PCI Stresses Importance of Postal Service Reform

July 2, 2004

The Property Casualty Insurers Association of America is one of a number of organizations who have formed a coalition calling for reforms to the U.S. Postal Service.

In a recent bulletin the PCI noted: “Currently the USPS operates within a 30 year-old framework and is afflicted by decreasing mail volume, rising labor and infrastructure related costs, over $90 billion in unfunded liabilities and obligations, and rigid and inefficient statutes. The Coalition held a briefing session on Capitol Hill on June 21, meeting with around 50 Hill staffers to highlight the Coalition’s priorities and share views on pending reform legislation.”

“It is imperative that reform legislation is passed that addresses USPS’ financial concerns while ensuring that universal service is maintained. Barring timely postal service reform, large rate increases may be unavoidable if the system is not reformed, which would force businesses and other heavy mailers to decrease their volume of mail. A decreased volume of mail could put hundreds of thousands of mailing industry jobs at risk,” stated Carl Parks, PCI senior VP – federal government relations.

The bulletin referred to the reform bills currently pending in the House and the Senate, (H.R. 4341 and S. 2468), indicating that “each of them have provisions that the Coalition finds beneficial.” The PCI said, “the Coalition’s current priority is to take the best elements of each bill and create a cohesive reform package that allows the USPS to remain competitive.”

“Giving mailers the guarantee of service and fair pricing they need will lead them to use the USPS more, while giving the USPS flexibility and the ability to compete will help it to stay afloat,” Parks added. “PCI is committed to working with the Coalition and with lawmakers to reconcile the House and Senate reform packages in a timely manner.”

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