Traverse City Record-Eagle

Other Views

December 17, 2011

Another View: Postal fixes won't solve it

The Free Press Mankato, Minn. ----

USPS — The U.S. Postal

Service’s decision to

reduce its first-class

delivery time from one to

three days to two to three

days is the latest move

to stop financial losses

that last year totaled $5.1

billion.

The move may be necessary,

but the USPS — and

Congress — must make

quick and bold changes to

keep mail service viable

into the future. Reducing

quality, such as by slowing

delivery time, only erodes

the competitive advantage

USPS has over private delivery

companies.

The Postal Service, which

operates without taxpayer

money, has been hammered

by a nearly 30 percent

decline in first-class mail

business as email and

other digital transmissions

increase. ...

While some (cuts) may be

inevitable, it is inaction by

Congress that is hamstringing

more reform in the

postal service.

While the USPS operates

as an independent agency,

federal laws dictate how

they operate. Postal officials

have asked for legislative

changes to give them

flexibility, but Congress has

been unwilling to react or

to offer any alternative plan

of action.

In particular, postal officials

want Congress to

remove the post office’s

obligation to set aside

about $5.5 billion a year for

10 years to pre-fund retiree

health care.

Pre-funding retiree benefits

is not a requirement of

any other agency.

Ending the pre-funding,

coupled with modest increases

in postal rates and

other cost-cutting measures

could keep the USPS profitable

and competitive. ...

There are those calling

for a complete privatization

of postal business.

That is not a scenario most

Americans would relish. A

completely private system

would mean companies

would divvy up the lucrative

package delivery business,

while no one would

be delivering the letters,

magazines, bills, advertising

and other mail to most

Americans.

Online bill paying and

digital communications will

continue to grow, but the

need for mail delivery — to

large cities and the remotest

of rural areas — is far

from dead. Congress needs

to do its part to help ensure

the system’s viability.

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