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Geneva Solutions Needed

Click to see original imageSurely the federal government – in allowing widespread steel imports and setting up stringent “clean air” standards – didn’t figure to imperil a valuable domestic industry like Geneva Works. But t.hat’s exactly what’s happening – and the government should take steps to correct the situation. On one hand, Geneva profits are slashed by the “dumping” from foreign mills which are expected to capture 45 percent of the entire westem market this year. And on the other, demands are being made that the plant comply with costly provisions of the Clean Air Act of 1977 by a deadline of Dec. 31, 1982. The cost of outfitting the plant to achieve this goal is still a moot point. A representative of the air conservation committee for Utah tossed out a ball park figure of $250 million recent y. Geneva officials say the plant simply can’t afford this, especially with the imports situation. Utah’s Rep. Gunn McKay, member of the executive board of the Congressional Steel Caucus, said in a recent Colorado speech that the steel imports crisis was “brought on by sales in the U.S. of imported steel below foreign producers’ costs of production.” The Carter Administrati0n’s six – month – old “Trigger Price Mechanism” designed to reduce dumping simply isn’t working. August figures, Rep. McKay said, show import tonnage up nationwide 2.1 per cent over the same period in 1977. “The situation in the West is much, much worse. On our coast the August import figures are 13 percent above the July levels and up more than 40 percent this year to date over last year.” The Japanese have backed off about 15 percent from last year, but Rep. McKay said European and Third World producers are the prime offenders and the TPM for them “has become a license to dump at the lower Japanese pric t.; . ” The congressman noted that in the first six months of this year, steel imports from Europe in the west have jumped 383 percent from 1977 levels. Tbat’s an alarming figure. Henry A. Huish, Geneva’s general superintendent, in an October letter to plant employees, said he did not believe it exaggeration to “see in this situation a genuine threat to the very existence of our westem steel industry.” As for clean air, Geneva hasn’t ignored the situation and has been installing pollution control facilities since 1954. Recently it placed a $9 million “bag house” in operation. The last of a series of hearings on the draft of a proposed clean air program is set Dec. 6 and 7 in various communities. One meeting is slated at the Orem City Center Dec. 7 at 1 p.m. Interested persons should plan to attend. Mr. Huish feels the solution to the two pronged Geneva problem lies in the political realm – and we agree. Without further delay, the government should act to correct the steel dumping and adopt a more reasonable and flexible approach on the air pollution at old plants like Geneva’s. As for TPM, Rep. McKay feels it will still work if treasury officials will correct “misfigured” triggler prices and “put more spring ehind the trigger.” As part of an over – all solution, he also called for strengthening anti – dumping statutes; voluntary restraint agreements looking to an intemational accord; easing of the regulatory burden carried by the steel industry; adding flexibility in environmental regulations; and large – scale investment in plant and equipment by the steel industry. The trick, now, is to get the program going. On Geneva’s part, Mr. Huish already has called for improved performance, with top quality products, first rate service, and fast delivery record as well as “reducing costs wherever possible.” The plant has an enviable record in these and will seek to improve it. All of Central Utah has a stake in a strong, continuing Geneva steel industry. Now is the time to lend a helping hand in any way possible – and that includes letting your congressman or senator know you are counting on the govemment to act.