[Congressional Record Volume 142, Number 92 (Thursday, June 20, 1996)]
[Extensions of Remarks]
[Page E1142]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              SUPPORT THE POSTAL SERVICE CORE BUSINESS ACT

                                 ______


                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                        Thursday, June 20, 1996

  Mr. CUNNINGHAM. Mr. Speaker, I rise today to join my colleague, Mr. 
Hunter, in introducing the Postal Core Business Act of 1996. This 
important legislation works to prevent the U.S. Postal Service [USPS] 
from unfairly competing with a small business industry, known as the 
Commercial Mail Receiving Agency [CMRA]. The livelihoods of those who 
own and operate small commercial packing stores throughout the country, 
like Mail Boxes Etc. and Postal Annex, are in danger. Approximately 
10,000 CMRA businesses may be forced to close their doors due to the 
USPS' tax-free expansion into services already provided by private 
packaging stores.
  These expanded services include wrapping, packaging, and shipping of 
items, and the USPS may expand beyond that. The USPS is opening stores 
throughout the country, many in locations very near private companies 
who already provide these services. The fact is that the USPS does not 
fairly compete. They do not charge State or local tax on retail items, 
they are insured by the Government, and they often do not pay the 
Federal, State, and local taxes that private companies do. These are 
only some of the advantages enjoyed by the USPS, creating a playing 
field tilted against private industry. Moreover, when a customer brings 
an item to be packaged by the USPS, the USPS requires that the customer 
send the package through U.S. mail. Commercial mail companies do not 
require this of their customers.
  The legislation we introduce today will allow the USPS to continue 
improving their goal of timely and effective delivery of mail, but will 
prevent them from unfairly competing with small business. Under our 
bill, the USPS will not be able to expand their services beyond what 
they were offering as of January 1, 1994. This is a reasonable approach 
to protecting jobs and satisfying American consumers seeking adequate 
postal services.
  The livelihood of Americans is being threatened by the Federal 
Government. We must prevent small businesses from going out of business 
at the hand of the Federal Government. This will certainly happen 
unless the USPS is prevented from unfairly competing with commercial 
mail companies. I encourage my colleagues to join me in support of this 
important legislation.

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