Monday, September 23, 2013

Exigent Postal Rate Hike Request Expected

http://www.dmnews.com/exigent-postal-rate-hike-request-expected-next-week/article/312770/
Expect a request for an exigent rate increase to be filed by the Postal Board of Governors when they meet in Kansas City, KS, next week. That's the dire warning from direct mail industry officials following hearings held by the Senate on the Postal Reform Act (PRA) yesterday.
“It was pretty obvious after listening to the Postmaster General that the Board of of Governors is ready to file an exigent rate increase, so I think the industry should be prepared for that,” says DMA SVP of Government Affairs Jerry Cerasale, who testified before the U.S. Senate Committee on Homeland Security and Governmental Affairs
Postmaster General Patrick Donahoe said at the hearing that the U.S. Postal Service (USPS) should be allowed to adjust prices in competitive products, and he gave a vote of confidence that the postal board would be judicious in the amount of increase it might seek.
“What happened at the hearing is certainly not going to increase confidence that a deal is imminent with the House on postal reform, so it would not be surprising to see [the board] file,” says Patrick Henderson, director of government affairs for Quad/Graphics.