Canadian Magazine Industry News
2 July 2009,     OTTAWA
Canada Post to Magazines Canada: 3% hike is fair
It doesn't look like Canada Post is going to budge on its planned 3% rate hike for publications mail in 2010. The crown corporation has responded to protests from Magazines Canada about the hike by claiming that price increases for publications mail in recent years have been kept "to a reasonable level, well below our increasing costs to serve, and below increases for other Direct Marketing services."

The Canada Post letter, signed by Laurene Cihosky, senivor vice president of direct marketing, advertising and publishing, states, "Price increases are necessary to help offset the overall impact of rising network and operational costs."

In its original letter , Magazines Canada argued that there should be no price increase in 2010 due to lower fuel costs, Canada Post's ending of its annual $15 million commitment to the Publications Assistance Program, and the fact that the mail service has been allowed to go above regulated rates for letter mail.

Canada Post countered by stating that "fuel prices are on the rise again. In fact, some economists predict that fuel prices will remain high throughout the rest of the year."

The crown corproation also said the planned increase for 2010 "will be the lowest in many years."
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