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MPA Calls on Congress to Break USPS Cycle of Dependency on Rate Increases

Press release from the issuing company

(Wahington, DC, September 14, 2001) - The Magazine Publishers of America (MPA) today expressed extreme disappointment after an announcement by the U.S. Postal Service (USPS) that the agency will file for yet another rate increase. "Everyone except the Postal Service seems to agree that we need to stimulate the economy not depress it. The potential for a third rate increase in less than two years is highly distressing" said Nina Link, President and CEO of the Magazine Publishers of America. "The current cycle of increasing rates must end. We urge Congress and the Administration to step in and break the Postal Service's cycle of dependency on rate increases. Constantly increasing rates as a way to deal with structural problems will only spell eventual disaster for both the Postal Service and its customers." MPA believes that the proposed rate increase could have been prevented if the Postal Service had acted sooner and more aggressively to reduce costs and improve productivity. Earlier this year, MPA called on the Postal Service to cut costs and improve operating efficiencies by implementing a system-wide hiring freeze and consolidating mail-processing facilities. "MPA supports Postmaster General Potter's initial efforts (announced last Friday) to streamline the Postal Service bureaucracy as well as his proposed announcement on consolidation of plants to be effective in January," added Link. "These are good first steps, but there is still a long way to go."