DMA Praises Congress for Bipartisan Action on Postal Reform

WASHINGTON, DC, December 9, 2006 — The postal reform bill that passed today in the US House of Representatives and Senate represents a major victory for the millions of businesses, nonprofit organizations and consumers across the country that rely on the Postal Service.

The Direct Marketing Association extends its appreciation to the legislators who worked tirelessly in the closing hours of the 109th Congress to ensure that a final compromise was reached that allowed the introduction of H.R. 6407 on Thursday and its passage in both houses overnight on Friday.

The final legislation reflects an agreement reached among key members of congress, the Administration and the mailing community. It contains all of the elements DMA and other mailing stakeholders have sought over the past several years, including: a cap that will tie future postal rate increases to the rate of inflation; a tight exigency clause defining the conditions for emergency rate increases; the return of the military retirement cost burden (some $27 billion) to the Treasury; and language supporting the continuation of worksharing agreements.

"Senators Susan Collins, Joseph Lieberman, and Tom Carper, and Representatives Tom Davis, Henry Waxman, John McHugh, and Danny Davis have been leaders on postal issues for many years," said DMA President and CEO John A. Greco, Jr. "But over the past several days, they have really stepped up to the plate and done what was needed to bring this effort to a successful close."

DMA also expressed its gratitude to its members as well as the many members of the mailing community who joined together in support of this much-needed legislation.

When this compromise bill is signed by President Bush, this will be the first comprehensive overhaul since the Postal Reorganization Act of 1970, which transformed the old cabinet-level Post Office Department into today’s United States Postal Service. DMA has long held that postal reform will play a critical role in making sure that the Postal Service can continue to deliver the reliable, cost-effective service that consumers and businesses have come to expect.

"After working for more than a decade to ensure that the US Postal Service has the tools it needs for the 21st century," said Greco, “we applaud today's efforts and urge the President to quickly sign the measure into law. "With more than 9 million jobs and $900 billion in commerce dependant on a viable postal service, this bill is a win for consumers, business, nonprofits and the economy alike.”

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About DMA

The Direct Marketing Association (www.the-dma.org) is the leading global trade association of businesses and nonprofit organizations using and supporting multichannel direct marketing tools and techniques. DMA advocates industry standards for responsible marketing, promotes relevance as the key to reaching consumers with desirable offers, and provides cutting-edge research, education, and networking opportunities to improve results throughout the end-to-end direct marketing process. Founded in 1917, DMA today represents more than 3,600 companies from dozens of vertical industries in the US and 50 other nations, including a majority of the Fortune 100 companies, as well as nonprofit organizations.

In 2006, marketers – commercial and nonprofit – will spend an estimated $166.5 billion on direct marketing in the United States. Measured against total US sales, these advertising expenditures will generate an estimated $1.93 trillion in incremental sales. This year, direct marketing will account for 10.3 percent of total US GDP. Also, there are today 1.7 million direct marketing employees in the US alone. Their collective sales efforts directly support 8.8 million other jobs. That accounts for 10.5 million US jobs.

The Power of Direct: Relevance. Responsibility. Results.

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