There are many reasons why Canada Post should be eliminated, writes Peter Watson.
Should the government shut down Canada Post? Please consider this question from the perspective of the Canadian public.
The main financial priorities of Canadians are the high cost of living and the shortage of housing and medical care. The government has the task of setting priorities to direct its spending.
Historically, Canada Post is how we communicated with each other. Now it is significantly more efficient and popular to use some of the modern tools of communication.
Grandparents speak with their grandchildren via FaceTime. Friends and family send short and instant notes to each other via text. Emails tend to be used for longer sources of communication, including documents that can be sent and signed electronically.
Packages can be sent by Canada Post; however, there are many firms that can deliver packages as well.
The idea for this article came because of rotating strikes by Canada Post. The union wants higher wages. The government must consider current priorities and therefore how to allocate funds.
The question is not whether workers should get a pay raise. The larger issue is should Canada Post be eliminated?
Many think it is in the best interest of us all if the government looks to business to provide services. There is a recent example of this. The Ontario government just negotiated a $100 million deal with Starlink. The company will provide internet to 15 thousand houses and businesses in northern Ontario.
Starlink is one of the companies started by Elon Musk. Musk is best known for building Tesla electric cars and spaceships.
Starlink has a successful history of providing high quality internet service. Better for the province to outsource that challenge to a non-government company than attempting to deliver internet on its own.
Back to the initial question: If you had a senior position in the government, would you suggest eliminating Canada Post?
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
