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Think changes so now to a kind of delivery which would be new for the US post office and a desperate hope of raising revenue the agency is pushing a plan that would allow shipments of alcoholic beverages.
And boy -- they need to do that just last week the Postal Service announced a third quarter loss of 740.
Million dollars bringing its year to date losses to nearly four billion.
So get -- -- -- -- uncork some huge profits.
-- spoke to the man behind the plan the US postmaster general Patrick Donna who.
Just a few moments ago.
Welcome back to our program it's a pleasure to have you here sir and I've got to ask you when we talk about this -- it's actually better than it has been in the past is it not.
Yes yes -- is -- were -- we've got a lot of legislation both in the house and the senate.
And word commercials to progress so far.
So now one proposal is to allow the Postal Service which is not allowed right now to deliver alcohol in fact I've ordered from a that there's a -- firm in California that shifts to a private -- But then this would open up the I couldn't get it through the US Postal Service correct.
Sure we think that there's and I saw opportunity especially if you're a small firm small winery are small Michael -- And the idea of being able to pick something up there and put it -- -- priority.
Flat rate box and ship it makes it real convenient for both sides.
I know though that day all fifty states have different regulations over the sale and delivery of alcohol doesn't this become a bureaucratic nightmare for the United States post office.
Now we believe we follow the -- -- Right now you can ship we'll wind.
And many states then there are different rules and of course we follow them.
And this would raise as much as what fifty million more a year for the Postal Service.
That's always think there are we think that there's less opportunity.
Says so it's a revenue stream that should be pursued but at the end of the day it doesn't nearly come close to closing the gap that.
The Postal Service faces I mean you have billions of dollars in losses every year.
Yes we the biggest thing for us this to get legislation passed as you've noted.
Good really results of a number of other very large issues namely.
Health care costs that we have -- trying to resolve the healthcare alone.
-- a this change of three billion dollars some of the yearly PNL this gigantic.
Ten and six -- five day delivery.
We want to move to a five day delivery schedule for male six on packages that's worth two billion dollars.
Then the money let let me ask you -- it is big money why does congress you know on one -- you get congress screaming and yelling at the Postal Service whether anger accurately or -- Is poorly managed but then when that the Postal Service is okay we've made a management decision that we will not deliver on Saturday or Sunday.
Congress ties your hands it doesn't let you go forward -- that seems to be a little hypocritical does -- not.
Well we've got to work through those because you've got different people looking at different issues -- the key thing for us is to communicate.
And make sure that people understand the key issues that we've got to make changes on why we've laid out -- business plan.
Very clear just like any other business looks ahead five years and and plays out a number of actions that have to be taken to get us back on a good financial -- But doubt as has been pointed out in countless newspaper articles and television reports you might have a post office in one town next to a post ups in the -- town not been very far apart.
Which is a waste of of money and you want to close -- offices as well.
Postal offices to to save revenue and yet congress ties your hands on that doesn't seem in simple words fair -- you're trying to right the ship seems if congress is in your way.
Well a lot of those changes.
Create problems for people that come we have a solution on the post offices we've.
In fact ten point 6000 post offices.
Over the next year half of the moment to part time -- so that'll save money they'll stay open.
They'll be affordable that's an issue that we think is resolved at this point and now we've got to get people focused on health care.
And the six days a five day changes.
At the end of the day and I find it very complicated to the point where I don't truly understand it -- the requirements congress imposed on the Postal Service in the last few years.
For funding your health care retirement benefits are different than any other agency or even private.
Business in this country has to adhere to.
That puts you at a disadvantage and that also explains these tremendous losses is that an accurate statement.
That's correct we're required by a lot of pre fund retiree health benefits our -- we have to retirement funds for regular retirement -- funded not a problem.
And we're required not a pre fund retiree health benefits the problem is.
It's being done much or repayment schedule that we can afford we need that addressed and we need to address exactly what we're paying it's all -- laid out for congress does.
Anybody else in the United States have that kind of pre funding requirement.
Are you know known NN.
No and in the United States has supreme funding requirements and even worse -- and in the United States is required to overpay.
For retiree health benefits and not be able to take full advantage of Medicare which we are the second largest Payer -- so there's two things that need to be fixed all right well mr.
On who I appreciate your being here I have lived overseas and I appreciate the service I get -- the United States Postal Service.
And even with the cost of stance on occasion going up I know that it's cheaper than some of the places I've lived thank you very much sir.
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