New York, NY (May 3, 2006)—Reacting to the Postal Services announced plan to raise postage rates for magazines by an average of 11.4%, Magazine Publishers of America (MPA) today urged Congress to move quickly to complete action on postal reform legislation.

We are concerned about the magnitude of the proposed increase, said Nina Link, President and CEO, MPA.  Our rates just went up 5.4% in January.  So if the Postal Service gets its way, by early next year, when the new increase takes effect, we will have incurred a compounded increase of 17.4% in less than a year-and-a-half.  This increase is on top of the compounded increases of about 24% that magazines sustained from 2000 to 2002. 

The Postal Service announced earlier today that it has filed a formal request with the independent Postal Rate Commission to raise postage rates by a system-wide average of 8.5%.  The requested increase for magazine postage is 11.4%.  Under law, the filing triggers a 10-month trial-type administrative proceeding to examine the request.  MPA will be an active participant in the proceeding.  Pending postal reform legislation would abolish the current method of ratemaking and tie future increases to the consumer price index, as well as instituting other reforms in the postal system.

Congress must take final action on postal reform legislation now, said Ms. Link.  The House and Senate have both passed solid, though somewhat differing, bills.  The next step is to convene a House-Senate Conference to resolve those differences and get this legislation through Congress and to the Presidents desk for his signature as soon as possible.   Although the legislation wont stop this case, reform will mean the end of unpredictable double-digit increases.  I call on the entire mailing community to work with us.

Magazine Publishers of America (MPA) is the industry association for the consumer magazine business.  Established in 1919, the MPA represents more than 240 domestic publishing companies with approximately 1,400 titles, more than 80 international companies and more than 100 associate members.  Staffed by magazine industry specialists, the MPA is headquartered in New York City, with an office of government affairs based in Washington, DC.