Hon. Eric W. Kierans (Postmaster General):
Mr. Speaker, I have a declaration to make; and I may say we are getting out these declarations before the study of the post office bill in order that all members of this house may have a better and broader idea of some of the changes that are being made in the post office.
The cost of post office money orders will increase as of November 1. Increased revenues of approximately 25 per cent are expected from the new fee structure. These increased revenues will not balance the money order operation now, but when coupled with a new money order system which will be fully operative by 1970, this service will then begin to pay its own way.
The new fee structure simplifies the money order operation in that seven fees only are required for the transmission of money in amounts up to $100 to any point in Canada or to any country with which the Canadian post office has an agreement for the exchange of money orders.
While the maximum fee of 25 cents per $100 in Canada remains unchanged, a minimum charge of 10 cents has been introduced. The complete schedule of fees is as follows. Money orders for less than $1 will now cost 10 cents; less than $5 will cost 15 cents; less than $15 will cost 20 cents, and up to $100 will cost 25 cents. Money orders in all amounts to the United States will cost 25 cents. Money orders to the United Kingdom of less than $10 will cost 25 cents; less than $50 will cost 50 cents and up to $100 will cost 75 cents. Money orders to other countries up to $50 inclusive will cost 75 cents and from $50 to $100 will cost $1. We expect to recover about 82 per cent of our costs for the money order system. Therefore it can be seen that pressure remains on the department to introduce new, efficient and modern techniques in order that it may recover the additional 18 per cent,
which is something of the order of $2,500,000.
I do not think the public would forgive us if we solved our problems only by increasing rates.
Subtopic: ANNOUNCEMENT OF INCREASE IN MONEY ORDER FEES