Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez Remarks to New Orleans Business
New Orleans, Louisiana

Thank you for that kind introduction. And thank you all for being here today.

With each trip I make to New Orleans, and the region, I am encouraged by the progress I see. We are here today because President Bush and this Administration are confident the Gulf Coast region will fully recover and will see a better and brighter tomorrow.

And we are thankful that you share our commitment to making this happen. And, so, I thank you, the private sector, for the huge role you played in the hurricane response and recovery.

From volunteers pitching in to contributions from businesses of all sizes, we saw an outpouring of compassionate action.

Businesses showed real leadership. Let me give you a few of the examples that have been brought to my attention:

• Several companies held their prices steady in hurricane damaged areas
• Many donated millions of dollars for relief efforts-as well as antibiotics and medicines; and critically needed equipment like generators, trucks, and trailers
• And some companies guaranteed jobs for their displaced employees

Many American companies set a high standard of corporate stewardship with their responses. Thank you all for everything that your companies have done, and are doing.

As Chairman Powell pointed out, the President has established guidelines on the federal role in response to this disaster.

Congress has committed $85 billion and we have asked for more than $20 billion more--which includes new spending to rebuild the hurricane protection system ($18b + $2.2b).

We've been working closely with Congress, and state and local leaders, to develop integrated plans and spend taxpayer dollars with care.

But, as the President has said, the private sector will lead this recovery. We are engaging the private sector to create a stable, long-term and healthy recovery. We have set up the GO ZONE tax incentives that:

• Increase to $200,000 the amount that small businesses can expense. That's double what it was
• Accelerate bonus depreciation cost recovery
• Expense 50 percent of their demolition and cleanup costs
• Extend net operating loss carrybacks to five-years, from the current two years

These incentives will help local businesses get back on their feet and start providing jobs and paychecks. These incentives will encourage faster growth and development which, in turn, generate revenue for the state and create more jobs.

We believe the role of government is to create an environment that unleashes the power of private enterprise and innovation. In that environment the entrepreneur can flourish and companies can expand and create more jobs. That is the environment that will be the engine for growth in Louisiana and Mississippi.

There is simply no substitute for growth. Growth gives us options. Growth creates jobs. Growth empowers people. Growth raises our productivity and our standard of living.

There is no doubt in my mind that the good people of Louisiana and Mississippi will thrive in this environment.

That's why the President is investing directly in our most valuable resource--our citizens. Our Workforce Training Initiative--a joint public/private initiative--trains workers in the skilled trades necessary to the rebuilding process.

This program will give 20,000 people from the region the opportunity to be employed and to contribute to the restoration of their own communities.

At the Department of Commerce we spend a lot of time promoting opportunities for companies abroad.

We feel that there is a great opportunity within our own borders--here in the Gulf Coast. And this business investment mission will help identify these opportunities.

During this trip we will tour Baton Rouge, New Orleans and Gulfport/Biloxi.

We will meet federal, state, and local government officials, as well as regional business leaders.

They'll tell us what's been done, what's available, and how we can develop this network that will produce results.

All these actions are creating the best business climate in the world. We are encouraging American entrepreneurs and risk-takers. We are empowering people.

There is no better place in America to invest and do business than New Orleans.

And I want to acknowledge that the continued strength of our national economy will be a lifeline to the region.

Our underlying strength helped us withstand, and will now help us rebuild.

America's economy is growing, and our entrepreneurial spirit is strong.

President Bush and Republicans in Congress have cut taxes and that tax relief has left $880 billion in the hands of America's working families.

These efforts have produced results:

• Last year, our economy grew faster than any other major industrialized nation
• Since August of 2003, our economy has created 5.1 million new jobs
• The unemployment rate is 4.7 percent--lower than the average rate of the 1960s, 1970s, 1980s, and 1990s

America's economy is strong and we intend to keep it that way.

The overall economic news is good, but high gas prices are a burden on working families and small business owners.

Gas prices are predicted to remain high all summer, and the Administration understands that's going to be a continued strain on the American people.

We are working to ease the burden of high gasoline prices in the near term. As the President has outlined, our Administration is implementing a four-point plan:

1. Ensuring that Americans are treated fairly at the pumps; and that there is no fraud or manipulation of prices

2. Promoting greater fuel efficiency, including expanded tax credits for hybrid and clean diesel cars bought this year.

3. Boosting our supplies of crude oil and gasoline by temporarily suspending deposits to the Strategic Petroleum Reserve, allowing waivers of special fuel blend requirements to relieve critical shortages, and streamlining the process for new and expanded refineries.

4. And investing in alternatives to oil, such as agricultural-based fuels like ethanol and biodiesel, better "plug-in hybrids," and hydrogen fuel cells.

President Bush is also focused on the long term. Through the Advanced Energy Initiative and the American Competitiveness Initiative--we are using the power of science and technology to develop clean, alternative energy sources, and reduce our dependence on imported oil.

We need to get to work on the President's energy plan. We need to reject the calls for higher taxes. Raising taxes will neither increase supply or lower prices.

You all know how important this region is for our national energy needs. The Gulf Coast represents approximately 28 percent of U.S. domestic crude oil production and approximately 15 percent of U.S. national refining capacity.

Remember, when the storms hit here in the Gulf Coast, a lot of people were concerned about the price of crude oil and gasoline.

The President took action and suspended reformulated gasoline rules, which took pressure off the market; and he opened up the Strategic Petroleum Reserve.

The regional oil and gas pipelines were back in operation unbelievably fast. The whole world was watching, and saw the great people and companies of this region working together. That's why we're confident the Gulf Coast is a great investment.

We know that the rebuilding process here will not be easy or accomplished overnight, but it will be done.

Together we can restore this wonderful region and revive the spirit of the Gulf Coast. The Gulf Coast and New Orleans will rise again.

And when that day comes, millions of Americans who joined the recovery will take pride in the great mission of rebuilding our Gulf Coast.

We can all play a part. I thank all of you and the men and women you represent for the important contribution that American businesses are making in this effort.