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DMA Urges USPS to Withdraw Request for Exigent Postal Increase(Targeted News Service Via Acquire Media NewsEdge) NEW YORK, Dec. 5 -- The Direct Marketing Association issued the following news release: Today, the Direct Marketing Association; the Association for Postal Commerce; Alliance of Nonprofit Mailers; and MPA-The Association of Magazine Media, asked the Postmaster General to withdraw the Postal Service (USPS) request for a $2.3 billion exigent (above inflation) postage increase. This increase would be over and above the announced inflation-capped postage increases scheduled for January 22, 2012. Although USPS has told its customers that it will not raise postage above inflation, it continues to pursue an above inflation postage increase before the Postal Regulatory Commission. This action requires mailers to plan for an exigent postage increase which lowers the amount of mail they will send. At a time when mail volume is falling precipitously and USPS cannot shed excess capacity quickly enough, USPS should send no signal through its actions to customers to mail less. USPS should withdraw the exigent case, thereby showing mailers, through its actions, that it does not want postage increases higher than inflation. The full text of the letter to Postmaster General Patrick R. Donahoe follows: December 5, 2011 The Honorable Patrick R. Donahoe Postmaster General and CEO United States Postal Service 475 L'Enfant Plaza SW Washington, D.C. 20260 Re: Docket No. R2010-4 (Phase II), Rate Adjustment Due To Extraordinary or Exceptional Circumstances Dear Postmaster General Donahoe, We are perplexed. In your presentations to the mailing community in recent months, we have heard you say repeatedly that you do not want an exigent price increase; an exigent increase will not occur; and mailers should budget for 2012 price increases at the CPI level, because a larger increase would be self-defeating due to its negative effects on mail volume. Simultaneously, however, the Postal Service has continued to file pleadings and signed statements with the Postal Regulatory Commission in Docket No. R2010-4 claiming that the Service still seeks a $2.3 billion exigent increase. Under the current circumstances, the only prudent course for mailers is to assume that the Postal Service is still seeking Commission approval of an exigent rate increase in this docket, and that an increase approved by the Commission may very well be implemented by the Board of Governors. As long as the Postal Service's exigent increase request remains in active litigation, the Commission must consider the request and issue a decision on it. Moreover, if the Commission ultimately authorizes any part of the requested increase, any portion of the authorized increase not implemented by the Postal Service could still end up as banked rate authority--rate authority that would force your customers to plan for above-CPI postage increases for the next five years, and adjust their mailing plans accordingly. For these reasons, the mailing industry must continue to oppose the exigent rate request as long as it remains pending before the Commission. The resulting litigation will force both the Postal Service and the mailing community to divert precious time, energy, and resources to litigating an increase that you profess not to want - time, energy, and resources that would be far better deployed constructively collaborating to solve the Postal Service's financial problems and pushing for Congressional action in our common interest. Further, the continuing pendency of this litigation--and the mere possibility that mailers may face an above-CPI rate increase in 2012 or 2013--has cast a pall of uncertainty over the industry's budgeting and mailing plans. This business uncertainty almost certainly will cost the Postal Service mail volume and revenue. These harmful consequences can be easily avoided. If you do not want an exigent increase and you do not want mailers to plan for one, withdraw the case. Actions speak louder than words. Unless and until the Postal Service publicly withdraws its formal request for Commission approval of exigent rate increases, mailers must assume that the Postal Service is serious about seeking them. For the good of the Postal Service and the mailing community, we urge you to pull the exigent request. Sincerely Yours, Jerry Cerasale Senior Vice President Direct Marketing Association Tony Conway Executive Director Alliance of Nonprofit Mailers Jim Cregan EVP, Government Affairs MPA-The Association of Magazine Media Gene Del Polito President Association for Postal Commerce cc: Governors, United States Postal Service Commissioners, Postal Regulatory Commission TNS cp -111206-JF78-3703212 StaffFurigay (c) 2011 Targeted News Service |