Unusual bunch of foes to postal rate increase unites as Affordable Mail Alliance
by Dan Eggen at The Washington Post
The Affordable Mail Alliance includes more than 700 publishers, direct-mail companies, nonprofit groups and other mailers that fear the economic impact of proposed increases.
The alliance has hired a prominent Democratic-leaning media firm, SKDKnickerbocker, to handle its communications strategy. SKD partner Anita Dunnrecently returned to the firm after serving as President Obama‘s communications director; another partner, Bill Knapp, produced television ads for the Obama campaign.
The group has also signed up the powerhouse law firm of Venable LLP to handle legal challenges to the Postal Service’s plans.
During past rate battles, it was usually up to the major trade groups and publishers to argue against increases. But the organizers behind the new group said they decided it was time to try a new approach by banding together under a well-funded, but short-term, alliance.
“We decided we had to get together and speak with one voice to say this is the wrong time for a rate increase,” said Jerry Cerasale of the Direct Marketing Association, a prime driver of the alliance. “We decided we’re going to have to fight this.”
The group’s membership roster includes the usual heavyweights of direct mail, from the American Forest & Paper Association to the Major Mailers Association to the Conde Naste magazine empire. But it also includes the Prairie Pioneer of Pollock, S.D., the Big Buck Saver in Wisconsin and scores of other small community publications.
Backers declined to provide details about the group’s finances or funding.
The Postal Service announced proposed rate hikes July 6 that would include a 2-cent increase for first-class stamps, to 46 cents, and an 8 percent jump for magazine publishers. These and other increases would generate $2.3 billion for the Postal Service over the first nine months of next year, narrowing a projected $7 billion budget gap.
The alliance argues that the proposal erroneously relies on an emergency loophole to get around a ban on raising rates beyond the rate of inflation. Lawyers for the group filed an objection this week with the Postal Regulatory Commission, saying the Postal Service should forgo rate increases and work on cutting costs like its private-market rivals FedEx and UPS.
The commission has until early October to make a ruling.
Tougher enforcement?
Reform groups have long complained that federal lobbying rules are rarely enforced with much vigor, leaving unscrupulous lobbyists free to ignore reporting requirements or otherwise shade the truth about their activities.
“For years, there was no way to hold lobbyists accountable for games they play with their disclosures,” Kilroy said after the vote.
Lobbying developments
There were big developments this week in two of the bigger lobbying battles to hit Capitol Hill this year:
– On Wednesday, the House Financial Services Committee voted 41 to 22 for legislation that would legalize and regulate Internet gambling. The bill, sponsored by Chairman Barney Frank (D-Mass.) and pushed heavily by the Poker Players Alliance and the gaming industry, would overturn an effective ban on Internet gaming in the United States first approved in 2006 but not enacted until this summer.
The multimillion-dollar lobbying fight over the bill pitted banks, credit-card companies and gambling interests — including many offshore gaming companies — against sports leagues, family groups and social conservatives. Legalizing online poker, mah-jongg and other games could net the federal government more than $40 billion in taxes over 10 years, supporters say.
– On Tuesday, General Electric and its British partner, Rolls-Royce Group, came out on top in the fierce lobbying dispute over a second engine for the F-35 Joint Strike Fighter. The House defense appropriations subcommittee voted 11 to 5 to spend $450 million on the GE-Rolls Royce project, which is strongly opposed by the Pentagon and has prompted a veto threat from the White House.
Pratt & Whitney, which is developing the primary engine for the fighter, has had little luck in killing the rival project despite years of opposition from the Bush and Obama administrations.


























