Canada Post has signed, sealed and delivered a new fee to housing developers intended to help pay for mail boxes in new communities.
Beginning in January, developers will be charged $200 per address to help cover the cost of community mail and parcel boxes (CMPBs) which have been installed instead of mailboxes at each individual home since the late 1980s.
Despite an increase in parcel delivery attributed to online shopping, the move comes as a cost cutting measure in the wake of a $327-million loss last year for Canada Post, greatly due to the decline in paper mail.
“For decades we’ve covered the cost of the installation (of CMPBs) as well as maintenance, snow clearing and actual delivery of mail and parcels,” said spokesman Jon Hamilton.
“We just can’t do it anymore.
“We need to recover some of the cost of installing these boxes.”
Approximately 3.8 million households across Canada use CMPBs.
While Hamilton could not offer a dollar figure for how much a box costs to install and maintain, he said “they have to be built to last a long time, they have to be secure, they have to survive many Canadian winters.”
Canada Post says residential and commercial developments add up to 200,000 mailing addresses annually, increasing the postal operator’s costs by “millions of dollars a year.”
The new fee, which won’t apply to apartments and condos, is not sitting well with the local developer community.
“We’re not pleased at all — it’s an extra cost that’s going to get passed onto the home buyer,” said Michael Flynn, executive director of the Urban Development Institute.
“It erodes affordability of houses and the competitive advantage of having an affordable product for people.”
Flynn said he’s seen these kind of charges thrown in on a local level before, for infrastructure like rec centres and fire halls, but never nationally.
Both he and Carol Oxtoby, president and CEO of Heritage Pointe Properties Inc. and past president of the Canadian Home Builders’ Association Calgary region, say they saw no “stakeholder engagement” from Canada Post.
“We were blind-sided by this announcement,” said Oxtoby.
“It’s fundamentally unfair that new home owners are going to incur this cost.”
Oxtoby said it’s particularly unfair that homeowners in established communities don’t have to pay the fee, yet many of them have mail delivered directly to their homes.
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