Senator Collins Statement on Exigency

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United States Senator Susan Collins issued the following statement regarding the U.S. Postal Service’s announcement that the Postal Regulatory Commission has approved an exigent rate increase, affecting first-class, standard, periodicals and package mailing. On October 18, 2013, Senator Collins wrote to Postal Regulatory Commission Secretary Shoshanna Grove, explaining that an exigent rate increase to recover losses caused by electronic diversion of communications from mail to internet is not authorized by the Postal Accountability Enhancement Act of 2006, of which Senator Collins authored.

“I am disappointed that the PRC has approved a postal rate increase averaging six percent. My concern is that a rate increase of this magnitude will worsen the Postal Service’s crisis by further driving down mail volume, eroding the Postal Service’s steadily declining customer base, and leading to a further decline in revenues. The Postal Service should be implementing more initiatives that will increase volume and attract more consumers. Even though temporary, these rate increases may well do just the opposite.

“The rate increase is also contrary to current law which ties price hikes to the inflation rate. Congress intended the authority to increase rates under an exigent case to be used only in extreme and unforeseen instances – such as terrorist attacks, natural disasters, and other events that would cause significant and substantial disruptions in service. The exigent rate provisions were not meant to be used to remedy poor economic performance or to offset an ongoing marketplace trend, such as the increased use of electronic mail.”

via Postal news from around the world.

Written by Lisa.Bowes

December 31st, 2013 at 12:48 am

Posted in USPS

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