New postal legislation ties postal price increases to the rate of inflation

[Kristijntje]

As the House and the Senate mull the merits of enacting postal reform, it appears that 11th-hour lobbying efforts brought by private-sector package delivery firms over parcel rates could threaten postal reform...

Private delivery firms, Cerasale says, are pushing for language in the House bill that could result in an increase of up to 40% in Parcel Post rates, the benchmark that many private carriers use for setting their own delivery fees...

...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 U.S. Postal Service and the businesses--both upstream and downstream--that rely on the USPS,...

full article: http://multichannelmerchant.com/news/par..._09252006/

[amy]

an increase of up to 40% in Parcel Post rates, the benchmark that many private carriers use for setting their own delivery fees

 

[regic]

Update:

Congress has passed legislation that could relieve the Postal Service of billions of dollars in costs, possibly delaying future rate increases.

The measure, which cleared the Senate early Saturday before lawmakers adjourned for the year, now goes to President Bush. The bill, in the works for years, was feared dead for this session of Congress until the last-minute reprieve...

In addition, the measure eliminates a requirement that $3 billion annually go into an escrow account. This requirement was the sole reason stamp prices rose 3 cents this year.

A further increase was expected next spring, but it was not immediately clear whether the bill's passage would affect that plan...

full article: http://www.washingtonpost.com/wp-dyn/con...00326.html

[maggie777]

A further increase was expected next spring, but it was not immediately clear whether the bill's passage would affect that plan...

Please let it affect that plan. 

[regic]

Update:

The U.S. Postal Service announced that President George W. Bush signed into law on Wednesday new postal legislation that ties postal price increases to the rate of inflation. The Postal Accountability and Enhancement Act is the first major change to the Postal Service since 1971. The current rate case under consideration will proceed as scheduled...

The legislation is the culmination of a 12-year effort by Congress to secure changes to the laws governing the Postal Service. It will link future rate increases to the Consumer Price Index and give the Postal Service more flexibility for pricing competitive products. The Act also reconstitutes the existing Postal Rate Commission into a regulatory body with greater authority and responsibility...

full article: http://www.auctionbytes.com/cab/abn/y06/m12/i21/s05