The Need for Action on Postal Reform

THE NEED FOR ACTION ON POSTAL REFORM -- (Extensions of Remarks - November 20, 2004)

Mr. DAVIS of Illinois. Mr. Speaker, as the Ranking Member of the Committee on Government Reform's Special Panel on Postal Reform and Oversight, I rise to urge support for Postal Reform.

The United States Postal Service is a vital part of a $900 billion industry that employs more than 9 million people.

However, the Postal Service is experiencing a downward economic spiral. First Class mail volume continues to decrease with the use of technology, such as e-mail and faxes; operating costs as well as the number of addresses to which the Postal Service must deliver every day are increasing; and the Postal Service is additionally hampered by an untenable debt load.

In recognition of the dire situation of the Postal Service-the President in December 2003, created a bipartisan Commission to examine the operation and financial challenges faced by the Postal Service, the first such action taken in over 30 years. Using the Commission's recommendations as a foundation, I am proud to have been a part of the Government Reform Committee's bipartisan effort to unanimously pass The Postal Accountability and Enhancement Act of 2004, which will help ensure a viable future for the United States Postal Service.

This bill protects collective bargaining rights, allows the Postal Service flexibility in ratemaking, releases escrow funds of $73 billion to be used to fund health and pension obligations and transfers military service obligations back to the Treasury. The result of all of provisions is postage rate stability, which will maintain a strong customer-base, preserving the universal service provided by the Postal Service.

The President has displayed commitment to advancing postal reform legislation by the creation of his commission. I am now calling upon the White House to fulfill that commitment and to work productively with the Congress to achieve postal reform and rate stability for American ratepayers and businesses.

We have worked tireless to craft a strong bipartisan bill that address many of the challenges facing the United States Postal Service. But we cannot advance without the direct engagement of the White House. With an impending double-digit rate increase set to go into motion in the Spring of 2005, it is imperative that Congress, as well as the White House, follow through on our commitment to enact postal reform.