DMA Calls for Continued Movement on Postal Reform; Fight Over Parcel Rates Threatens to Derail Legislation

September 25, 2006 — As the House and Senate move closer to enacting postal reform legislation, the Direct Marketing Association is calling for cooperation among key mailing industry stakeholders in order to maintain the momentum for this much-needed legislation.

As Congressional leaders work to resolve differences in the House and Senate versions of postal reform legislation, a debate has surfaced over Parcel Post rates that is threatening to undermine the postal reform efforts.

DMA remains consistent in supporting a “hard cap” on postal rate increases for all classes of mail that would be tied to the rate of inflation. Some representatives of the private-sector parcel delivery industry are pushing language in the House bill that could result in an increase of up to 40 percent in Parcel Post rates – the benchmark that many private carriers use for setting their own delivery fees.

Not only would the House language result in higher costs to consumers for sending packages either through the mail or private carriers, the current debate poses a serious threat to the effort to pass postal reform legislation before Congress adjourns for the year. Without the legislation, all mailers face significantly higher costs that could ultimately result in drastic reductions in mail volume and further revenue losses for the US Postal Service (USPS) and the businesses – both upstream and downstream – that rely on the USPS.

“We are so close to achieving postal reform, it would be a shame for it to be derailed this late in the game,” warned DMA President & CEO John A. Greco, Jr. “The private parcel delivery companies are being short-sighted in not considering the immediate need for legislation that would stabilize postal rates for all types of mail, including Parcel Post. In the long run, higher shipping rates could mean far fewer packages to deliver.”

DMA Urges Members to Call on Members of Congress to Act Now on Postal Reform.

DMA calls on all members to write or call their US Senators and Representatives and urge them to act quickly on postal reform. To help our members take action, we offer resources, including letter templates and talking points.

· For sample letters, go to http://www.the-dma.org/postal/SampleletterSep06.doc

· For talking points on postal reform, go to http://www.the-dma.org/postal/talkingpoints_20050610.shtml

· For “Economic Impact of the Postal Service” data in your state, go to http://www.the-dma.org/postal/postaleconomicimpact.shtml

· For contact information for your Members of Congress, go to http://congress.nw.dc.us/aim/home

· For additional information or assistance, please contact Stephanie Hendricks, DMA’s director for public affairs, at mailto:shendricks@the-dma.org.

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