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

County of Paintearth raising alarms over proposed oil and gas assessment changes

A change in the assessment model used for oil and gas will impact the tax revenue rural municipalities collect

COVID-19 tests urged for all teachers and school staff

121 new cases Wednesday, active cases up to 1,040

Pay bills, reduce spending, emergency funds: Canadians polled on COVID financial priorities

Credit Canada Financial Priorities Poll reveals short term mindset

Alberta’s active COVID-19 cases continue to trend downwards

85 new cases Tuesday, active cases sit at 1,004

Charges likely in fatal attack at central Alberta medical clinic: RCMP

A vigil was held Monday night to mourn the victim

New Tory leader must build a strong team in Commons and for the campaign: Scheer

Scheer marked his final day in the House of Commons today as leader of the Opposition

Man accused of killing Red Deer doctor says he does not remember attack

Appearing before a judge, Deng Mabiour, 54, rambled about being sick and needing a doctor

Deaths feared after train derails amid storms in Scotland

Stonehaven is on the line for passenger trains linking Aberdeen with the cities of Edinburgh and Glasgow

Man, 54, charged in connection with fatal attack of Red Deer doctor

Doctor was killed in his walk-in clinic on Monday

Joe Biden selects California Sen. Kamala Harris as running mate

Harris and Biden plan to deliver remarks Wednesday in Wilmington

Donations pour in for family of doctor killed in Red Deer attack

Man has been charged in connection to death of Red Deer doctor

Vigil held in Maskwacis for 10-year-old boy

Samson Cree Nation comes together for comfort, console each other

Cuts to environmental monitoring budget In Alberta’s oilsands are viewed as reckless

The 2019-2020 budget saw $58 million dollars being dedicated to environmental monitoring

Most Read