PRC Chairman Goldway’s Remarks at January 11, 2011 Public Forum on PAEA

Good afternoon,

Welcome to this public forum on the Postal Accountability and Enhancement Act.

When Congress passed the PAEA in 2006, it launched a new era of postal reform, based on enhanced regulatory oversight to promote a more efficient, flexible and competitive mail service. The Commission now reviews postal price requests in weeks not months, including seasonal sales, market tests of new products, and hundreds of customized mailing contracts. Commission oversight of a statutory price cap on market dominant products and rules that prevent cross-subsidization with competitive products act to constrain prices. The Commission has also worked with the Postal Service to develop oversight mechanisms that increase its accountability and the transparency of postal operations, finances and service with a minimum of red tape.

Congress wisely included in the law a provision – section 701 – that provides for a review of how well the law is working – or not working – after the first five years.

The Commission has already identified some areas where Congress may want to consider revisions to the law, and we are continuing to look at other areas during this review process.

The Commission has recommended adjustments in the funding of Postal Service pension and retiree health benefits, for example, that would significantly mitigate the Postal Service’s ongoing financial crisis while ensuring that its pensions and retiree benefits are effectively funded.

We have also identified several problems, areas of confusion and/or unanticipated conflicts that may or may not require legislation action. Among these are whether the term Post Office in law where PO closing appeals are cited refers to its simple language meaning or the administrative designations of the USPS.

Here are a few other questions that may help to stimulate today’s discussion.

How can requirements for maintaining a price cap and acceptable service levels be reconciled with the need for classes to cover costs, with work share discounts to match cost savings, or with planned dramatic decreases in service levels?

Does the CPI price cap in the law adequately address the economic impact of deflation? Is the PRC complaint process serving to improve the Postal Service’s accountability? Are the flexibilities provided in the law adequate for the Service to meet the challenges of digital competition? Is the advisory opinion process timely, responsive to citizen concerns, a waste of time? What can or should the PRC do more of – or less of? What new capacities should be given to the USPS?

We are open to all your suggestions and comments, not just those that we may have discussed in previous dockets or reports.

This forum is designed to hear from the public. Anyone from household mailers to regular industry participants may have a point of view as to how the law could work better. We want to hear it.

Congress is intending to act, and our work here will help to inform their efforts.

Postal reform bills have been introduced in the Senate and we expect to see similar legislation in the House.

Senator Carper of Delaware, the Chairman of the Senate postal oversight subcommittee, has already held hearings on a reform bill that he introduced last fall and intends to reintroduce soon.

Senator Collins of Maine, the Ranking Member on the Committee, has also introduced a postal reform bill.

In the House, California Congressman Issa is the new Chairman of the House Committee on Oversight and Government Reform. He has signaled his intent to lead reform efforts in that chamber.

In both the Senate and the House – on both sides of the aisle – there is a strong and growing sense that there are issues that need to be addressed.

I am pleased that Commissioner Langley has graciously agreed to lead the development of the Commission’s report, a complex project as you can see from my brief outline of possible issues.

In addition to her extensive experience on the Commission and Capitol Hill, Nanci is an excellent team builder, an accomplished writer and an incisive thinker.

Nanci, thanks again for taking on this task.

And thank you again to all of our participants and to our webcast audience.