[Congressional Record Volume 143, Number 1 (Tuesday, January 7, 1997)]
[Extensions of Remarks]
[Pages E19-E20]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  SUPPORT THE POSTAL CORE BUSINESS ACT

                                 ______
                                 

                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                        Tuesday, January 7, 1997

  Mr. CUNNINGHAM. Mr. Speaker, I rise today to join my colleague from 
San Diego, Mr. Hunter, in introducing the Postal Core Business Act of 
1996. This legislation, which is similar to H.R. 3690 from the 104th 
Congress, will prevent the U.S. Postal Service [USPS] from unfairly 
competing with a small business industry, known as Commercial Mail 
Receiving Agencies [CMRA]. The livelihoods of those who own and operate 
small commercial packing stores throughout the country, like Mail Boxes 
Etc. and Postal Annex, are threatened.
  More than 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 is not a fair competitor with private 
enterprise. The USPS is not forced to charge State or local tax on 
retail items, it is insured by the Federal Government, and it often 
does not pay the same Federal, State, and local taxes that private 
companies must pay. 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.

[[Page E20]]

  In addition, on December 16, 1996, the Postal Rate Commission [PRC] 
declared that the USPS' packaging service, Pack and Send, is subject to 
the PRC's ratemaking. In its decision, the PRC found that ``the Pack & 
Send service is `postal' in character, and that establishment of the 
service and recommendations concerning its fees are functions that the 
Postal Reorganization Act contemplates to be within the jurisdiction of 
the Postal Rate Commission.'' The USPS must now either discontinue the 
service or submit the service for a rate with the PRC.
  Under our bill, the USPS will return to focusing on the core services 
that it was offering as of January 1, 1994. This is a reasonable 
approach to protecting jobs and satisfying American consumers seeking 
postal services. I encourage my colleagues to join me in cosponsoring 
Mr. Hunter's legislation.

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