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Postal News
FOR IMMEDIATE RELEASE
April 9, 2002
REMARKS BY THE HONORABLE ROBERT F. RIDER CHAIRMAN OF THE BOARD OF GOVERNORS
BOARD OF GOVERNORS MEETING
Good morning ladies and gentlemen. I want to begin by thanking the Postmaster General and all those who helped prepare the final Comprehensive Transformation Plan for presentation to the Congress on April 4. This Plan reflects the input and recommendations of a wide spectrum of stakeholders including the Board of Governors who approved the document on March 26 as well as postal management, mailers and union and management association leaders.
As the Postmaster General mentioned in his speech before the National Press Club last Friday, the Plan is not just about the Postal Service. It is about maintaining the Postal Service's mission to provide universal delivery service to all Americans regardless of where they live or conduct their business.
The Plan underscores the Postal Service's need for greater flexibility to grow our business, develop new revenue streams and modernizing the rate making process.
Yesterday, the Governors voted to approve the Postal Rate Commission recommendation for a three-cent increase in the price of a First-Class stamp as part of an overall rate increase of 8.5 percent. The new rates will go into effect June 30.
In approving the new rate structure, the Governors recognize that raising rates is not the long term solution for maintaining a universal delivery network. It is with that understanding that we support the Transformation Plan and the call for a new business model for the Postal Service of the future.
That said, however, this settlement agreement with the mailing industry and the Postal Service, recognizes the urgent financial needs of the Postal Service in the wake of the downturn in the economy and the effects of the terrorist attacks last fall.
We also recognize that over the past two years, postal management has reduced costs by $2.5 billion. Productivity gains, record service performance and high levels of customer satisfaction have been maintained - despite the 1.7 million new addresses that are added to the Postal Service's national delivery network each year.
I want to take special note of the leadership of the Chairman of the Postal Rate Commission, Mr. George Omas, in bringing about the negotiated agreement by participants in the rate proceedings. As most of you know, this was an unprecedented achievement. It allowed the Postal Rate Commission to expedite the case and make it possible to implement the rates earlier than usual. We have every expectation that we will build on that foundation of cooperation and good will with mailers and the other participants in the rate making process.
Finally, I want to also thank Dan Foucheaux who was appointed by the Chairman of the Rate Commission to serve as Settlement Coordinator for the Postal Service through this rate making process. As Chief Counsel for rate making, Dan has led the Postal Service's legal team in these proceedings for the past 18 years.
In all those years, this proceeding was one of the most challenging and unique for all parties concerned. Dan accepted the leadership role assigned by the Chairman, and Dan and his team certainly rose to the challenge as they have in years past.
Dan would you come up here, please. Jack, would you join me as well.
[Present Wanamaker clock to Dan. Express thanks to him personally as gift is presented by the Chairman and the Postmaster General.]
On that pleasant note, I now call on the Postmaster General to give us his remarks.
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