private operators deliver majority of flyers in Canada

An association representing news organizations in Canada is calling on federal party leaders to restrict Canada Post’s plans to expand its flyer distribution.

News Media Canada, of which Black Press Media is a member, released a statement on Friday saying the Crown corporation is using an unfair advantage provided to it by the government.

President and CEO John Hinds said Canada Post has plans to begin distributing packaged commercial flyers in direct competition with local newspapers, using its ability to access lock boxes in apartments and condos as part of its marketing.

READ MORE: Canada Post proposes raising stamp prices by two cents next year

“It’s essentially public money that’s going into this,” Hinds said, adding that Ottawa provides tax credits to Canada Post.

“Yet at the same time, the Crown corporation is out there taking a run at one of the core sources of revenue for the newspaper business.”

In a statement, Canada Post denied that it is competing unfairly.

“With a mandate to serve all Canadians while remaining financially self-sufficient, Canada Post competes fairly in the marketplace to provide products and services of value to Canadian businesses and consumers,” it said.

“With greater flexibility and lower prices, newspapers and other private operators deliver the vast majority of flyers in Canada. While Canada Post has exclusive access to mailboxes, we don’t deliver everything Canadians receive at their door.”

READ MORE: B.C. woman’s ‘Red Dress’ for murdered Indigenous woman interrupts mail delivery

Hinds said Canadians should be concerned about the postal service undercutting one of newspapers’ foundational revenue pillars.

“Canadians have said that local news is really important,” he said. “At the end of the day, local advertising creates local news.”

Black Press Media has also reached out to the Canadian Union of Postal Workers and the office of Carla Qualtrough, the minister responsible for Canada Post, for comment.

READ MORE: Canada Post union issues strike notice



karissa.gall@blackpress.ca

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Provincial COVID-19 data can now be used for B.C. to prepare for a second wave

In the past week, B.C. has seen a slight spike in daily test-positive case counts

Skeena Resources, Tahltan prez excited by purchase of Eskay Creek

Skeena gets full control of mine, Barrick gets 12 per cent of Skeena and a one per cent royalty

VIA Rail lays off 1,000 unionized workers across the country

Northern B.C. route Jasper to Prince George to Prince Rupert is not affected by VIA Rail layoffs

Overall house sales drop in the northwest

COVID-19 pandemic slowed market activity

B.C. orders Coastal GasLink to stop pipeline construction near protected wetlands

The 670-kilometre pipeline is planned to transport natural gas from northeast B.C. to Kitimat

Sources say Canada, U.S. likely to extend mutual travel ban into late August

Prime Minister Justin Trudeau hinted at the possibility after a phone call with U.S. President

Canadians torn on scaling back COVID-19 benefits to save money: poll

Of those surveyed, 78 per cent said they were worried about the size of the deficit

‘Trauma equals addiction’: Why some seek solace in illicit drugs

Part 2: Many pushed into addiction by ‘toxic stress,’ says White Rock psychologist

Hotel rooms for B.C. homeless too hasty, NDP government told

Businesses forced out, but crime goes down, minister says

Wage subsidy will be extended until December amid post-COVID reopening: Trudeau

Trudeau said the extension will ‘give greater certainty and support to businesses’

B.C. government prepares for COVID-19 economic recovery efforts

New measures after July consultation, Carole James says

Tree planters get help with COVID-19 protective measures

Ottawa funds extra transportation, sanitizing for crews

Trudeau apologizes for not recusing himself from WE decision

He says his and his family’s longtime involvement with the WE organization should have kept him out of the discussions

Most Read