[Congressional Record Volume 140, Number 17 (Thursday, February 24, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 24, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
STATEMENT ON THE NOMINATION OF MEMBERS OF THE BOARD OF DIRECTORS OF THE 
                      U.S. ENRICHMENT CORPORATION

  Mr. WALLOP. Mr. President, nearly 10 years ago, a group of Senators 
on the Energy Committee began a diligent effort to save the Department 
of Energy's Uranium Enrichment Enterprise from extinction. The 
Department was faced with declining demand for its product, rapidly 
increasing competition in the market, and the effects of a series of 
improvident bureaucratic decisions. Finally, in the Energy Policy Act 
of 1992, we succeeded in creating a Government Corporation with the 
hope that freedom to operate in businesslike manner would save this 
enterprise. Today's confirmation of the Board members charged with 
making a success of the new Corporation should gratify those of us 
involved in this effort. Instead, I find myself plagued by a gnawing 
suspicion that the administration may thwart our efforts to save this 
venture and maximize returns to U.S. taxpayers.
  In the Energy Policy Act of 1992, this committee insisted on the 
transfer of the foundering Uranium Enrichment Enterprise to a newly 
created Government Corporation with the ultimate goal of privatization. 
Implicit in that undertaking was the notion that a direct correlation 
would exist between the success of the Corporation and the absence of 
Government interference in its operations.
  Through capable, efficient management, the new Corporation began its 
operations on schedule and under budget. My concerns today lie not with 
the Corporation's management, but with the ominous signals from the 
administration that it intends to exert over the management a degree of 
influence that, if unchecked, will eventually result in the 
Corporation's demise.

  For example, the HEU deal concluded last month with Russia sets a 
purchase price that is above the cost at which the Corporation can 
produce the product itself. Such an arrangement does not appear to be 
related to any sensible business practice.
  More recently, the administration's budget proposal for 1995 includes 
a provision that requires operational changes at the Corporation in 
order to offset the administration's objectives for other programs. 
Both of these events demonstrate exactly the kind of bureaucratic 
malaise we sought to eliminate by directing that the new Corporation 
operate in a businesslike, profit-motivated manner.
  The nominees before us today all profess to have the same goals for 
the Corporation that we envisioned. That is encouraging. It is also 
encouraging that each of the nominees has proven capabilities in a wide 
variety of business arenas. However, if they are to succeed, they must 
be uniformly unwavering in their resolve to keep the administration out 
of the affairs of this Corporation. Otherwise, the Corporation's 
customers will remain distrustful of its ability to be competitive in 
such a challenging market and the Corporation will surely fail.
  I have supported the confirmation of these nominees because they have 
convinced me of their singleminded purpose to make this Corporation a 
successful business venture and that they will not permit the 
administration to thwart that goal through 
micromanagement of the Corporation's 
business decisions. I wish the Directors well in accomplishing this 
task and will keep a watchful eye on their progress.

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