NEIL: ALL RIGHT.
NEIL: ALL RIGHT. I KNOW WE’RE IN THE MIDDLE OF
I KNOW WE’RE IN THE MIDDLE OF ALL THIS CORONAVIRUS ISSUE HERE,
ALL THIS CORONAVIRUS ISSUE HERE, BUT THE PRESIDENT MADE WAVES
BUT THE PRESIDENT MADE WAVES LAST WEEK WHEN HE TALKED ABOUT
LAST WEEK WHEN HE TALKED ABOUT THE POST OFFICE SORT OF GETTING
THE POST OFFICE SORT OF GETTING SCHNOOKERED BY AMAZON AND THAT
SCHNOOKERED BY AMAZON AND THAT IT SHOULD BE RAISING ITS PRICES
IT SHOULD BE RAISING ITS PRICES FOR AMAZON PACKAGES, NEVER MIND
FOR AMAZON PACKAGES, NEVER MIND THE FACT IT IS NOT A PLAYER WITH
THE FACT IT IS NOT A PLAYER WITH AMAZON PACKAGES, BUT HE IS NOW
AMAZON PACKAGES, BUT HE IS NOW THREATENING TO WITHHOLD AID OR
THREATENING TO WITHHOLD AID OR CUT BACK ON AID FOR THE COMPANY.
CUT BACK ON AID FOR THE COMPANY. IT’S A MESS.
IT’S A MESS. I DON’T UNDERSTAND IT.
I DON’T UNDERSTAND IT. FORTUNATELY, HILLARY VAUGHN
FORTUNATELY, HILLARY VAUGHN DOES.
DOES. HILLARY, WHAT’S THE LATEST ON
HILLARY, WHAT’S THE LATEST ON THIS?
THIS? REPORTER: HEY, NEIL.
REPORTER: HEY, NEIL. ALL THIS STARTED BECAUSE THE
ALL THIS STARTED BECAUSE THE U.S. POSTAL SERVICE IS GETTING
U.S. POSTAL SERVICE IS GETTING CRUSHED BY THE COVID-19 PANDEMIC
CRUSHED BY THE COVID-19 PANDEMIC SO THEY ARE ASKING FOR FEDERAL
SO THEY ARE ASKING FOR FEDERAL RELIEF CASH.
RELIEF CASH. THE POSTMASTER GENERAL SAYING
THE POSTMASTER GENERAL SAYING THE PANDEMIC HAS HAD THIS IMPACT
THE PANDEMIC HAS HAD THIS IMPACT ON THEIR SERVICES, SAYING QUOTE,
ON THEIR SERVICES, SAYING QUOTE, THE SUDDEN DROP IN MAIL VOLUMES
THE SUDDEN DROP IN MAIL VOLUMES OUR MOST PROFITABLE REVENUE
OUR MOST PROFITABLE REVENUE STREAM IS STEEP AND MAY NEVER
STREAM IS STEEP AND MAY NEVER FULLY RECOVER.
FULLY RECOVER. WE NOW ESTIMATE THE COVID-19
WE NOW ESTIMATE THE COVID-19 PANDEMIC WILL INCREASE THE
PANDEMIC WILL INCREASE THE POSTAL SERVICE’S NET OPERATING
POSTAL SERVICE’S NET OPERATING LOSS BY MORE THAN $22 BILLION
LOSS BY MORE THAN $22 BILLION OVER THE NEXT 18 MONTHS AND BY
OVER THE NEXT 18 MONTHS AND BY OVER $54 BILLION OVER THE LONGER
OVER $54 BILLION OVER THE LONGER TERM.
TERM. THERE IS RELIEF ON THE WAY, BUT
THERE IS RELIEF ON THE WAY, BUT IT COULD COME WITH STRINGS.
IT COULD COME WITH STRINGS. THE CARES ACT ALLOCATES $10
THE CARES ACT ALLOCATES $10 BILLION IN A LOAN FOR THE USPS
BILLION IN A LOAN FOR THE USPS BUT THE PRESIDENT SAYS HE WANTS
BUT THE PRESIDENT SAYS HE WANTS TO SEE THEM HIKE PRICES FIRST TO
TO SEE THEM HIKE PRICES FIRST TO COMPETE WITH AMAZON AND THE
COMPETE WITH AMAZON AND THE PRIVATE SECTOR BEFORE HE HANDS
PRIVATE SECTOR BEFORE HE HANDS OVER THE CASH.
OVER THE CASH. >> THIS THING’S LOSING BILLIONS
>> THIS THING’S LOSING BILLIONS OF DOLLARS.
OF DOLLARS. IT HAS FOR YEARS.
IT HAS FOR YEARS. BECAUSE THEY DON’T WANT TO
BECAUSE THEY DON’T WANT TO INSULT FOR WHATEVER REASON, YOU
INSULT FOR WHATEVER REASON, YOU CAN IMAGINE, THEY DON’T WANT TO
CAN IMAGINE, THEY DON’T WANT TO INSULT AMAZON AND THESE OTHER
INSULT AMAZON AND THESE OTHER GROUPS.
GROUPS. IF THEY DON’T RAISE THE PRICE,
IF THEY DON’T RAISE THE PRICE, I’M NOT SIGNING ANYTHING.
I’M NOT SIGNING ANYTHING. REPORTER: THE PRESIDENT DID WALK
REPORTER: THE PRESIDENT DID WALK BACK THOSE COMMENTS JUST TWO
BACK THOSE COMMENTS JUST TWO HOURS LATER ON FRIDAY, SAYING HE
HOURS LATER ON FRIDAY, SAYING HE WOULD NEVER LET THE POST OFFICE
WOULD NEVER LET THE POST OFFICE FAIL, BUT THIS IS A BIG PROBLEM,
FAIL, BUT THIS IS A BIG PROBLEM, BECAUSE THEY HAVE BEEN LOSING
BECAUSE THEY HAVE BEEN LOSING BILLIONS OF DOLLARS FOR YEARS.
BILLIONS OF DOLLARS FOR YEARS. LAST FISCAL YEAR, THEY ENDED
LAST FISCAL YEAR, THEY ENDED WITH A NET REVENUE LOSS OF OVER
WITH A NET REVENUE LOSS OF OVER $8 BILLION.
$8 BILLION. A BIG PART DOES NOT HAVE TO DO
A BIG PART DOES NOT HAVE TO DO WITH HOW THEY PRICE THEIR
WITH HOW THEY PRICE THEIR PACKAGE DELIVERY OR HOW THEY
PACKAGE DELIVERY OR HOW THEY COMPETE WITH AMAZON, BUT JUST
COMPETE WITH AMAZON, BUT JUST THE GENERAL STEADY DROP OF MAIL
THE GENERAL STEADY DROP OF MAIL VOLUMES OVER THE PAST SEVERAL
VOLUMES OVER THE PAST SEVERAL YEARS, AS BUSINESSES SEND FEWER
YEARS, AS BUSINESSES SEND FEWER THINGS THROUGH THE MAIL.
THINGS THROUGH THE MAIL. BILL PAY HAS MOVED ONLINE.
BILL PAY HAS MOVED ONLINE. THEY HAVE ALSO BACKED UP OVER
THEY HAVE ALSO BACKED UP OVER $160 BILLION IN PREPAYING
$160 BILLION IN PREPAYING RETIREE BENEFITS.
RETIREE BENEFITS. THAT’S SOMETHING THE POST OFFICE
THAT’S SOMETHING THE POST OFFICE HAS TO DO AS PART OF A ROLE THAT
HAS TO DO AS PART OF A ROLE THAT MANY OTHER BUSINESSES DO NOT DO.
MANY OTHER BUSINESSES DO NOT DO. TREASURY SECRETARY MNUCHIN SAYS
TREASURY SECRETARY MNUCHIN SAYS THERE COULD BE A REFORM PACKAGE
THERE COULD BE A REFORM PACKAGE TIED TO THIS RELIEF MONEY FOR
TIED TO THIS RELIEF MONEY FOR THE POST OFFICE AND PART OF THAT
THE POST OFFICE AND PART OF THAT COULD BE BRINGING IN NEW
COULD BE BRINGING IN NEW POSTMASTER GENERAL.
POSTMASTER GENERAL. NEIL?
NEIL? NEIL: ALL RIGHT.
NEIL: ALL RIGHT. HILLARY, THANK YOU VERY, VERY
HILLARY, THANK YOU VERY, VERY MUCH.
MUCH. KEEP IN MIND THAT WITH THE
KEEP IN MIND THAT WITH THE SMALLER PART OF BUSINESS GOING
SMALLER PART OF BUSINESS GOING TO AMAZON, SOME OF THE OTHER BIG
TO AMAZON, SOME OF THE OTHER BIG BOX PLAYERS THAT HILLARY ALLUDED
BOX PLAYERS THAT HILLARY ALLUDED TO COULD SIMPLY TAKE THEIR
TO COULD SIMPLY TAKE THEIR BUSINESS ELSEWHERE, ESPECIALLY
BUSINESS ELSEWHERE, ESPECIALLY IF THE POST OFFICE WERE TO JACK
IF THE POST OFFICE WERE TO JACK UP RATES.
UP RATES. THERE IS UPS.
THERE IS UPS. WE HAVE ALREADY SEEN THAT
WE HAVE ALREADY SEEN THAT HAPPENING.