[Congressional Record Volume 140, Number 81 (Thursday, June 23, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: June 23, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
  DEFENSE CONVERSION AND THE RESPONSIBILITY OF THE FEDERAL GOVERNMENT

                                 ______


                         HON. OLYMPIA J. SNOWE

                                of maine

                    in the house of representatives

                        Thursday, June 23, 1994

  Ms. SNOWE. Mr. Speaker, the challenges of defense conversion are 
enormous. But today, I am introducing legislation that will help the 
Federal Government face those challenges and continue to live up to its 
duty to assist industries, communities, and individuals adversely 
impacted by base closures and drastic cuts in defense spending.
  Over 2 years ago, I introduced comprehensive legislation to assist 
the people of communities faced with the severe economic hardships 
caused by the closure of a major military installation. A year later, I 
was pleased to note that some of the ideas and provisions of my base 
closure recovery bill were later incorporated into the President's own 
base closure revitalization plan. I was also successful in getting two 
other provisions from my bill in the fiscal year 1994 Defense 
Authorization Act.
  One provision would provide preference to qualified local and small 
businesses competing for contracts in connection with work at closing 
bases, particularly environmental cleanup work. The other provision 
would convey free-of-charge to the Loring Development Authority all 
title to Loring Air Force after it is closed. This last provision would 
ensure that the local communities will retain control of the 
redevelopment effort at Loring.
  The dominant government agency involved in defense conversion has 
always been the Department of Defense. But virtually every one of its 
defense conversion programs were imposed upon it by either the Congress 
or the President.
  Today I am introducing legislation that consolidates almost all of 
the Federal Government's defense conversion activities within the 
Executive Office of the President. In effect, this legislation creates 
a defense conversion czar who is directly responsible to the President 
for the coordination and implementation of this crucial national 
effort.
  The point is that of all the agencies in the Federal Government, the 
Defense Department is the one most institutionally unsuited to oversee 
such an important government effort. The fundamental purpose of the 
Defense Department is to provide the military forces needed to ensure 
the security of the nation, to deter war, and to fight and win wars if 
deterrence fails. The institutional goals of the Defense Department run 
counter to the basic philosophy of defense conversion--and that is to 
help people, communities and industries become less dependent on 
defense spending.
  The Pentagon's fundamental unsuitability to be responsible for the 
bulk of this Nation's defense conversion programs was reinforced by a 
recent General Accounting Office report. In that report, the GAO cited 
an evaluation of the Defense Department's defense conversion programs 
done by the Pentagon's own Inspector General. The IG had evaluated one 
of the Department's defense conversion programs and concluded that 
``ineffective planning and oversight had resulted in implementation 
problems.''
  In the fall of 1992, I, and other Members of Congress who have a 
strong interest in this important issue and whose districts and States 
have a big stake in the success of defense conversion, testified before 
the Defense Conversion Commission. In its final report, ``Adjusting to 
the Drawdown,'' the Commission made an even stronger case for 
decreasing the influence of the Pentagon in defense conversion. The 
Commission noted that . . .

       While the Department of Defense has a large role to play, 
     overall direction for defense conversion and transition 
     actions must come from the Executive Office of the President.

  I could not agree more with that statement.
  The purpose of my legislation is to do what should have been done 
long ago--consolidate this country's defense conversion efforts within 
the Executive Office of the President. One individual directly under 
the President should be responsible for the effective coordination and 
implementation of this Nation's defense conversion strategy. This 
legislation would be a significant step in that direction.
  The Economic Development Administration [EDA] of the Department of 
Commerce is actively involved in defense conversion efforts throughout 
the country. One of the bills I am introducing today slightly amends 
the Fiscal Year 1991 Defense Authorization Act which has provided the 
guidance for the EDA's defense conversion responsibilities dealing with 
funds authorized under defense bills.
  Under this act, the EDA does not give any special preference to 
defense conversion projects. This legislation specifically directs EDA 
to ``ensure that funds are reserved for communities identified as the 
most substantially and seriously affected by the closure or realignment 
of a military installation or the curtailment, completion, elimination, 
or realignment of a major defense contract or subcontract.''
  I have long believed that tax credits should be provided to help 
employers who hire displaced defense workers, and my comprehensive base 
closure legislation provides such tax credits for employers who hire 
workers laid off due to the closing of a military base. The legislation 
I am introducing today improves upon that measure by including those 
employees who have lost their jobs as a result of reductions-in-force 
at military installations.
  Mr. Speaker, the State of Maine is the fourth highest recipient of 
defense spending per capita in the Nation, and defense is the State's 
third largest industry. But Maine has lost approximately 10,000 
defense-related jobs since 1989, and there is a deep concern that 
thousands of more jobs are threatened by continued reductions in 
defense spending. Defense-related jobs in Maine reach into every county 
in the State, and include workers at defense industries and bases both 
large and small. Thousands more work for businesses that serve both 
military and civilian markets. Defense conversion is absolutely 
critical for the long-term health of Maine's economy.
  I believe that the Federal Government has the responsibility to 
provide the economic policies, tools, and incentives that are needed to 
stimulate both the economy and defense conversion initiatives. 
Legislation that I have offered in the past and that I offer today will 
help the Federal Government live up to those responsibilities. As I 
said on the floor of the House in 1991, our responsibilities are not 
ending with the base closure process, they are only beginning.

                          ____________________