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H e a d l i n
e s . . .
May
25, 2001 |
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ROCKEFELLER PROPOSES BILL TO SAVE STEEL
INDUSTRY
Weirton, W.Va. -- U.S. Sen. Jay
Rockefeller, D-W.Va., has proposed yet another bill aimed at helping
companies like Weirton Steel Corp. and Wheeling-Pittsburgh Steel Corp.
Rockefeller, who has suggested
everything from quota legislation to a steel summit, has been one of the
strongest voices on Capitol Hill in urging President Bush to take action
to end the import crisis. A bill which has been dubbed Save the American
Steel Industry Act is his latest attempt to help domestic producers that
have been hit hard by the import
situation.
The bill is geared
toward encouraging American steelmakers to ensure their survival by
merging. It would provide funding for consolidation and place a 2 percent
surcharge on steel products to pay for retiree costs. According to
provisions of the bill, a steel company could access up to $150 million in
federal funding for a merger.
"We are in the midst of
the most serious steel crisis in our nation's history," said Independent
Steelworkers Union President Mark Glyptis. "Major steps must be taken by
the Bush administration to provide relief from the import crisis, but
individual steelmakers must also be willing to make changes in order to
preserve our
industry".
"It's
well known from published reports that Weirton Steel and Wheeling-Pitt
have discussed strategies which could help both companies," Glyptis
added."I believe we will see continued consolidation of the domestic and
international industry over the next few years. Sen. Rockefeller's
bill will face a lot of opposition from big steel companies, but the ISU
will support him because this is definitely a piece of legislation which
could help companies like Weirton Steel".
The senator's legislation is similar
to the Steel Revitalization Act, drafted by U.S. Rep. Pete Visclosky,
D-Ind., which has fallen short of majority support in the House. The
Visclosky proposal calls for a 1.5 percent surcharge on steel, provides
funding for consolidation, encourages expansion of the steel loan
guarantee program and recommends quotas on
imports.
"Unless we act swiftly and set up
a rational market structure, we're just re-arranging deck chairs on the
Titanic," said Rockefeller, who gave the keynote speech this week at the
108th general meeting of the American Iron and Steel Institute in
Washington, D.C. "You've earned our government's support and I'm going to
work so you get there. Without help, the nationıs steel industry faces
losing more than half of its production to bankruptcy by yearıs end. I
hope I'm wrong, but I donıt think I
am."
The Save the American Steel
Industry Act is already receiving sharp criticism and has even been called
"out and out socialism"by Roger Phillips, president of Ipsco Inc., a
Canadian steelmaker which has facilities in the United States. Executives
at some large steel companies say a surcharge would put domestic companies
at a disadvantage against foreign steelmakers. They say the surcharge
means domestic companies would have to take a 2 percent hit in order to
maintain market prices.
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