    [Public Papers of the Presidents of the United States: William J. Clinton (1994, Book II)]
    [August 23, 1994]
    [Pages 1493-1494]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing the Federal Aviation Administration Authorization
    Act of 1994
    August 23, 1994

        I am pleased to sign into law H.R. 2739, the ``Federal Aviation
    Administration Authorization Act of 1994.'' It is exceedingly satisfying
    when legislation is presented for enactment that reflects both of the
    things the American people want from their Government--action by the
    Government when clearly needed and action to eliminate Government
    regulation when it proves counterproductive.
        When I came into office, the aviation industry was struggling with
    large losses, reduced airline travel because of the recession, and a
    loss of aircraft orders at many of our biggest manufacturers. The
    problems ran deep. I know because I visited businesses to get an idea of
    the extent of the problems. In the face of these problems, the
    Government did not sit back.
        With the support of the industry and other interested groups, we
    enacted amendments to the law that created the National Commission to
    Ensure a Strong Competitive Airline Industry. Building on the
    Commission's recommendations, the Administration acted quickly, setting
    forth in our ``Initiative to Promote a Strong Competitive Aviation
    Industry'' a comprehensive strategy to address the basic issues and
    problems.
        That initiative has borne fruit. Of course, our successful economic
    program is the foundation for the much better financial results we see
    in the aviation sector. But now the Congress has acted to translate
    specific Commission recommendations and those we offered in January into
    effective legislation, giving the industry a stable basis for further
    recovery.
        The legislation that I am approving today sets in place a solid,
    multi-year authorization for Federal aviation activities. This
    authorization will serve as a foundation for concerted action on
    important and varied matters, such as quickly implementing the new
    Global Positioning System in the aviation sector. This bill also
    fulfills part of my pledge to emphasize economically

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    valuable infrastructure investment as the way to keep our Nation
    competitive across the board. This year, we will have committed nearly
    $1.7 billion to new airport development and planning grants. Overall, I
    believe the legislation sends the right signal--that the aviation sector
    continues to be a prime contributor to this country's economic health.
        Just as important, this legislation is proof that we can end
    Government activities when they have outlived their usefulness. My
    Administration strongly supported Title VI of the bill, which was
    designed to remove conflicting State laws, unrelated to safety, that
    impede efficient intermodal freight transportation. We also urged that
    Title VI be expanded to increase the efficiency of all commercial
    truckers. Fortunately, the Congress did expand it.
        State regulation preempted under this provision takes the form of
    controls on who can enter the trucking industry within a State, what
    they can carry and where they can carry it, and whether competitors can
    sit down and arrange among themselves how much to charge shippers and
    consumers. Taken together in the 41 States that do this, this sort of
    regulation costs consumers up to $8 billion per year in extra
    expenditures by increasing the freight transportation cost of everything
    we buy. That doesn't even count the costs of additional inventories and
    extra miles as companies try to escape the unnecessarily high cost of
    hauling their products on an intrastate basis by locating their plants
    far away from their consumer markets and criss-crossing State lines.
    Many firms have done so just to take advantage of interstate freight
    rates made cheaper due to the deregulation proposal of President Carter
    in 1980.
        I fully expect that this legislation will have effects similar to
    those of the 1980 deregulation law. New carriers will be able to enter
    the trucking industry, particularly women- and minority-owned carriers
    who may have been ``frozen out'' in the past by strict entry controls.
    Freight rates will become more competitive, truck service will become
    better and more reliable even in small, out-of-the-way communities, and
    employment in the trucking services industry will increase
    substantially.
        Thus, the current legislation is not only a significant addition to
    our economic stimulus program, it will also save consumers billions of
    dollars every year.
        For these reasons, I am pleased to sign into law the ``Federal
    Aviation Administration Authorization Act of 1994.''

                                                          William J. Clinton

    The White House,
    August 23, 1994.

    Note: H.R. 2739, approved August 23, was assigned Public Law No. 103-
    305.