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Copyright 2000 The Houston Chronicle Publishing Company  
The Houston Chronicle

July 07, 2000, Friday 3 STAR EDITION

SECTION: A; Pg. 26

LENGTH: 243 words

HEADLINE: POSTAL SERVICE;
Bill would reduce Postal Rate Commission's oversight

SOURCE: Staff

BODY:
No public good can come from the Postal Service Modernization Act that would reduce the authority of the Postal Rate Commission and increase the Postal Service's ability to engage in unfair competition with private mailers.

The proposed legislation pending in Congress would allow the U.S. Postal Service to raise rates without the oversight of the Postal Rate Commission and enable it to adjust rates when it wanted to drive unfavored, private-sector competitors out of business.

The Postal Rate Commission, whose commissioners are appointed by the president and confirmed by the Senate, serves as the public's watchdog over the Postal Service and must approve rate increases before they go into effect.

The Postal Service Modernization Act would water down the commission's rate-approving authority. A study by PriceWaterhouseCoopers concluded that the proposed legislation would lead to a 60-cent first class stamp by 2008, or 3 cents higher than that anticipated under existing laws and regulations. This unreasonable increase would cost citizens and small businesses $ 3 billion in higher postal prices.

The Postal Service should not engage in unfair competition with private-sector companies and certainly should not discriminate against small mailers by offering better deals to bigger mailers.

The Postal Service should have more oversight rather than less in order to determine how best it should carry out its service to the public.



TYPE: Editorial Opinion

LOAD-DATE: July 8, 2000




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