Most observers applauded President Bush’s creation of a commission to explore the U.S. Postal Service’s mission and operations. But some news reports suggested that the plan was merely a disguised call for privatization of the USPS, displeasing at least one group.
“I’m not sure that privatization is a good idea,” said Bob McLean., executive director of the Mailers Council. “The postal service has so much debt, who would want to buy it?”
In addition, the Main Street Coalition for Postal Fairness urged the commission to “ensure the Postal Service stays on mission and does not compete with the private sector.” It also argued that the USPS must “maintain universal postal service at reasonable and nondiscriminatory rates.”
The nine-member commission will study the state of the USPS and make recommendations to the President by July 31, 2003. It will be co-chaired by Harry Pearce, chairman of Hughes Electronics and James Johnson, former CEO of Fannie Mae and the current chairman of the Brookings Institution, a Washington think tank.
Sources said the review could result in the first major overhaul of the postal service since its creation during the Nixon administration in the early 1970s. Specifically, the Commission will look at:
*The USPS’s flexibility to change prices and control costs in response to financial and competitive pressures
*The USPS’s ability to maintain universal service over the long term.
*The extent to which the postal monopoly restrictions continue to advance public interest.
*The rigidities in cost or service that limit the postal service’s effectiveness.
Most industry comment was favorable.
“We are pleased that the President is now engaged on the critical issue of postal reform,” said H. Robert Wientzen, CEO of the Direct Marketing Association, in a statement. “The commission should focus on constructive recommendations that will guarantee the continued viability of the postal service, which is a vital a cog in our nation’s economy.”
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