"Completely unjustified" magazine mailing costs to increase 3% next January

Canada Post is going to raise Publications Mail rates 3% on January 1, 2010, a hike that Magazines Canada says is "completely unjustified". The magazine association has said in a bulletin to its members:

While CPC expressed its sensitivity to the economic downturn and understands the need to attenuate rate increases while the economy recovers, a weighted rate increase of close to three per cent fails to demonstrate any such understanding. The increase is on par with rate increases over the past few years, as well documented in a recent analysis of CPC rate and services history. A three per cent increase is well beyond inflation and totally out of step with pricing of other products and services to the magazine sector in the current economy.

Magazines Canada president Mark Jamison sent a letter asking CPC to reconsider and cut the increase to zero. It has written in a similar vein to Rob Merrifield, Minister of State responsible for Canada Post Corporation, and to James Moore, Minister of Canadian Heritage and Official Languages.

It was pointed out to Canada Post that it

• has enjoyed a $15 million saving, since it will no longer have to financially support the Publications Assistance Program;
• has received permission to exceed regulated rates on lettermail, something Magazines Canada endorsed; and
• based its projected 3% on anticipated increases in fuel costs, which have since moderated.