Tags: post | office | saturdays

Postal Service May Nuke Saturday Delivery

Friday, 20 Nov 2009 10:32 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

After losing more than $11 billion over the past three years, the U.S. Postal Service may eliminate Saturday delivery.

The growth of alternative delivery services, particularly Email, and the recession that began last year have cut into the quasi-governmental agency’s revenue.

It delivered 13 percent less mail -- 26 billion fewer pieces – in the year ended Sept. 30 than in the previous year.

Special: Get Sarah Palin’s New Book – Incredible FREE Offer -- Click Here Now.

The Postal Service can’t take tax dollars, but it can borrow from the Treasury and now owes the government $10.2 billion.

By law that debt can’t exceed $15 billion. Without major changes, the Postal Service figures it will lose $7.8 billion in the year begun Oct. 1.

That means it does need to make major changes, which is where the idea of dropping Saturday service comes in.

The USPS says such a move could save it $3.5 billion per year. But the Postal Service’s regulator, the Postal Regulatory Commission (PRC), estimates the savings at $2 billion.

In congressional testimony earlier this month, PRC chairwoman Ruth Goldway, urged "caution" before dropping Saturday service. That action could damage "the vitality of the mail system" and eliminate the justification for its mail monopoly, she said.

"From a market perspective, the Postal Service could lose its greatest strategic advantage – ubiquity. Reducing service is detrimental to mail growth and to public perception of the value of the mail system."

The USPS also wants to lower the $5.5 billion in annual payments to pre-fund retiree health benefits that it’s scheduled to make until 2016.

"To say this was a difficult year might be a bit of an understatement," Postal Service chief financial officer Joseph Corbett told reporters last week.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Sarah Palin: Tina Fey Owes Me Big for Career Success

Wednesday, 20 Aug 2014 17:19 PM

Sarah Palin says former Saturday Night Live cast member Tina Fey owes her big – for helping to catapult the actress' car . . .

Supreme Court Halts Gay Marriage in Virginia

Wednesday, 20 Aug 2014 16:13 PM

The U.S. Supreme Court blocked the start of same-sex marriage in Virginia, putting a lower court ruling on hold while th . . .

'House of Cards' Actress to Star in Burnett's CBS Mini 'Dovekeepers'

Wednesday, 20 Aug 2014 15:48 PM

House of Cards and Manhattan alum Rachel Brosnahan is set to take flight as the star of The Dovekeepers, the four-h . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved