Copyright 2000 Federal News Service, Inc.
Federal News Service
June 28, 2000, Wednesday
SECTION: PREPARED TESTIMONY
LENGTH: 727 words
HEADLINE:
PREPARED STATEMENT OF CHRISTOPHER SHAYS
BEFORE THE
HOUSE COMMITTEE ON GOVERNMENT REFORM SUBCOMMITTEE ON NATIONAL
SECURITY, VETERANS AFFAIRS AND INTERNATIONAL RELATIONS
BODY:
Mr. Chairman, last winter many
Connecticut residents were paying up to twice last year's cost for home heating
oil, and $2 per gallon of gasoline this summer seems a near
certainty. So our discussion today of the "appropriate" federal response has to
begin with the question, "Has there been any response at all to a problem the
Administration knew, or should have known, to be looming for many months?"
Over five months ago -- on February 9 - I joined 49 of my colleagues
from both sides of the aisle in writing the President to express concern about
rising fuel prices. In our letter, we asked the Administration to take decisive
steps to stabilize prices, including releasing oil from the Strategic Petroleum
Reserve. Our requests were met with half-measures: the release of some
additional heating assistance (LIHEAP) funds and promises of future studies and
diplomatic efforts. That same week, I joined a bipartisan group of
representatives from the Northeast in meeting with Secretary Richardson to
express our concerns about the escalating cost of fuel, our disappointment with
the Administration's inaction on the issue, and the need for the Administration
to push OPEC to stabilize prices. Ultimately, Secretary Richardson's mission to
OPEC nations brought an agreement to increase production, but no corresponding
stabilization or decrease in the price of oil.
One month ago, on June 8,
in the face of still rising gas prices, Congressman Sanders and
I wrote to Secretary Richardson asking that he brief Members from the Northeast
on specific steps the Administration is taking to ensure sufficient oil supplies
at reasonable prices.
To my disappointment, we have not yet received a
response from the Secretary. Clearly, the federal approach to date favors
short-term political palliatives over the harder choices required to craft a
substantive energy policy.
Our experience with the Federal Trade
Commission (FTC) has not been much better, ln March, I joined 33 of my
colleagues in writing to the Attorney General asking for an investigation into
the sharp increase in the cost of home heating oil and consumer concerns over
apparent price gouging. The Attorney General forwarded the letter to the FTC,
which promised a comprehensive investigation.
To date, the FTC has not
contacted the co-signers of the letter with the results of the review. On June
22, after four months without a response, we were forced to reiterate our
concerns in a letter to FTC Chairman Pitofsky asking for a prompt conclusion of
the investigation.
While I recognize the Administration's efforts, in no
small measure due to the work of Secretary Richardson, helped convince OPEC to
increase supply last March, that crude oil production increase has not had the
effect on refined product prices. We find ourselves once again at the mercy of
OPEC.
In terms of an appropriate federal response to this crisis,
Congress too has a role to play in creating stable fuel prices. That is why I
support the creation of a two million barrel home heating oil reserve in the
Northeast. On April 12 the House voted 416 to 8 to authorize the creation of
such a reserve, but our Amendment to appropriate $10 million
for that purpose failed by just two votes.
Crude oil and heating oil
reserves are needed as a buffer against volatility in global markets, against
the power of the OPEC cartel and to protect national security. Congress still
has work to do to strengthen that element of national energy policy.
But
the Administration must also meet its responsibility to establish a long-term
energy plan which focuses on conservation and alternative fuel sources. At the
same time, the Administration must make clear to OPEC that the United States is
prepared to act to moderate oil prices by releasing oil from the Strategic
Petroleum Reserve.
The appropriate federal response to volatile energy
prices and supply disruptions should include both short and long term
initiatives to protect consumers. It should also include a willingness to share
both good and bad news with the people's elected representatives. So it is my
hope members of this committee today will finally learn at least some of the
answers to questions posed to this Administration over the course of the past
six months.
I look forward to the testimony of all the witnesses today.
END
LOAD-DATE: June 30, 2000
