Postal Reform Legislation and Historical Financial Woes Engage Subcommittee to Monitor Postal Service
Apr 19 2007
The U.S. Postal Service had been operating under an antiquated business model created in the 1970's until the Postal Accountability and Enhancement Act (PAEA) was signed into law last year.
Sen. Tom Carper (D-Del.), a PEAE sponsor, today continued his commitment to postal reform by conducting the first hearing to evaluate the implementation of the new postal reforms and ensure that the postal service is working to secure its finances and grow its business.
Under the rate system currently being developed by the Postal Regulatory Commission, the postal service will have significantly more freedom to price its products according to what the market will bear and tailor prices to the needs and demands of its customers. The postal service will also be forced to live for at least the next ten years within a tight rate cap based on the Consumer Price Index to force the continuation of the streamlining process, started by Post Master General, John Potter in 2001.
"Things have improved remarkably over the past six years, but we still have more work to do," said Sen. Carper, chairman of the Senate Subcommittee on Federal Financial Management, Government Information, Federal Services, and International Security. "It's important the postal service be more open about its finances and its plans to comply with postal reform legislation so that we can continue to enjoy the quality service the postal service provides."
Testifying before the subcommittee were John E. Potter, postmaster general & chief executive officer of the United States Postal Service; Dan G. Blair, chairman of the Postal Regulatory Commission; and Kate Siggerud, director of physical infrastructure at the Government Accountability Office.