U.S. Assistant Secretary of Commerce David A. Sampson American Water Works Association and Water Environment Federation 2003 Joint Management Conference, Dallas, Texas

Monday, February 10, 2003

Thank you Charlie (Charlie Anderson, Conference Co-Chair). I'm very honored to be here.

I'm delighted to be back home here in Texas among so many good friends. Every time I come back since I joined President Bush's team at the Commerce Department, I think I must have been crazy to leave!

But we have a lot of good Texans living and working back in Washington, so I don't get very lonely. For starters there's my boss, Secretary Don Evans. And there's his best friend, George W. Bush.

We have an extraordinary leader in President Bush. He's very responsive to the American people. He's working 24/7 on economic security ... homeland security ... and national security.

There isn't a day that goes by that any of us in his Administration don't think about how the decisions we make will benefit the American people.

All of us know that our number one priority is protecting the homeland. We have a responsibility to protect our country from great dangers. We must provide all Americans with a safe and secure place to call home.

We will continue to hunt down the terrorists all across the world. And we will confront the outlaw regime in Iraq that lives by violence and deception and threatens the civilized world.

I also know that the public and private leaders here today understand the challenges facing the American economy ... its workers and its employers. I know that people like Charlie (Charlie Anderson, Co-Chair), Paul (Paul Causey, Conference Co-Chair), and Bob (President, Dallas Utilities) believe, as I do, that we must address these challenges and anxieties aggressively and quickly.

Each and every one of you is in this business to serve the public. The President believes, as do I, that there is no higher calling than to serve others.

We see it in the men and women who are serving in the armed forces. We saw it tragically when we lost the Columbia and 7 brave astronauts. And we see it among all of you this morning who serve hundreds of millions of people by providing the most basic of human needs: safe drinking water.

So, what I want to do in the next few minutes is tell you briefly about what President Bush is doing to help revitalize the America economy and create jobs ... why we believe critical infrastructure is so key to local development ... and finally, what EDA has to do with all of this.

First, the economy.

President Bush has called on members of both parties in the Congress to work with him to make every part of our economy healthy and vigorous. And he will not rest until every business has the incentive and best conditions to grow ... and every person who wants to work can find a job.

The new Congress has already taken the first step by passing an extension of unemployment benefits, which is helping tide over tens of thousands of people who lost jobs but are having trouble finding new ones.

The President's new jobs and economic growth plan went to Congress last week as part of the President's new budget (for FY 2004). The $674 billion package will strengthen America's economy. It will increase the momentum of the economic recovery that began some 16 months ago. And it will help create new jobs, some 2.1 million over the next several years.

And we hope Congress will see the tax benefits of the package, especially to small businesses. They are the growth engine of this country. They provide over half the jobs in America. So if you cut their taxes as the President wants to do, you will encourage small business to invest more, and to hire more.

So we hope the Congress will move swiftly on President Bush's growth and jobs plan.

The key feature of the President's economic package is major tax relief for 92 million Americans. We’re talking about an $1,100 tax cut, on average. That's real money that stays in your pocket, to spend or invest.

Let me take a minute to explain why this is so significant.

We've made great progress over the last two years. Despite terrible shocks our nation has been hit with, our economy continues growing. Back in the summer of 2000, during the prior administration, the market had started on a steady decline, job growth was shrinking, and the economy began to slump.

When President Bush took office, he worked with the Congress to cut income taxes. More than 100 million individuals, families, and small businesses received tax relief. It was the biggest tax cut in a generation. And it gave the economy a jump start just at the right time, ensuring that the recession was one of the shortest and shallowest since the end of World War II.

The President believes Americans should be able to count on those tax cuts as they plan for the future.

By making these tax cuts permanent, fair and certain, families will be able to plan for the future. Businesses will be able to plan and invest for the future. That's how our economic system works.

We're now in our second year of growth. And the numbers are looking pretty good. We've had 5 straight quarters of growth in the GDP. Inflation is low ... interest rates are low ... incomes are up ... more people are buying and building new homes ... worker productivity last year saw it's biggest increase in nearly 30 years (5.6 percent).

So I'm optimistic about the future. Tax cuts work.

But to be honest, we have more work to do. Right now people lack the confidence to invest and create new jobs. The President believes his plan will help boost confidence in the economy.

Most of you are probably aware by now of the details in the President's plan. So let me make just a couple of broad points. First, it recognizes that our $10-trillion economy is fueled by our workers and businesses in the private sector. Government may spend a lot of money. But it doesn't build factories ... or invest in companies ... or create wealth and prosperity. That's what business does.

Government's job is to remove obstacles that prevent faster economic growth and innovation. So our plan would eliminate penalties on some productive investments ... such as the double tax on dividends.

It would give new incentives for small businesses to grow and invest ... which are the backbone of communities across the nation, especially in terms of employment. Under the plan, small businesses that buy new equipment will get a bigger tax write-off ... up to $75,000 a year instead of the current $25,000.

We've already heard many positive comments from small businesses.

Secretary Evans has visited a number of firms throughout the Midwest and Southeast that say they would expand and increase hiring as soon as Congress were to pass the legislation.

The President has offered a bold plan to deal with a big challenge. We simply need to keep this economy moving ahead. And we urgently need more job creation.

I hope Congress sees eye-to-eye with us and moves this package forward.

So, what does all this have to do with EDA and the water industry? Plenty.

Remember what I said about the role of government?

It's to remove obstacles that prevent faster growth and innovation.

Clean water is absolutely a critical element for faster growth and innovation. You simply can't have a vibrant community unless you get the basics right: ... an educated workforce ... good transportation ... safe streets ... safe drinking water.

Our aim is to make it easier to have these things by removing excess rules and regulations and putting federal funds where they're needed most.

As I was getting ready to come here, someone asked me: Why the heck are you going to Texas for a water and sewer convention?

I said: Well, it's not just because the conference is in Texas!

It's because I want to broaden EDA's partnership within the development community. I want to expand our deal flow into more areas, especially water projects.

So, I thought what better way to do this than coming here to talk directly with the people who need our help.

President Bush is a strong supporter of our work.

He understands that many communities and their citizens are hurting right now. There have been plant closings and layoffs during the recession. Tax relief will help. But he also realizes that some areas need even more.

So, he's asking Congress to increase my budget by $13.8 million next fiscal year.

That may not sound like much. But the fact is we leverage our money with private and local investment.

What does it take to get us to invest in a project?

Let me give you an example.

Last year we helped build a new $8 million treatment facility in Canton, Mississippi. We put up $2 million. The project was needed to support a new Nissan auto plant. It eventually will employ over 3,000 new workers, which will give a real lift to Canton and the surrounding areas.

And that's not to mention all the positive spinoff effects from such a major public works project.

In Washington and in our regional offices, we are working to transform EDA into the premier standard bearer for domestic economic development. That means our goal is to generate more economic impact per dollar of input than any other federal agency involved in economic development. To accomplish this, EDA is embracing an economic development strategy based on enhancing regional competitiveness, fostering innovation, increasing productivity and developing industry clusters.

In closing, let me leave all of you with a challenge.

We are truly living in pivotal times. There is a lot of uncertainty out there. People are worried about the future. Many are struggling.

So I believe our times demand strong leadership ... internationally, nationally, and in the private sector. The stakes are high: our freedom; our national security; our economic security.

We have strong leadership in President Bush.

But we need your help to see us through these challenging times. I believe your leadership ... in your communities and in your companies and organizations ... is as vital to the outcome of this struggle as is the leadership coming from Washington.

So I hope we can count on you as we go forward. I look forward to working with all of you.

Thank you, and God Bless America