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Economic Realities Vital

Click to see original imageUtah’s Air Conservation Committee, charged with carrying out provisions of federal clean air laws, was introduced to some sobering economic realities in its hearing on air quality at Orem Thursday. The hearing was one of a series held in six cities to discuss steps to bring Utah air within national health standards by Dec. 31, 1982. The one in Orem was especially crucial because this is the home of Geneva Works, which on the one hand is a significant contributor to the air problem, but on the other is one of the state’s largest and most vital industries, providing jobs and payrolls that have 2. powerful and positive impact on the state’s economy. (There are many other contributors, of course, to air pollution in the valley; all must share a responsibility in the problem.) Geneva, with a record of cooperation in cleaning itself up, is not opposed to air quality objectives. But it is frank to say that the expensive steps required to meet the federal edict cannot be accomplished by the deadline under existing economic realities especially when profit margins are curtailed by stepped-up “dumping” of foreign steel on Geneva’s west coast market due to government failure to enforce fair trade laws. Henry A. Huish, general superintendent, capsulized Geneva’s attitude in this paragraph in his testimony before the committee: “Geneva wants to make a commitment that is fair, realistic, and within the framework of our economic ability. We want to continue to cooperate with the State Air Conservation Committee in improving the environment in the communities where we all work and live and in achieving the primary air quality standards.” But he put his finger on conflicting government policies which would require tough compliance with the clean air edict but fail to enforce laws on dumping of foreign steel “at prices below the foreign producers’ home market prices and below their full cost of production and shipment,” The combined problem offers a stern threat to the Utah Valley industry. Obviously, no company can continue to operate unless it can do so profitably. And in an industry as broad and complicated as steel, there must be money for re-investment to keep the facilities competitive, develop raw materials, etc. in Geneva’s case, the company owns sizable inventories of raw materials, but according to its management, the time is not far distant when considerable investment will be necessary to develop these resources. Besides the obligation of meeting standards imposed by the government, the men and women who make steel in Utah bear another responsibility stressed by Geneva officials and members of the state’s congressional delegation; To insure continued operation of the industry, present and future. You get an inkling of the importance of this responsibility when you realize that some 5700 men and women in Utah depend on steel for their jobs; when you think of what this huge payroll means in Utah’s economy; of the allied industries dependent on a healthy Geneva; of the standard of living this plant has enabled so many to share, particularly here in Utah Valley. Those who make laws and enforce them need to be mindful of such realities – of the necessity of bread – and – butter as well as pure air. This is not to discount the importance of environmental laws and improvements. What we are saying, basically, is: Here we have a valuable industry that is willing to cooperate in meeting air quality norms. Let those with decision – making power grant such flexibility as necessary to allow sufficient time for accomplishing this – in the meantime, ironing out inequities in the proposed regulations and enforcement (some were brought out at the hearing). and move promptly to correct injustices, such as allowing steel dumping to undermine Geneva’s markets. With a sound and flexible approach, wise decisions by those in authority, and fairness and good judgment on all sides, crisis and tragedy can be avoided and a reasonable course pursued that will be for the common good.