[Congressional Record Volume 143, Number 5 (Wednesday, January 22, 1997)]
[Senate]
[Pages S651-S652]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. McCAIN:
  S. 199. A bill to require industry cost-sharing for the construction 
of certain new federally funded research facilities, and for other 
purposes; to the Committee on Governmental Affairs.


         the federal research financing improvement act of 1997

  Mr. McCAIN. Mr. President, today I am introducing legislation to 
restore fairness and fiscal accountability to the Federal Government's 
many research and development programs and activities. The bill would 
require that commercial interests share the cost of constructing and 
operating new Federal research facilities that are intended to benefit 
their industries.
  Last year, the Federal Government spent $73 billion for research 
programs, including facility construction. Many of these programs are 
intended primarily to assist private industries and are sponsored by a 
host of Federal agencies, predominantly the Department of Defense, the 
Department of Agriculture, the Department of Commerce, and the National 
Research Council.
  For example, the Department of Agriculture spends nearly $750 million 
per year for 116 centers under the Agriculture Research Service. These 
federally funded centers are designed to help a variety of agricultural 
industries, many of which have enormous resources and do not require 
Federal assistance. I understand the agency is planning to construct 
even more facilities. Last year, Congress appropriated $26 million to 
construct a new swine research center at Iowa State University, even 
though we already have 12 Federal centers dedicated to swine research. 
This additional facility will cost nearly $10 million a year to 
operate.
  Mr. President, I recognize the importance of research and development 
to our competitiveness and economic growth, although I seriously 
question why we need 13 centers dedicated to swine research. 
Nevertheless, given our serious fiscal condition at a time when we are 
contemplating significant reductions in practically every area of 
domestic discretionary spending, I see absolutely no reason why 
Government research that benefits private industries, many of them 
quite prosperous, should not be cost-shared by the private sector.
  Regarding swine research centers, the pork industry generates nearly 
$66 billion per year. Surely, it is reasonable to expect the industry, 
and the many others that directly benefit from Federal research, to 
share the cost of the centers and its operation. I should add that the 
legislation would not require cost sharing for any research

[[Page S652]]

conducted for the purpose of helping industry comply with Federal 
regulations.
  Mr. President, industry is historically more cautious with their 
resources than the Federal Government. If the private sector will not 
expend their resources for a program that is intended for their 
benefit, one must question why we should feel compelled to spend the 
taxpayers' hard-earned money on the same venture. Public-private cost-
sharing arrangements for commercially oriented Federal research will 
ensure that proposed activities are truly cost-beneficial and that the 
potential outcomes of the research are worth the dollars invested.
  Again, I realize and appreciate the importance of research and 
development. I believe, however, that the legislation is a prudent and 
responsible approach which, no doubt, can be improved, but which should 
receive the Senate's full and timely consideration. I hope that we can 
have a hearing in the very near future to examine what I believe is a 
very important fiscal issue.
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