When the postal service doesn’t have to print postage, it can sell it online and save money online
Ottawa — When the Post Office says it’s not printing enough postage, the government can buy it online for pennies per letter.
And that means taxpayers could save hundreds of dollars a year.
The federal government can use the program for any letter or parcel that’s $5 or more.
But it’s limited to $1,000, the maximum amount the Postmaster General can collect per mail order.
“The Post Office is not printing the postage it needs,” said Postmaster John McLellan.
“That’s not something the Postal Service wants.”
That means some Canadians who send mail to Ottawa may have to pay for postage that could be sent overseas.
“There are a number of postal services that have started using this online service,” said McLelland.
“They’re actually selling them at a discount to people who can afford it.”
He says Ottawa’s going to have to find ways to cover the cost of printing postage, and that could affect other Canadian postal services.
But McLell and other Postmasters General say it’s a good idea to continue to make that money online.
“This is one way we’re trying to reduce costs for the taxpayer,” said McLeod.
“We’re not going to stop with this program.”
Ottawa Post has a $1-billion surplus that is used to pay bills.
And while it doesn’t buy postage, McLell says it can still pay for things like printing paper, making stamps and selling the paper to stores.
So if you’re wondering how much the Post is paying out for postage, just go to its website.
Postmaster general John McLelan says he’s not buying postage, but he’s saving money.
(CBC News) He says the Post will keep buying stamps and paper if the economy continues to improve.
“It’s the best way to do it,” said John McLellean.
But if the Post doesn’t keep buying postage for a while, it could lose money.
The program is meant to help postal workers who are underpaid and understaffed.
The government said the cost savings will only last through 2020.
The Postmaster says the program is working.
The agency says there have been more than $30 million in savings in the past six years, with $15 million in direct mail, $10 million in postal and courier service and $10.7 million in other benefits.