[Congressional Record Volume 143, Number 31 (Wednesday, March 12, 1997)]
[House]
[Page H925]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




           UNFAIR GOVERNMENT COMPETITION WITH SMALL BUSINESS

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from Tennessee [Mr. Duncan] is recognized for 5 minutes.
  Mr. DUNCAN. Mr. Speaker, when the White House Conference on Small 
Business met in 1995, it listed unfair government competition with 
small businesses as one of its top concerns and most serious problems. 
This is not a new problem. In fact, during the Eisenhower 
administration in 1955, the administration felt it necessary to adopt 
as official U.S. policy the following statement:

       The Federal Government will not start or carry on any 
     commercial activity to provide a service or product for its 
     own use if such product or service can be procured from 
     private enterprise through ordinary business channels.

  Yet every day in almost every congressional district, big government 
agencies are competing with small businesses. This is why I have 
introduced H.R. 716, the Freedom from Government Competition Act. This 
legislation is supported very strongly by the U.S. Chamber of Commerce, 
the Business Coalition for Fair Competition, and numerous other 
professional associations, too many to list at this time.
  In addition, H.R. 716 already has more than 20 cosponsors from both 
parties and Senator Craig Thomas has introduced a companion bill in the 
Senate. This legislation will require that Federal agencies get out of 
private industry and stick to performing those functions that only 
Government can do well. At the same time, it will allow our great 
private free enterprise system to do those things it does best, 
providing commercial goods and services in a competitive environment.
  Under the Freedom From Government Competition Act, Federal agencies 
will be required to identify those Government activities that can be 
performed more cost effectively and efficiently by the private sector. 
After these areas are identified, the private sector will have the 
opportunity to compete for providing those goods and services. In 1987, 
the Congressional Budget Office estimated that 1.4 million Federal 
employees were engaged in so-called commercial activities. The Heritage 
Foundation has estimated that if we contracted out those commercial 
activities to private industry, we could save taxpayers at least $9 
billion a year.
  In addition to saving taxpayers money, the Freedom From Government 
Competition Act will help spur the growth of private businesses. This, 
in turn, will increase our tax base. In other words, we can reduce 
Federal spending and increase the revenues taken in by the Federal 
Government at the same time without raising taxes.
  With a debt of almost $5.5 trillion, this is the kind of legislation 
we need to actively pursue. H.R. 716 is a modest proposal. It does not 
require the Government to contract out everything. I realize that the 
Government performs a number of functions that only the Government 
should do. In fact, this legislation specifically exempts those 
functions which are inherently governmental. If the Government can do 
something cheaper and better than the private sector, then it will be 
allowed to continue to do so under this legislation.
  Nonetheless, all too often Government agencies are involved in 
activities that it cannot do well. In the end, this winds up hurting 
small businesses costing taxpayers hundreds of millions if not billions 
of dollars and hurts the economic growth of our private sector.
  Frankly, Mr. Speaker, we should pin a medal on anyone who can survive 
in small business today. Everything we do in big government seems only 
to benefit extremely big business. I have nothing against big business. 
However, big businesses seem to get almost all of the tax breaks, the 
big government contracts, the favorable regulatory rulings and all 
sorts of incentives such as free land or other inducements. We do very 
little for small businesses, and this is why so many of them are going 
under or are in a real struggle to survive. This is one thing we can do 
for small businesses. This is a small step in the whole scheme of 
things. However, this legislation will go a long way toward helping our 
small businesses survive.
  Mr. Speaker, if the Government were the answer to all of our 
problems, then the Soviet Union would have been heaven on Earth. But 
our Founding Fathers felt that most problems could be solved through 
the private sector and that Government should only do those things that 
the people could not do for themselves. The Freedom From Government 
Competition Act will return this great country to the type of governing 
system that our Founding Fathers envisioned. I hope my colleagues will 
help me stop big government agencies from competing with small 
businesses and join me in supporting the Freedom From Government 
Competition Act.

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