Will Congress bail out the postal service?
Rep. Dennis Ross discusses the potential postal service bailout.
- Duration 6:48
- Date May 8, 2012
Rep. Dennis Ross discusses the potential postal service bailout.
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This transcript is automatically generated
Let's talk about the Postal Service everybody knows that -- in bad financial shape in congress he's attempting to do something about it.
-- to get your input on this there -- number ways you can interact with us on this very topic.
Want you to vote if he can on our question of the day right here on the website should the federal government bailout.
The post office there it is.
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Also you can find out.
How much of your tax dollars would go to this overhaul this is really interesting just -- to our tax Payer calculator on foxnews.com.
He basically put in you know -- -- income and by the way -- we don't share that with anybody.
And and then he'll find out you know how much you're gonna have to fork over out of your -- taxpayer dollars.
Are -- joining us now to talk about this -- congressman Dennis Ross Republican of Florida who is chairman of the house subcommittee on federal workforce.
US Postal Service in waiver policy and congress next we're taking a few moments to speak with -- so I was really -- And -- learned and can you confirm this at the Postal Service loses what 25 -- -- -- It's the point 18 point five million out -- today the Postal Service is losing how is that possible.
Well there's a couple of reasons.
First of all the the revenues have declined by 25%.
In six years.
While there have been some attrition in terms of the number of employees.
Still 80% of the cost the united states postal services labor.
And labor has negotiated extremely good contracts and include no layoff -- -- treasure revenues decline in your expenses stay up and you can't do anything about it you're gonna continue to bleed red -- because you can't control your cost.
This is an opportunity for all 535.
Members of the board of the united states postal sovereign -- -- to the members of congress.
The members of the senate.
Come together and a bipartisan fashion -- something -- an age old institution the United States they can be corrected and we can do it innovative light which we need to do.
You know the postal service's I understand it for years congressman is really in big.
And there's two allowing you to be fiscally prudent and responsible -- operate like -- business.
Allow ST you know cut the fat get rid of that which we don't need maybe close down some little used -- offices -- so forth but.
Why has congress been unwilling to allow.
Well again you've got 535 members of the board of directors of the united states postal service of the members of congress who have parochial interest.
You know you can color correct the post office you can cut their budget but don't do anything in my backyard because it's gonna affect my constituency.
Look we've got to come to terms with the fact that we have to pay for this if we want to keep an open.
And how we gonna find it.
Public and is it worth borrowing more money from China in order to keep.
Post office is open to continue to cost us money over capacity facilities.
The processing mail that that that are losing money right left we've got to make these tough decisions in the American public demand across the united states postal services in the early 1970s.
Has been very proud of being self sustaining.
Unfortunately we're at the point now that everything that they do is backed by taxpayer dollars -- we got to preserve the integrity not only the post office for preserve the taxpayer from having to bail them out.
You've got some legislation.
What would you like to have happen.
Well I would like to first of all make sure that.
That we take the politics out of the closing of the the post the facilities that need to be close.
Because we need to do this very objectively we need to do -- geographically so that we preserve.
The integrity of the service of the mail we need to make sure that we close those facilities that that that where there's duplication.
We need to untie the hands of the postmaster general so he can be more innovated to bring.
-- -- the business plan into the 21 century chase some marketing by approaches changed the way we do business with the private industry when we do village post offices -- -- are still allows us to do that.
The senate bill of the 33 billion dollar bailout and it -- bones.
All the changes that need to be made in terms of closing the post office the senate bill unfortunately is 900 million dollars in earmarks essentially by keeping.
Post -- -- open and members.
Districts in order to preserve their.
And and not to do the right thing and that's to look at this in -- prudent action.
That's right I almost never go to the post office but I happen to last week and I walked out because what I wanted to -- that would not be cost effective until I went with a private service.
It's of competition.
Asked to really eaten into the united -- You know it has -- but let me take some in the competition.
Is not what used to be ten years ago between the United States Postal Service and UPS and FedEx -- -- -- on each other for example FedEx uses for the uses has the post office.
Carries -- post office mail by playing.
UPS ships and over the road and they're in their semis the post office delivers some of the world deliveries for FedEx and UPS and in some cases delivers the last mile on Saturday.
For UPS and FedEx they become interdependent in terms of the competition they wanna see all three survive but in order to do so we've got to allow.
Postal Service to adapt to the marketing changes.
So that they can become more interdependent -- we're gonna have to look at cutting program that the delivery we're gonna have to look at -- Going away from curb service I'm a door to door and go to curb service and we've got to.
Makes it some drastic changes here in the Postal Service and we wanna preserve this -- this station.
You know it needs to operate like business and you hear unregistered -- it was a business it could be bankrupt it's fifteen easily behind I think it's yes.
You were terminology so tell us what give us your best estimate of what will happen in congress this senate.
Has a different point of view than the house yes so what do you think will happen.
Well now that we passed the house bill out of committee and now it's a matter of getting it to the floor.
Getting enough votes to get it out of a that that the house and then meeting -- to start hammering out the differences and -- -- That that the Democrats and Republicans both agree that we really have to do something.
This is a shining example.
That I think we -- a bipartisan fashion show the American public that we can come to terms and not on a reactive fashion but in a proactive fashion.
And resolve an issue that's very near and dear to the American public.
And quite frankly that would show some sense of cooperation between both parties on an issue that we can resolve we have to -- -- soon I mean we know that the post office is hemorrhaging.
I'm optimistic I'm hopeful that we can get something.
Out of the house by July -- that over the summer we can hammer this out and by the fall we can -- a conference report.
And not have to address the post office for another fifty years because it'll be honest self sustaining path that we all agree on.
Well congressman you got your work cut out laureate -- -- -- -- really -- after roll up your sleeves to get this thing done in the best of luck Ian thanks for -- thank you moments to speak to us about appreciate it.
Want to read my -- I just couple of the.