Starting in January, Canadians purchasing a newly-constructed home could be faced with a new charge of at least $200 for a mailbox.
Last week Canada Post announced it will begin charging developers $200 per address to install community mailboxes in new subdivisions or commercials developments starting in 2013 (condominiums will be exempt).
Those purchasing new homes won’t be directly charged and Canada Post officials have stated it will be up to developers to pass along the cost to homeowners.
“For the last 20 years or so we’ve been covering the full cost,” said Canada Post spokesman Jon Hamilton. “We just can’t afford to continue to [do that].”
Hamilton explained the $200 fee will help cover a portion of the cost to install the mailboxes and activate the new addresses.
John Sloot, president of the Guelph and District Home Builders’ Association, said the move caught local builders off guard.
“I’m a little surprised,” Sloot told the Advertiser on Tuesday. “It would have been nice to get more notice … [and] to have been consulted.”
Sloot, also the president of Sloot Construction Ltd. based in Arkell, said the Canada Post is “passing the buck” and leaving developers with little choice but to pass the cost on to home buyers, who are already facing rising real estate prices.
“Nobody’s happy,” he said.
“It’s like everything else that gets passed on … everyone continues to download and expects the builder to absorb the costs. It’s frustrating.”
Hamilton said Canada Post has already received feedback on its new fee, including from frustrated builders such as Sloot.
“Some people aren’t happy and we certainly understand that,” said Hamilton.
He added such a reaction is always expected when introducing a fee for what previously was provided for free, but Canada Post has a mandate to provide service and also be self sustaining financially. Hamilton considers the fee similar to those charged to developers by municipalities.
Sloot explained developers may have to add their own surcharge, meaning the new cost for homeowners may be closer to $250. And while that may not be a huge cost compared to the overall price of a house, he added, it means big money for Canada Post. He estimated there are 186,000 new homes proposed across the nation over next year, which translates into over $37 million in revenue for Canada Post from the new charges.
“If they’re short on revenue, they should have raised prices across the board, instead of putting it on one select group,” Sloot said.
In regards to the fee amount, Hamilton said, “We’ve tried to hit a price point that’s reasonable for the value we’re adding.”
Hamilton told the Advertiser mail volume has decreased steadily over the past seven years in an age of email, texting and social media. The crown corporation reported a 2011 loss of $327 million before tax (a portion of that attributed to a 25-day shutdown). During the first two quarters of 2012, Canada Post reported a before-tax loss of $23 million.
Sloot said he has not received confirmation on whether the new fee will be applied only to new subdivision plans filed after Jan. 1 or to all new homes completed after the new year.
“There wasn’t much of an explanation provided,” said Sloot, adding how and when Canada Post will collect the fee is also unclear.
