Directing Committees to Review Regulations from Federal Agencies

Floor Speech

Date: Feb. 11, 2011
Location: Washington, DC

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Mr. JORDAN. I want to thank the distinguished gentleman from California for yielding and for his good work on this resolution and a host of other issues in leading our committee.

The President's executive order directing agencies to take into account the cost of cumulative regulations is an important step, moves us in the right direction, and something that we just, frankly, are getting an understanding of how the Federal Government should work relative to the private sector. Job creators do not live in a world where they are only subject to one regulation issued by one agency. Rather, job creators are subject to a myriad of regulations and compliance obligations enforced by the EPA, the Department of Labor, the IRS, Health and Human Services, and on and on and on.

The utilities sector offers fertile ground to begin understanding how Federal agencies should take into account the cumulative effect of regulations. From early 2009 to 2017, this industry will have to contend with no less than 35 separate regulatory deadlines. Those affected say looming regulatory changes have already caused two power plants to be shut down.

The manufacturing sector: this industry is hit the hardest by cumulative regulatory costs, with per-firm costs at over $600,000--half a million greater than the national average. Small manufacturers bear a proportionately larger regulatory burden, with an estimated cost of $26,000 per employee--more than double the burden faced by other larger manufacturers. The impact of regulations is especially important on small business owners. They serve as both entrepreneurial leaders but also as the regulatory enforcer within their company. The more time spent complying with regulations is less time they can spend meeting the needs of their clients and their customers, growing their business, and, most importantly, creating jobs.

I had an experience a few years ago. One of our manufacturers, a very successful business owner, wanted to meet with our U.S. Senator. I remember this meeting because I'll remember it forever. We were sitting in the meeting and our constituent said to our U.S. Senator, Senator, we can outcompete anybody. We are so efficient at what we do, the way we manage our business, our efficiencies we put in place, we feel like we can outcompete anybody. What makes it tough to win in the international market, what makes it difficult to compete and grow jobs, what makes it really difficult is the stuff you guys do. And he pointed right at the Senator. And it had an impact. He said, It's all the things we have to do to comply. That's what makes it difficult.

The American worker, the American family, they can outcompete anybody. Let's just get government off their backs so they can do the things that we've been doing in this country for 200-plus years--grow our economy, grow jobs, put families back to work, put people back to work, and improve this situation.

I look forward to the work that our Subcommittee on Regulatory Affairs will focus on, trying to understand the cumulative impact that regulations impose on the job creators.

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