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AF&PA Statement on Mark Up of House Postal Reform Act

Friday, March 17, 2017

Press release from the issuing company

WASHINGTON – American Forest & Paper Association (AF&PA) President and CEO Donna Harman today issued the following statement regarding the passage of the Postal Service Reform Act of 2017 in the House Oversight and Government Reform Committee.

“We appreciate Chairman Chaffetz and Ranking Member Cummings’ leadership on the introduction of legislation aimed at improving the financial viability of the U.S. Postal Service. AF&PA’s top priority in comprehensive postal reform is rate stability and customer service if mail is to compete with ever-increasing options to reach consumers. We support legislative measures that help the USPS achieve long-term viability by realigning its outdated cost structure, encouraging new revenue sources, and leveraging its unique infrastructure to meet the service needs of future customers. 

“While we agree that USPS must seek ways to grow revenue and innovate to increase its value to customers, it is equally important that future postal rates enable the mail to be a cost competitive option for business-related communications, which represent 90 percent of mail volume.

“Acknowledging the critical need for legislation we recognize that the proposed 2.15% rate increase in the Committee’s proposal may be a component of comprehensive reform. We strongly oppose rate increases that are not a part of comprehensive reform that addresses the root causes of financial insolvency, implements checks and balances to provide long-term price predictability for mailers, and encourages cost-control incentives for the USPS.

“AF&PA looks forward to working with the Committee as this bill moves forward to ensure that the vital services provided by the Postal Service are maintained for all Americans.”

 

 

Discussion

By Joe Webb on Mar 19, 2017

We don't need rate stability, we need rates to precipitously fall -- or rise -- based solely on the demands and needs of a marketplace, just like all other prices are set for all of the other goods we buy. Note that the markets with the greatest price interventions are education and health care, and how those prices have risen and continue to rise higher than the Consumer Price Index for years. Yet other prices, like technology, energy, non-insured medicine (plastic surgery, optical surgery like Lasik) have been much lower than the general price level.

 

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