Secretary's Speech

U.S. Commerce Secretary Carlos M. Gutierrez Remarks to International Franchise Association
Washington, D.C.

Thank you, Lawrence "Doc" Cohen, for the kind introduction.

I'm pleased that we have been able to partner with you on ways to promote American franchising overseas.

Franchises are a uniquely American business model. They are an important part of our economy, accounting for one in seven private sector jobs. So strengthening their competitiveness and expanding their reach helps boost our economy and our exports.

Immigration
I'm pleased to be here to talk with you about immigration reform, which I believe is the domestic social issue of our time--and a key to the future health of our economy and our competitiveness.

Let me tell you up front, President Bush remains committed to comprehensive reform because border security alone will not solve this country's immigration problems.

We appreciate the workload facing the Congress in the next few weeks and the important national security issues that demand their attention. But we urge them to make progress toward comprehensive immigration reform. I know this is a critical issue for many of you.

Waves of Immigrants
America has dealt with difficult immigration issues in the past. There have been large waves of immigrants from Asia, Western Europe, and Eastern Europe throughout our history.

In fact, as a percentage of the total population, we have fewer foreign-born people living in the United States today than we did in 1890.

• In 1890, 14.8 percent were foreign-born. In 2004, only 12 percent were foreign born.

So, the challenges of immigration are not new for America, and I believe they create tremendous opportunities.

Many countries, including Germany, China, and Japan, will face declining populations in the future and all major industrial economies are experiencing substantial growth in their population aged 65 and over. By 2025, the median age of German citizens will increase from 39 to 50 years old. Japan will also see a 46 percent growth in this age group by 2020.

The U.S. will also see our median age growing from 34 to 43. And every 11 seconds, a baby boomer turns 60.

But what separates us from other nations is our ability to assimilate immigrants and incorporate them into our workforce.

We have an incredible advantage. We can stand out from the pack by using our well-honed skills from 230 years of assimilating immigrants.

But to address the challenges of illegal immigration, take advantage of the opportunities, and strengthen our country for the rest of the century, we must show leadership. We must deal with immigration as it is.

Consensus Forming
I am encouraged that we are starting to reach some consensus:

• Earlier this year, more than 500 of our nation's top economists, including five Nobel Laureates, sent a letter to President Bush and all members of Congress.
• These economists--with diverse political views--stated unequivocally that immigration has been a net gain for American citizens.
• And two-thirds of American voters say they support bills that include a temporary worker program or path to citizenship, rather than one that focuses solely on border security.

President Bush's vision for immigration reform:

• Protects our borders--Our immigration system can't work if we can't control our borders.
• It recognizes the needs of a growing economy.

Our economy is growing faster than any other large, industrialized nation.

The reality is that we have jobs that American citizens either aren't willing to or aren't available to do.

Our unemployment rate is below the average of the past four decades. I continually hear from industries that they are having difficulty finding workers.

Industry Impact
Many of your franchises in the fast food, restaurant, and food retail industries rely on a steady supply of commodities to serve your customers.

But think about the impact on the supply chain and prices if there were a commodity shortage because of a labor shortage.

A headline in last Friday's New York Times read: "Pickers are few, and growers blame Congress." California's pear growers alone stand to lose $10 million because they can't find enough immigrant workers.

In California, the on-going worker shortages due to the heightened security at the Mexican border, combined with the late growing season, have kept the number of hired workers well below last year. Many are forced to hire illegals or go out of business.

I'm certain many of you are worried whether there are enough workers to run your businesses or to get the services you need.

• In the food service industry: Immigrants are 21 percent of the workforce.
• In grounds cleaning and maintenance: 33 percent.
• In construction: 23 percent.

The President's immigration proposals uphold our values. We are both a nation of laws and a nation of immigrants.

President Bush's Plan
1) Priority number one in the President's comprehensive proposal is securing our borders.

Since President Bush took office, agents have apprehended and sent home more than 6 million people entering the country illegally - including more than 400,000 with criminal records.

The President has proposed:

• Increasing the number of Border Patrol agents from 12,000 to 18,000; and
• Increasing the amount of technology we have at the borders, so we can know who is coming through.

We now have 6,000 National Guard members supporting Border Patrol agents along our borders as part of the President's commitment to border security. The Guard's efforts are already making a positive difference.

• Already the number of captured illegal immigrants has fallen by 45 percent since spring--as fewer crossings are attempted during a normally high-volume season.
• And there's been a 7 percent drop in immigrant deaths in the desert, compared with last year.
• Clearly, the message is out that we have stepped up security at our border.

2) Priority two. The fact is one of the best ways to secure our borders is to have immigration enforcement inside our country--in the interior.

The system needs to be fixed. We have an underground industry inside the country that is built on producing false documentation for illegal workers.

Employers have a hard time helping enforce the law because they are not sure what documents they should require.

• A Government Accountability Office report last year found that document fraud and the large number of documents acceptable for proving work eligibility have caused significant confusion among employers.

The rules must be clear enough to hold businesses accountable for hiring people with the proper documentation.

With comprehensive reform, we will ensure that businesses have the tools they need to do this, and that we can hold them accountable.

That's why we need a temporary worker's program. It would create a legal means for workers to enter the United States for a limited time.

Biometric ID
And we need a biometric card identification system.

We have the technology today to quickly and effectively use a person's unique characteristics, such as a fingerprint, to verify immigration status so we know who is in the country, why they are here and where they are working--all of which are critical to security.

When we have a biometric system--and when we have a temporary worker's program--dynamics will change.

Over time, it will become unlikely that people will risk their lives coming across the border illegally if it is well-known that unless you have the temporary worker's permit, you will not find a job.

3) The other reality we must confront is that we have 12 million people who are in the country illegally.

This issue will not be resolved by ignoring it, or waiting longer to confront it.

Think about the task of deporting 12 millions individuals.

Is that something we are going to do as a country? The President has said it wouldn't be wise, practical, or humane.

It would require separating parents from their 3 million American-born children. Some say the children could decide if they go with their parents or stay. Can you imagine that?

Mass deportation is an extreme position, and it's not realistic.

The other extreme is amnesty. The dictionary defines amnesty as an "unconditional pardon--obliterating all memory of the offense."

The President does not support amnesty. It's not accurate or fair to call his solution amnesty. He believes that there must be consequences for those who violate our laws.

We're talking about having a hard-earned path to legalization, which would require meeting conditions:

• People waiting their turn in line,
• Paying fines for having violated the law,
• Paying taxes,
• Learning English,
• Undergoing a criminal background check,
• And having a job.

The issues of illegal immigration are far too complex to presume they can be solved with one easy action.

What we need is leadership and reasonable compromise in the middle.

Hutchison-Pence Proposal
Senator Kay Bailey Hutchison and Representative Mike Pence offered an intriguing proposal.

It provides for strong border security, while also recognizing our economy's need for temporary workers.

Their proposal acknowledges that we must secure our borders to secure our nation. The President has already taken bold steps in this direction.

Obviously, there are many details to be worked out. I met with Senator Hutchison and Congressman Pence, and they both believe their proposal is a starting point. We encourage the House and Senate to continue talking, and to continue this rational approach to finding solutions.

4) Finally, and perhaps the most important point that President Bush makes is that we are a nation of immigrants.

And immigrants have helped make this country great. All of us here today--unless you are Native American--are immigrants or descendents of immigrants.

I'll give you my personal perspective: I came to this country in 1960 from Cuba I was a six-year-old immigrant.

I'm extremely grateful that people encouraged--even pushed me--to learn the language and assimilate.

I'm also very thankful for the opportunities this country has given me. I believe that immigrants today just want an opportunity.

Closing
It is a false choice to think the immigration debate is a battle between America being a welcoming society and being a nation of laws.

We can be both because we are both.

Let me encourage each of you to continue to be an active and vocal participant in this debate. We all need to contribute to the solution.

Comprehensive immigration reform will make our country stronger, and I'm convinced that future generations will be proud of what we did.

Thank you, and God bless you.