HOW DOES THIS PLAN AFFECT PRESENT GOVERNMENT PROPOSALS? This shell building plan to spur industrial capital investment, combat inflation and secure vast production dovetails with reports issued this month by both the President's Council of Economic Advisers and the Joint Congressional Economic Committee. The President's Advisers, quoting the Wall Street Journal early this month, made clear in its report that: "There's nothing the nation needs more for its future strength in productivity, employment, price stability, the dollar, THE WHOLE WORKS (our capitals) - than more capital formation and a strong rise in business investment." And the report of the Congressional Economic Committee marked for the first time in 20 years that both the Democrats and Republicans agreed on a joint report. The report emphasized that: "Inflation is the clear-cut No. 1 issue and a lot of old solutions (pumping billions in tax money into people's pockets) via public jobs and other federal gifts and grants has ended up causing both high unemployment and inflation. Now the emphasis must be on expanding the ability of the economy to produce greater supplies of new goods and services efficiently. Greater incentives are needed to increase new investment, promote production, and stimulate research and development." SO THAT'S WHY WE SUBMIT THIS STATEMENT We are convinced that a widespread shell building program, funded through local EDA guaranteed bank loans to LDO's, and then vigorously advertised and promoted across the USA, is the road to the goals of both the President's Council and the Congressional Economic Committee. This Plan requires NO outpouring of Public Tax Money, NO new bureaucracy, NO long lag to achieve vast new production and new jobs. FINALLY, we believe this Plan will restore industry's confidence in government by being a determined helping hand. And most important; this Plan will create an eminently satisfactory blend of cooperation to cement government, labor and industry in a mutual effort for the benefit of all of us. Respectfully Submitted by Hania & Breth Harris G. Breth Industrial Consultant PROPOSALS TO AMEND THE APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965 WEDNESDAY, APRIL 4, 1979 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON ECONOMIC DEVELOPMENT, Washington, D.C. The subcommittee met, pursuant to notice, at 10:07 a.m., in room 2167, Rayburn House Office Building, Hon. Robert A. Roe (chairman) of the subcommittee) presiding. Mr. ROE. The hearing scheduled for this morning at 10 a.m. to receive testimony on H.R. 3249, which is the extension to the Appalachian Regional Development Act of 1965, will now convene. The first witness this morning is the Honorable James T. Broyhill from North Carolina, one of our most distinguished Members, who has done a superb job in the field of economic development, particularly with his work on Appalachia legislation over the years, and we always value his judgment, his testimony, and his strong support. So I want to welcome you this morning, Congressman Broyhill, and we know your testimony is going to be very valuable to this committee. Now I defer to the distinguished gentleman from Arkansas, the Honorable John Paul Hammerschmidt. Mr. HAMMERSCHMIDT. Thank you, Mr. Chairman. I want to join with Chairman Roe and my colleagues on the Subcommittee on Economic Development in welcoming the Honorable James T. Broyhill of North Carolina, as well as representatives from local communities who will be appearing before our committee later today. Congress and the Appalachian Regional Commission represent a unique experiment in cooperative development and in Federal, State, and local partnership. The Commission undertakes a large and diversified development program which has produced a spirit of cooperation in the effort of economic development. These hearings today, of course, are a continuation of that policy. In 1965, Congress determined that the Appalachian region lagged behind the Nation in its economic growth and development. So to rectify this situation, Congress passed the Appalachian Regional Development Act to assist the region in building a better economy and a better quality of life for its inhabitants. The Appalachian program differs from other Federal programs in concentrating its investments in areas where the member States have so decided. This concentration helps build up key areas in the region and maximizes the return on the public dollars invested. The past decade of change in the Appalachian region demonstrates progress toward the goal of a diversified and self-sustaining economy. Many signs of change are evident since 1965. Appalachia's poverty population has declined 55 percent since 1960, and since 1970 the region has gained an average of 58,000 persons per year through immigration, arresting and reversing the earlier outmigration. Between 1965 and 1977, Appalachia gained close to 1.5 million jobs, a growth of 24 percent, while the per capita income increased from 78 to 85 percent of the national average. Indicators of adequate health care and education levels have been rising steadily throughout Appalachia. So the Appalachian Regional Commission has demonstrated that it is possible for Federal and State governments to work together in a process of shared decisionmaking to promote this progress. However, despite the past decade of change, some of the special problems that have long plagued this region continue, and now we must determine the best way to capitalize on the past foundation and further narrow the gaps between the region and the Nation. I look forward to the testimony of our most distinguished colleague, Congressman Broyhill, and later from the local officials, interest groups, and other citizens. I am sure their suggestions and observations will be beneficial to the committee as we make these determinations. Thank you, Mr. Chairman. Mr. ROE. Thank you, Mr. Hammerschmidt. The Chair recognizes the Honorable James T. Broyhill. Jim, we welcome you here. TESTIMONY OF HON. JAMES T. BROYHILL, A REPRESENTATIVE IN CONGRESS FROM THE STATE OF NORTH CAROLINA Mr. BROYHILL. Thank you, Mr. Chairman. I do appreciate your letting me come today to testify before the committee in support of the continuation of this important program. I would ask, if you would, that you let me put my remarks in the record as if read and give me a few minutes just to summarize. Mr. ROE. With no objection, so ordered; the full text of your prepared statement will appear in the record at this point. [The statement referred to follows:] STATEMENT OF JAMES T. BROYHILL Mr. Speaker, I would like to take a few minutes this morning to talk with you about the Appalachian Regional Commission and why I believe we should favorably consider legislation to extend this Commission. At a time when we are all crying for a reduction in Federal programs, and, with the reputation I have for being one who cries the loudest, you might think that I would be all for letting the Appalachian Regional Commission quietly die, with the expiration of legislation this year. But, this is not the case. I believe the Appalachian Regional Commission has done much for the economic development of a very important area of our country, and I would like to give you some of my thoughts and impressions of the Commission, and why I feel it should be continued. The Appalachian Regional Commission has been in existence for 14 years, and, during that time, the partnership which has existed between the 13-member states and the Federal government has proved to be a successful mechanism for assisting those in need. We all recognize that for the past few decades our young people grew up with the idea of leaving the area. They did not have the opportunity of finding a good job. They did not have the opportunity for advancement. They did not have the opportunity for developing technical skills. This situation, of course, is changing. The Appalachian Regional Commission has gone a long way toward helping to accomplish this reversal in outmigration. No longer do our young people leave as soon as they are able. Since 1970, our region has experienced an influx of people. The big cities no longer look so good. One way in which this reversal has been accomplished is through the Appalachian program of developing vocational schools. It stands to reason that, if our young people have no vocational skills and no schools from which to obtain these skills, they leave the area to find the jobs and skills they need. The Appalachian Regional Commission recognized this and invested more than $300 million in a regionwide system of vocational schools. Once an area has established training facilities and its people begin participating in technical training, then industries are more inclined to locate in this area. This has certainly been the case in my congressional district-the 10th District of North Carolina. For example, in the mid 1960's, with the help of the Appalachian_Regional Commission, the Caldwell Community College and the Western Piedmont Community College and Technical institute were developed and have, since that time, proved to be highly successful in enabling people to further their vocational and educational skills. Because of the success of these technical institutes in my district, plus the availability of community facilities made possible under the program, several industries have already been established, or are now planning to locate, in the 10th District. Why? Because my district now has the facilities to train employees, and it has the people who are willing to stay in an area because of the availability of good jobs which pay good wages. The economic development of a region depends on a healthy population as well as a skilled one. Access to basic health and educational services has been limited to many residents in Appalachian areas, partially because of the increased cost of medicine and also because of the lack of medical facilities. Because of the efforts of ARC, the Appalachian region has shown a marked improvement in the availability of health services for its residents. Again, in my home county of Caldwell, the first county primary care center operated through the caldwell County Health Department located adjacent to Caldwell Hospital and was constructed with ARC funds. This center, I believe, is the only such facility in the Southeast. The Appalachian Regional Commission still continues to partially fund its operation. However, much work remains to be done. There is still a shortage of doctors, nurses, and facilities. Efforts must continue to improve our health care facilities in this area, not only through centers such as health care clinics, but also through preventive training. Funds, through ARC to local communities to provide preventive training, are vital. In some areas, our young people have never been to a dentist or a doctor. They are not aware of what preventive medicine is. Only through the efforts of agencies like the ARC can preventive training continue. Finally, one last topic I would like to mention is the community facilities and community development aspect of the ARC's function. Many, many small communities and towns in Appalachia do not have the funds to match the other Federal assistance programs in order to make major, extremely costly improvements. Because of the ability of the ARC to supplement other grants, this often affords the last hope to small towns in obtaining these funds. This piggyback feature is of utmost importance to small communities who, without it, could not even begin to meet the needs of their areas. In closing, let me say that the Appalachian Regional Commission programs are initiated by local people and are in response to local needs. The ARC has flexibility and does not dictate-likes so many of the other bureaucratic assistance programs do. Local people have input, local people determine their own needs, and local people work as partners with the Appalachian Regional Commission to improve economically depressed areas. We have made great improvements to my areas, as well as to all the Appalachian areas. However, not all of the vitally needed services have been provided. Not all areas have progressed, and not all has been done. I believe the continuation of the Appalachian Regional Commission is of utmost importance to the economic well-being of the entire area, and I would, therefore, like to add my strong recommendation for its continuation. Thank you, Mr. Chairman. Mr. BROYHILL. You know, there is a growing concern in the Congress about the size of the Federal budget, and we hear more and more about the need to reduce Federal programs. I, of course, have the reputation of being one who is crying the loudest to do that. But I feel that this is one program that has not only done a |
