Copyright 1999 Federal News Service, Inc.
Federal News Service
FEBRUARY 11, 1999, THURSDAY
SECTION: IN THE NEWS
LENGTH:
832 words
HEADLINE: PREPARED TESTIMONY OF
STEVEN R.
SMITH
PRESIDENT
NATIONAL RURAL LETTER CARRIERS' ASSOCIATION
BEFORE
THE HOUSE GOVERNMENT REFORM COMMITTEE
POSTAL SERVICE SUBCOMMITTEE
SUBJECT - HR 22 --
POSTAL REFORM
BODY:
Good
Afternoon Mr. Chairman and Members of the Committee. I am Steve Smith President
of the 97,000 member National Rural Letter Carriers' Association. Most rural
letter carriers drive their own vehicles while serving as a post office on
wheels. Daily, we travel more than 3 million miles to 27.4 million delivery
points on 63,000 rural routes across the United States.
Background
In
the late 1960's the old Post Office Department was in crisis, huge amounts of
mail weren't being delivered. Action by Presidents of two different political
parties resulted in the Postal Reorganization Act of 1971 and for 25 years the
PRA framework has served the mailing public, mailers and the country well.
Chairman McHugh, in response to changing competition, expanding alternatives to
the Postal Service, and postal officials' requests, you began to examine the
regulatory framework imposed by that legislation. You conducted comprehensive
hearings. You held endless private meetings with all organized groups concerned
and affected by reform legislation. You even utilized the Internet. You and your
staff have crafted a comprehensive proposal for change in the postal universe.
In the process of arriving at a proposal you have been thoughtful, open and
creative. That is why the NRLCA will remain supportive of your efforts to enact
comprehensive reform capable of carrying the
Postal Service into the 21st century. We remain cautiously
optimistic, pending proposed amendments, and the natural ebbs and flows of the
legislative process in both chambers and conference committee.
The Postal
Service is the only delivery organization whose mission is to go to everyone,
everywhere, everyday. USPS currently has an obligation to provide universal
service at uniform prices. That is our public service obligation. It is a fact.
It is not refutable. What is being questioned is whether the Postal Service uses
money from the monopoly to subsidize competitive or non-postal products. We
strongly believe it does not.
Our Competitors
NRLCA would like to make
several suggestions to our competitors. When a compromise is made, stick to it.
All parties agreed to the legislative language affecting representation at the
Universal Postal Union. It was a shame that an issue of bureau placement within
the State Department had to be elevated to the level of the Office of Secretary
of State.We hope our competitors learn the US Postal Service is not the
principal reason for their market share decline. The Postal Service did not
cause the UPS strike or business lost in Europe as a result of European postal
competition, referring to the Wall Street Journal article on January 18, 1999.
The Postal Service has merely 6% of the parcel post business.
Our
competitors further cite the proposition that USPS does not pay for tags or
taxes on vehicles. When this accusation is made, they omit the fact that most
rural letter carriers use their own vehicles to deliver the mail. Rural carriers
certainly do buy tags and pay all appropriate state and local taxes on their
vehicles.
Firewall Accounting
NRLCA has always remained somewhat
skeptical of the separate accounting concept for the competitive products. We
simply do not see how dividing the competitive and non-competitive products for
accounting purposes is done easily. 54% of rural letter carriers work out of
Post Offices with one or two rural routes. 82% of rural letter carriers work out
of 1 to 5 route post offices. Every day we carry both types of mail in varying
volumes. In those offices there is no alternative to rural carriers delivering
all types of mail. How can one accomplish separate accounting of personnel and
vehicles?
Private Law Corporation
The proposed legislation would allow
the USPS to form a private law corporation for non-postal products and engage in
strategic alliances in or with private companies. The Postal Service has
enhanced your concept with its proposed amendments by suggesting this
corporation could issue stock. However, once stockholders are involved, the
obligation of the company would shift to satisfying those shareholders. NRLCA
believes that those shareholders wouldn't be very interested in sharing profits
with the competitive and monopoly side of the ledger.
Additionally, let us
look at a few examples of USPS attempts at non- traditional business products
such as caps, mugs, ties, t-shirts, auto fliers, and mailing online. Each
enterprise prompted small business owners to appeal to their congressional
representatives to stop the Postal Service from selling these
goods. NRLCA suspects that even after postal reform, there will
be continuing congressional oversight of the USPS.
In the final analysis,
the public and its elected representatives are going to demand that the USPS
stick to the basic public policy mandate of serving the public by collecting and
delivering mail everywhere, to everyone, everyday.
Mr. Chairman and Members
of the Committee, thank you.
END
LOAD-DATE:
February 12, 1999 
