The facts about the Postal Service’s relationship with the Treasury Department

The writer is general counsel and executive vice president of the U.S. Postal Service.

Regarding the July 30 news article “Loan to Postal Service comes with a big condition,” about the Postal Service’s borrowing agreement in principle with the Treasury Department:

Nothing in the agreed-upon terms confers upon Treasury any role in Postal Service pricing, management or strategy. Decisions regarding Postal Service pricing are reserved by statute to the bipartisan governors of the Postal Service, who unanimously approved the Cares Act borrowing terms in a nonpartisan fashion. Nothing in the term sheet alters that responsibility.

In reaching agreement on terms and conditions as required by the Cares Act, the Postal Service will provide Treasury with information on our costs, revenue and overall financial position. This includes providing Treasury with our largest negotiated service agreements. Providing this is an acknowledgment that Treasury has been designated by Congress as the lender for the Postal Service and has a legitimate interest under certain circumstances in understanding the factors that affect our current and projected financial positions.

The governors and the postmaster general will work together to make decisions about all aspects of the Postal Service based on the exercise of their best judgment and business acumen, not partisanship, to ensure that the Postal Service will be financially sustainable and can continue to be able to provide prompt, reliable, reasonably priced and efficient universal service to all American consumers and businesses as a part of the nation’s critical infrastructure.

Thomas J. Marshall, Washington

CONTINUE READING AT » The Washington Post
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments