SIIA Endorses Postal Reform Act of 2013
For Immediate Release
SIIA Contact: Laura Greenback, Communications Manager, 410-533-1943,
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PR Contact: Farrah Kim, 202-568-8986,
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SIIA Endorses Postal Reform Act of 2013
Legislation will Preserve Mailings by Maintaining Consumer Price Index-Based Rates
WASHINGTON, D.C. (July 24, 2013) – The Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industries, fully endorsed the Postal Reform Act of 2013, which passed the House Committee on Oversight and Government Reform tonight by a vote of 22-17. The legislation was introduced on Friday July 19 by House Oversight and Government Reform Committee Chairman Darrell Issa (R-CA).
“The Postal Reform Act of 2013 is exactly the kind of reform we need to get the USPS back on the path to financial stability and to provide a reliable and sustainable delivery service for mailers,” said SIIA President Ken Wasch.
Importantly for SIIA members, the Postal Reform Act of 2013 maintains the Consumer Price Index-based rate structure and also establishes a common sense timetable to evaluate rates and cost coverage for classes of mail not meeting attributable costs. In addition, the legislation re-amortizes retiree health care prefunding requirements, streamlines the process for USPS facility consolidation, authorizes a temporary control authority to restructure the Postal Service, gives USPS increased ability to right size its labor force and allows the USPS to shift to a modified 5-day delivery schedule.
Wasch continued, “SIIA's members mail approximately 800 million magazines and newsletters each year. Any rate increases beyond annual CPI will simply drive more and more of those periodicals out of the mail stream and USPS will never get them back. We applaud Chairman Issa for the way this legislation deals with these complex rate issues.”
SIIA recently released a member survey finding that two out of three SIIA members would reduce mailed periodicals by an average of 11 percent if postal rates increased by a total of 7.5 percent (estimated CPI and a 5 percent additional surcharge) next year. Such a result would reduce mail volume and revenue to USPS rather than increasing it. SIIA members collectively spend an estimated $260 million in postage each year
Wasch continued, “Chairman Issa’s legislation wisely puts the impetus for cost saving reforms on the back of the Postal Service rather than mailers who actually provide 90 percent of USPS revenue.”
About SIIA
SIIA is the leading association representing the software and digital content industries. SIIA represents approximately 700 member companies worldwide that develop software and digital information content. Information technology (IT) and software security are critical issues to SIIA’s members, many of whom strive to develop safe, secure and state-of the-art products that effectively serve their commercial and government customers alike, while protecting their intellectual property. For more information, visit www.siia.net.