Statement of Administration Policy: H.R. 5231 - National Competitiveness Act of 1992

(House)
(Valentine (D) North Carolina and 44 others)

The President's comprehensive economic growth agenda is designed to promote American competitiveness in world markets. Among the President's proposals are improvements in tax law and comprehensive reforms of the Nation's legal, health care, education, and job training systems. None of the President's proposals is contained in H.R. 5231.

The substitute offered in the Rules Committee by Congressman Walker included many of the President's proposals. It features a major initiative to reduce Federal spending and eliminate the national debt. Reducing the deficit by cutting Government spending is critical to improving America's long term competitiveness.

The Secretaries of Commerce and Energy, the Administrator of the Small Business Administration (SBA), the Chairman of the Council of Economic Advisers, and the Director of the Office of Science and Technology Policy will recommend a veto of H.R. 5231 unless Subtitles C and D of Title III are deleted.

These subtitles would establish within the Commerce Department a technology development loan program and a high technology analogue to SBA's Small Business Investment Company (SBIC) Program. These programs would:

—   Be inappropriate for Commerce's Technology Administration, which does not have the financial expertise needed to administer such programs.

—   Duplicate SBA's loan and equity finance programs, which Congress has expanded significantly this year. The SBIC program already serves a significant number of technology firms.

—   Possibly preempt State corporate law that would otherwise govern the structure and organization of the proposed critical technology development companies.

SBA will continue to work with the Manufacturing Technology Centers sponsored by Commerce to help ensure that promising high technology firms receive the financing they require.

Other significant objections to H.R. 5231 are described in the Attachment.

Additional Objections to H.R. 5231

The Administration strongly opposes provisions of H.R. 5231 that would:

—   Authorize appropriations levels that are excessive and highly unlikely to be funded.

—   Designate a single "lead" agency for enhancing manufacturing capabilities. This could complicate the interagency cooperation that now exists in Federal programs for manufacturing and other technologies.

—   Alter the initial intent of the Manufacturing Technology Centers program by allowing continued direct support of the centers beyond 6 years.

—   Micromanage the National Technical Information Service by pressuring it to enter into a long term lease with organizations that may not meet its long-term needs in the most effective way.

—   Extend the Baldrige Award by statute to educational institutions prior to the completion of relevant studies and discussions with the educational community.

—   Raise constitutional concerns by requiring: (1) legislative recommendations from Executive officers; and (2) submission to Congress by the Secretary of Commerce or her subordinates of plans to implement portions of the bill.

—   Authorize a new grant program in the Commerce Department to establish workforce training consortia between industry and institutions of higher education. In light of current training efforts, a new program should not be established.