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Security of the Mail |
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USPSNewsBreak |
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FOR IMMEDIATE RELEASE Nov. 8, 2001 5 p.m. USPS Tallies Terror Costs for Congress
Postmaster General Jack Potter today told members of Congress that the Sept. 11 attacks and the subsequent use of the mail as a vehicle for bioterrorism have had "terrible and direct effects on the nation's mail system." Potter, testifying before a Senate Appropriations subcommittee, said the adverse financial impact experienced by USPS falls into two categories. The first is costs related directly to the attacks of Sept. 11 and the subsequent anthrax assault. USPS estimates these costs at $3 billion or more. This includes damage to facilities and equipment, medical testing and emergency treatment of employees exposed to anthrax, protective equipment for employees, environmental testing, communication and education of employees and customers, purchase of sanitizing equipment, disruption of operations, and implementation of new security procedures. The second category of financial impact reflects the business impact of these incidents. There have been significant declines in mail volume and revenue which could affect the Postal Service's bottom line by as much as $2 billion this fiscal year, he said. Potter said these costs should be considered as part of homeland security. Passing them on to postal ratepayers, he explained, "Could quickly threaten the foundation of a universal postal system serving all Americans, and damage the mailing industry and other businesses that depend on the mail, ultimately harming the economy as a whole." The PMG noted that a loss of $1.35 billion was projected as USPS entered FY 2002 - before the terrorist attacks and in spite of an "aggressive program of cost management." "This is the first time since postal reorganization that we have seen this significant a decline in mail volume," said Potter. "While we are optimistic that the value of mail in the long term will sustain future volume growth, we require assistance in coping with this year's impact." ### |