MNI BRIEF: Canada Post Broke, May Lose CAD1.5B This Year- Govt

Canada's postal service is broke and the government says continued subsidies aren't the answer, the minister responsible Joel Lightbound told reporters Thursday as he faces a further showdown with unionized workers who have been taking job action for much of this year.

"Canada Post is essentially insolvent... repeated bailouts from the government are not the solution," Lightbound said at a press conference. He also disclosed the government-owned company is on track to lose another CAD1.5 billion this year after a prior annual loss of CAD1 billion, and potential losses of billions more in coming years at a time the government is seeking to slim program expenses. (See: MNI: Carney Deficits Are Bulwark Against Big Macklem BOC Cuts) He didn't mention the prospect of major job cuts to a staff of about 70,000, saying attrition could account for the bulk of any downsizing.