Statement of Jeff Aiken, Council Representative,
Western New York Regional Council of Carpenters, Randolph, New York

Testimony Before the Subcommittee on Oversight
of the House Committee on Ways and Means

Field Hearing on Energy and Prices, Mayville, New York

March 5, 2001

We in southwestern New York live in what would be classified as a rural area. There are several small cities or municipalities within this area, which have a reliable and inexpensive (although subsidized) source of power. But, by and large most people live and work outside these areas and the majority of the citizens, manufacturers and businesses cannot avail themselves of the less expensive source of power. Not only do they end up on an uneven playing field locally but also on the national average we pay more for energy in this area than other areas. We are in a national and global market that is very competitive and in order to compete for their share of this market, industry must find ways of cutting costs. Where does industry begin? Usually the first place to start is cutting workers wages for producing the same product that is produced in other parts of the country for a higher wage. By either not offering health insurance and pension benefits or offering a package that requires a large monetary contribution on the behalf of the employee is another cost savings to the manufacturer. To cut, reduce or do away with benefits, the manufacturer can better compete with industries in other parts of the country.

However, this creates another problem. When workers here know that they can earn a better living for themselves and their families elsewhere, they leave for greener pastures. Consequently, and this is proven by census figures that show a steady decline in population in Western New York, it turns out that this area's most valuable export is its workforce. We find our best and brightest young people leaving the area to make their homes and careers elsewhere.

As the population declines, fewer working taxpayers are left to support our economy, schools and maintain needed infrastructures. Our residents are doing this with a dollar that is already stretched to thin.

Previously I mentioned the fact that this is basically a rural area. This means that many workers travel great distances to get to their place of employment. As you can see on the attached chart, we are now paying (at the pump) a significantly higher price for our fuel than the national average. Plant closings, layoffs and shutdowns require workers who once lived close to their work to either travel long distances or go from job to job in ever increasing numbers.

In effect, what the high cost of energy has created for Western New York is a death spiral. Industries that offer good paying jobs and our sons and daughters leave the area seeking a better life. What we are left with is an aging workforce that is being forced to do with less and less while we sit back and watch the rest of the country prospers. Far too many of the workers I talk to are forced to forego braces for their children, needed medical treatment and college savings plans because so much is spent on paying taxes, utility bills and getting to work.

Perhaps if energy rates in this area for both residential and commercial entities were in line with the rest of the country, families and industry would find Western New York an attractive place in which to live and work.

[THE ATTACHMENTS ARE BEING RETAINED IN THE COMMITTEE FILES.]