ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, April 15, 1994                   TAG: 9404150081
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                 LENGTH: Medium


POST OFFICE PLANS REVAMP

The post office wants to revamp the way it classifies mail so it can base prices on speed and service instead of what's in the envelope.

``What's needed is a complete overhaul of our classification system,'' Postmaster General Marvin Runyon told the House Committee on Post Office and Civil Service on Thursday.

``The current four classes of mail were created more than a century ago,'' Runyon said. Prices are based on what is being sent rather ``than by what our customers expect us to do with it.''

``We need to develop a simple menu of products. One that's based on service level, use of technology and volume, one that's easier for customers and postal employees to understand and use, and one with prices tied more closely to cost and market factors,'' Runyon said.

He said the agency has a committee studying potential changes, and he hopes to have a proposal for a new system by the end of the year.

Mail rates are based on four classes of mail. First class is for letters, second class for publications, third class for advertising mail and fourth class for parcels.

But the system also has complex sets of discounts for mailers who send in bulk, sort the mail in advance, print computer bar codes on mail and do other work.

Charges for a level of service would allow mailers to pay more or less depending on how quickly they wanted something delivered, without having to resort to costly overnight service. But Runyon didn't detail what plans are under discussion.

The post office currently has a proposal for rate increases - including a 32-cent first-class stamp - pending before the independent Postal Rate Commission. Action isn't expected until early next year.

The agency also is looking into ways to become part of the electronic information highway, including the possibility of lobby kiosks to provide information from many government agencies.



 by CNB