• Visit the new NNA website at www.nnaweb.org

About NNA

News Archive

NNA commends Postmaster General Jack Potter for holding the line

National Newspaper Association President Cheryl Kaechele, publisher of the Allegan County (MI) News and NNA Postal Committee Chairman Max Heath today commended Postmaster General Jack Potter for his early announcement that 2010 would not deliver higher postal rates.

“Community newspapers, like the Postal Service, have been pushing back against the toughest economy in recent history, but also like the Postal Service, have been continuing to serve our customers and awaiting the sunshine of the better day that we know is ahead,” Kaechele said. “The Postal Service’s firm determination to hold the line on prices will help all of us to achieve our missions.”

Potter said this week:

“Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products. This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy and the future of both the Postal Service and the mailing industry.”

The full USPS statement follows.

Heath said he was delighted that Potter had ended speculation about new rates with his early determination. He said he also was keenly aware that this decision was reached by a Postal Service that is still facing deep and serious economic challenges.

“USPS lost over $7 billion during the fiscal year that ended Sept. 30 and I understand it expects another multibillion dollar loss in this current year. However, Congress has granted some relief by reorganizing its payments to the retiree health benefits fund and has been engaged in conversation about what further reliefs, along with other restructurings and cost cuts may be involved. NNA worked vigorously to help secure $4 billion in relief this past September and we expect to continue to support USPS in efforts to control costs without making cuts in service that would be harmful to newspapers.”

Heath said he continues to witness conversions to mail delivery by a number of small newspapers, particularly smaller daily newspapers. He said he believes NNA’s work to encourage such conversions would help USPS to sustain universal service and to avoid eliminating the Saturday mail delivery that is essential to six-day publications. He said NNA has accepted the invitation of Potter and Postal Regulatory Commission Chairman Ruth Goldway to engage in a new national discussion on the future of the mails.

“This rate announcement will certainly help us to reassure publishers on the determination of USPS to emerge from this economic downturn with its commitment to service intact,” he said.

The full USPS statement

To Postal Service Customers:

Many of you have expressed concerns regarding mailing costs for 2010. The tough economic climate has presented significant challenges to all of us and pessimistic speculation has suggested that postal prices could increase by as much as 10 percent.

As we begin a new fiscal year and as many of you, our business clients, are preparing your 2010 operating budgets, we want to end all speculation.

The Postal Service will not increase prices for market dominant products in calendar year 2010.

Simply stated, there will not be a price increase for market dominant products including First-Class Mail, Standard Mail, periodicals, and single-piece Parcel Post. There will be no exigent price increase for these products.

This is the right decision at the right time for the right reason. Promoting the value of mail and encouraging its continued use is essential for jobs, the economy, and the future of both the Postal Service and the mailing industry.

While increasing prices might have generated revenue for the Postal Service in the short term, the long term effect could drive additional mail out of the system. We want mailers to continue to invest in mail to grow their business, communicate with valued customers, and maintain a strong presence in the marketplace. Changes in pricing for our competitive products-Priority Mail, Express Mail, Parcel Select, and most international products-are under consideration. We expect to announce a decision in November.

We are committed to working with customers to find ways to grow the mail through innovative incentives like the Summer Sale and contract pricing. Mail is the most effective means of communication and advertising and we will continue to work together to increase the value of the mail. Mail is a smart investment for the future.

John E. Potter