It's time to privatize Canada Post

Canada Post's request for a 25% increase in the price of stamps puts the question of privatization back on the table.  

Time to finally privatize Canada Post | Fraser Institute | Vincent Geloso, Assistant Professor of Economics, George Mason University"

September 25, 2024 - "Canada Post wants to increase the price of a stamp by 25 cents to $1.24 to keep up with inflation and rising costs. But Canada Post has often relied on this reasoning for previous price increases since it stopped being a government department and became a Crown corporation in 1981. Since then, it’s jacked up prices every time it’s had 'financial difficulties.' The source of these difficulties has changed over time.... The answer is, however, always the same. Prices must increase. Indeed, since 1981 stamp prices have increased 98 per cent (after adjusting for inflation). In other words, the price for stamps have increased far beyond the rate of inflation.

Canada Post LLV, 2010. Photo by Kristoferb. 

CC BY-SA 3.0, Wikimedia Commons.

"Why does Canada Post keep getting away with this? Because it has a monopoly over most of the letter market in Canada. And while it competes with private companies ... in the parcel market, Canada Post can borrow money at much lower costs than its rivals because it is a Crown corporation ultimately backed by taxpayers.... 

"Normally, a company facing losses and declining demand would innovate and reduce costs.... However, due to its monopoly over most of the letter market, Canada Post lacks this incentive. In can simply pass the burden onto consumers by raising prices, which is exactly what it has done since the 1980s. And as a Crown corporation, it cannot be purchased by another company without express approval from Ottawa. So, what’s the solution?

"In Europe, due to a directive from the European Commission, all letters regardless of weight have been open to competition since 2013. The directive does not mandate the privatization of state-owned postal companies; it simply ends postal monopolies. Combined with local liberalization efforts before 2013, this directive has forced state-owned postal service providers to better control costs because they cannot turn to taxpayers (for subsidies) or consumers (by raising prices) to bail them out. 

"Some countries such as the Netherlands, Austria and Germany [and Britain when still in the European Union - gd] went further and privatized their postal operators.... In the 10 years following privatization, prices for stamps and other postal services fell by 11 per cent in Austria, 15 per cent in the Netherlands and 17 per cent in Germany (adjusted for inflation). All these countries now have lower postal prices than the European average.

"Predictably, postal service providers in these countries found new methods of organizing their activities, tying multiple services together to generate economies of scale, and moved fast in adopting new information and logistical technologies. Due to the incentives of competition, providers focused their efforts on controlling costs — a focus Canada Post will never achieve as long as it’s a Crown corporation with a monopoly....

"Policymakers in Ottawa should finally put postal liberalization and privatization on the table. Otherwise, it’s only a matter of time before a new problem emerges, which Canada Post will use to justify another price increase."

Read more: https://www.fraserinstitute.org/article/time-to-finally-privatize-canada-post

Why We Should Privatize the Postal Service | ReasonTV | October 6, 2017:

Ont. liquor store workers strike to stop privatization

Ontario liquor store workers have gone on strike to convince Ontarians to oppose the Ford government's limited privatization of alcohol sales. But shutting down their monopoly and threatening us with a "dry summer" may have the opposite effect.  

LCBO Workers Strike Against Privatization | X:

July 6, 2024 - "In Ontario, LCBO {Liquor Control Board of Ontario] workers are on strike for the first time in the corporation's 97-year history, protesting against the government's plan to open up the alcohol market to private interests. The strike is seen as a fight to protect public services and jobs, with the LCBO generating $2.5 billion in profits annually, which are used to fund healthcare, education, and public services. Critics argue that the government's plan to privatize alcohol sales will lead to a loss of revenue for the province and negatively impact public services."

Read more: https://x.com/i/trending/1809465789466001415

LCBO strike closes Ontario liquor stores across province | CBC News: The National | July 5, 2024:

LCBO strike puts privatization on agenda | Toronto Sun | Brian Lilley:

July 5, 2024 - “'Tonight, Ford’s dry summer begins,' Colleen MacLeod, chair of the union’s bargaining team, said on Thursday ahead of the strike. MacLeod said that if Ontario residents can’t get the alcohol they want this summer, it will be because of Premier Doug Ford. Actually, because of several moves Ford made over the last several years, residents of the province will still mostly be able to get the drinks they want despite the strike.

"Since the depths of the pandemic, any restaurant or bar that sells alcohol has been able to sell alcohol to go. That means every restaurant or bar in the province can act as a de facto liquor store. While in most instances these outlets charge more, there will likely be some enterprising operators who take advantage of the strike to sell booze at a reasonable price.... There are also craft distillers, craft brewers and wineries across the province that can sell their products from their own production facilities. The province will even be promoting locations where residents will be able to find alcohol to purchase from The Beer Store to local Wine Rack locations, local producers to pop-up bottle shops.... Oh, and starting in less than a month, the expansion of sales in grocery and convenience stores will begin.

"Does the union realize that they aren’t fighting a losing battle but a battle the province has already won? Do they not realize that their actions are proving why having a unionized government monopoly of alcohol sales is a bad idea?

"The union relied heavily on the idea that alcohol sales at the LCBO fund health care and education and without the sales coming through LCBO stores, the funding for those services would be lost.... LCBO turns over $2.5 billion to the province each year and that money does help fund services. Yet, if we look at other provinces, we can see that the government can still earn money from alcohol sales without controlling all aspects of the sale, warehousing and wholesaling of the product. 

"Quebec has a hybrid model of alcohol sales with beer and wine widely available in private stores while also operating the SAQ, the government-run liquor store chain. Alberta has a fully private model for retail and has for more than 30 years. Both Quebec and Alberta earn significantly more per capita from alcohol via taxes and fees than Ontario does via the LCBO. And often, the prices in those provinces are lower than they are in Ontario.

"If having a government monopoly on booze doesn’t bring consumers lower prices and it doesn’t bring the government more revenue, then what is the point of having one?"

Read more: https://torontosun.com/opinion/columnists/lcbo-strike-puts-privatization-on-the-agenda

Canada ranks low in health-care outcomes

Canada ranks near last place among OECD countries for health-care outcomes, well below those countries with hybrid public-private health systems.

Canada ranks near last place in OECD healthcare rankings | The Suburban | Charles S. Shaver, MD:

August 17, 2022: "Ontario Health Minister Sylvia Jones stated that she was 'looking at all options,' but was strongly criticized because this might lead to increased privatization. Of note is that health care is already 30% privately-funded in Canada. Meanwhile, Quebec is short 8,000 health workers compared to last summer. As a result, it is partially closing six emergency departments and will reduce services in some neonatal units.

"Yet consider countries ranked highest for health outcomes and wait times such as Denmark, Austria, France, Germany, and Belgium. They all have in common universal healthcare that covers everyone, but also a hybrid public-private system..... [W]e need to look at Europe — not the United States — to see what these countries are doing right. [As] Vancouver orthopedic surgeon Dr. Brian Day stated, 'Canada is the only country in the world where accessing private health care is outlawed, and where you’re forced onto a state wait-list of harm'....

"from 1997 [through] 2021, the cost of our public health insurance has increased by 210.2%. We spend over 11% of our GDP on health care — more than 27 comparable [OECD] countries. Yet among OECD countries, we are 25th of 26 in acute care beds/1000 population, 26th of 28 in MDs, 14th of 24 in nurses and 21st of 24 in MRI scanners....

"Residents of Nova Scotia face long waits in the emergency department and last year 43,000 left without being seen. At least 15 ERs have closed in British Columbia, 20 in Ontario, six in Quebec, three in New Brunswick, one in PEI, and a dozen in rural Newfoundland and Labrador. Most of this is due to a severe staffing shortage, especially of nurses. Last September, nearly half of Nova Scotia nurses worked overtime — the highest of any province. Many across Canada are burning out from poor working conditions and lack of financial incentives, and are leaving for Alberta or the United States.

"The Ontario College of Nursing processed only 2,000 applications last year and 4,300 to date this year; 26,000 are still waiting. Ironically, a nurse from Windsor recently applied for a licence in Michigan and was approved in only four days. Foreign-trained MDs are likewise limited. An advocacy group represents over 1,200 international medical graduates who have not yet been able to obtain a licence to practice in Canada. Of note is that last October, the Labour Mobility Act now requires Alberta regulatory bodies to review and accept or reject credentials within 20 business days; Quebec and all provinces should follow this example.

"Our Canadian health system is in crisis due to lack of adequate federal funding, a severe shortage of nurses and other health professionals, and the need to revamp the system to look for efficiencies. Germany has twice the population of Canada, yet we have 10 times as many health administrators. Money could be saved by pruning the bloated number of paper-pushers in hospitals and ministries of health, and redirecting savings into hiring more nurses and other health workers.... 

"[I]n Ontario, nurses’ salary increases have been limited to 1% annually by Bill 124, which should be repealed. Many orthopedic and other surgeons are underemployed and the increased money could provide increased OR time (possibly in privately-funded free-standing facilities) to shorten wait times for knee and hip replacements and cataract extractions.... One obvious fear of increased privatization is that nurses, MDs, etc. will leave the public system for the private one, leaving the former even more short-staffed. Hence ... adequate sick benefits and other financial incentives must be provided in the public system immediately so as to encourage nurses and other to return to the workforce....  

"If federal transfer payments do not increase and various creative means are not found to alleviate the staffing shortage, the status quo will continue. Most Canadians will continue to wait, many will suffer, and a few will die unnecessarily.... We must be open-minded, not fear change, and should learn from Europe how to successfully blend public and private systems so as to be more efficient and yet fair to all patients and health professionals."

Read more: https://www.thesuburban.com/opinion/op_ed/canada-ranks-near-last-place-in-oecd-healthcare-rankings/article_50a29114-868a-5436-a367-5094701fc325.html

Canada's health-care system is a laggard. Here's how the top-ranked countries do it | The Hub Canada | November 21, 2022:

NB cannabis monopoly lost $11.7M in first year

Cannabis NB lost $11.7M in its first year of operation | CTV News:

May 1, 2019 - "New Brunswick Premier Blaine Higgs says he'll look at all options, including privatization, after the province's Crown-owned cannabis retailer recorded a big financial loss in its first year of operation. Unaudited year-end results released Tuesday show Cannabis NB lost $11.7 million.

"Higgs said Wednesday  he wasn't surprised the operation lost money, and the government will look at whatever needs to be done to ensure that it is not a drain on the public treasury. He said the province will look for the best model to protect both consumers and taxpayers, and that could include privatization....

"Higgs noted that other provinces, including neighbouring Nova Scotia, have combined their liquor and cannabis sales in the same stores, while New Brunswick built stand-alone stores for Cannabis NB.

"Last October, then Cannabis NB president Brian Harriman said with overhead and start-up costs, he hoped the 20 stores would at least break even in their first fiscal year.

"As the parent company, NB Liquor will consolidate Cannabis NB's results into its year-end results."

Read more: https://www.ctvnews.ca/business/cannabis-nb-lost-11-7m-in-its-first-year-of-operation-1.4403782
'via Blog this'

Shutdown renews call for air traffic control reform

Airline industry may renew calls for privatizing air traffic control - Business Insider - Rachel Premack:

January 27, 2019 - "The longest-ever government shutdown ended Friday, totaling 35 days. And for airlines, the effects of the shutdown can be quantified in tens of millions. Southwest Airlines said the government shutdown cost it more than $10 million. Delta said it lost $25 million in revenue during the month of January.... Federal airport workers were hit particularly hard by the shutdown, as they were forced to work without pay and missed two paychecks....

"Cowen analysts wrote in a note to investors on Friday that the myriad issues that the government shutdown foisted upon the airline industry would strengthen arguments in favor of privatizing. '[I]n our view, this is another major factor in airlines' support of setting up a private company to manage the country's air space,' Cowen analysts Helane Becker, Conor Cunningham, and Tyler Seidman wrote.

"Trade organization Airlines For America (A4A) is a major champion for the privatization cause. A4A's members include UPS, FedEx, United, Southwest, and ... six major airlines.

"In June 2017, President Donald Trump outlined a plan to 'modernize' America's skies. One of the more controversial components of that plan was to privatize the air traffic control system, which he said would help quickly update outdated technology and cut costs for consumers.

"A4A agreed with Trump's plan. 'Flight delays cost the economy $25 billion last year, and our antiquated ATC system is responsible for almost half of those delays,' the organization wrote.

"'If you look at service between the Eastern US and the West Coast, flight times today are much longer than they were 20 or 30 years ago ...' Hawaiian Airlines Chief Commercial Officer Peter Ingram told Business Insider's Benjamin Zhang in 2017 ... 'because we confine ourselves to a fraction of the available airspace because we simply don't have the ATC infrastructure to be able to support taking full advantage of that'....

"No part of Trump's modernization bill has gone through yet, but Cowen analysts said that the shutdown could certainly bolster the need for the privatization component. 'To date, bills in Congress to set up a separate corporation to manage air traffic control have gone nowhere,' they added. 'This issue could be a turning point for change.'"

Read more: https://www.businessinsider.com/airline-industry-may-renew-calls-for-privatizing-air-traffic-control-2019-1

'via Blog this'

Sell Ontario Northland under right conditions, says Libertarian

Sell the ONTC says Libertarian candidate...maybe! - Jeff Turl, BayToday:

June 2, 2014 - "Derek Elliott, Libertarian Candidate For Nipissing MPP, knows that's not a popular view, but says there is no bigger issue in this riding right now than the ONTC [Ontario Northland Transportation Commission] divestment.

"'We are for people having diverse, affordable and available transportation options. We are for the free market being allowed to provide options that people want. The Ontario Libertarian Party and I are against tax dollars funding any corporation whether it be public or private.'

"That said, Elliott believes the goal is to be saving tax payer dollars.

"'And if selling ONTC will result in more expenses than it occurs now it would be ridiculous to sell it off. We definitely want an end goal with the organization to eventually get it off government books. I personally believe we have the best skilled and hardest working people in that industry right here in North Bay and if we can create an environment that would allow a private organization to step in and operate so these skilled workers can keep the long tradition of rail work in this city myself and the Ontario Libertarian Party will do just that.

"'I am aware there will be some that will not like that position but I will always give an honest answer on the issue and not play politics with these people['s] livelihoods,' Elliott continued."

Read more: http://www.baytoday.ca/content/news/details.asp?c=62630 
'via Blog this'

Public vs. private

Public parts | Freedom quest of Zork (the) Hun :

April 6, 2014 - "What exactly is private about a grocery store? It cannot exist without the public. The reason for its very existence is to serve the public. No private business can exist unless it serves the public. We know that private businesses serve the public because the public is willingly bringing money to them to exchange it for the goods and services they offer. There is nothing more ‘public’ than a private business doing business with the public.

"The only difference is that what the Communist Broadcasting Corporation calls ‘private’ are initiatives of people who are willing to bet their own money to provide a service that they believe the public wants while ‘public’ are the ones that for sure cannot survive without the coercive taxation power of the government.

"How did we get to a world where something that is in fact serving the interest of the public is called ‘private’ while something the members of the public would not want to pay for from their own pocket is called ‘public’? How did we get to this upside down world where nobody even seems to notice the irony and have serious discussions about the subject, with self-serving politicians parading under the banner of 'Public Interest'?"

Read more: http://zorkthehun.wordpress.com/2014/04/06/public-parts/
'via Blog this'

Private city under construction in Nigeria

New, privatized African city heralds climate apartheid | Environment | theguardian.com -Martin Lukacs, True North, The Guardian:

January 21, 2014 - "Just off Lagos, Nigeria's coast, an artificial island is emerging from the sea. A foundation, built of sand dredged from the ocean floor, stretches over ten kilometres. Promotional videos depict what is to come: a city of soaring buildings, housing for 250,000 people, and a central boulevard to match Paris' Champs-Élysées and New York's Fifth Avenue. Privately constructed, it will also be privately administered and supplied with electricity, water, mass transit, sewage and security. It is the 'future Hong Kong of Africa,' anticipates Nigeria's World Bank director

"Welcome to Eko Atlantic, a city whose 'whole purpose', its developers say, is to 'arrest the ocean's encroachment'.... To defend against the coastal erosion and flooding, the city is being surrounded by the 'Great Wall of Lagos', a sea defence barrier made of 100,000 five-ton concrete blocks. Eko Atlantic will be a 'sustainable city, clean and energy efficient with minimal carbon emissions,' offer jobs, prosperity and new land for Nigerians, and serve as a bulwark in the fight against the impacts of climate change."

Read more: http://www.theguardian.com/environment/true-north/2014/jan/21/new-privatized-african-city-heralds-climate-apartheid
'via Blog this'

British government to privatize the Royal Mail

Government to float Royal Mail on stock exchange 'in the coming weeks' - Robert Neate, The Guardian:

September 12, 2013 - "The government has confirmed it will sell off Royal Mail in 'the coming weeks' in the most contentious privatisation since the sale of the railways two decades ago.

"Vince Cable, the business secretary, on Thursday formally fired the starting gun on the £3bn sale by filing a formal 'intention to float' on the stock exchange within six weeks. At least half of the company will be floated and the size will be increased if there is sufficient demand from investors.

 "The sell-off of the 497-year-old postal service is forcefully opposed by the union, who are planning strike action timed to coincide with the sale....

"Margaret Thatcher, who privatised British Gas, British Airways, British Telecom and dozens of other state-owned institutions in the 1980s, famously refused to countenance a sale of Royal Mail, saying she was 'not prepared to have the Queen's head privatised'. Lord Heseltine and Lord Mandelson both subsequently tried but failed to sell the company, in the face of intense opposition.... 

"The sale of Royal Mail was approved by parliament in the 2011 Postal Services Act."

Read more: http://www.theguardian.com/business/2013/sep/12/government-float-royal-mail-stock-exchange-privatisation

Ford moves to privatize garbage collection

Ford moves to privatize garbage collection - thestar.com - David Rider & Daniel Dale, Feb. 7:

"Mayor Rob Ford’s mission to privatize city services has started with curbside garbage pickup for 165,000 Toronto homes, and members of his inner circle say it is just the beginning.

"Ford said Monday the city had faxed the Canadian Union of Public Employees Local 416 notice of intent to contract out trash collection west of Yonge St. to the border of Etobicoke, where pickup is already privatized.

"A delighted Deputy Mayor Doug Holyday said minutes later, 'we’ll have to see how this works,' but many more services are begging to be contracted out.

“'There certainly are a lot of things that we could look at, and anything that’s labour-intensive here is very expensive, we know that the cleaning of police stations . . . cutting grass and digging and labour-type work. We pay pretty good pay around here — a lot better than the people who pay the (tax) bills get,' he said.

"Councillor Doug Ford, the mayor’s brother and closest adviser, told fellow members of the budget committee at a Jan. 21 meeting: 'We should outsource everything we can,' in 2012."

http://www.thestar.com/news/article/934406--ford-moves-to-privatize-garbage-collection

Private garbage collection for Hogtown is an idea that I've been advocating since the great strike of 2002; please read my 2009 article,

Talking Trash - http://www.nolanchart.com/article6564.html