Darrell Greer
Northern News Services
Rankin Inlet (Nov 13/00) - Northerner postal rates are on the way up, says a spokesperson for Canada Post.
John Caines, manager of media relations, said the rate increases are part of a cost-recovery program Canada Post started in 1997.
"For many years, people in the North were getting a bargain," Caines said after the Rankin Inlet Chamber of Commerce complained about rising postal rates.
"We set out a program which will take about four to five years to recover our costs," he said.
The alternative was "one big 100 per cent increase."
Caines said the cost recovery program will bump rates up again this year and rising fuel prices may also add to the cost of mailing goods in the North.
"Our competitors across the country increased prices last spring and added a fuel surcharge, some as high as five per cent," he said.
"We have not added the surcharge but I can't predict the future in terms of cost."
Caines said that Priority Courier, Express Post and expedited commercial regular parcels have met their pricing targets in the North and caught up with the rest of the country.
"The only one that's still lagging behind is the counter regular parcel," he said.
Caines said that Canada Post introduced a regional trading rate that takes some pressure off Northern businesses and promotes commerce within the region.
"Items remaining within the same postal code will be rated at the same code, resulting in costs actually going down," he said.
"We're working to get Northerners to ship locally if they can, which will reduce costs and hopefully increase their customer base."
