House panel approves US Postal Service reform
A House committee on Wednesday approved what would be the first overhaul of the U.S. Postal Service in 34 years, giving it the flexibility it needs to compete against new technology and aggressive rivals.
The legislation, 10 years in the making, is aimed at making the USPS more competitive in a new business environment where e-mail has reduced mail volume and private companies have taken away business.
The 40-0 vote for the legislation indicated strong bipartisan backing.
Republican leadership has pledged to bring the bill to the House floor this session. In the Senate, the Governmental Affairs Committee is set to consider similar legislation.
Under the bill, the Postal Service would continue to guarantee delivery six days a week to every address in the United States.
A new system for establishing postal rates would be established. Rate increases for market-dominant products such as letters and periodicals would not exceed the annual change in the Consumer Price Index. The Postal Service is provided with different pricing freedom for products that compete with FedEx Corp. and United Parcel Service.
The bill also frees up $73 billion in civil service retirement savings that had been held in escrow, allowing the Postal Service to use the money to defray rate increases and for other purposes.
A new Postal Regulatory Commission, with subpoena powers, would oversee rate changes.
The 143-page bill incorporates some recommendations offered last year by a presidential commission on postal restructuring.
The Postal Service processes and delivers 208 billion pieces of mail to more than 130 million addresses in the United States every year. More than 9 million American jobs, $900 billion in commerce and 8 percent of the gross domestic product depend upon mail and package delivery.
SOURCE: The Journal of Commerce
