Procurement minister says loans to Canada Post aren’t a ‘long-term solution’

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OTTAWA - Federal Procurement Minister Joël Lightbound is defending the government's latest $1 billion loan to Canada Post but says federal support can't be a "long-term solution" for the Crown corporation.

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OTTAWA – Federal Procurement Minister Joël Lightbound is defending the government’s latest $1 billion loan to Canada Post but says federal support can’t be a “long-term solution” for the Crown corporation.

The federal government is making $1.01 billion available to Canada Post in the form of a repayable loan to help the Crown corporation remain solvent and keep its services running.

The new sum is in addition to a $1.03 billion loan Ottawa announced in January 2025.

Minister of Government Transformation, Public Works and Procurement Joel Lightbound rises during question period in the House of Commons on Parliament Hill in Ottawa on Wednesday, Dec. 3, 2025. THE CANADIAN PRESS/Justin Tang
Minister of Government Transformation, Public Works and Procurement Joel Lightbound rises during question period in the House of Commons on Parliament Hill in Ottawa on Wednesday, Dec. 3, 2025. THE CANADIAN PRESS/Justin Tang

“It’s no secret that Canada Post has major financial problems and is going through an essential transformation time,” the minister said in French at a House of Commons committee hearing Tuesday.

Lightbound said it’s essential to ensure the corporation has the revenue it needs.

The minister also said that while Canada Post is a vital institution, it hasn’t been profitable for seven years.

He said the company needs to transform itself because Ottawa can’t continue to support it “in such a significant way.”

The federal government has said the latest temporary support is to ensure service is maintained while the organization initiates reforms to make it viable in the long term.

Lightbound unveiled a suite of changes to the postal service’s mandate in late September and gave the Crown corporation 45 days to deliver a plan to right the ship.

Canada Post said in an emailed statement Saturday that it continues to deal with “significant financial challenges.” It said it has submitted its proposed transformation plan to the federal government and is working to finalize it.

“The plan details the decisive action we are prepared to take to deliver the services Canadians need in a way that is financially sustainable,” Canada Post said.

This report by The Canadian Press was first published Feb. 10, 2026.

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