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C Outsourcing government services better for Canadians Dollars & Sense Peter Watson Guest Contributor 29 | Thursday, December 26, 2013 | OAKVILLE BEAVER | www.insideHALTON.com HERITAGE Lifestyle Home Furnishings Since 1977 anada Post is a nancial mess. At issue is whether our government's antiquated method of delivering services to its citizens needs a complete overhaul. Determining nancial priorities is what is at stake for all Canadians. Should we subsidize our recurring economic inef ciencies or redirect our tax dollars to areas of need, such as health, education and caring for an aging population? We have already experienced the ballooning provincial de cit, the billion-dollar cost for abandoning the Oakville and Mississauga power plants and the Senate's excessive, and poorly managed, spending habits. Canada Post's admission of massive nancial loss is not a unique example of government mismanagement. It is expected to lose $1 billion per year up to the year 2020. Its pension obligation is underfunded by more than $6 billion. On the surface, Canada Post's solution was to eliminate home delivery and signi cantly increase the cost of stamps. The more signi cant change is to shift the foundation of mail delivery. It will use a more ef cient business model to privatize more of its postal stations. A more cost-ef cient system If so, it should privatize all or most of our national postal system. Michael Warren, the former chief executive of cer of Canada Post, has supported this. It is a conversation Canadians need to have. Privatization doesn't mean the government should relinquish control, but it should delegate parts of the system to be cost-ef cient. One idea is to turn Canada Post into a real business with a small, ef cient, government-controlled head of ce for making policy decisions. The right to deliver our mail can be achieved by breaking up and tendering various parts of the delivery to independent companies that have competitively won the bid. This idea is for just mail. We don't need a government-controlled parcel delivery because free enterprise already offers this service. Maintaining the governance role, while delegating tasks on a price basis, would deliver a postal system free of the mismanagement that we as a country can no longer afford. BOXING WEEK With any change there is always resistance, so what are the possible concerns to a shift of this magnitude? First and foremost is the degree of quality control. The failures with mail security and timely delivery should have speci c consequences for those who are accountable. The delegation of tasks while maintaining control is important with any type of essential service. The largest human impact would be to thousands of Canada Post's current employees. Open negotiations are needed with a balanced solution fair for workers and the taxpayers, who essentially employ the workers. Free enterprise Free enterprise introduces the motivation for pro t, which is most effectively accomplished by investing in people, technology and ef cient operating procedures. If it is good for Canadians to outsource mail delivery, then what other government-controlled sectors can be more ef ciently handled by free enterprise? What is important is the risk of nancial losses are transferred from taxpayers to businesses. Outsourcing should be considered for all areas operated by the government. That would most certainly include the distribution of beer and liquor. With a new degree of control over government services and the cost to taxpayers, Canadians can vote for the services they want and the level of tax they are willing to pay. It is time for us to modernize the way we manage our country by reducing the government's operational mistakes -- a much too expensive burden for Canadian citizens. -- Submitted by Peter Watson, MBA, CFP , R.F .P ., CIM, FCSI., Certi ed Financial Planner SALES EVENT Down Sofa $1399 Queen $899 UP TO 90 9 0 S LE SA DAY FURNITURE BOXING ELECTRONICS Y Y AY AY A A DA DAY D D THURS DEC 26 APPLIANCES BOXING MATTRESSES th BOXING DAY G IN XING % BOXING B DOORS OPENSA @ 6LE AM E LE S L SA S SAVE Y A AY DAY D $ XINGBOX Y XING XING OXING BOXING BO 300 DA LE A S SEE ! OUR FLYER IN TODAY'S PAPER LE ALE SA S OFF $ Y A AY DAY D 898 BOXING B 60" PLASMA 1080p 600 Hz 2 HDMI Tables from $1799 Welcome to different FIRST 100 CUSTOMERS CHAINWIDE A AY DAY #87275 4205 Fairview Street, Burlington 905-634-5298 www.heritagefurniture.ca