WASHINGTON–While many think the U.S. Postal Service is experiencing healthy growth, U.S. Rep. John McHugh (R-NY) told 125 members of the Mail Advertising Services Association here last week that it is in trouble.
“The postal service is facing a $218 million loss in net revenues this year, and that's with the rate increase factored in,” said McHugh, who is chairman of the postal service subcommittee. “It has lost market share in five of its six competitive lines.”
Because of this, McHugh is urging the mailing community to pay close attention to his revised postal reform bill (H.R. 22), which will, among other things, help create a more competitive organization.
“Do we really want a political body to define universal service?” he asked members who were attending the MASA Mailer Strategies Conference. McHugh said he will have one final hearing in six to eight weeks for any last questions on H.R. 22 and, after that, he hopes to push the bill through the subcommittee. “Then, if the full committee can accommodate us, hopefully reform will pass,” he said.
McHugh also said that while it's important for USPS to spend time searching for a new postmaster general in the coming months, he hopes it won't divert the organization's attention from postal reform.
