WASHINGTON -- The U.S. House Subcommittee on Investigations & Oversight, chaired by Representative Jason Altmire (D-Pa.), heard testimony on Wednesday from a panel of expert witnesses and sought to examine the impact that rising fuel prices are having on small business.
It said that record average prices of $3.29 per gallon—with more increases likely—pose a severe strain on the nation's small businesses, whose operating margins are tighter than their larger counterparts. "Entrepreneurs drive our economic growth, but that may change if rising gas prices continue to impact [image-nocss] their bottom lines," Altmire said. "Rising gas prices are contributing to the economic slowdown, straining the pocketbooks of hardworking families and the bottom lines of small businesses. Given that small businesses are our nation's single largest employer, we need to do everything we can to make sure they thrive."
He added, "I hope that by shedding light on the costly toll that high gas prices are taking on small businesses, this hearing will help identify additional ways for us to take action and provide relief. There is no time to lose in implementing polices that will drive down gas prices in the short term and increase our energy security in the long term."
Witnesses at the hearing described how entrepreneurs in such industries as trucking, plumbing and assistive and rehabilitative services are being impacted by unforeseen hikes in energy costs. They also explained that the only way many can cover these increased costs is by foregoing any investment in capital or the planned expansion of their business. This would limit job growth at a time when the economy needs it most, according to the testimony.
The list of witnesses included Tim Williford, chairman of the government affairs committee for the Plumbing-Heating-Cooling Contractors National Association (PHCC); Gary Gilberti, Chesapeake Rehab Equipment, Pittsburgh; John Urbanchuk, director of LECG LLC, Wayne, Pa. (economic consultant); Michael J. Graff, president and CEO, Graff Trucking Inc., Natrona Heights, Pa.; and Vincent F. Orza Jr., dean of the Meinders School of Business at Oklahoma City University.
The subcommittee's witness list did not include any petroleum industry representatives.
Along with testifying to the hardships that high fuel prices are having on small business, the witnesses' solutions included more use of ethanol and investment in other renewable fuels, as well as the reduction of diesel fuel and other taxes.
According to a recent survey of small firms, the rising cost of energy is the No. 1 concern among U.S. entrepreneurs. Last year, Altmire and the members of the Small Business Committee helped pass legislation to aid small business owners in the purchase of energy efficient technologies. The provisions were signed into law as part of The New Direction for Energy Independence, National Security & Consumer Protection Act.
Click hereto view list of witnesses and testimony.
Click hereto view video highlights of the hearing.
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