Iedm analysis does not hold: This article explores the topic in depth.
Moreover,
In a recent Economic notethe Montreal Economic Institute (IEDM) pleads in favor of the privatization of Canada Posts. Moreover,
The authors suggest that Canada should do like Germany and introduce competition in the postal sector. Meanwhile, Their hypothesis wants by subjecting Canada Posts to the economic pressures of the market. Similarly, the financial company’s financial situation will improve and the population will benefit from affordable and better quality postal services.
IEDM analysis does not hold water. Therefore, Here are three reasons among others.
First, the authors suggest that competition would force Canada Posts to reduce its postal rates. Therefore, The problem? Despite the liberalization of its postal sector. its population density, almost 60 times that of Canada, the postal prices of Germany exceed ours, even taking into account the recent increase of 25 under Canada.
It is not proven that the competition makes it possible to limit the price increases.
In fact. a study by the office of the Inspector General of the United States Public Public Service even reveals that between 2018 and 2023, the postal prices of Germany increased by 21 %, while those of Canada, by barely 7 %.
Fiasco in the United Kingdom – Iedm analysis does not hold
Second. by speaking only from Germany, the authors omit the many examples that contradict their argument, like the Royal Mail in the United Kingdom. Its privatization was a real fiasco.
In December 2024, the British communications regulator imposed a fine of 10.5 million pounds for frequently failed in its service objectives. The height, since 2022, the price of a first class stamp has doubled, from £ 0.85 to £ 1.70.
Third. it is distressing iedm analysis does not hold to note the little consideration that the authors give to the populations of rural or distant regions.
They admit without embarrassment that privatization would lead to both an increase in prices. a drop in postal services in these regions, more expensive to serve, but it does not matter since in the region, “the air is purer” and the “lower real estate prices” than in town.
Apparently, it is no longer necessary to have access to reliable and affordable postal services when the air is “pure”.
So should we privatize Canada Posts? The arguments of the IEDM are far from convincing.
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