Archive
Title: 03-16-95 President on Regulatory Reform
Author: Office of the Press Secretary
Date: March 16, 1995
_____________________________________
THE WHITE HOUSE
Office of the Press Secretary
_____________________________________
March 16, 1995
REMARKS BY THE PRESIDENT
AT REGO EVENT
Custom Print
Arlington, Virginia
10:47 A.M. EST
THE PRESIDENT: Thank you, Stu, and, ladies
and gentlemen, thank you. Let me first of all say
how delighted I am to be in this wonderful place.
Among other things, they do their printing here with
soy ink, and that's really why we're here -- because
I come from Arkansas, and my -- (laughter) -- my
farmer friends grow a lot of soybeans, and we're
always looking for new markets, and we're just
trying to support responsible people who are using
great ink.
This is a wonderful story today, and I thank
all of these people for hosting us -- Stu and all of
his partners behind us -- to make a point that, to
me, is very, very important. You heard the Vice
President say that last month I called together the
heads of the federal regulatory agencies, and told
them to begin a root and branch examination of how
we regulate the American people in all the various
ways that we do.
I wanted to make this the next big part of the
Reinventing Government process the Vice President
has overseen so well for the last two years. And
today, we want to announce the fruits of that
process. But it's important to remember what the
purpose is. Most Americans are honest people. The
free enterprise system brings us great benefits.
But we know we have certain things in common that we
have to pursue through the government that we all
are responsible for.
The question is: How can we do it best?
Today, we're announcing basically two sets of
changes. First of all, some government-wide
regulatory reforms that will cut back on paperwork
and trust honest business people as partners, not
adversaries. And, second, significant reforms in
the way we protect the environment and the way we
assure safe and high-quality drugs and medical
devices.
The philosophy that guided these changes is
pretty simple: Protect people, not bureaucracy;
promote results, not rules; get action, not
rhetoric. Wherever possible, try to embrace common
sense. It will confound your enemies and elate your
friends. (Laughter.)
Since I became President, I have worked hard
on this. You know, I spent 12 years as a governor
of a state where I got to deal with the regulatory
apparatus of the federal government as it related to
both state government and to every friend I had in
every walk of life in my state. And I found that in
the environmental area, for example, we often had
both the environmentalists and the people who were
in business both frustrated by some things that were
going on, and I could give you lots of other
examples, and all of you can, as well, from your own
personal experience.
Our goal is to get rid of yesterday's
government so that we're capable of meeting the
problems of today and the challenges of tomorrow.
We want a government that offers opportunity,
demands responsibility, and shrinks bureaucracy, one
that embodies the New Covenant I've been talking
about -- more opportunity and more responsibility
with a less bureaucratic government. I think
government can be as innovative as the best of our
private sector businesses. I think government can
discard volume after volume of rules, and, instead,
set clear goals and challenge people to come up with
their own ways to meet them. That kind of
government will be very different from the old
one-size-fits-all bureaucracy. But it also would be
different from the new proposals for
one-size-fits-all deregulation and cutbacks.
I want to see a different approach. I want
a government that is limited but effective, that is
lean but not mean, that does what it should do
better and simply stops doing things that it
shouldn't be doing in the first place, that protects
consumers and workers, the environment, without
burdening business, choking innovation or wasting
the money of the American taxpayers.
We do need to reduce paperwork and unnecessary
regulation. I don't think we want to freeze efforts
to protect our children from unsafe toys or unsafe
food. We do need to carefully analyze the risks,
the costs, the benefits of everything we do, but I
don't think it's a better approach to pile on dozens
of new procedural requirements. That will only run
up legal bills and weaken the public trust.
Paralysis by process is not common sense.
So as I said before, reform, yes; and let's do
it with a bipartisan flare. But let's don't roll
back our commitment to the things that make life
worth living here. We all want water we can drink
and air we can breathe, food we can eat and a place
we can work in and feel safe and secure. But we
know that the way we have sought these goals through
government often -- often -- has frustrated the very
goals we seek. The way our regulatory system has
grown into a dense jungle of rules and regulations,
precise lists of do this and don't do that, can trip
up even the most well-intentioned business person.
Can you imagine a fellow like this running a
shop like this on the cutting edge of the
environment, is afraid to call the federal
government for advice? There is no better example
of what has been wrong. Here's a guy who's tried to
do right, wants to do more right and is afraid that
if he does it, he'll be punished for doing it. It
really is true that often in the government no good
deed goes unpunished. (Laughter.) So it's time to
stop doing things that drive people up the wall.
A few weeks ago, my good friend, the Governor
of Florida, who is also on this journey with us and
has talked to me for more than -- oh, I don't know
-- 10 years we've been working on these issues, long
before I ever thought of running for president --
gave me this remarkable book that is now sweeping
the country, "The Death of Common Sense." It makes
an interesting point, the book does. It says that
in our entirely understandable and necessary desire
to protect the public, we have put in place a system
that very often requires those who are carrying it
out to defy common sense, unduly burden private
taxpayers, and undermine the very objectives we are
seeking to achieve.
Now, the author of that book, Philip Howard,
has made a major contribution to the American debate
on this. He's here with us today. He has done some
work with the Vice President's National Performance
Review, and I'd like to ask him to stand and be
recognized. And thank you, sir, for doing this.
(Applause.)
Over the last two years, we've tried to get
this government of ours into some kind of shape. We
have lowered the deficit by $600 billion, and we've
reduced the size of the federal bureaucracy by over
100,000. We're on the way to reducing the federal
work force by more than a quarter of a million.
It'll be the smallest it's been since President
Kennedy was here when our budgets are finally
implemented.
Now, we've tried to do more than that. We've
tried to do more than just cut. We've tried to
change the way the government works. We've tried to
spend more money, for example, on education and
training and research and technology -- the things
that we believe will raise incomes, offer more
people opportunity, and protect the environment
while grow the economy. I don't think we should
apologize for that. We should exercise judgment and
common sense about what we cut and what we spend
money on.
We also are trying to change the regulatory
environment. I was proud to sign the first bill
this new Congress passed, which applies to Congress
most of the laws they impose on the private sector.
I think that will have a very salutary impact on the
deliberations of Congress.
We are about to get a bill out of the Congress
which will restrict the ability of Congress to
impose mandates on state and local governments that
are unfunded; I think that is a good idea. And
maybe most important of all, we're working hard, as
the Vice President has said, to eliminate rules that
are obsolete, to simplify rules that are too
complicated, to cut paperwork wherever we can; in
short, just to change the way government works.
Most of the people I grew up with, who all
write me with their great ideas now that I've become
President, are just out there living in this
country, making a living, raising their families,
obeying the law and doing the best they can. I
believe their biggest objection to government is not
the size of it, but the way it regulates, the way it
operates in their own lives.
And I have done my best, relying on the
extraordinary leadership of the Vice President and
the National Performance Review staff, and all the
people who have been introduced here, particularly
from the SBA and the EPA and the FDA and the Office
of Management and Budget, to try to change this.
Let me just give you some examples. We want
economic development. We've got the most active
Commerce Department in American history. But the
Commerce Department is also cutting the rules for
businesses in half. That will also develop the
economy.
We want nutritious food, and the USDA has
raised food safety standards, but they're also
making it easier to import safe fruits and
vegetables. We ought to repeal silly rules. The
Department of the Interior just eliminated feather
import quotas for exotic birds, and a lot of other
things as well.
So what are we going to do now? Today we're
announcing the first big step of what I assure you
is just the beginning of a process that we intend to
continue for as long as we have the public trust.
First, we want to do something that recognizes that
most of the businesses in this country are small,
most of them want to do the right thing, and most of
the new jobs are being created by them. We want to
get our enforcers out of the business of mindlessly
writing traffic tickets, and into the business of
achieving results. We're going to let these
regulators apply common sense.
Two of the three problems Mr. Howard talks
about in his book are addressed here today. One is
that in our attempt to try to tell people how we
think the government should regulate, we have tried
to imagine all conceivable permutations of things
that could occur, and then write rules to cover
them. The other is that we've been far more
obsessed -- the government has in the past -- with
process than results. That's the general problem I
might add, of Washington, D.C., not confined
entirely to the government. (Laughter.)
Today, we are ordering a government-wide
policy. Enforcers will be given the authority to
waive up to 100 percent of punitive fines for small
businesses so that a business person who acts in
good faith can put his energy into fixing the
problem, not fighting with a regulator. In
other words, if they want to spend the fine money
fixing the problem, better they should keep it and
fix the problem than get it to the government.
Similarly, regulators will be given the
discretion to waive fines for small businesses
altogether if it's a first-time violation, and
the firms quickly and sincerely move to correct the
problem. Let me be clear: These changes will not
be an excuse for violating criminal laws, they won't
be an amnesty for businesses that harm public
health, they won't enable people to undermine the
safety of the public while their competitors play by
the rules. But we will stop playing "gotcha" with
decent, honest business people who want to be good
citizens -- compliance, not punishment, should be
our objective. (Applause.)
The second thing we want to do is to curb the
government's appetite for paperwork. We are going
to have each agency allow regularly-scheduled
reports to the government to be cut in half, unless
there is some important public purpose that won't
permit it. In other words, if people file quarterly
reports, we want the agency to say "file them twice
a year." If they file them twice a year, file
annual reports. The Vice President likes that; we'll
leave more trees up and we'll save more time for
small business. Time is money. Time is the most
important thing we have.
You know, we got rid of the federal personnel
manuals. I forget -- the Vice President knows
better than I do -- I forget how many thousands of
pages.
THE VICE PRESIDENT: Ten thousand.
THE PRESIDENT: Ten thousand pages. You know,
I have yet to have the first federal employee come
up and attack me for that. (Laughter.) I've yet to
have the first citizen say, "How dare you waste
my money. With this new arbitrary system, you got
rid of these 10,000 pages -- I can't sleep at night
for thinking about it being gone." (Laughter.) And
believe me, nobody will notice this as long as we
take care to protect the public health, the public
safety and the public interest.
The second thing I want to talk about are
fundamental reforms in the area of the environment
and drug and medical services. Environmental
regulation touches every part of our lives. And
this is a moment of transition in our environmental
policy. The modern era began in 1970 with Earth Day
-- the passage of landmark legislation and the
creation of the Environmental Protection Agency.
The results, we should never forget, are a
great American success story, envied and copied
around the world, because we made a common
commitment to protect the environment, people are
living longer and living better, and we have a
chance to pass the country along to our children and
grandchildren in far better shape than would have
been the case otherwise. But the methods that
worked in the past aren't necessarily adequate to
the present day.
Our environmental programs must work better
and cost less to meet the challenges of the future.
Today we are announcing a landmark package of 25
environmental reforms. Let me describe them in
general terms.
First we recognize that market mechanisms
generally make more sense than micromanagement by
the government. Letting utilities buy and sell
their rights under the Clean Air Act, for example,
has saved utilities and their customers $2 billion
and given us cleaner air. Today we will
dramatically extend this market concept to other
areas of clean air and water protection.
Second, too many businesses are afraid to come
to the EPA for help in cleaning up their act because
they're afraid they'll be punished; that's the story
you just heard. We're going to open compliance
centers to help small businesses and say to them, if
you discover a problem, you'll have 180 days to fix
it with no punitive fine.
And, third, because you shouldn't need a
forest full of paper to protect the environment, EPA
will cut its paperwork requirements on businesses
and communities by 25 percent -- that is 20 million
hours of work for businesses and communities that
will be saved for other purposes next year.
(Applause.)
While these steps will improve the current
system, others will move well beyond it to a shift
in the way we actually think about regulation. EPA
will launch a pilot program called "Project XL" --
excellence and leadership -- which is simple but
revolutionary. They will say to the companies in
the pilot and, hopefully, eventually, the companies
all across the country, here is the pollution
reduction goal.
If you can figure out how to meet it, you can throw
out the EPA rulebook. You figure out how to meet the
goal. (Applause.)
I want to say, especially here, how much I
appreciate both the environmental groups and the
business groups that are here. We know that
pollution prevention pays. We know pollution
prevention and reduction is a great source of job
creation for America, as well as a guarantee for our
children, that this country will be worth living in.
We also ought to be smart enough to know that
people who are living with the consequences of this
might be able to figure out how to fix it better
than folks who are writing rules about it. So we're
going to see if we can figure out how to do it in
this way.
The other set of major reforms we're talking
about involve the realms of drugs and medical
devices. When I was running for president, I don't
know how many Americans I had come up to me and talk
to me about this all over the country, but
especially in places where a lot of this kind of
work is done. There was a time when consumers might
find that their food was adulterated, their drugs
were quackery or had dreadful side effects.
Today, Americans don't have to worry about the
safety or effectiveness when they buy anything --
from cough syrups to the latest antibiotics or
pacemakers. The Food and Drug Administration has
made American drugs and medical devices the envy of
the world and in demand all over the world. And we
should never forget that, either. And we are going
to stick with the standards we have; the highest in
the world. But strong standards need not mean
business as usual in every area.
Today, we announcing a set of reforms that
will make our high-quality drugs and medical devices
available to consumers more quickly and more
cheaply. First, FDA will stop using a full-blown
review every time a biotech drug company makes a
minor and risk-free manufacturing change in an
established drug.
Second, FDA will stop requiring costly
assessments on drugs that obviously have no
significant impact on the environment.
Third, FDA will eliminate 600 pages of
cumbersome regulations controlling the production of
antibiotics and other drugs. And I'll give
you $100 if anybody comes up to you and complains
within the next 12 months -- (laughter) -- when you
do that. And finally, 140 categories of medical
devices that pose low risk to patients, from finger
exercisers to oxygen masks, will no longer need
pre-approval by FDA before they are put on the
market.
These FDA reforms, and others we'll announce
in the next few weeks, will keep quality at
world-class levels and save industry and consumers
nearly half a billion dollars a year. And I am
pleased, again, to say that there are
representatives from the drug and medical device
industry here, as well. We appreciate your support.
I am very, very excited about this. These
changes, taken together, represent real and
fundamental reform. Now, they lack the sledge
hammer subtlety of a moratorium, but if we're going
to be responsible we ought to fix the problem, not
just seek to freeze the problem. To go from
yesterday's government to tomorrow's government we
need movement, not paralysis. We need to continue
our commitment to a government that works better,
costs less, reflects our values and can make a
difference, and that doesn't drive us up the wall,
but drives us into the future together. That is
common sense, and we can give it to the American
people together.
Thank you very much. (Applause.)
(A presentation is made.)
Tell us about it, Stu.
MR. MCMICHAEL: This is a poster that we
produced. This is on recycled paper with soy ink.
We produced this in about 5 hours, yesterday, so we
could present it to the President of the United
States and the Vice President today. So, thank you.
THE VICE PRESIDENT: Thank you very much.
(Applause.)
THE PRESIDENT: Thank you. (Applause.)
THE VICE PRESIDENT: Good job. We'll take
this with us.
END11:09 A.M. EST
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