[Senate Hearing 106-1127]
[From the U.S. Government Printing Office]
S. Hrg. 106-1127
NOMINATIONS OF FRANCISCO SANCHEZ, TO BE ASSISTANT SECRETARY FOR
AVIATION AND INTERNATIONAL AFFAIRS FOR THE DEPARTMENT OF
TRANSPORTATION; AND KATHERINE ANDERSON, FRANK CRUZ, KENNETH TOMLINSON
AND ERNEST WILSON, TO BE MEMBERS OF THE BOARD OF DIRECTORS OF THE
CORPORATION FOR PUBLIC BROADCASTING
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED SIXTH CONGRESS
SECOND SESSION
__________
JULY 12, 2000
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
U. S. GOVERNMENT PRINTING OFFICE
82-914 WASHINGTON : 2003
____________________________________________________________________________
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED SIXTH CONGRESS
SECOND SESSION
JOHN McCAIN, Arizona, Chairman
TED STEVENS, Alaska ERNEST F. HOLLINGS, South Carolina
CONRAD BURNS, Montana DANIEL K. INOUYE, Hawaii
SLADE GORTON, Washington JOHN D. ROCKEFELLER IV, West
TRENT LOTT, Mississippi Virginia
KAY BAILEY HUTCHISON, Texas JOHN F. KERRY, Massachusetts
OLYMPIA J. SNOWE, Maine JOHN B. BREAUX, Louisiana
JOHN ASHCROFT, Missouri RICHARD H. BRYAN, Nevada
BILL FRIST, Tennessee BYRON L. DORGAN, North Dakota
SPENCER ABRAHAM, Michigan RON WYDEN, Oregon
SAM BROWNBACK, Kansas MAX CLELAND, Georgia
Mark Buse, Republican Staff Director
Ann Choiniere, Republican General Counsel
Kevin D. Kayes, Democratic Staff Director
Moses Boyd, Democratic Chief Counsel
C O N T E N T S
----------
Page
Hearing held on July 12, 2000.................................... 1
Statement of Senator Burns....................................... 2
Prepared statement........................................... 3
Statement of Senator Dorgan...................................... 8
Statement of Senator Lott........................................ 5
Statement of Senator McCain...................................... 1
Prepared statement........................................... 2, 27
Statement of Senator Rockefeller................................. 6
Witnesses
Anderson, Katherine, Nominee, Member of the Board of Directors,
Corporation for Public Broadcasting............................ 27
Prepared statement........................................... 29
Biographical information..................................... 30
Cruz, Frank, Nominee, Member of the Board of Directors,
Corporation for Public Broadcasting............................ 35
Prepared statement........................................... 37
Biographical information..................................... 38
Graham, Hon. Bob, U.S. Senator from Florida, Introduction of
Francisco Sanchez.............................................. 6
Mack, Hon. Connie, U.S. Senator from Florida, prepared statement. 7
Sanchez, Francisco J., Nominee, Assistant Secretary for Aviation
and International Affairs, Department of Transportation........ 8
Prepared statement........................................... 9
Biographical information..................................... 11
Tomlinson, Kenneth, Nominee, Member of the Board of Directors,
Corporation for Public Broadcasting............................ 42
Prepared statement........................................... 43
Biographical information..................................... 44
Wilson, III, Dr. Ernest J., Nominee, Member of the Board of
Directors, Corporation for Public Broadcasting................. 49
Prepared statement........................................... 50
Biographical information..................................... 51
Appendix
Cruz, Frank H., Corporation for Public Broadcasting, Washington,
D.C., letter written July 28, 2000, to Hon. John D. Rockefeller
IV............................................................. 65
Response to Written Questions Submitted to Francisco Sanchez by:
Hon. Slade Gorton............................................ 73
Hon. Ernest F. Hollings...................................... 75
Hon. John McCain............................................. 77
NOMINATIONS OF FRANCISCO SANCHEZ, TO BE ASSISTANT SECRETARY FOR
AVIATION AND INTERNATIONAL AFFAIRS FOR THE DEPARTMENT OF
TRANSPORTATION; AND KATHERINE ANDERSON, FRANK CRUZ, KENNETH TOMLINSON
AND ERNEST WILSON, TO BE MEMBERS OF THE BOARD OF DIRECTORS OF THE
CORPORATION FOR PUBLIC BROADCASTING
----------
WEDNESDAY, JULY 12, 2000
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 9:30 a.m., in
room SR-253, Russell Senate Office Building, Senator John
McCain, Chairman of the Committee, presiding.
Staff members assigned to this hearing: Virginia Pounds,
Republican Professional Staff; and Jonathan Oakman, Democratic
Staff Assistant.
OPENING STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA
The Chairman. Good morning. The first nomination before us
today is that of Francisco Sanchez, to be Assistant Secretary
of Transportation for Aviation and International Affairs. I
want to thank Mr. Sanchez for coming before the Committee.
I'd like to recognize Mr. Sanchez's parents, Delea and
Francisco, who are with him today. Welcome. Welcome. Thank you.
I know this is a proud day for you and your son. He wouldn't be
here without you, in a number of ways.
[Laughter.]
In addition to his family, Mr. Sanchez is accompanied by
his current boss, Buddy MacKay, who is the Special Envoy to the
Americas for the White House, and an old friend and colleague
of mine. I welcome all of you here today.
Among other things, the Assistant Secretary for Aviation
and International Affairs is responsible for such important
matters as negotiating international air services agreements,
ensuring the benefits of a deregulated, competitive domestic
airline industry, and expanding transportation and trade
opportunities for U.S. companies around the globe.
I'll take just a moment to touch on key aviation policy
areas that will face Mr. Sanchez if he is confirmed. On the
domestic front, we still need to reduce barriers to competition
in the airline industry. DOT must show more initiative in using
its existing powers to open up constrained airports.
With respect to international aviation policy, I continue
to support fully DOT's effort to pursue open skies agreements
which promote free trade between countries in aviation
services, and produce significant consumer benefits. All of us
continue to be frustrated that the United States and the United
Kingdom cannot come to terms on open skies.
I welcome you before the Committee, Mr. Sanchez. Senator
Burns.
[The prepared statement of Senator McCain follows:]
Prepared Statement of Hon. John McCain,
U.S. Senator from Arizona
The Nomination of Francisco Sanchez To Be Assistant Secretary of
Transportation for Aviation and International Affairs
The first nomination before us today is that of Francisco Sanchez
to be Assistant Secretary of Transportation for Aviation and
International Affairs. I want to thank Mr. Sanchez for appearing before
the Committee. I would also like to recognize Mr. Sanchez's parents,
Delia and Francisco, who are with him today. In addition to his family,
Mr. Sanchez is accompanied by his current boss, Buddy MacKay, who is
the Special Envoy to the Americas for the White House. I welcome all of
you here this morning.
Among other things, the Assistant Secretary for Aviation and
International Affairs is responsible for such important matters as
negotiating international air services agreements, ensuring the
benefits of a deregulated, competitive domestic airline industry, and
expanding transportation and trade opportunities for U.S. companies
around the globe.
I will take just a moment to touch on key aviation policy areas
that will face Mr. Sanchez, if he is confirmed. On the domestic front,
we still need to reduce barriers to competition in the airline
industry. DOT must show more initiative in using its existing powers to
open up constrained airports.
With respect to international aviation policy, I continue to
support fully DOT's effort to pursue open skies agreements, which
promote free trade between countries in aviation services and produce
significant consumer benefits. I continue to be frustrated, however,
that the U.S. and United Kingdom cannot come to terms on open skies.
OPENING STATEMENT OF HON. CONRAD BURNS,
U.S. SENATOR FROM MONTANA
Senator Burns. Thank you, Mr. Chairman, and thank you for
holding this hearing today; and thank you, Mr. Sanchez, for
your public service, we appreciate that very much.
I want to make a couple of points this morning. Last week
they just made the assignments outside the perimeter rule out
of National Airport. And I feel that it was a very bad decision
that they made down there.
I wish we would look, just for a second, and talk about
fair. I've got a little thing here I want to show you.
[Holding up map of U.S.]
This is where the slots went: Las Vegas, Denver, Phoenix,
and Los Angeles. A good argument could be made for Phoenix, no
problem.
[Laughter.]
How am I doing, boss?
This is the worst of them all: None in Salt Lake, where
it's a hub, there are some 60-odd markets of which the
Northwest gets nothing, nothing. Now there's no television here
and it's a simple thing. But I want to alert you in what we
have to look at with that group that you're going to work with
down there.
Even Las Vegas, I don't have a problem with; I don't even
have much of a problem with Denver and Frontier. Because I'll
have to change airlines, but I can do that. But it offers no
competition from a hub that offers more cities in one-stop
service to Washington National than any hub in the West. Do you
know how much they serve there? Six cities. Six out of Los
Angeles and sixty up here.
Now somebody down there did not either read the guidelines
of which those slots were to be awarded. And I am more than
unhappy about it because we are--yes, we are sparsely
populated, but we don't have competition, and the competition
that we don't have, we pay through the nose in air fares.
So I just want to bring that up and make a point at this
hearing this morning. I will be supporting you, by the way; but
nonetheless, I think the Los Angeles part is just egregious,
Mr. Chairman. Whenever you turn down a hub that serves sixty-
some-odd cities in the Northwest, the Northwest got nothing out
of that. Not one darn thing.
Had I known that, Air 21 would still be on the floor of the
U.S. Senate.
Thank you, Mr. Chairman.
[The prepared statement of Senator Burns follows:]
Prepared Statement of Hon. Conrad Burns,
U.S. Senator from Montana
Thank you Mr. Chairman, I am very interested in the position Mr.
Sanchez has been nominated to fill. Mr. Sanchez has been nominated to
be the Assistant Secretary for Aviation and International Affairs at
the Department of Transportation. Among other responsibilities, Mr.
Sanchez will oversee the determination of requests for slots and slot
exemptions at airports affected by the High Density Rule or the
perimeter rule as it is known in Washington, D.C.
Recently, the office being considered was responsible to carry out
a Congressional directive (as determined by AIR-21, H.R. 1000) to
allocate 24 slots at DCA-12 within the perimeter and 12 outside the
perimeter. We are all aware of the numerous applications that were
submitted for these slots but I think it was very clear whom the most
eligible carriers were based on the criteria cited in AIR-21.
The outside the perimeter slots were awarded in the following
manner:
1) LTwo slots were allocated to Frontier Airlines (Denver);
2) LTwo slots were allocated to National Airlines (Las Vegas);
3) LTwo slots were allocated to TWA (Los Angeles);
4) LSix slots were allocated to America West (four to Phoenix and
two to Las Vegas).
The language in AIR-21 required certain criteria be met before
allocations were determined. The most important of those criteria:
1) LProvide domestic network benefit in areas beyond the perimeter
2) LIncrease competition by new entrant carriers or in multiple
markets
America West serves several markets in the west and is in the
process of expanding service across the west as their name indicates.
However, I must question the allocations of slots to Frontier Airlines
and National Airlines considering their status as new entrant carriers
that provide the best domestic network benefits in areas beyond the
perimeter. Furthermore, are these airlines securely established in
their so-called hubs?
Finally, I must make it very clear that I find the TWA award very
curious. Mr. Chairman, I must say that the allocation of two slots to
TWA to serve Los Angeles is a very questionable move motivated more by
politics than by merit.
As indicated by this chart (source: TWA's website), TWA provides
service to six markets without direct access to DCA.* I am aware the
award of their allocation includes a requirement that TWA partner with
another regional airline but the fact still remains that TWA currently
provides service to only 6 communities. The partnering airline is
Chatauqua Airlines which is considered an inside-the-perimeter airline
serving several East Coast markets.
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* The information referred to was not available.
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On the other hand, I, along with several of my colleagues were
supportive of Delta Airline's application which would have provided
direct service between Salt Lake City and DCA. Awarding Delta DCA slots
would have provided one-stop service to our nation's capital to 64
communities in the West.
Frankly, I am very concerned that the allocation process--which was
praised by the Administration as ``non-partisan''--was instead very
political. Based solely on the first and primary criteria as dictated
by H.R. 1000, Congressional direction, I believe, was ignored by the
Administration. Let me say that again, I believe that Congressional
direction was ignored by the Administration.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Burns. I think your point
is well made, and I'd like to make a couple of additional
comments.
Thanks to the really extraordinary efforts on the part of
those who support the maintenance of the perimeter rule,
including United Air Lines, including several other airlines,
including the parochialism that exists here in the Washington,
D.C. metropolitan area, we were unable to do what we really
need to do, and that is do away with the perimeter rule and let
people fly wherever the markets are.
So what we did, and I'm not taking the side of the
Department of Transportation, but we really, as I said on the
floor, we won a pyrrhic victory: Just 24 flights, 12 of them
within and 12 of them without, outside of the perimeter rule.
Then it lent itself, very frankly, to a huge amount of
politicization and political pressure on the Department of
Transportation.
Everybody wrote letters--I did not, but everybody,
understand, wrote letters, ``give us flights to our particular
city,'' putting absolutely to rest for all times that there is
a need for flights beyond the perimeter rule in the United
States of America from Reagan National Airport, which
incidentally as we all know, has the highest air fares in the
country.
But it is also a telling commentary, the power,
particularly of United Air Lines and other airlines who wanted
the status quo so that they can have the high air fares out of
Reagan National and maintain what they have out at BWI as well
as Dulles.
I would just remind you, the reason why we put in the
perimeter rule was so that Dulles Airport, which was a white
elephant back in the Fifties, would have a chance to grow and
prosper. I landed at Dulles Airport on Sunday afternoon. It's
congested, it's full, it's packed.
And by the way, I have to give credit to the Virginia
delegation as well, and The Washington Post, which
editorialized at least once a week about how we were
interfering with the operation of Reagan National Airport by
trying to change a federal law. Curious logic.
Senator Burns. Mr. Chairman, if you would yield just for a
second.
The Chairman. I would be glad to.
Senator Burns. If they just looked at the guidelines of Air
21 that was written into that, it says to provide domestic
network benefit in areas beyond the perimeter, to benefit those
areas. And to increase competition by new entrant carriers or
in multiple markets.
We might as well have made a doorstop out of those two
statements, because they weren't even looked at. So I guess
that's my--I have no problem with going to Phoenix for the
simple reason that I think those slots will be very well
served. But the Los Angeles market, to a carrier--now I know
TWA, you know, 30 wobbly airplanes, and only serve six cities
out of that hub is not, that doesn't fulfill the guidelines in
the language of Air 21.
The Chairman. Let me just assure you that I will continue
the struggle to try to remove the perimeter rule and other
restrictions against competition, which then causes lower air
fares, which then allows for more markets to be served. And
when we get into our questioning Mr. Sanchez, I am deeply
concerned about the consolidations within the industry, the
United-U.S. Air merger; we read in The Washington Post and The
New York Times this morning, American is now talking to Delta-
Northwest. If there is then a spinoff of Continental, you will
end up with three major airlines in America. I am not sure
that's good for America; in fact, I'm pretty sure that it is
not.
Senator Lott, did you want to engage in this discussion
before we allow Mr. Sanchez to talk?
OPENING STATEMENT OF HON. TRENT LOTT,
U.S. SENATOR FROM MISSISSIPPI
Senator Lott. It has been very interesting to observe it.
Mr. Sanchez, welcome, and good luck in your new position.
Mr. Chairman, I share the feelings that you and Senator
Burns have both expressed, including the ridiculousness of the
perimeter rule, but I think perhaps enough has been said this
morning. I just want to emphasize, as you've already heard from
Senator Burns, and from others as you have been making courtesy
calls.
Please keep in mind in your new position the small and
underserved markets, which we have found when they get service,
flourish and do quite well. Jackson, Mississippi was one of the
five most underserved areas in the country. When we had another
airline come in, the dominant airline that was there complained
that they would probably have to reduce their service or stop
serving that area. But, the boardings went up 106 percent or
something of that magnitude; not only did the existing airline
increase in ridership, the new airline was full almost
immediately. So it has worked very well where they do get
reasonable service in these underserved and smaller markets.
So good luck, and I look forward to working with you.
The Chairman. Senator Rockefeller.
OPENING STATEMENT OF JOHN D. ROCKEFELLER IV,
U.S. SENATOR FROM WEST VIRGINIA
Senator Rockefeller. Thank you, Mr. Chairman.
My priorities in aviation are to try to make the system
work, for big markets as well as small markets, because it
isn't working for the most part. We have kind of stood by here
in Congress and watched the system deteriorate, and have not
really done very much about it until we passed the last FAA
bill, which will take a while to kick in, and it won't be
nearly enough.
You have an enormously important position; people
underestimate it. But the power that you have, the influence
that you have, the types of decisions that you will make, are
not only domestic but they're international and they're very
far-flung on all sides.
There may be some who try to say that ``Well, you haven't
had a lot of aviation experience.'' Well, none of us had much
experience when we came up here as being Senators. But people
said that about Jane Garvey, too, and she's the best FAA
Administrator I've ever seen.
You have my full confidence. You should know that along
with the national system of making air traffic safety smoother
and safer and all the rest of it which we're not yet up to,
obviously I have a very strong interest in small markets. You
do essential air service, you administer this grant program
which is new and would be very, very interesting, but I have a
lot of confidence in your ability and I look forward to voting
for you.
Thank you, Mr. Chairman.
The Chairman. Senator Graham.
INTRODUCTION OF FRANCISCO SANCHEZ BY
HON. BOB GRAHAM, U.S. SENATOR FROM FLORIDA
Senator Graham. Mr. Chairman and members of the Committee,
thank you very much for this opportunity to introduce to the
Committee a good friend, a long friend of mine, Francisco
Sanchez, who has been nominated to be the Deputy Secretary of
Transportation for Aviation.
I have known Mr. Sanchez for most of his adult life. He
comes from Tampa, Florida where his family is a very important
part of the fabric of that community. While I was Governor, Mr.
Sanchez served with distinction in our administration, working
particularly closely with our Lieutenant Governor, Wayne
Mixson, primarily in economic development issues.
I can attest that Mr. Sanchez is a man of dedication,
honor, integrity and very keen intelligence. One of his
particular skills is as a gifted problem-solver, which from the
opening comments, sounds as if it would be a characteristic
extremely valuable in this position.
Mr. Sanchez, although a relatively young man, brings a rich
blend of public and private sector experience, including
employment with one of Florida's leading law firms and later
the Dispute Resolution Center at Harvard.
Mr. Sanchez has a special appreciation of the aviation
needs of rural communities, small towns and underserved areas;
experience and expertise that he will be able to use at the
Department of Transportation. In part, this experience was
gained through his work in state government where part of his
portfolio was to bring aviation service to underserved
communities in Florida.
He also served as the first director of Florida's Caribbean
Basin initiative program. He has used his expertise in Latin
America and the Caribbean in many other positions.
One of Frank's particular skills is in negotiation. He was
part of the Harvard negotiation group which has been very
instrumental in not only educating individuals and groups about
negotiating skills, but also actually applying those skills. As
the managing director of CMI International Group, Frank
designed and facilitated the negotiations for complex
international transactions in labor-management.
He has worked in such diverse areas as Medellin, Colombia
as part of a teaching tolerance program, an initiative to end
violence in that province. He played an advisory role in ending
the Peru-Ecuador dispute which contributed to a peace treaty
signed in October 1998, and I can say I know his firsthand
abilities in the area of negotiation because he taught to our
Washington staff and myself, through an intensive, multi-day
seminar, techniques in negotiating skill which all of you have
had an opportunity to be exposed to, and thus you can now
understand why I have been so persuasive in asking your support
for common causes.
Currently, Mr. Sanchez serves as Special Assistant to the
President and Senior Advisor to a Special Envoy for the
Americas, Ambassador Buddy MacKay. There his focus includes
economic issues, democracy, judicial reform, human rights,
health and education systems, environmental policy and
sustainable development.
Mr. Sanchez has a bachelor's and law degree from Florida
State University, and a Master's degree in Public
Administration from the Kennedy School of Government.
Mr. Chairman, Members of the Committee, I appreciate the
chance to be here today. I am certain that you will find the
same qualities in Mr. Sanchez that I have known for many years.
My colleague, Senator Mack, has asked me to join in support
of Mr. Sanchez, and I would like to submit his statement for
the record.
The Chairman. Without objection.
Senator Graham. Thank you very much, Mr. Chairman.
[The prepared statement of Senator Mack follows:]
Prepared Statement of Hon. Connie Mack, U.S. Senator from Florida
Mr. Chairman and members of the Committee, I am pleased to have the
opportunity to introduce Francisco Sanchez for your consideration as
the Assistant Secretary for Aviation and International Affairs at the
Department of Transportation.
Mr. Sanchez has an impressive resume and an extensive background in
foreign relations and negotiations. He began his academic career at
Florida State University where he graduated with a Bachelor of Arts
degree in Multi-National Business and Spanish. Mr. Sanchez then earned
his Juris Doctorate from the Florida State University College of Law.
In 1993, Mr. Sanchez received a Master's degree in public
administration from the Kennedy School of Government at Harvard
University.
Over the course of Mr. Sanchez's career, he has served as the
Secretary for the Florida Department of Commerce, the State of
Florida's first director of their Caribbean Basin Initiative Program,
and as former Governor Bob Graham's Liaison to the Florida Commission
on Hispanic Affairs. While in Florida, Mr. Sanchez also practiced
corporate and administrative law with Steel, Hector and Davis, a Miami
based firm.
Following his time practicing law, Mr. Sanchez joined CMI
International Group where he served as Senior Consultant and Managing
Director. This group designs and facilitates negotiation processes for
complex transactions and labor management matters worldwide, with an
emphasis in Latin America and the Caribbean.
I am informed that, while at CMI, Mr. Sanchez worked with the
private sector on a variety of negotiations including
telecommunications, mining franchises and collective bargaining
agreements. Mr. Sanchez headed a team in Medellin, Colombia as part of
the ``Teaching Tolerance'' program, an initiative to curb the violence
in the province of Antioquia. This program brought together disparate
groups to learn conflict resolution. He also played an advisory role in
the Ecuador-Peru border dispute, which contributed to the signing of a
peace treaty in October of 1998. Mr. Sanchez was also a contributing
author to Negociacion 2000 published by McGraw-Hill.
In 1999, Mr. Sanchez came to Washington, D.C. to serve as Special
Assistant to the President in the Office of the Special Envoy for the
Americas. He currently serves as Chief of Staff and advises on policy
related to the Americas including economic integration, promoting
democratic and judicial reforms, human rights, health and education
systems, cultural exchange, sustainable development, environmental
practices and other issues.
Mr. Sanchez's credentials are truly impressive, and it is evident
that he has achieved excellence throughout his career. His professional
experience in the field of international affairs would certainly be an
asset to the Department of Transportation.
Mr. Chairman, it has been my pleasure to introduce this fine and
capable man to the Commerce Committee this morning. Thank you.
The Chairman. Thank you very much, Senator Graham. I know
you have a very busy schedule this morning, and we appreciate
the fact that you would take the time out on behalf of your
friend and fellow Floridian.
Thank you very much, Senator Graham.
Senator Dorgan, did you have anything to say before we
allow Mr. Sanchez to say a word?
STATEMENT OF HON. BYRON L. DORGAN,
U.S. SENATOR FROM NORTH DAKOTA
Senator Dorgan. Mr. Chairman, I will wait and, if it's
permissible, I want to ask Mr. Sanchez a few questions. But let
me just say that I am delighted that he is here. I think he has
wonderful credentials, and I am supportive of his nomination.
I thank Senator Graham for his wonderful introduction. I
would like to ask him a couple of questions following his
testimony.
The Chairman. Mr. Sanchez, welcome to the Committee.
STATEMENT OF FRANCISCO J. SANCHEZ, NOMINEE, ASSISTANT SECRETARY
FOR AVIATION AND INTERNATIONAL AFFAIRS, DEPARTMENT OF
TRANSPORTATION
Mr. Sanchez. Thank you, Mr. Chairman, Members of the
Committee.
I am honored to come before you today as you consider my
nomination to be Assistant Secretary of Transportation for
Aviation and International Affairs. I especially appreciate the
Committee's efforts to expedite my nomination during this busy
legislative period.
And I want to thank Senator Graham for his kind words. My
introduction to public service began 20 years ago when I first
went to work for Senator Graham in the Florida Governor's
office. I thank him for that opportunity and I thank him for
his continued support today.
I also want to thank Senator Mack for his written testimony
in support of my nomination.
I am also pleased to be joined today by Special Envoy for
the Americas Buddy MacKay, himself a former Member of Congress.
Serving as chief of staff to Special Envoy MacKay has
allowed me to advance America's strategic and economic
interests throughout the Western Hemisphere. I want to thank
Mr. MacKay, and I also would like to thank the Special Envoy
staff for their friendship and tremendous support.
Finally and most importantly, Mr. Chairman, I want to thank
you for acknowledging my mother and father. I am grateful for
their consistent support and encouragement over the years, as
well as that of my friends who have joined me here this
morning.
Mr. Chairman, I am deeply honored by the confidence that
the President and Secretary Slater have placed in me. The
President and Secretary Slater recognize the critical
importance of the international transportation system to our
nation's economy, security, and quality of life.
The Office of Assistant Secretary for Aviation and
International Affairs will tackle numerous complex issues. I
know that my time is limited, but I believe that my background
and my energy can be valuable assets as we work to increase
competition and access at home and open up new markets abroad.
I know this Committee has worked hard to enhance air
service and airline competition in domestic communities both
large and small. I will work to ensure that the Essential Air
Service program is responsive to airline customers throughout
the United States. The Department of Transportation will also
monitor the impacts of airline consolidation, providing input
on major changes like the merger of United and U.S. Airways.
As Chief of Staff in the Special Envoy for the Americas
office in the White House, I became intensely aware of the need
to promote free and open markets. I am ready to draw on my
background in negotiation to help the Department complete open
sky agreements with foreign governments in all corners of the
world.
Before joining the Special Envoy staff, I was managing
director of an international consulting firm specializing in
negotiation strategies for business and government. This
experience can be an asset as we move forward with negotiations
with the United Kingdom, and expand multilateral aviation
agreements with APEC, the Asian Pacific Economic Cooperation
organization.
I look forward to working with this Committee, the
industry, labor and other interested groups to help the United
States achieve transportation excellence in the 21st Century.
Thank you for your consideration. I would be happy to
address any questions that you may have.
[The prepared statement and biographical information of Mr.
Sanchez follow:]
Prepared Statement of Francisco J. Sanchez, Nominee, Assistant
Secretary for Aviation and International Affairs, Department of
Transportation
Chairman McCain, Senator Hollings and members of the Committee, I
am honored to come before you today as you consider my nomination to be
the Assistant Secretary of Transportation for Aviation and
International Affairs. I especially appreciate the efforts of the
Committee to expedite my nomination during your busy legislative
period.
And thank you, Senator Graham, for your kind words of introduction.
My introduction to public service began more than 20 years ago when I
first went to work for you in the Florida governor's office. Thank you
for that opportunity then and for your continued support today.
I would also like to thank Senator Connie Mack for his written
testimony in support of my nomination.
I am pleased to be joined today by Special Envoy for the Americas
Buddy MacKay, himself a former Member of Congress. Serving as Chief of
Staff to Special Envoy MacKay has allowed me to help advance America's
strategic and economic interests throughout the Western Hemisphere. I
would like to thank Mr. MacKay and the Special Envoy staff for their
friendship and tremendous support.
Finally, but most importantly, I would like to acknowledge my Mom
and Dad. I am grateful for their constant support and encouragement
over the years as well as that of my friends who have joined me here
this morning.
Mr. Chairman, I am deeply honored by the confidence that the
President and Secretary Slater have placed in me. The President and
Secretary Slater recognize the critical importance of the international
transportation system. In particular, they are very much aware of the
role air service plays in our nation's economy, its security, and its
quality of life. My pledge to them, to Congress, and to the American
people is that, if confirmed, I will work hard to serve the public
interest by promoting the Department's policies of increasing
competition and access at home and by continuing to open up global
markets.
The development of an efficient global air transportation system
has enormous consequences for consumers, local communities, and the
national economy. Air transportation is a growing part of world
commerce. More than 650 million passengers flew on US airlines last
year, a number that will reach one billion by 2010. Travel and tourism
is already the world's largest industry, directly or indirectly
creating 10 percent of global jobs. The $1 trillion global air
transportation industry accounts for 24 million jobs worldwide. By
2010, this economic impact will approach $2 trillion, accounting for
over 30 million jobs.
The Office of the Assistant Secretary for Aviation and
International Affairs is critical to this nation's position in the
world economy. There are numerous, complex issues that need to be
addressed. I know my time may be limited, but I believe my background
and energy can be valuable assets at the Department of Transportation.
Domestically, consumer access to affordable air service is
essential to efficient commerce. I support the efforts of this
Committee and the Department to enhance air service and airline
competition in communities both large and small. I will work to ensure
that the Essential Air Service program is responsive to airline
customers throughout the United States.
I look forward to managing our efforts to extend the reach of
individual airlines and to offer passengers and shippers better and
more cost-effective access to ever-expanding markets. The Department of
Transportation will monitor the impacts of airline consolidation,
providing input on major changes like the merger of United and U.S.
Airways. The Department will also monitor passenger service to
determine how airlines treat their customers.
As Chief of Staff to the Special Envoy for the Americas in the
White House, I became intensely aware of the need to promote free and
open markets and of the tremendous opportunities in global aviation
that await us. I am also ready to draw on my background in negotiation
to help the Department reach Secretary Slater's goal of a true
international aviation network built through bilateral, plurilateral,
regional, and global agreements.
Before joining the Special Envoy's staff, I was managing director
of an international consulting firm specializing in negotiation
strategy advice for businesses and governments around the world. I look
forward to using my international negotiation experience to build on
the Department's success in negotiating 46 open-skies agreements with
foreign governments in all corners of the world. Our negotiations with
the United Kingdom are now at a critical juncture, and we are working
to expand pluralateral aviation agreements with APEC, the Asian-Pacific
Economic Cooperation organization.
As the Committee is well aware, we still have much to do. I look
forward to working with this Committee, the industry, and other
interested groups to achieve transportation excellence in the 21st
Century.
Thank you for your consideration. I would be happy to address any
questions you may have.
a. biographical information
1. Name: (Include any former names or nick names used.) Francisco
Juan Sanchez. Also have used ``Frank.''
2. Position to which nominated: Assistant Secretary for Aviation
and International Affairs at the Department of Transportation.
3. Date of nomination: June 13, 2000.
4. Address: (List current place of residence and office addresses.)
Residence: 1080 Wisconsin Avenue #1014, Washington, D.C. 20007. Office:
Office of the Special Envoy for the Americas, OEOB 176A, Washington,
D.C. 20502.
5. Date and place of birth: June 16, 1959, Tampa, Florida.
6. Marital status: (Include maiden name of wife or husband's name.)
Single.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.) Not Applicable.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.)
------------------------------------------------------------------------
Date
School Attended Dates of Degree Degrees Awarded
Attendance Granted
------------------------------------------------------------------------
Hillsborough High 1974-1977 1977 High school diploma
School
------------------------------------------------------------------------
University of Florida 1977-1978
------------------------------------------------------------------------
Florida State 1979-1981 1981 B.A. Degree
University
------------------------------------------------------------------------
Florida State 1983-1986 1986 J.D. Degree
University
------------------------------------------------------------------------
Harvard University 1992-1993 1993 Masters Degree in
Public
Administration
------------------------------------------------------------------------
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
------------------------------------------------------------------------
Dates of
Title of Job Name of Employer Location of Work Employment
------------------------------------------------------------------------
Special The White House Office of the Special April 1999
Assistant to Envoy, OEOB 176A, to the
the President Washington, DC 20502 present
and Chief of
Staff of the
Office of
Special Envoy
------------------------------------------------------------------------
Managing CMI 1030 Massachusetts September
Director International Ave., Cambridge, MA 1997 to
Group 02138 April 1999
------------------------------------------------------------------------
Senior Conflict 1030 Massachusetts September
Consultant Management Inc. Ave., Cambridge, MA 1993 to
02138 August 1997
------------------------------------------------------------------------
Associate Steel Hector & 200 S. Biscayne Blvd., February
Attorney Davis 4th Floor, Miami, FL 1987 to
33131 July 1992
------------------------------------------------------------------------
Asst. to the Florida Collins Bldg, 107 W. June 1984 to
Secretary of Department of Gaines Street, January
Commerce Commerce Tallahassee, FL 32399 1987
------------------------------------------------------------------------
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.) Not Applicable.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
------------------------------------------------------------------------
Affliated Corp./
Institution Relationship/Duty Dates of Service
------------------------------------------------------------------------
CMI International Group Former Managing September 1997 to
Director, current April 1999
equity holder
------------------------------------------------------------------------
Florida International Member-Board of 1989-1998
Volunteer Corps Directors
------------------------------------------------------------------------
Government of Ecuador Advisor on negotiations April 1998-December
and conflict 1998
resolution
------------------------------------------------------------------------
Government of Colombia Advisor on negotiations August 1994-December
and conflict 1998
resolution
------------------------------------------------------------------------
Conflict Management Advisor on negotiations August 1993-April 1999
Group and conflict
resolution
------------------------------------------------------------------------
PDVSA Venezuela Advisor on negotiations February 1997-April
and conflict 1999
resolution
------------------------------------------------------------------------
Bell South Ecuador Advisor on negotiations November 1998-April
and conflict 1999
resolution
------------------------------------------------------------------------
Conecel Ecuador Advisor on negotiations June 1998-April 1999
and conflict
resolution
------------------------------------------------------------------------
Andinatel Ecuador Advisor on negotiations December 1998-April
and conflict 1999
resolution
------------------------------------------------------------------------
Pacifictel Ecuador Advisor on negotiations December 1998-April
and conflict 1999
resolution
------------------------------------------------------------------------
APENAC Peru Advisor on negotiations September 1995-April
and conflict 1999
resolution
------------------------------------------------------------------------
Fundacion Chile Served as September 1998-April
Representative to CMI 1999
International Group
------------------------------------------------------------------------
AIRAD Argentina Served as January 1996-April
Representative to CMI 1999
International Group
------------------------------------------------------------------------
VISA International Advisor on negotiations June 1998-April 1999
and conflict
resolution
------------------------------------------------------------------------
Sprinters International Advisor on negotiations May 1997-April 1999
and conflict
resolution
------------------------------------------------------------------------
Government of Costa Advisor on negotiations July 1998
Rica and conflict
resolution
------------------------------------------------------------------------
InterAmerican Advisor on negotiations June 1994-April 1999
Development Bank and conflict
resolution
------------------------------------------------------------------------
World Bank Advisor on negotiations January 1996-February
and conflict 1996
resolution
------------------------------------------------------------------------
BANAMEX Advisor on negotiations September 1993-April
and conflict 1999
resolution
------------------------------------------------------------------------
Banca Serfin Advisor on negotiations December 1996-April
and conflict 1999
resolution
------------------------------------------------------------------------
Camara de Comercio de Served as January 1997-April
Bogota Representative to CMI 1999
International Group
------------------------------------------------------------------------
Camara de Comercio de Served as July 1997-April 1999
Quito Representative to CMI
International Group
------------------------------------------------------------------------
Camara de Comercio de Served as July 1997-April 1999
Guayaquil Representative to CMI
International Group
------------------------------------------------------------------------
Art Tech Uruguay Advisor on negotiations January 1997-April
and conflict 1999
resolution
------------------------------------------------------------------------
Accion International Advisor on negotiations January 1997-April
and conflict 1999
resolution
------------------------------------------------------------------------
Discovery Channel Latin Advisor on negotiations January 1997-April
America and conflict 1999
resolution
------------------------------------------------------------------------
Grupo Bavaria Advisor on negotiations June 1996
and conflict
resolution
------------------------------------------------------------------------
Andersen Consulting Advisor on negotiations January 1994-January
and conflict 1998
resolution
------------------------------------------------------------------------
Arthur Andersen Advisor on negotiations January 1994-January
and conflict 1999
resolution
------------------------------------------------------------------------
IBM Advisor on negotiations September 1993-April
and conflict 1999
resolution
------------------------------------------------------------------------
Smith Barney Advisor on negotiations September 1996
and conflict
resolution
------------------------------------------------------------------------
Bank of America Advisor on negotiations September 1993-
and conflict September 1997
resolution
------------------------------------------------------------------------
Conflict Management, Advisor on negotiations September 1993-
Inc. and conflict September 1997
resolution
------------------------------------------------------------------------
Boston Teachers Union Advisor on negotiations January 1994-July 1994
and conflict
resolution
------------------------------------------------------------------------
Boston Public Schools Advisor on negotiations January 1994-September
and conflict 1995
resolution
------------------------------------------------------------------------
Florida Chamber of Advisor on negotiations January 1995-April
Commerce and conflict 1999
resolution
------------------------------------------------------------------------
J.P. Morgan Advisor on negotiations April 1993-April 1999
and conflict
resolution
------------------------------------------------------------------------
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
------------------------------------------------------------------------
Dates of
Membership Organization Positions Held Membership
------------------------------------------------------------------------
Boston Museum of Fine Arts Member 1997-1999
------------------------------------------------------------------------
Boston Museum of Science Member 1997-1999
------------------------------------------------------------------------
Florida Assoc. For Voluntary Board of Directors 1989-1998
Agencies
(Florida Int'l Volunteer
Corp.)
------------------------------------------------------------------------
Florida Bar Association Member 1986-present
------------------------------------------------------------------------
American Bar Association Member 1987-1992
------------------------------------------------------------------------
Do the Right Thing, Inc. Chairman of Board 1989-1992
------------------------------------------------------------------------
Florida Center for Family & Member 1990-1991
Youth
------------------------------------------------------------------------
Miami Chamber of Commerce Member 1990-1992
Legislative
Affairs Committee
------------------------------------------------------------------------
City Club Member 1987-1992
------------------------------------------------------------------------
Harvard Faculty Club Member 1993-present
------------------------------------------------------------------------
Kennedy School Alumni Assoc. Member 1993-present
------------------------------------------------------------------------
Florida State U. Alumni Assoc. Member 1986-present
------------------------------------------------------------------------
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. I am a registered Democrat; I did fundraising for the Lawton
Chiles campaign for Governor of Florida in 1990. I also volunteered for
the Clinton-Gore campaign in 1992.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. I cannot recall any
contributions made in the last 10 years that were $500.00 or more.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
(a) Florida International Volunteer Corp., Volunteer of the Year, 1998;
(b) American Legion Leadership Award, 1977; (c) Florida Chamber of
Commerce Star Student Award, 1976.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
------------------------------------------------------------------------
Dates of
Titles Publishers Publication
------------------------------------------------------------------------
``La Negociacion y el Proceso McGraw-Hill July 1996
Legislativo'' (Cf. ``Negotiation Interamericana,
and the Legislative Process''), Colombia
Negociacion 2000: La coleccion
de Conflict Management
------------------------------------------------------------------------
``Preparandose para Negociar'' Carta Gerencial 9, January 1998
(Cf. ``Getting Ready to Uruguay
Negotiate''). Ertel, Danny and
Francisco Sanchez with Horacio
Falcao
------------------------------------------------------------------------
``A fase de preparacao'' (Cf. HSM Management 8 May 1998
``Getting Ready to Negotiate'').
Ertel, Danny and Francisco
Sanchez with Horacio Falcao
------------------------------------------------------------------------
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated. I have not delivered any speeches during the last five years
on topics relevant to the position for which I have been nominated.
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President?
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment?
Yes, I do know why I was chosen for this nomination by the
President. The office of Assistant Secretary for Aviation and
International Affairs of the U.S. Department of Transportation is
responsible for negotiating Open Skies agreements with other nations.
This is not the only duty of this office, but it is a major work
component. I bring to this job extensive experience in negotiating
complex transactions and providing advice on negotiating strategy.
Prior to my current work at the Office of the Special Envoy for the
Americas in the White House, I worked as a consultant with Conflict
Management, Inc. and CMI International Group. Both are consulting firms
specializing in providing negotiation strategy and business
relationship management advice. I have worked with governments,
corporations, and multilateral organizations located in more than
thirty countries from around the world. Secretary Slater believes--as I
do--that my negotiating experience can complement the efforts of the
Department in negotiating Open Skies agreements and other
transportation issues.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate? I currently have no positions or
affiliations outside of government.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? I have discussed working again with CMI International
Group, the consulting company with which I was previously associated,
but I have not entered into any plan, agreement, or arrangement with
that organization.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers.
------------------------------------------------------------------------
Status & Terms of any
Agreement or Arrangement Parties Date
------------------------------------------------------------------------
Pursuant to a shareholders Mark Smith, Los Angeles, September 1997
agreement with Mark Smith, CA
I receive a share of
profits, if any, from CMI
International Group
------------------------------------------------------------------------
I have rented my apartment CMI International Group, April 1999
to my former company, CMI Cambridge, MA
International Group, at
fair market value
------------------------------------------------------------------------
I am a non-contributing CMI International Group March 1998
participant in a 401K Plan
sponsored by CMI
International Group
------------------------------------------------------------------------
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None of which I am
aware.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated? In 1990 I briefly
represented Pan American World Airways before the State of Florida and
Dade County. Other than that, I am not aware of any.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy.
From 1987 to 1992 I lobbied the Florida legislature and executive
branch on a variety of issues. Below is a list of my former clients:
Ablecare, Inc. Pharmaceuticals Searle
American Electronics Assn. Psychotherapists Society
American Express Scholarship Inter-Americans
Argus Insurance Services, Inc. SLAAC State Legislative Alert &
ARRDA Action
Arvida/JMB Partners Miami-Dade Community College
Avis Rent-A-Car Ethanol Corp.
Assn. Of FL Broadcasters FCCI Self Insurers Fund
Broilers Assn., NE FL Flo-Sun
Budget Rent-A-Car Knight-Ridder
Coca-Cola Enterprises Loan America Financial Corp.
Coca-Cola Foods National Medical Enterprises
Distilled Spirits Council Pan American World Airways
Education Corp. of America Paramount Communications
Environmental Products Corp. Pay Telephone Association
Florida Bar Peoples Telephone Co.
General Electric Securities Industry Assn.
Hearing Aid Society Telesat Cablevision
Kurzweil Computers United Gas Pipe Line Co.
Magella Corp. Vittoria (Bermuda) Insurance &
Microtel, Inc. Reinsurance Co.
Multistate Assoc. Inc. Walt Disney World
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) I will
do whatever is necessary to eliminate any potential conflict of
interest.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. I can think of no unfavorable
information that should be considered. My resume is attached. Also,
please refer to question 17 of Section A.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information? Yes, I will
make this a top priority.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Please explain how you will review regulations issued by your
department/agency, and work closely with Congress, to ensure that such
regulations comply with the spirit of the laws passed by Congress. As
the Assistant Secretary for Aviation and International Affairs, I will
review all potentially significant regulations and ensure they comply
with the spirit of legislation passed by Congress.
5. Describe your department/agency's current mission, major
programs, and major operational objectives. The Office of the Assistant
Secretary for Aviation and International Affairs is responsible for a
broad portfolio of responsibilities covering domestic and international
aviation, international trade, and a range of other international
cooperation and facilitation issues. The Office has three primary
goals. The Office works to (1) liberalize international air services;
(2) ensure the benefits of a deregulated, competitive domestic airline
industry; and (3) expand transportation and trade opportunities for
U.S. companies around the globe. Several initiatives support these
goals. For example, Secretary Slater has initiated implementation of
the President's Safe Skies for Africa Initiative, an effort to improve
aviation safety and airport security in Africa and to foster the growth
of aviation services between Africa and the United States. The
Department has increased the number of ``Open Skies'' agreements, and
it is working on a post ``Open-Skies'' policy to address the economics
of networks and their impact on prices and services, infrastructure
limitations, and barriers to entry. Domestically, the Office has worked
hard to ensure the benefit to consumers of air deregulation; encouraged
small community air service through the Essential Air Service Program;
and is well underway with implementation of the provisions of AIR-21.
6. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. How have your previous professional experience and education
qualified you for the position for which you have been nominated? From
1993 to 1999 I worked as a consultant with Conflict Management, Inc.
and CMI International Group. Both of these organizations were born out
of the Harvard Negotiation Project, a negotiation and conflict
resolution think tank at Harvard Law School. I provided advice and
training and facilitated complex negotiations on behalf of
corporations, governments and multilateral organizations throughout the
world. I had a particular focus in Latin America.
Prior to my work with these organizations I practiced corporate and
administrative law with the law firm of Steel Hector & Davis. Both my
law background and my negotiation consulting work will serve me well in
this position.
2. Why do you wish to serve in the position for which you have been
nominated? I believe my academic background and professional experience
will permit me to add value to the Department of Transportation. I
enjoy my work as a negotiator and in formulating public policy. I want
to bring those skills to bear at the Department of Transportation.
3. What goals have you established for your first two years in this
position, if confirmed? I will work to continue the process of
liberalization with our international trading partners, including
efforts to achieve an Open Skies agreement with Great Britain. I will
continue Secretary Slater's initiative to develop pluralateral aviation
agreements. For example, there are promising developments with
economies represented in APEC, the Asia Pacific Economic Cooperation
organization. I will also work to sustain the benefits of a competitive
domestic aviation industry. In this regard, I will work closely with
the FAA to implement the provisions of AIR-21.
4. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills? I do not have an extensive aviation
background. I will work closely with staff to enhance my understanding
of complex aviation issues.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary.
Government should involve itself in the private sector when national
security, safety, health, and economic stability are threatened. Any
government program should have quantifiable objectives, and when those
goals are met, it is appropriate to terminate the program. It is also
appropriate to eliminate a government program when a comprehensive
review has determined those societal objectives could best be met by
other means. Because air space is a national resource, aviation is a
perfect example of how government should be involved in the marketplace
to meet the larger goals of safety and security.
6. In your own words, please describe the agency's current
missions, major programs, and major operational objectives. The Office
of the Assistant Secretary for Aviation and International Affairs has
two primary duties. First, the Office works to make aviation more
accessible, efficient, and competitive. Every year, more than 550
million people fly domestically, while another 50 million use American
carriers for international flights. Second, the Office seeks to expand
international Open Skies agreements, implement the provisions of AIR-
21, and work the Land Transportation Standards Subcommittee, which was
created by the North American Free Trade Agreement to develop
compatible standards for truck, bus, and rail operations.
7. In reference to question number six, what forces are likely to
result in changes to the mission of this agency over the coming five
years. Several developments may affect the mission of this office over
the next five years. Economic globalization is an ever-present force.
Additionally, there is increased demand for airline and infrastructure
services. Technology is changing at a rapid rate, affecting operations
like e-commerce and prompting companies to consider the internet
distribution of tickets.
8. In further reference to question number six, what are the likely
outside forces which may prevent the agency from accomplishing its
mission? What do you believe to be the top three challenges facing the
department/agency and why? Two major outside forces may prevent the
agency from accomplishing its mission: (1) restrictive international
regimes and (2) infrastructure problems. The top three challenges
facing the office are (1) ensuring airline competition; (2)
liberalization; and (3) enhancing international transportation trade
services.
9. In further reference to question number six, what factors in
your opinion have kept the department/agency from achieving its
missions over the past several years? Although the Office of the
Assistant Secretary for Aviation and International Affairs has
completed several important initiatives, the presence of restrictive
international regimes and continued infrastructure problems has limited
its work.
10. Who are the stakeholders in the work of this agency? The
Office's stakeholders include the traveling public; the aviation
industry; manufacturers and shippers that use maritime, surface, and
air transportation; international organizations; and the Congress.
11. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten? I
believe it is important to solicit input from stakeholders when
developing policy. There are divergent opinions regarding our
strategies for achieving better transportation in the Twenty-First
Century. Senior government leaders should listen to views from
Congress, industry, and the public. In a regulatory environment, it is
essential to make decisions after all viewpoints have been considered.
12. The Chief Financial Officers Act requires all government
departments and agencies to develop sound financial management
practices similar to those practiced in the private sector.
(a) What do you believe are your responsibilities, if confirmed, to
ensure that your agency has proper management and accounting controls?
The Department of Transportation has an institutionalized financial
management process in which major departmental units report directly to
the Assistant Secretary for Budget and Programs. The Inspector General
regularly reviews departmental financial statements.
(b) What experience do you have in managing a large organization? I
have management experience in both the public and private sectors. From
May of 1984 to January of 1987, I had management responsibilities with
the Florida Department of Commerce during the administration of
Governor Bob Graham. I was the first director of Florida's Caribbean
Basin Initiative Program, which promotes economic development in the
Caribbean Basin. I am currently Special Assistant to the President and
Chief of Staff to the Special Envoy for the Americas, Buddy MacKay.
Before this appointment, I was the managing director of CMI
International Group. This group facilitates negotiations for complex
transactions and labor-management issues worldwide, but with a special
emphasis on Latin America and the Caribbean. For example, I led a team
in Medellin, Colombia as part of the ``Teaching Tolerance'' program, an
initiative to curb the violence in the province of Antioquia. I also
played an advisory role in the Peru-Ecuador dispute, which led to the
signing of a peace treaty in October of 1998.
13. The Government Performance and Results Act requires all
government departments and agencies to identify measurable performance
goals and to report to Congress on their success in achieving these
goals.
(a) Please discuss what you believe to be the benefits of
identifying performance goals and reporting on your progress in
achieving those goals. Performance goals are an essential element of
any successful organization. They provide quantifiable targets for
stakeholders. I will strongly support the Strategic and Performance
Plans for the Department of Transportation. These documents have
received strong marks from Congress for their clarity and vision.
(b) What steps should Congress consider taking when an agency fails
to achieve its performance goals? Should these steps include the
elimination, privatization, downsizing or consolidation of departments
and/or programs? After determining why a performance goal has not been
met, all steps should be considered to produce a positive outcome.
Eliminating, privatizing, downsizing, or consolidating departments or
programs are all options.
(c) What performance goals do you believe should be applicable to
your personal performance, if confirmed? I will work to meet all five
goals in the Performance Plan for the Department of Transportation.
There are quantifiable measures for safety, mobility, economic growth
and trade, human and natural environment, and national security.
However, I believe improvements in safety, mobility, and economic
growth and trade are most directly affected by the Office of the
Assistant Secretary for Aviation and International Affairs.
14. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you? Supervisors should
provide the tools and guidance for employees to perform successfully in
an organization. Most federal employees I have met are exceptionally
able people, and they will perform well with the right resources and
leadership. Supervisors should recognize outstanding performers and
also identify problem employees. Fundamentally, though, a supervisor
should set a good example for his or her employees. Morale is a
critical element for success in any organization. To that end, I am not
aware of any complaints brought against me.
15. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe. I have worked on certain trade
issues related to the Americas while working in the Office of the
Special Envoy. In that capacity, I have had good working relationships
with Members and Staff.
16. Please explain what you believe to be the proper relationship
between yourself, if confirmed, and the Inspector General of your
department/agency. The Inspector General (IG) is critical within the
Department of Transportation. The IG office is charged with uncovering
waste, fraud, and abuse within the Department of Transportation. It is
essential to have this independent unit within the Department, just as
it is important to consider reforms recommended by the IG office for
improving Departmental operations. There is a strong, respectful
relationship between the current IG office and the office of the
Secretary of Transportation. I will work to continue that tradition.
17. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your department/
agency comply with the spirit of the laws passed by Congress. As the
Assistant Secretary for Aviation and International Affairs, I will
review all potentially significant regulations and ensure they comply
with the spirit of legislation passed by Congress.
18. In the areas under the department/agency's jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views. Passage of the Wendell H. Ford Aviation
Investment Reform Act for the Twenty-First Century (AIR-21) was a major
achievement that will help the office meet its mission.
19. Within your area of control, will you pledge to develop and
implement a system that allocates discretionary spending based on
national priorities determined in an open fashion on a set of
established criteria? If not, please state why. If yes, please state
what steps you intend to take and a time frame for their
implementation. Compared to other units within the Department of
Transportation, the Office of the Assistant Secretary for Aviation and
International Affairs has relatively few discretionary resources.
Attachment
Francisco J. Sanchez
Washington D.C.
Employment History
April 1999-present
The White House, Washington, D.C.
Special Assistant to the President, Office of the Special Envoy for the
Americas
Serves as Chief of Staff and advises on policy related to the
Americas including economic integration, trade and promotion of
democracy; coordinates closely with the National Security Council, the
State Department and the United States Trade Representative.
September 1993-April 1999
CMI International Group, Cambridge, Massachusetts
Senior Consultant and Managing Director (September 1997-April 1999)
An international consulting firm specializing in interest-based
negotiation strategy, relationship management, mediation and conflict
resolution.
Advising public and private organizations in the United
States, Latin America and Europe in negotiation strategy and
conflict prevention/resolution.
Facilitating business negotiations; labor-management
contract negotiations; serving as a mediator in resolving
litigation and other conflicts.
Sample international consulting engagements:
The World Bank sought advice on how to deal with a conflict
that was affecting an important project it was funding in Lima,
Peru; CMI developed a strategy in collaboration with World Bank
officials on how to manage the conflict.
Ecuador-Peru Border Dispute led to military confrontation in
1995 over sovereign rights in certain lands. CMI offered
strategic advice that contributed to the signing of a peace
treaty in October 1998.
The Governor of Antioquia, Colombia launched an
instructional program to reduce violence and to promote a
culture of tolerance; administered a program that brought
disparate groups (i.e. mayor, town council, teachers, private
sector) together to learn conflict resolution.
Ecopetrol is a state-owned oil company in Colombia affected
by a constitutional amendment requiring community approval for
all major development projects. Led an effort to develop
strategy to reach community consensus.
February 1987-August 1993
Steel Hector & Davis, Miami, Florida
Associate Attorney
Florida-based law firm with a diversified practice including
litigation, international, corporate, commercial and governmental law.
Retained by BIOFIL, S.A. of Brazil, a biotechnology company
specializing in products for burn victims and other skin
related problems; represented them in the U.S. on joint-venture
agreements, product licensing, FDA approval and venture-capital
financing.
Retained by United Gas Pipeline of Houston, TX to develop
and pass legislation regulating natural gas pipelines to
facilitate development of a 900-mile pipeline across the State
of Florida.
May 1984-January 1987
Florida Department of Commerce, Tallahassee, Florida
Chief Assistant to the Lieutenant Governor of Florida
Served under the Lt. Governor (also served as the Secretary of the
Department of Commerce) in the overall management of the agency.
Served as the initial Director of Florida's Caribbean Basin
Initiative Program (a program designed to promote economic
development in the Caribbean Basin.)
Served as Director of the Department's Legislative Affairs
Office.
June 1982-November 1982
Graham-Mixson Re-Election Campaign, Tallahassee, Florida
Deputy Campaign Director
Managed campaign planning/strategy development, fundraising,
candidate scheduling, media and public relations for Lt.
Governor Wayne Mixson.
Served as an Advisor on Hispanic Affairs to the campaign.
November 1978-May 1982
Office of the Governor, Tallahassee, Florida
Assistant to Governor & Lieutenant Governor
Served as Governor Graham's Liaison to the Commission on Hispanic
Affairs. As assistant to Lt. Governor Mixson, coordinated international
trade projects and served as a Spanish language translator.
Education
Graduate
June 1993
Harvard University, John F. Kennedy School of Government
Masters Degree in Public Administration
Legal
April 1986
Florida State University, College of Law: Tallahassee, Florida
J.D. Degree, With Honors
Activities: Advisor to the Dean, Caribbean Law Institute and
Member, Faculty Selection Committee
Undergraduate
December 1982
Florida State University: Tallahassee, Florida
B.A. Degree: Multi-National Business & Spanish
Minor: Economics; Honors: Spanish Honor Society
Language
Speak, read, and write Spanish fluently; Proficient in Portuguese
Community Service
1990-1992
Chairman of the Board, Do The Right Thing, Inc.
A non-profit corporation working with the City of Miami Police
Department dedicated to recognizing students who are ``Doing the Right
Thing''
1988-1992
General Counsel, Little Havana Nutrition & Activities Centers of Dade
County
One of the largest social service organizations for Hispanic senior
citizens
1993
Evaluator, Innovations in State and Local Government Program
Ford Foundation and John F. Kennedy School of Government
1989-1998
Board Member, Florida International Volunteer Corps
A mini Peace Corps servicing the Caribbean Basin and Central
America
1990-1992
Member, Florida Center for Family and Youth
1989-1991
Member, Greater Miami Chamber of Commerce Legislative Affairs Committee
1988-1989
Mentor, Private Industry Council High School Drop-Out Prevention
Program
Additional Experience
December 1995
Co-creator of the Conflict Management Mediation Tool Kit
August 1995 & 1996
Guest lecturer on mediation at University of Massachusetts
June 1993
Teaching Assistant, Negotiation Workshop, Harvard Law School
May 1990-November 1990
Director of Young Professionals Fundraising for the Lawton Chiles
Campaign for Governor of Florida
December 1982
Personal trip around the world. Met with commercial sections of
American Embassies on behalf of the State of Florida.
Publications
July, 1996
``La Negociacion y el Proceso Legislativo'' (Cf. ``Negotiation and the
Legislative Process''), Negociacion 2000: La coleccion de Conflict
Management, McGraw-Hill Interamericana, Colombia, 1996.
January, 1998
``Preparandose para Negociar'' (Cf. ``Getting Ready to Negotiate'').
Ertel, Danny and Francisco J. Sanchez with Horacio Falcao. Carta
Gerencial 9, January-February Ed., 17 (Uruguay, 1998).
May, 1998
``A fase da preparacao'' (Cf. ``Getting Ready to Negotiate''). Ertel,
Danny and Francisco J. Sanchez with Horacio Falcao. HSM Management 8,
May-June Ed., 62 (Brazil, 1998).
The Chairman. Thank you very much, Mr. Sanchez.
My first question to you is, did you see this morning's
paper about a possible merger between Northwest and American?
Mr. Sanchez. To be honest, I was preparing for possible
questions and reading my statement over, so I didn't read the
paper this morning.
The Chairman. Well, the rumors of it, I am sure you had
heard even before.
Mr. Sanchez. Yes, sir, I have.
The Chairman. Do you share the concern of many, including
me, that we could end up with three mega-airlines in America?
Mr. Sanchez. I share the concern that we need to be ever-
vigilant, that we maintain a competitive airline industry. I
think that much has been accomplished.
The Chairman. Do you believe that three airlines is good
for America?
Mr. Sanchez. I am not sure what number is appropriate or
inappropriate. I know that it will be a priority of this office
and my tenure to contribute as much as I can to analyze and----
The Chairman. I'd like some straight answers, Mr. Sanchez.
Do you believe that it is good for airline competition for us
to go from six major airlines to three major airlines?
Mr. Sanchez. I don't feel I have enough information to
respond to whether three or six or four are correct. I know
that I need to be very concerned about the impact of a
reduction in the number of airlines, and I will work as hard as
possible with you and members of this Committee as we analyze
that.
The Chairman. Could I just pause for a minute? The Majority
Leader obviously has to try to make the train run on the floor
of the Senate, and I'd like to pause so that he could make a
very brief statement. We'd be pleased to have him leave,
anyway.
[Laughter.]
Senator Lott. Well, I appreciate your courtesy, Mr.
Chairman, and the indulgence of my colleagues. And again, I've
already wished the best to Mr. Sanchez. I think he's an
excellent choice and I look forward to working with him.
I had hoped to be here for the next panel, but we do have a
matter on the floor of the Senate I need to go work on. I just
want to extend my congratulations and offer my support to the
four nominees that will be on the next panel for the
Corporation for Public Broadcasting: the Chairman, Mr. Cruz;
Mr. Tomlinson; Dr. Wilson; and the renomination of Katherine
Anderson, who has been on the Board for 3 years.
I think this is a good group of nominees for the Board of
the Corporation for Public Broadcasting. They have an important
role to fulfill. Educational TV can be very positive. I have
felt in the past that it has not done some of the things it
should have done. Mistakes obviously were made with the way the
lists were handled; and I do think that sometimes a biased
point of view was reflected. But I think that progress has been
made in trying to straighten that out and have a fairer
representation. I certainly hope that you are successful and I
offer my support to this Board. I thank you, Mr. Chairman, for
allowing me to make this brief statement.
The Chairman. I thank the Majority Leader, and I appreciate
his continued involvement in the Committee work, given his
other responsibilities. I believe I'm correct in saying we'd
like to move these quickly to the floor for full Senate
confirmations.
Senator Lott. Yes. Thank you.
The Chairman. I thank the Majority Leader.
Mr. Sanchez, do you support eliminating the perimeter rule
at Reagan National Airport?
Mr. Sanchez. I'm not prepared to make a statement on that.
As you know, I haven't gone to the Department of Transportation
yet. I know that my mandate as, the Department's mandate is to
do everything it can to increase competition. So I think we
need to look at all options as we try to do that, working with
the Committee.
The Chairman. Well, I regret that you can't give me answers
to two very important questions.
Senator Burns?
Senator Burns. I think I have already made my statement. I
don't think he wants to sit through that again. I am
disappointed that--those are two questions I would imagine that
are probably the most important questions that will be asked of
this Committee, of this office. Especially air service, those
kinds of things, are very, very important to our part of the
country.
So I have no questions.
The Chairman. Senator Rockefeller?
Senator Rockefeller. I think you answered those questions
precisely as you should have. And that is that you haven't
taken office yet, they would try to put you on record on two
issues which are extremely important to a lot of people; one
much less so to me than to the Chairman. But I think you did
the right thing in answering that way.
I would hope that, you have had a lot of international
experience, you have very good relations with the White House,
and I say that in the best sense of the word; that's something
that DOT has needed, and I think that you can be very effective
in helping formulate policy.
I don't really have any questions beyond that, except for
an observation. And that is that Senator Dorgan and I, and
Senator Burns, come from very rural states. There's an
interesting kind of a conflict between that, because we
understood--or at least we should understand that when there
are problems in Cleveland or Chicago or LaGuardia, the bigger
airports--we're the first ones to get hurt. In other words, if
thunder storms cause a mix-up or delay or whatever, we're the
first ones to get hurt because we're the first airports they
start canceling flights; that is the small airports.
It's a tricky business when you're looking for essential
air service and trying to increase competition into small areas
at the same time or simultaneously because those small areas
are also affected primarily by what happens in the larger ones.
So you've got a hard job, and we in Congress--I think a lot
of the fault of all of this is our lack of leadership in
Congress. I mean, I think that the airlines are blamed and can
be, and people's expectations are too high, and that's
understood. But we also understand it's going to be twice as
bad before the FAA authorization bill, which we thankfully
passed, has really a chance to kick in.
We're going to get a much, much worse situation of delays
and cancellations and passenger frustration; much less--you
know, the next airline into China, and when are you going to
announce what that might be and what's the delay, and you're
not in office yet, and you're not confirmed so you can't do
that.
But it's a very, very tricky business. I am one who feels
that with the airlines, that aviation has sort of overtaken our
highway system, as important to the development of America, and
particularly rural America. The highway system is everywhere
now, and the relative strength of the economies of states
hasn't changed all that much. I think the aviation system, if
properly apportioned, and fairly apportioned throughout the
states, can make that kind of difference. And in a so-called
new economy world, will make that kind of difference on a
global scale.
So I really wish you well, and I have an enormous amount of
respect for what you bring. Thank you.
The Chairman. Senator Dorgan?
Senator Dorgan. Mr. Chairman, thank you.
Mr. Sanchez, as I indicated, I am going to support your
nomination; I think you have very impressive credentials. You
have not, it appears to me, worked extensively in aviation
issues or areas.
Mr. Sanchez. That's correct.
Senator Dorgan. And, while I don't have heartburn about
your reply to the Chairman, I think the Chairman's questions
are important questions, and I want to probe a bit on those
issues.
I think it's very important that we understand how you feel
about where all of this is heading. How has deregulation of the
airlines affected our country? How has it affected rural areas
versus urban areas? What has it meant in terms of increased or
decreased competition? What has it meant in terms of fares and
so on.
The Chairman mentioned that this morning in the newspaper
there was a rather large article about the prospect about a
merger between American Airlines and Northwest Airlines. I have
no specific knowledge of that issue, I should say, but I am
very concerned about it; I am concerned about the proposed
United-U.S. Air merger; I am concerned about what I am sure
inevitably would be major talks between Delta and Continental.
I am concerned about ending up with three major airline
carriers in this country, and I am concerned about the merger-
stopping justification at least, justification for mergers,
talking about creating seamless transportation systems. I
suppose the ultimate seamless transportation system is to have
one company left, and they'll decide who they serve, when they
fly, how they fly, what kind of equipment they fly, and what
fares they charge, and if you don't like it, tough luck. That's
the ultimate seamlessness. And, of course, it is antithetical
to everything we understand about the free market system and
how it ought to work to serve the American people.
So the question is this: We're kind of, I think, at the
famous fork-in-the-road here. And one road, with respect to the
domestic airline industry, leads to more mergers, it leads to
fewer and bigger airlines, it leads to less choice, and it
leads to higher fares. The other road, of course, has a better
destination and better outcome.
I would like to understand, as you come to this job with
the objective of ensuring the benefits of a deregulated
competitive domestic airline industry, give me your sense of
these issues. I mean, the Chairman has asked about them. I
wasn't here, but I understand Senator Burns referred to it. I
asked about it.
Give me your sense of this. I have a real foreboding about
these merger discussions. I think this is serious, serious
stuff. What's your impression?
Mr. Sanchez. Well, let me begin with your first question of
what I think deregulation has meant for the airline industry
and for our country. I think it's been very good. I think it's
helped bring down prices, I think that it has stimulated
competition. I have been involved, in one form or another, of
economic development sometimes for my own company, other times
on behalf of the State of Florida, and most recently promoting
open markets within our own hemisphere.
So just as a basic premise, I believe that more
competition, deregulation has been a good thing. On the
negative side, as Senator Rockefeller can attest, small
communities have experienced challenges. And as Senator Graham
mentioned, I served in his administration in several
capacities, one of which was at the Florida Department of
Commerce, where part of my portfolio was helping smaller
communities develop economically. And without a strong
transportation system, particularly air service, those
communities could not thrive.
So on balance, I think it's been very good and I think
there are areas where we need to pay particular attention and
be as helpful as we can.
I guess another premise that I come in with is that
competition works strongest where we have a lot of competitors.
Having said that, I don't feel comfortable shooting from the
hip and offering--with all due respect, I don't mean to not
answer straight, but I do want to have the benefit of analysis,
I want to have the benefit of reflection that we will get
through this process before I offer very concrete responses to
whether there should be a certain number and what that impact
is. But I can say in general, those are my feelings about open
markets, about deregulation, and about competition.
Senator Dorgan. But would you concede that a domestic
airline industry with six or eight or ten healthy domestic
airline companies is better than an aviation airline industry
with three companies? I mean, that's the question that was
asked earlier. Right off the top, I'd say absolutely.
Generally speaking, in a competitive environment, in a
market system in which user's prices are regulated by
competition, and you have got entrants and contestants that are
aggressively competing for the consumer's dollars, more is
better.
I used to teach economics and overcame that, ultimately--
but it's just fundamental that more is better in this
circumstance. Do you agree with that?
Mr. Sanchez. As a general premise I agree, Senator, that
more competitors tends to lead to more competition. I think
that's an accurate statement.
Senator Dorgan. And fewer competitors, as a result of
deregulation, has resulted in less competition in some areas of
the country; would you agree with that?
Mr. Sanchez. Again, without knowing which areas of the
country to which you're referring, but I know that some areas
are underserved and we need to do what we can to help bring
service to those areas.
Senator Dorgan. You know something, I can show you how you
can fly twice as far for half as much. If you want to leave
this table and fly to Los Angeles, I can show you how to fly to
Los Angeles, which is twice as far as flying to Bismarck, and
you can fly twice as far and pay half the price.
So that relates to my question of how this system works and
who benefits, and whether it is truly competitive and whether
it would be enhanced or injured by more mergers.
I would not want to send anybody into any agency that
becomes part of the grateful dead that just sits around when
merger talks are going on saying ``Well, gosh, that's OK with
us.'' I want real tigers to be in these agencies saying, ``I
want to aggressively look at these issues on behalf of the
American consumer, and see whether this enhances the market
system in this country'' because this country is better off
with robust, aggressive competition.
And as I read this morning's paper--we had a hearing here,
in the chair that you sit now, we had the CEOs of United Air
and U.S. Air. If you just listen to that in isolation, you
would just think, ``Gosh, that's the best thing in the world
for the country, to have these two big companies merge.'' And
I'm sure Northwest and American, if they ever get together,
they'd come and say the same thing. Pretty soon it will be down
to three companies and then two companies. Frankly, I don't
think that's in the country's interest, and I want to send
somebody to DOT that's going to look at ensuring the benefits
of a deregulated, competitive domestic airline industry who is
going to be a real tiger, who has real passion about these
things.
Mr. Sanchez. Senator, I can assure you, I've heard you,
I've heard your concerns, I've heard the Chairman's concerns,
and I can commit to you and pledge to you that I will work hard
with this Committee, with individual members, to make sure that
together we ensure a competitive air service here in this
country.
Senator Dorgan. Mr. Chairman, I've taken more than my time.
The Chairman. Thank you, Mr. Sanchez. I may give you an
opportunity to reflect and analyze before we move your
nomination.
Any further questions?
Thank you very much, Mr. Sanchez.
Mr. Sanchez. Thank you, Mr. Chairman.
The Chairman. The Committee will now move to our second
item of business, review of the renominations of Ms. Katherine
Anderson and Mr. Frank Cruz as members of the Board of
Directors of the Corporation for Public Broadcasting, and the
nominations to the Board of Mr. Kenneth Tomlinson and Dr.
Ernest Wilson.
I welcome the nominees to the Committee, and I invite them
at the beginning of their statement to introduce any family
members that may be present today.
As we consider these nominees to the Board of CPB, we must
acknowledge that the sweeping changes affecting the entire
telecommunications industry impact CPB as well as more
commercial interests such as cable, satellite and commercial
broadcast television.
In the past, I've criticized CPB for a lack of objectivity
in public programming, and I've encouraged nominees to work
toward improving programming balance. I believe that CPB has
made significant strides in this area.
I hope the Board will be vigilant in ensuring that future
programming is balanced and objective. I look forward to
hearing how these nominees perceive the changes and new
challenges they face, and hearing how they intend to deal with
them.
Prepared Statement of Hon. John McCain,
U.S. Senator from Arizona
The Corporation for Public Broadcasting Nominations
The Committee will now move to our second item of business: review
of the renominations of Ms. Katherine Anderson and Mr. Frank Cruz as
Members of the Board of Directors of the Corporation for Public
Broadcasting, and the nominations to the Board of Mr. Kenneth
Tomlinson, and Dr. Ernest Wilson. I welcome the nominees to the
Committee, and I invite them at the beginning of their statement to
introduce any family members that may be present today.
As we consider these nominees to the Board of CPB, we must
acknowledge that the sweeping changes affecting the entire
telecommunications industry impact CPB as well as more commercial
interests such as cable, satellite and commercial broadcast television.
In the past, I have criticized CPB for a lack of objectivity in
public programming, and I have encouraged nominees to work towards
improving programming balance. CPB has made significant strides in this
area and I hope that the Board will be vigilant in ensuring that future
programming is balanced and objective.
I look forward to hearing how these nominees perceive the changes
and new challenges they face, and hearing how they intend to deal with
them.
We will begin with Ms. Anderson. Welcome back before the
Committee, Ms. Anderson.
STATEMENT OF KATHERINE ANDERSON, NOMINEE, MEMBER OF THE BOARD
OF DIRECTORS, CORPORATION FOR PUBLIC BROADCASTING
Ms. Anderson. Thank you, Mr. Chairman.
Mr. Chairman, I have my husband with me here today; he is
Tom H. Anderson.
The Chairman. Welcome, Mr. Anderson.
Ms. Anderson. Mr. Chairman and Members of the Committee,
thank you for the opportunity to appear before you today to
discuss my renomination to the Board of Directors of the
Corporation for Public Broadcasting.
I would first like to express my appreciation to the
President for nominating me, and to the Senate Majority Leader,
Trent Lott, for recommending me. I'm very grateful for their
support.
I first appeared before this Committee as a nominee to the
CPB Board nearly 3 years ago, and today I appear as a nominee
for a second term. I bring to public broadcasting an
entrepreneurial spirit and a background of service in both the
public arena and the private sector. I am drawn to public
broadcasting because of its reputation for providing excellent
educational programming.
Education is the cornerstone of public broadcasting and its
commitment to children is as old as public broadcasting itself
but more vibrant than ever before. The celebrated and award-
winning children's programs that appear on public television
are testament to its devotion to preparing America's youngest
citizens for the classroom and teaching them more about the
world around them.
From Sesame Street to Zoom to Mister Rogers' Neighborhood,
public television has a reputation of providing excellent
children's programming. This tradition continues with new
children's programs, such as Dragon Tales and Between the
Lions, a series focused on teaching kids to read. These
programs make learning fun for children. I believe that CPB can
build on this legacy creatively, looking for better ways to
stretch federal dollars through innovation, partnerships, and
new technology.
Digital technology gives public broadcasters educational
tools we have never had before. It promises to revolutionize
the educational and cultural impact of public broadcasting for
both children and adults. When we convert to digital
technology, viewers will be able to interact with television
rather than just passively view it.
For example, an enhanced viewing of Great Performances
would allow a viewer to watch the performance, follow the
written music score, and perhaps even mute a particular
instrument and play along with the orchestra. The viewer would
even be able to receive a violin lesson taught by musician
great Itzhak Perlman by simply clicking on the
``Troubleshooting Guide for the Violinist.''
More channel space will also be available through digital
technology, at least four channels per station, allowing public
broadcasters to broadcast simultaneously programs that appeal
to different audiences and age groups.
This means that on a single digital channel, a station
might offer, in addition to the main programming feed, a
dedicated children's channel, an adult lifelong learning
channel, and a local programming channel emphasizing a special
interest in the viewer's local community.
While CPB works to take advantage of digital technology and
the promises that it holds, public radio and television will
continue to improve and innovate in other aspects, including
operations and services.
Public broadcasting has made significant progress in these
areas. CPB has phased in policy changes to distribute federal
funds more efficiently, and to better ensure that public
broadcasting stations are focused on serving their communities.
The result is that more funds are available for incentive-based
matching grants, and more stations sharing a market are cutting
overhead by working with their neighboring stations through
cooperative arrangements.
To further assist all stations in improving their service
to the community, CPB created the Television and Radio Future
Funds. The Future Funds are used to invest in critical new
initiatives that help stations improve and increase their
services, and share best practices for better operations in the
future.
In addition, both the Television Community Service Grant
and the Radio Community Service Grant have recently been
rewritten to direct a higher percentage of resources to rural
and minority stations.
I believe that these initiatives exhibit a responsible use
of government money, and I support such policies. This is a
very unique time to be involved in the broadcasting industry.
If confirmed to this position, I will work to ensure that CPB
continues to be a leader in putting technology to work for the
benefit of all Americas, and that as today's technologies
change, public broadcasting remains committed to offering a
standard of excellence and a commitment to education for all
its citizens.
Thank you for this opportunity to appear before you. I'm
happy to answer any questions.
The Chairman. Thank you very much.
[The prepared statement and biographical information of Ms.
Anderson follow:]
Prepared Statement of Katherine Anderson, Nominee, Member of the Board
of Directors, Corporation for Public Broadcasting
Mr. Chairman and Members of the Committee, thank you for the
opportunity to appear before you today to discuss my renomination to
the Board of Directors of the Corporation for Public Broadcasting. I
would first like to express my appreciation to the President for
nominating me and to Senate Majority Leader Trent Lott for recommending
me. I am very grateful for their support.
I first appeared before this Committee as a nominee to the CPB
Board nearly three years ago, and today, I appear as a nominee for a
second term. I bring to public broadcasting an entrepreneurial spirit
and a background of service both in the public arena and the private
sector. I am drawn to public broadcasting because of its reputation for
providing excellent educational programming. Education is the
cornerstone of public broadcasting and its commitment to children is as
old as public broadcasting itself but more vibrant than ever before.
The celebrated and award-winning children's programs that appear on
public television are testament to its devotion to preparing America's
youngest citizens for the classroom, and teaching them more about the
world around them. From Sesame Street to Zoom to Mister Rogers'
Neighborhood, public television has a reputation of providing excellent
children's programming. This tradition continues with new children's
programs, such as Dragon Tales and Between the Lions, a series focused
on teaching kids to read. These programs make learning fun for
children. I believe that CPB should build on this legacy creatively,
looking for new ways to stretch federal dollars through innovation,
partnerships, and new technology.
Digital technology gives public broadcasters educational tools we
have never before possessed. It promises to revolutionize the
educational and cultural impact of public broadcasting for both
children and adults. When we convert to digital technology, viewers
will be able to interact with television rather than just passively
view it. For example, an enhanced viewing of Great Performances would
allow a viewer to watch the performance, follow the written music
score, and perhaps even mute a particular instrument and play along
with the orchestra. The viewer would even be able to receive a violin
lesson taught by musician great, Itzhak Perlman, by simply clicking on
``Troubleshooting Guide for the Violinist.'' More channel space will
also be available through digital technology, at least four channels
per station, allowing public broadcasters to simultaneously broadcast
programs that appeal to different audiences and age groups. This means
that on a single digital channel, a PBS member station might offer, in
addition to the main programming feed, a dedicated children's channel,
an adult lifelong learning channel, and a local programming channel
emphasizing a specific interest in the viewer's community.
While CPB works to take advantage of digital technology and the
promises that it holds, public radio and television will continue to
improve and innovate in other aspects, including operations and
service. Public broadcasting has made significant progress in these
areas. CPB has phased-in policy changes to distribute federal funds
more efficiently, and to better ensure that public broadcasting
stations are focused on serving their communities. The result is that
more funds are available for incentive-based matching grants, and more
stations sharing a market are cutting overhead by working with their
neighbors through cooperative arrangements. To further assist all
stations in improving their service to the community, CPB created
television and radio Future Funds. The Future Funds are used to invest
in critical new initiatives that help stations improve and increase
their services and share ``best practices'' for better operations in
the future. In addition, both the Television Community Service Grant
and the Radio Community Service Grant have recently been rewritten to
direct a higher percentage of resources to rural and minority stations.
I believe that these initiatives exhibit a responsible use of
government money and I support such policies.
This is a very unique time to be involved with the broadcasting
industry. If confirmed to this position, I will work to ensure that CPB
continues to be a leader in putting technology to work for the benefit
of all Americans, and that as today's technologies change, public
broadcasting remains committed to offering a standard of excellence and
a commitment to education for all its citizens.
Thank you again for this opportunity to appear before you. I am
happy to answer any questions that you may have.
a. biographical information
1. Name: (Include any former names or nick names used.) Katherine
Milner Anderson.
2. Position to which nominated: Board, Corporation for Public
Broadcasting.
3. Date of nomination: May 1, 2000.
4. Address: (List current place of residence and office addresses.)
Residence: 18 Wolfe Street, Alexandria, VA 22314. Office: Team
Washington. Inc., 817-B Slaters Lane, Alexandria, VA 22314.
5. Date and place of birth: December 16, 1947, Gulfport,
Mississippi.
6. Marital status: (Include maiden name of wife or husband's name.)
Married: Tom H. Anderson, Jr.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.) No children.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.) Gulfport High
School, 1962-1965, Gulfport, Mississippi, Graduated with Honors, May
1965. University of Mississippi, 1965-1969, Oxford, Mississippi,
Bachelor of Arts in Education.
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
1969-1972 High School Instructor, Gulfport High
School, Gulfport, Mississippi
1975-1976 Special Assistant, Citizens for Reagan
(Presidential Election Committee),
Washington, DC 20036
1977-1980 Assistant Director of Administrative
Services, Republican National Committee,
301 First Street, SE, Washington, DC
1981-1983 Director, Executive Secretariat,
Department of Transportation, Washington,
DC
1983-1984 Associate Director, Office of the Cabinet,
The White House, 1600 Pennsylvania
Avenue, NW, Washington, DC
1985-1986 Chairman of the Board, Team Washington,
Inc.
1986 Executive Director, The President's Dinner
(Republican Senate-House Fundraiser)
1987 Executive Director, The President's Dinner
(Republican Senate-House Fundraiser)
1988 to Present Chief Financial Officer, Team Washington,
Inc., 817-B Slaters Lane, Alexandria, VA
22314
1988 to Present President, River Galleries, 18 Wolfe
Street, Alexandria, VA 22314
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Federal Government:
President's Advisory Council on Peace Corps
President's Task Force on Legal Equity for Women
Secretary's Executive Resource Review Board (SES Selector)
Secretary's Annual Awards Review Board
Secretary's Representative on Federal Committee on the Arts and
Humanities Underwriters Review Board
Secretary's Representative on the White House 1984 Olympics Committee
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.)
Business Relationships:
Director, Team Washington, Inc.
Director, Chairman, Team Washington, Inc.
Owner/Proprietor, River Galleries
Partner, Columbia Pike, LLC
Partner, Duke Street Associates, LLC
Partner, Lanham Group Associates, LLC
Partner, Anderson, Meeks, LLC (Pennsylvania Avenue)
Partner, Meager Means Investors
Partner, Minnesota Avenues Group, LLC
Member, Board of Directors of the Corporation for Public Broadcasting
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.)
International Furnishing and Design Associate
Allied Board of Trade
National Trust for Historic Preservation
Trinity Episcopal Church, Upperville, Virginia
Meager Means Investment Club (Member NAIC)
Phillips Galleries
Piedmont Environmental Council
Member, Board of Directors for Columbia Hospital for Women Foundation
Chairman, Awards Committee, Special Olympics, Barbados, West Indies
Chairman, Host Committee, National Cancer Society, Barbados, West
Indies
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. Employee of Citizens for Reagan Committee, 1975-1976; Employee
of Republican National Committee, 1977-1981.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Trent Lott for
Mississippi, Fred Thompson for Senate, Marshall Coleman for Governor,
and Tom Davis Committee.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Honors and Awards (Scholastic): National Honor Society, Dean's List--
University of Mississippi, Bonus Award--National Teacher's Exam, and
Outstanding Young Women of America.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) None.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated. None.
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President? I assume that my business background, my strong commitment
to public service, my experience in education and the arts, and my past
experience on the CPB Board gave me a strong endorsement by both the
Republican Leadership and the President.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment? My
experience in the education field, both locally and internationally,
has been long-lasting and broad-ranging. My experience includes
classroom academic instruction, as well as applied skills in foreign
countries. My background also includes many years of involvement in the
arts, both fine arts, and decorative arts, as well as music
appreciation.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate? Not applicable.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. Not applicable.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? Not applicable.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. Employment as Chief Financial Officer, Team
Washington, Inc.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated? None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. Courtesy calls on
appropriate House Members in seeking to remove the covenants on the
property occupied by Columbia Hospital for Women, that restricted
services to ``women and children.''
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) I
would attempt to resolve any conflict of interest thoroughly and to the
satisfaction of all concerned parties.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details. I testified in
a civil action filed against Team Washington, Inc. by a former
employee. Alexandria Circuit Court, Lynch vs. Team Washington, Inc.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information? Yes, to the
best of my ability.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes, to the best of my ability.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. Please describe how your previous professional experience and
education qualifies you for the position for which you have been
nominated. In addition to serving on the CPB board since 1997, I
believe that my experience as a businesswoman, former educator, and
community service volunteer uniquely qualifies me for the position on
the board of the Corporation for Public Broadcasting (CPB). I have
served in the public and private sectors. From 1981 to 1983, I was the
Director, Executive Secretariat in the Department of Transportation and
from 1983 to 1984 I was the Associate Director in the Office of the
Cabinet in the White House. In addition, I have served on numerous
government task forces and boards, including a two-year Presidential
appointment to the Peace Corps Advisory Board. I began my career as a
high school English teacher in Mississippi.
2. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills? Having served on the CPB board for nearly
3 years, I am confident of my skills and ability to successfully carry
out the responsibilities of this position.
3. Why do you wish to serve in the position for which you have been
nominated? I am committed to education and children's programming. I
believe that public broadcasting plays a crucial role in providing
universal educational opportunities and excellence in children's
programming.
4. What goals have you established for your first two years in this
position, if confirmed? I would like for CPB to continue encouraging
stations to streamline operations through cooperative agreements, joint
fundraising, and technological innovation [during the conversion to
digital technology]. I also believe that CPB has a leadership role to
play in determining ways to best use emerging technologies to serve the
American people.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary. My
philosophical view is that the role of government should be limited. In
certain instances in which the private sector can provide the
efficiencies that the government cannot, I believe it is reasonable for
the private sector to have a role in society's problems. I strongly
believe in seeking non-governmental solutions to societal problems. I
believe that the government has a role in ensuring education,
infrastructure, public safety, and providing for the security of its
citizens. When a government program is no longer efficient or
effective, I believe that consideration should be given to phasing such
a program out.
6. In your own words, please describe the agency's current
missions, major programs, and major operational objectives. CPB's
mission, major programs, and major operational objectives are focused
on education, diversity, and universal access. CPB is committed to the
mission of education through technology. Programs like the Ready To
Learn (RTL) Service reach nearly 90% of American households, the
disadvantaged, and those for whom English is a second language. RTL, a
literacy program, helps children learn how to read through the medium
of television. In addition, local workshops train parents and
caregivers, and local stations distribute new books to children who
would not otherwise have them.
Another remarkable program is the groundbreaking free teacher
training resource: The Annenberg/CPB Channel. CPB in conjunction with
the Annenberg program offers professional development for teachers in
the core academic subjects, with an emphasis on math and science. More
than 45,000 schools throughout the nation, as well as 22 million homes,
receive the Annenberg/CPB digital television service. The audience
grows by over 1,000 schools and 50,000 homes per month. In addition,
the Annenberg/CPB Web site currently receives about 1.5 million visits
per month.
Historically, CPB has been committed to education. This commitment
has expanded to include the uses of digital technology and new media in
furthering this goal.
7. In reference to question number six, what forces are likely to
result in changes to the mission of this agency over the coming five
years. Our mission of providing to all Americans noncommercial,
educational, and cultural programming that addresses issues of local
and national interest has not changed. The conversion of public
television stations to digital technology will provide new
opportunities to fulfill that mission. The financing of converting all
public television stations to digital will test that mission in new
ways.
8. In further reference to question number six, what are the likely
outside forces which may prevent the agency from accomplishing its
mission? What do you believe to be the top three challenges facing the
board/commission and why? The conversion to digital technology involves
a host of financial and technical challenges. Three of the primary
challenges facing the board are creating innovative educational
initiatives, exploring alternative funding solutions, and successfully
expanding the reach of our content to all emerging technological and
public platforms.
9. In further reference to question number six, what factors in
your opinion have kept the board/commission from achieving its missions
over the past several years? I believe we have been successful in
making excellent educational programming accessible to all people and
moving toward delivering that content over multiple platforms. I
believe we have been sensitive and responsive to the need to reach
diverse and rural audiences and we have helped stations cut costs
through consolidations.
10. Who are the stakeholders in the work of this agency? Parents,
teachers, educators, children, federal, state, and local governments,
viewers and listeners, station members in particular, and the
universities, local communities and local governments that hold
noncommercial licenses and qualify for CPB support. More and more,
local libraries, schools, childcare centers, and other community
service providers are becoming part of CPB's extended family. The
stakeholders are the public at large.
11. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten. We
hope to continue to be partners with these stakeholders, and work
together toward common goals for the good of the American people.
12. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you? When I am in a direct
supervisory role, my goal is to bring out the best in a worker by
setting clear goals and then trusting the employee to perform in the
expected manner. I often use periodic reviews to further the
understanding of performance expectations and measurability. I believe
in giving an employee the freedom of achieving goals and results that
are beyond my expectations. No direct employee of mine has ever taken
formal action against me.
13. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe. While serving on the CPB board, I
have had experience working with Congress. In previous positions such
as the Peace Corps Board, and while working in the Executive Branch, I
was always ready to cooperate with congressional committees as
requested.
14. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your board/commission
comply with the spirit of the laws passed by Congress. I will be open
and responsive to concerns raised by this Committee and other
stakeholders to ensure CPB's compliance with both the spirit and letter
of the laws that govern us.
15. In the areas under the board/commission jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views. I believe that CPB should be reauthorized
and that CPB should be authorized to distribute funds for digital
conversion.
16. Please discuss your views on the appropriate relationship
between a voting member of an independent board or commission and the
wishes of a particular president. It is the President's job to nominate
qualified individuals to various independent boards and commissions.
Nominees, when considered, should be completely candid about their
opinions and background. When confirmed, the board member should be
open to input from all sources, including the President, the Senate,
and the American people. The board member should then exercise his or
her best judgment in the interests of the entity he or she has been
nominated to serve.
The Chairman. Mr. Cruz, welcome.
STATEMENT OF FRANK CRUZ, NOMINEE, MEMBER OF THE BOARD OF
DIRECTORS, CORPORATION FOR PUBLIC BROADCASTING
Mr. Cruz. Thank you, sir.
My relatives and my family are in the State of Arizona and
California; they are not here with me today, but they are here
in spirit.
Mr. Chairman and Members of the Committee, thank you for
this opportunity to appear before you today to discuss my
renomination to the Board of Directors of the Corporation for
Public Broadcasting. I would like to begin by thanking
President Clinton for renominating me, and I would also like to
acknowledge the strong and thoughtful leadership of Diane Blair
who immediately preceded me as CPB Board Chair, and with whom I
served as Vice Chair for 2 years. I mention her because she
just recently passed away a couple of weeks ago.
This is an exciting and challenging time to be part of
public broadcasting; technology is changing rapidly, and these
changes provide public broadcasting with an opportunity to
reach new people and to empower new voices and to meet the
changing educational needs of adults and children in
communities across the country. I have a strong desire to be
part of the CPB Board at this time, and to use my skills and
experience to help build and lead public broadcasting into the
21st Century.
I believe that my past experience on the CPB board and my
professional background in broadcasting, management, and
business can add to CPB's mission of education, diversity and
technology.
I grew up in the barrios of Tucson, Arizona, a little
barrio that we affectionately called ``Hollywood.'' We called
it Hollywood because it's the exact opposite of Hollywood.
These are my roots and background. I was raised by a mother who
was left a young widow shortly before I was born. After
graduating from high school, I was an enlistee in the U.S. Air
Force. Then I went on to become a high school teacher in the
inner city of Los Angeles.
Almost thirty years ago I began a career in broadcasting as
a reporter and as an anchor for KNBC in Los Angeles, KABC in
Los Angeles. After KNBC, I went on to create a Spanish language
independent station in Los Angeles, KVEA-TV. Then shortly
thereafter, I was the founder and the chairman of Telemundo,
the nation's second Spanish-language network. More recently, I
founded and served as chairman of Gulf Atlantic Life Insurance
Company, the first Latino-owned life insurance company in the
United States.
I also have been recently appointed as a member of the
University of Southern California Board of Trustees, after
receiving both my Bachelor's and Master's degrees from USC, and
I am proud of this honor. My career in education, broadcasting
and business have responded to the needs of our ethnically-
diverse population, and in all honesty, I can tell you I am
proud to be the first minority chairman ever of the Corporation
for Public Broadcasting, and, obviously, the first Hispanic
ever to chair CPB.
Throughout my life, I have always been very aware of
diversity. While a young man in the Air Force, I realized that
America truly embodies a melting pot and a mosaic of cultural
beliefs and customs. If I am reconfirmed to the CPB board, one
of my goals for public broadcasting will be to continue to
promote and encourage programming for, by, and about diverse
audiences.
At a time when the commercial broadcasters are being
criticized for their lack of diversity, public broadcasting
continues its strong commitment to meeting the diverse needs
and interests of every American. I believe that digital
technology offers public broadcasting even more opportunity to
provide programming that reflects the diversity and the rich
culture of America.
Having worked both as a high school teacher and as a
college professor in California, I understand how important it
is to provide educational opportunities to all members of our
community. Education can open doors of opportunity to everyone,
as I have witnessed in my own personal life. I truly believe
that public broadcasting does play an important role in
providing educational opportunities.
From its new children's series, Between the Lions, aimed at
helping young children learn to read, to PBS's Adult Learning
Series, geared to providing lifelong learning, public
broadcasting remains committed to ensuring the growth and
development of instructional, educational and cultural
programming.
For example, the Annenberg/CPB Channel is really an
excellent combination of private sector--due to the generosity
of Ambassador Annenberg--and Public Sector CPB dollars. The
free satellite television and web service funded by The
Annenberg Foundation and CPB provides professional development
in all core subjects to teachers nationwide. The service is
currently received by more than 45,000 schools throughout the
nation, as well as in 22 million homes, and its audience grows
by over 1,000 schools and 500,000 homes per month. I would like
to add that the video and web-based resources of the Annenberg/
CPB Channel look carefully into the real classrooms across the
country, feature the finest minds in education, and they
promote discussion, reflection and change throughout the
teacher corps nationwide.
The Annenberg/CPB channel will soon be used by thousands of
non-credentialed teachers who are in the process of getting
credentials in the State of California throughout the system;
so your taxpayer dollars, through CPB, are going well to work
in that direction.
Perhaps the newest challenge, however, that we face is
effectively responding to the emerging technology. Digital
broadcasting promises to greatly improve public television's
ability to educate, inform, and serve the American people. The
digital age will allow for enhanced programming, where each
individual television program will have the potential to
deliver multiple layers of information simultaneously, as
opposed to the only one layer which is offered now through the
analog technology world.
In addition, digital technology will enable stations to
multicast, broadcasting children's programs and adult education
simultaneously. While the digital age poses a great financial
challenge to the public broadcasting community at large, it
will also improve public broadcasting's public service to all
Americans.
These are challenges that I welcome and I will continue to
help public broadcasting meet if I am confirmed to another term
on the CPB Board.
Thank you so much for the opportunity to appear before you,
and I'd be happy to answer any questions that you may have for
me. Thank you.
The Chairman. Thank you, Mr. Cruz. I thank you and Ms.
Anderson for the fine job that you have done in your previous
tenure, and I believe that you are highly qualified to continue
in this very important work.
I thank you both.
[The prepared statement and biographical information of Mr.
Cruz follow:]
Prepared Statement of Frank Cruz, Nominee, Member of the Board of
Directors, Corporation for Public Broadcasting
Mr. Chairman and Members of the Committee, thank you for the
opportunity to appear before you today to discuss my re-nomination to
the Board of Directors of the Corporation for Public Broadcasting
(CPB). I would like to begin by thanking the President for nominating
me again. I would also like to acknowledge the strong and thoughtful
leadership of Diane Blair who immediately preceded me as CPB Board
Chairman and with whom I served as Vice Chair for two years.
This is an exciting and challenging time to be a part of public
broadcasting. Technology is changing rapidly, and these changes provide
public broadcasting with an opportunity to reach more people, to
empower new voices, and to meet the changing educational needs of
adults and children in communities across the country. I have a strong
desire to be a part of the CPB Board at this time and to use my skills
and experience to help lead public broadcasting into the 21st century.
I believe that my past experience on the CPB Board and my
professional background in broadcasting and management can add to CPB's
mission of education, diversity, and technology. I grew up in the
barrios of Tucson, Arizona, raised by my mother who was left a young
widow shortly before I was born. After graduating from high school, I
was an enlistee in the U.S. Air Force. I then went on to become a high
school teacher in inner city Los Angeles.
Nearly 20 years ago, I began a career in broadcasting as an anchor
at KNBC-TV in Los Angeles. After my work at KNBC, I helped create KVEA-
TV in Los Angeles, the second Spanish-language station in the area.
Soon after, I became a founder of Telemundo, the nation's second
Spanish-language network. More recently, I founded and served as
Chairman of Gulf Atlantic Life Insurance, the first Latino-owned life
insurance company in the country.
I have also just been recently appointed as a member of the
University of Southern California (USC) board of trustees, after
receiving both my Bachelors and Masters degrees from USC. I am proud
that my career in education, broadcasting, and business have responded
to the needs of our ethnically diverse population, and I am proud to be
the first Hispanic to serve as Chairman of the Corporation for Public
Broadcasting.
Throughout my life, I have always been very aware of diversity.
While a young man in the Air Force, I realized that America truly
embodies a ``melting pot'' and a mosaic of cultural beliefs and
customs. If I am re-confirmed to the CPB Board, one of my goals for
public broadcasting will be to continue to promote and encourage
programming for, by, and about diverse audiences. At a time when
commercial broadcasters are being criticized for their lack of
diversity, public broadcasting continues its commitment to meeting the
diverse needs and interests of every American. I believe that digital
technology offers public broadcasting even more opportunity to provide
programming that reflects the diversity and culture of America.
Having worked as both a high school teacher and a college professor
in Los Angeles, I understand how important it is to provide educational
opportunities to all members of the community. Education can open the
doors of opportunity to everyone, as I have witnessed in my own life. I
truly believe that public broadcasting can and does play an important
role in providing educational opportunities. From its new children's
series, Between the Lions, aimed at helping young children learn to
read, to PBS's Adult Learning Series, geared toward providing lifelong
learning, public broadcasting remains committed to ensuring the growth
and development of instructional, educational, and cultural
programming.
For example, the Annenberg/CPB Channel--a free satellite television
and Web service funded by The Annenberg Foundation and CPB--provides
professional development in all core subjects to teachers nationwide.
The service is currently received by more than 45,000 schools
throughout the nation, as well as in 22 million homes, and, its
audience grows by over 1,000 schools and 500,000 homes per month. The
video and web-based resources of the Annenberg/CPB Channel look
carefully into real classrooms across the nation; feature the finest
minds in education today; and they promote discussion, reflection and
change throughout the teacher corps, nationwide.
Perhaps the newest challenge we face is effectively responding to
emerging technology. Digital broadcasting promises to greatly improve
public television's ability to educate, inform, and serve the American
people. The digital age will allow for enhanced programming, where each
individual television program will have the potential to deliver
multiple layers of information, as opposed to only one layer which is
offered today through analog technology. In addition, digital
technology will enable stations to multicast, broadcasting children's
programs and adult education simultaneously. While the digital age
poses a great financial challenge to the public broadcasting community,
it also will improve public broadcasting's public service to all
Americans. These are challenges that I welcome and will continue to
help public broadcasting meet if I am confirmed to another term on the
CPB Board.
Thank you again for the opportunity to appear before you today. I
am happy to answer any questions that you may have.
a. biographical information
1. Name: (Include any former names or nick names used.) Frank Henry
Cruz.
2. Position to which nominated: Board of Directors, Corporation for
Public Broadcasting.
3. Date of nomination: 9/27/99.
4. Address: (List current place of residence and office address.)
17 Faire Winds, Laguna Niguel, CA 92677.
5. Date and place of birth: 10/04/39, Tucson, Arizona.
6. Marital status: (Include maiden name of wife or husband's name.)
Married--Bonnie Jean Cruz (Baldwin).
7. Names and ages of children: (Including stepchildren and children
from previous marriages.) Heather Susan Cruz/Nitabach--Age 32,
Francisco Richard Cruz--Age 28, and Vanessa Gabriela Cruz--Age 28.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.)
Tucson High School, Tucson, AZ, 1954-1957, Diploma
East Los Angeles College, Los Angeles, CA, 1961-1964, AA (June 1964)
University of Southern California, Los Angeles, CA, 1964-1966, BA
(May 1966)
University of Southern California, Los Angeles, CA, 1966-1969, MA
(May 1969)
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
Teacher (Social Studies), Los Angeles Unified School District,
Lincoln High School, Los Angeles, CA, 1967-1969
Assistant Professor (Chairman of Ethnic Studies Department), Sonoma
State College, Sonoma, CA, 1969-1970
Associate Professor, California State University Long Beach, Long
Beach, CA, 1970-1972
Reporter, KABC-TV, Los Angeles, CA 1972-1975
Reporter/Anchor, KNBC-TV, Los Angeles, CA, 1975-1985
Vice President/General Manager, KVEA-TV, Los Angeles, CA 1985-1989
President/Executive Director, Latino Museum of History, Art &
Culture, Los Angeles, CA 1990-1991
Chairman, Gulf Atlantic Life Insurance Company, Los Angeles, CA,
1991-1995
President, Cruz & Associates, Laguna Niguel, CA, 1995 to present
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Member, Advisory Committee on Public Interest Obligations of Digital
Television Broadcasters (Gore Commission), 1997-1998
Member, Board of Directors (Current Chairman), The Corporation for
Public Broadcasting, 1994 to present
Chairman Emeritus, California Institute for Federal Policy Research,
1991 to present
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm partnership, or other
business enterprise, educational or other institution.)
Member, Board of Directors, Health Net, 1986-1999
Vice President & General Manager, KVEA-TV, 1986-1989
Member, Board of Directors/Chairman, Gulf Atlantic Life Insurance
Company, 1991-1995
President, Cruz & Associates, 1995 to present
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable, and
other organizations.)
Member, Board of Directors, Los Angeles Area Chamber of Commerce
Member of Rebuild Los Angeles
Member, Board of Directors, Latino Museum of Art, History & Culture
Member, Board of Councilors, University of Southern California School
of Public Administration
Member, Partnership 2000; Member/Chairman, California Institute for
Federal Policy Research
13. Political affiliations & activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. None.
14. Honors & Awards: (List all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals and any other
special recognitions for outstanding service or achievement.)
Hispanic of the Year, National Hispanic Scholarship Fund
Golden Mike Award--Anchor (KNBC-TV Outstanding Newscast)
Los Angeles Press Club, Excellence in Reporting (2 years)
Emmy Award--``The Latinization of Los Angeles''
University of Southern California, Outstanding Alumni Award
15. Published Writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.) ``President Clinton's New Beginning'', panel presentation--
economic paper, Donald I. Fine, Inc., 1992; ``The Latin Americans: Past
& Present,'' Houghton-Mifflin, 1972.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated. None.
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President? The President has renominated me for this position because
he knows that as a member of CPB's Board of Directors for the past 6
years I have successfully advocated Public Broadcasting mission of
education, diversity and quality programming. The President is aware
that I have championed public broadcasting as a clear alternative to
the commercial networks, and that I can provide the leadership needed
for Public Broadcasting to make the transition from analog to digital
television.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment? My
background and experience of more than 25 years as broadcaster,
business person and educator qualifies me for this position. In
addition, the achievements of the CPB Board during the past 6 years
while I served as Chairman (currently), Vice Chairman for 2 years, and
Chairman of the Audit and Finance Committee for 3 years.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate? No.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with our previous employer, business firms, association or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out our full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. None.
2. Indicate any investment, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) N/A.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details? No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. Please describe how your previous professional experience and
education qualifies you for the position for which you have been
nominated. I have over 25 years of broadcasting, business, and
educational experience. Taught at the university level for 5 years.
Fourteen years as a reporter and anchor with ABC and NBC. Founder and
executive of Telemundo, the Nation's second Spanish-language network.
Founder and Chairman of Gulf Atlantic Life Insurance Company. Member of
the CPB Board for the past 6 years. The combined broadcast and business
background uniquely qualifies me for this position.
2. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills? None.
3. Why do you wish to serve in the position for which you have been
nominated? A sincere desire to use my business, broadcasting and
educational experience for the benefit of public broadcasting and
Americans. Public broadcasting is an American treasure that is
undergoing enormous technological changes and it offers an opportunity
to reach out to more people in more ways, and I want to serve at this
exciting and challenging time.
4. What goals have you established for your first two years in this
position, if confirmed? I would like to expand public broadcasting's
reach to include more ethnically and racially mixed audiences. A
commitment to use new technologies to empower new voices and meet the
changing educational needs of students, teachers, and classroom
curriculum. Will encourage a new interactive environment that will
enable public broadcasting to empower our viewers, our listeners, and
our community participants to explore new possibilities in this new
media environment.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary. I
believe that government has a role to play in certain areas of our
society. For example, the government plays a key role in the funding
and oversight of public broadcasting. And as such, provides the
American public with a clear alternative to commercial broadcasting. In
turn, public broadcasting leverages the federal dollars with private
sector money and fulfills its mission of quality programming to its
viewers. Public broadcasting is a marriage of government and the
private sector interest which enables it to provide viewers access to
the richness of our various cultures, breadth of human knowledge and
experience, and the enlightenment of current affairs.
6. In your own words, please describe the agency's current
missions, major programs, and major operational objectives. The mission
of the Corporation for Public Broadcasting (CPB) is to facilitate the
development of, and to ensure that all Americans have access to,
noncommercial high quality programming and telecommunications services,
including television, radio, on-line and digital services. In doing so,
CPB distributes federal funds and provides a variety of other support
to more than 1,000 public television and radio stations all across the
country.
In carrying out this mission, CPB is committed to funding programs
and services that inform, enlighten, and enrich the public. CPB is
dedicated to encouraging the development of programming that involves
creative risks and that addresses the needs of unserved and under
served audiences, especially children and minorities.
Since its creation by Congress in 1967, CPB has been a catalyst for
innovation and change within the public broadcasting system. In its
role as catalyst and funder, CPB acts as a guardian of the mission for
which public broadcasting was established. CPB will continue to focus
on and be committed to education and diversity.
7. In reference to question number six, what forces are likely to
result in changes to the mission of this agency over the coming five
years? In the next five years, the mission of CPB is not likely to
change; however, the challenges facing CPB will expand. The conversion
from analog to digital will be one of the greatest challenges public
broadcasting will face in the coming years.
Not only is technology changing, but the demographics of the U.S.
are changing as well. In fifty years, no ethnic population will
represent a majority. CPB will play a vital role in making public
broadcasting more relevant to older and younger generations, and to an
increasingly diverse population.
8. In further reference to question number six, what are the lively
outside forces which may prevent the agency from accomplishing its
mission? What do you believe to be the top three challenges facing the
board/commission and why? While nothing has prevented CPB thus far from
accomplishing its mission, a significant decrease in CPB's funding
might hinder its ability to carry out that mission. In addition, if
individual public broadcasting stations are not able to obtain funding
necessary to convert to digital technology, our goal of universal
service could suffer.
The top three challenges facing the Board today are education,
diversity, and new technology. The Board will be challenged to
facilitate the development of programming that is rich in culture and
information and stimulates life-long learning, to represent the culture
of different racial and ethnic groups, and to take advantage of the new
opportunities that digital technology creates.
9. In further reference to question number six, what factors in
your opinion have kept the board/commission from achieving its missions
over the past several years? Over the years, CPB has strived to meet
its mission consistently and effectively. It has been a strong leader
in promoting education, diversity, community, non-commercialism, and in
creating greater opportunities for learning using new technology.
Although we have made great strides, this should not keep us from doing
an even better job in the future.
10. Who are the stakeholders in the work of this agency? The
stakeholders are the American people, including Congress, educators,
parents, students, children, minorities, and the disadvantaged of our
nation. The stakeholders are also the individual public broadcasting
stations nationwide, program producers, and the national organizations
that represent public broadcasting.
11. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten? I
represent the interests and needs of the stakeholders. If confirmed, I
will be responsive to the stakeholders, and when interests and voices
conflict, I will look objectively at all sides.
12. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you? I am a firm believer
that a board member's role is to provide goals and priorities for
supervisors who in turn oversee employees. Communications and
accountability are key ingredients to a successful supervisor/employee
relationship. No complaints have been brought against me.
13. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe. None.
14. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your board/commission
comply with the spirit of the laws passed by Congress. As a member of
the Board, I will continue to work to ensure that CPB is responsive to
the needs of this Committee and Congress, and that CPB complies with
the spirit of the laws.
15. In the areas under the board/commission jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views. I believe that reauthorization of CPB and
authorization of digital conversion funds should be top priorities. I
also believe that reauthorization of the Elementary and Secondary
Education Act (ESEA) is a priority. In particular, emphasis should be
placed on teacher professional development and educational content for
digital broadcast.
16. Please discuss your views on the appropriate relationship
between a voting member of an independent board or commission and the
wishes of a particular president. As a voting board member of CPB, my
responsibility is to consider the vested interest of CPB and the wishes
of a particular president should have no bearing on my decision.
The Chairman. Mr. Tomlinson. For the record, Mr. Tomlinson
and I have known each other for many, many years, and I'm very
pleased to see an old friend nominated for this very important
position.
Mr. Tomlinson.
STATEMENT OF KENNETH TOMLINSON, NOMINEE, MEMBER OF THE BOARD OF
DIRECTORS, CORPORATION FOR PUBLIC BROADCASTING
Mr. Tomlinson. Mr. Chairman, I am honored to be here.
Before I give my statement, I'd like to introduce my wife,
Rebecca, and my sons, William and Lucas.
The Chairman. Welcome. I notice that one of them is in
uniform. I'm pleased to see that, Mr. Tomlinson.
Mr. Tomlinson. We're very proud to see Lucas still in
uniform after 4 years over there.
Mr. Chairman, I'll offer to forego reading my entire
statement. I would point out that I'm a lifelong journalist; I
had the privilege to study broadcasting, since I served as
foreign correspondent in the 1970's, as Director of Voice of
America; and in the eight or so years I served on the U.S.
Board for International Broadcasting, I had a chance to
implement a lot of the ideas I had formed in studying
international broadcasting, especially in studying the model of
the BBC World Service.
I will pause to say that whenever we gather in a forum like
this, I think we should reaffirm our commitment to political
balance in our broadcasting, and we certainly want to do so
today. I realize that we don't have to look far for a good
model, because within PBS there was the great original McNeil/
Lehrer Report, now the Jim Lehrer News Hour, which has served
as a model for in-depth broadcasting for balance in
broadcasting.
I believe passionately in the mission of public
broadcasting. I'm especially committed to the role many of our
local stations play in the preservation of the culture of music
in this country, whether you're talking about delta blues or
bluegrass or gospel or jazz. Our local stations, especially
some of the ones I've been associated with as a volunteer and
supporter of KCY in New York, and WAMU here in Washington, have
done a marvelous job at preserving our musical heritage.
I would be happy to answer any questions and to read
further from my statement. Mr. Chairman and Members of the
Committee, thank you very much for considering my nomination.
The Chairman. Thank you. I am pleased to see you again, Mr.
Tomlinson.
[The prepared statement and biographical information of Mr.
Tomlinson follow:]
Prepared Statement of Kenneth Tomlinson, Nominee, Member of the Board
of Directors, Corporation for Public Broadcasting
Thank you Mr. Chairman, Senator Hollings, and members of the
Committee. It is a great privilege to appear before you today. I do
want to express my appreciation to the President for nominating me to
this Board--and to those who encouraged this nomination.
Allow me to describe to you briefly how I came to be involved in
public broadcasting. I am a life-long journalist, writer, and editor. I
also am a life-long fan of broadcasting. Growing up in a rather
isolated region of the Blue Ridge Mountains, broadcasting literally was
my window to the world.
When I was working as a foreign correspondent in the 1970s, I came
to study rather extensively the BBC World Service in search for why
this outlet was so far superior to its international broadcast
competitors. The lessons I learned during those years of listening to
BBC served me well during the two years (1982-84) when I served as
Director of the Voice of America (VOA) during the Reagan
Administration.
Not coincidentally, one of the first people I sought out for advice
when I went to VOA was Jim Lehrer. Not coincidentally, the public
affairs broadcast that most resembled the standards of the BBC was the
McNeil/Lehrer Report, and later the NewsHour. This standard also would
be my guide during the nearly eight years I served on the U.S. Board
for International Broadcasting.
I concluded my 28-year career with Reader's Digest with service as
the magazine's Editor-in-Chief during which time we opened new editions
of the magazine in Russia, Hungary, Poland and the Czech Republic.
Following my retirement from the Digest in 1996, we moved to a farm
near Middleburg, VA, where I breed and race thoroughbred horses. Last
year, I became President of the National Sporting Library.
I believe passionately in the mission of public broadcasting. Jim
Lehrer's NewsHour represents broadcasting which I believe is important
to American democracy. For example, this year, public television will
provide gavel-to-gavel coverage of the Democratic and Republican
political conventions at a time when major networks are abandoning such
coverage. As a parent, I also came to recognize the importance of the
Public Broadcasting Service's (PBS) children's programming. The
educational component of public television--especially as we move
toward the new frontiers of digital broadcasting--is worthy of our
support.
All this we must do with great economy and efficiency--constantly
reviewing what we do and how we do it to ensure that the public's money
is spent effectively. We must also insist that public broadcasting
reflects the political balance of our nation. As I used to say at VOA,
America does not speak with one homogenized voice. You cannot
understand the dynamics of America unless you hear the voices of
America.
Public television no longer is the only alternative to three
networks. At my farm near Middleburg, I have access to something close
to 100 channels--and only one represents PBS. Clearly, through quality
programming and coverage of events not found on other commercial
networks, public television must continue to earn the wide support it
enjoys from the people.
Radio, of course, is my passion. If you need justification for
National Public Radio (NPR) and the public radio stations in this
country, I invite you to take a drive and examine the offerings on your
FM dial. We may have experienced extraordinary improvement in the
quality of serious AM public affairs and sports broadcasting, but the
need for public radio is still great.
In no area is the justification for public radio more profound than
in the role many of these stations have played in preserving the
culture of traditional American music. Whether we are talking about
delta blues or Appalachian bluegrass, gospel or jazz, public radio has
been critical in nurturing radio. (In the interest of full disclosure,
I once worked as a bluegrass disk jockey on WAMU-FM, that great public
radio station in Washington, D.C.)
Preserving the local component of radio in an era of consolidation
of broadcast conglomerates is a significant part of our mission.
Members of this Committee know better than I the importance of public
radio in rural America. I will work to protect these services and
expand them wherever possible.
Finally, if I am confirmed, I do look forward to working with
Capitol Hill to ensure that the views of the people's representatives
are reflected in our work for public television and radio. I am proud
of the reputation I earned at VOA for close cooperation with Members of
the Senate and the House and their staffs. If confirmed as a member of
the CPB Board, I will seek a similar close level of cooperation with
this Congress and this Committee.
Thank you for your consideration of my nomination.
a. biographical information
1. Name: (Include any former names or nick names used.) Kenneth Y.
Tomlinson.
2. Position to which nominated: Board of Directors, Corporation for
Public Broadcasting.
3. Date of nomination: June 28, 2000.
4. Address: (List current place of residence and office addresses.)
Springbrook Farm, Middleburg, Virginia 20118-1508. Federal Express
address: Springbrook Farm, 7863 Old Carters Mill Road, Marshall,
Virginia 20115. Business: National Sporting Library, 102 The Plains
Road, P.O. Box 1335, Middleburg, Virginia 20118.
5. Date and place of birth: August 3, 1944. Mt. Airy, North
Carolina.
6. Marital status: (Include maiden name of wife or husband's name.)
Rebecca Moore Tomlinson.
7. Names and ages of children: (Include stepchildren and children
from previous marriages.) William Moore Tomlinson, 22, CNN-Sports
Illustrated, Atlanta; Lucas Young Tomlinson, 21, United States Naval
Academy, Annapolis.
8. Education: (List secondary and higher education institutions,
dates attended, degree received and date degree granted.) Galax
(Virginia) High School, 1962; Randolph-Macon College, B.S. history,
1967, but listed under class of '66.
9. Employment record: (List all jobs held since college, including
the title or description of job, name of employer, location of work,
and dates of employment.)
Reporter, Richmond Times-Dispatch, 1965-1968
Correspondent/Editor, Reader's Digest, 1968-82
Director, Voice of America, 1982-84
Managing Editor/Executive Editor, Reader's Digest, 1984-1989
Editor-in-Chief, Reader's Digest, 1989-96
Retired, thoroughbred horse breeder, 1996-
President and Director, National Sporting Library, 1999-
10. Government experience: (List any advisory, consultative,
honorary or other part-time service or positions with Federal, State,
or local governments, other than those listed above.)
Member, National Commission on Voluntary Service (ACTION), 1981-82
Chairman, National Commission on Libraries and Information Science,
1986
Member, U.S. Board for International Broadcasting (Radio Free Europe/
Radio Liberty), 1986-94.
11. Business relationships: (List all positions held as an officer,
director, trustee, partner, proprietor, agent, representative, or
consultant of any corporation, company, firm, partnership, or other
business enterprise, educational or other institution.) Owner, Sandy
Bayou Stable (race thoroughbred horses), H. Graham Motion, Trainer;
Owner, Springbrook Farm (where we raise thoroughbred horses).
12. Memberships: (List all memberships and offices held in
professional, fraternal, scholarly, civic, business, charitable and
other organizations.) Union League Club, New York; Capitol Hill Club,
Washington; and Trinity Episcopal Church, Upperville.
13. Political affiliations and activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. None.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
1992, Forbes for President, $1000.
1993, Hevesi for Comptroller, New York City, $250.
1996 & 1998, Rohrabacher (CA) for Congress, total of $500.
1996 Kelly (NY) for Congress, $250.
1998 Winkelmann (Fauquier, VA) for Supervisor, $200.
1999 Weeks (Fauquier, VA) for Supervisor, $200.
1999 Allen (VA) for Senate, $250.
1999 Pollard (VA) for Delegate, $250.
2000 Bush for President $1,000.
14. Honors and awards: (List all scholarships, fellowships,
honorary degrees, honorary society memberships, military medals and any
other special recognitions for outstanding service or achievements.)
Virginia Press Association's Virginian of the Year, 1994; Virginia
Communications Hall of Fame, 1994; Doctorate of Letters, Randolph-Macon
College, 1995.
15. Published writings: (List the titles, publishers, and dates of
books, articles, reports, or other published materials which you have
written.)
Co-author POW, a history of prisoners of war in Vietnam, 1976
Authored roughly 50 articles for Reader's Digest between 1968 and
1981
Numerous racing articles in such publications as the Blood-Horse
Columns in Washington Times, Richmond Times-Dispatch, and Weekly
Standard
Best known article in recent years in the Weekly Standard, ``Mike
Barnicle's Demise,'' August 31, 1998, a piece credited by The
New York Times as having prompted the Boston Globe to fire the
columnist.
16. Speeches: Provide the Committee with two copies of any formal
speeches you have delivered during the last 5 years which you have
copies of on topics relevant to the position for which you have been
nominated.
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President? I have a life-long interest and involvement in journalism
and public affairs broadcasting.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment? I spent my
professional life as a journalist and editor. As a foreign
correspondent, I became particularly knowledgeable about international
broadcasting, particularly the BBC. One of the reasons I was perceived
to have been a successful director of the Voice of America was my
knowledge of public affairs broadcasting, that is to say international
broadcasting.
Also, it is no accident that one of the first people I sought out
after being named director of VOA was Jim Lehrer. To me the News Hour,
from its inception, has been a model for news and public affairs
broadcasting.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate? As a retiree, I have severed all formal
relations with Reader's Digest. I have no business relationships which
would conflict with service on the Board of the Corporation for Public
Broadcasting.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. No.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? No.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? No.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. I receive approximately $100,000 per year in
retirement income from Reader's Digest, plus executive retirement
compensation of approximately $60,000 per year for ten years. I own
approximately 70,000 stock options in Reader's Digest at levels ranging
from 41 to 46 dollars per share. These options expire in August 2002.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated? None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) I
would notify appropriate officials of the CPB and remove myself from
involvement in any such issues before the board.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. Please describe how your previous professional experience and
education qualifies you for the position for which you have been
nominated. I am a life-long journalist and writer. As a foreign
correspondent, I developed a particular interest in international
radio. I was fascinated by why the BBC was so superior to other
international broadcasters, and this led me to countless hours
listening to this medium. The BBC model, which, after all, reflects the
McNeil/Lehrer model (or is it the other way around) reflects news and
public affairs broadcasting at its best. My knowledge of all this
enabled me to be an effective director of the Voice of America, and, I
submit, also made me effective as a long-time member of the U.S. Board
for International Broadcasting.
I know the professional standards that should guide journalism and
public television and radio. Maintaining these standards has been a
lifetime pursuit.
Like countless other Americans, I was a fan of public television
from its earliest days. From Masterpiece Theater to Fawlty Towers the
programs of public television enriched our lives.
I have long had a passionate interest in the role public radio
stations play in the preservation of American culture. Whether you are
talking blues in its various incarnations or mountain music or any of a
number of ethnic musical cultures (from Irish to Polish to Greek), the
programming of public radio stations has done more to preserve and
perpetuate these priceless expressions of our past than any other
factor in American life.
For that matter, I am a former (minimum wage) employee of
Washington's WAMU-FM. For three months during the summer of 1976, I was
WAMU's bluegrass disk jockey.
2. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills? I believe I possess the skills necessary
to be an effective CPB board member. But the one component which
necessarily will be on-going will be the importance of constantly
viewing and listening to public television and radio. That is a basic
for anyone who would seek to be involved in oversight in the area.
3. Why do you wish to serve in the position for which you have been
nominated? I have always sought to be involved in causes for which I
have passion. Involvement in public television and radio represents a
great opportunity for service in an area of long-time interest to me.
4. What goals have you established for your first two years in this
position, if confirmed? I would expect to be doing a great deal of
learning. I would also hope to make significant contributions as a
member of this board. I believe my past involvement in public
broadcasting will enable me to encourage the highest quality in
programming on public television and radio broadcasting.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary. I
once heard President Reagan explain: ``Government is rarely the
solution. Government is usually the problem!''
Lord Acton said, ``The government which governs best, governs
least.''
While I agree with this political philosophy, I also believe that
government has a role to play in addressing challenges facing our
country and its people.
Specifically, I believe that government has a role to play in
creating public interest broadcasting, even in an era when the
consumer, through cable and satellite dishes, has extraordinary choice
in programming.
The value of public television children's programming alone is
worth government participation in broadcasting. The value of the Jim
Lehrer NewsHour is worth government involvement in broadcasting. And I
would also submit, as reflected in an earlier answer, that commercial
radio does not even come close to the role of cultural preservation
which has been such a vital function of public radio.
Anyone who doubts the importance of public radio to this country
should drive in the countryside of virtually every section of our
nation and compare public radio programming with that available on
private local (particularly FM) stations. Now I realize there have been
significant developments in (particularly AM) radio in the last decade.
But I submit that if we ended National Public Radio we would severely
impair the opportunity for our citizens to be informed about what is
happening here and abroad. In no area does public broadcasting play a
more important role than in our rural regions--from Alaska to
Mississippi.
6. In your own words, please describe the agency's current
missions, major programs, and major operational objectives. The mission
of public television and radio is to enrich the culture of our nation
and to ensure a level of news and public affairs broadcasting that will
help our citizens make informed judgments on issues facing our people
and our nation. Public broadcasting will accomplish this mission by
producing high quality programming--and managing our resources in such
a way as to merit public and private support for our broadcasting.
7. In reference to question number six, what forces are likely to
result in changes to the mission of this agency over the coming five
years. The important, if costly, issue of digital conversion offers the
challenge of greatly expanding the value of public television--
especially in the area of children's programming. The already
significant value of public television as an educational force will be
particularly enhanced if we can find the public and private resources
to expand digital broadcasting.
8. In further reference to question number six, what are the likely
outside forces which may prevent the agency from accomplishing its
mission? What do you believe to be the top three challenges facing the
board/commission and why? Addressing the latter question first,
providing an environment that will foster the production of quality
programming will always be a top objective of CPB. Guiding
technological change to enhance the value of public broadcasting is
critical. Finally, CPB must provide the type of financial oversight and
leadership that will give the public--and Congress--confidence that
public broadcasting deserves support.
To accomplish our mission, it is critical that our citizens,
reflecting a broad spectrum of political opinion, continue to believe
that public broadcasting reflects the highest standard for creativity
and fairness in its programming. Maintaining a consensus on the value
and merit of public broadcasting--a consensus that reflects viewpoints
from conservatives and liberals and moderates--is critical if we are to
prevent outside forces from blocking our mission.
9. In further reference to question number six, what factors in
your opinion have kept the board/commission from achieving its missions
over the past several years? The issue of financial support for public
broadcasting is an ever-present challenge to achieving our mission.
Also important is maintaining the type of quality of program content
that will merit support of public broadcasting from the major elements
of political attitudes in this country.
10. Who are the stakeholders in the work of this agency? The
people--and the people's elected representatives.
11. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten? If
confirmed, an important aspect of my job is ensuring the faith and
support of the stakeholders.
12. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you? I know of no employee
complaints. The management philosophy of Peter Drucker is my guide. I
believe a supervisor should establish a vision for employees that will
guide them in accomplishing their mission. I believe the ideal
supervisor leaves employees free to accomplish that mission--but I
believe a supervisor must be willing to step in and guide when
standards are not being met.
13. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe. I have extensive experience in
dealing with Congress as director of the Voice of America as well as
Chairman of the National Commission on Libraries and Information
Science and the U.S. Board for International Broadcasting. I am
particularly proud of a record which demonstrates the ability to work
with both Republicans and Democrats.
14. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your board/commission
comply with the spirit of the laws passed by Congress. Closely.
15. In the areas under the board/commission jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views. I hope Congress will soon see fit to pass an
authorization for CPB. I also trust our work at CPB will be of such
quality as to inspire continued public support for public broadcasting.
16. Please discuss your views on the appropriate relationship
between a voting member of an independent board or commission and the
wishes of a particular president. I believe Presidents appoint
independent board members to exercise their own considered judgment--so
long as we act within the law and in such a way as to merit the support
of Congress.
The Chairman. Dr. Wilson, welcome.
STATEMENT OF DR. ERNEST J. WILSON, III, NOMINEE, MEMBER OF THE
BOARD OF DIRECTORS, CORPORATION FOR PUBLIC BROADCASTING
Dr. Wilson. Thank you, Mr. Chairman.
I would first like to introduce my wife, Dr. Francia L.
Wilson, who is here with me this morning.
The Chairman. Welcome, Dr. Wilson.
Dr. Wilson. Mr. Chairman and Members of the Committee, I
first want to express my gratitude to you for holding this
hearing, and to the President for nominating me to serve on the
Corporation for Public Broadcasting. I am deeply honored to be
here today.
This is a very exciting time to be a part of public
broadcasting. Our rapidly changing technology offers new
opportunities to expand public broadcasting's educational
mission, and to reach even more diverse audiences than are
already being reached today.
The CPB Board has identified three major priorities for the
coming years: education, technology, and diversity. If
confirmed to serve on CPB's Board, I pledge myself to advance
each of those objectives to the fullest of my abilities.
As an educator, I am especially committed to advancing the
educational goals of the CPB for all Americans. I've been
involved in academia for more than 25 years. I've taught at the
University of California at Berkeley, University of
Pennsylvania, University of Michigan, and now at the University
of Maryland-College Park, where I serve as Director of the
Center for International Development and Conflict Management.
In addition, I have experience in broadcasting that
includes work with the United States Information Agency, Radio
Free Europe, and other federal broadcasting units. I've also
had positions within the executive branch, including the
National Security Council and the private sector, with the
Global Information Infrastructure Commission.
I am also strongly committed to helping public broadcasting
think through and advance its commitment to take full advantage
of the benefits of the new digital technologies, which are so
enormously important and which my colleagues have already
addressed. Much of my recent career has been spent working on
the issue of the information revolution, and I'm currently in
the process of doing a book for M.I.T. on that topic. So I
really look forward to working with my colleagues on the issue
of digital conversion.
As public broadcasting has always been a leader in putting
technology to work for the benefit of all Americans, if
confirmed I will work to ensure that public broadcasting
remains a leader in developing, testing and implementing these
technologies.
For public broadcasters, the goal of universal access means
not only providing broadcast service to individuals living
across the United States that are geographically isolated or
rural, but also reaching out to unserved or underserved
populations as well. It is important then that public
broadcasting continue to ensure that underserved communities
have access to new technologies.
Technology allows adults and children to learn of the world
around them and helps all racial, ethnic and socioeconomic
groups to understand one another better.
I am committed to working to close the digital divide in
technology that exists today in our country, and if confirmed,
will work to ensure that public broadcasting continues to meet
the needs of underserved communities. By providing these
communities access to new technologies, I believe we can
enhance the opportunities for them to tell their own local
stories. I believe public broadcasting can have a significant
impact to help close the digital divide.
I have been a longtime admirer of public broadcasting and
believe it is unique in being able to reach out to all
Americans.
If confirmed, I hope to serve the nation in these areas
where I have experience and I hope some expertise to offer to
the Board, especially in helping CPB meet its objectives in
education, in technology, and in digital media convergence.
I am committed to upholding the high ideals of public
broadcasting, including balance, serving underserved and
unserved audiences, and in particular minorities, educators and
children.
Thank you very much, Mr. Chairman, for the opportunity to
be here today.
The Chairman. Thank you, Dr. Wilson.
[The prepared statement and biographical information of Dr.
Wilson follow:]
Prepared Statement of Dr. Ernest J. Wilson, III, Nominee, Member of the
Board of Directors, Corporation for Public Broadcasting
Good morning Mr. Chairman and Members of the Committee. I first
want to express my gratitude to the Chairman for holding this hearing
and to the President for nominating me to serve on the Board of the
Corporation for Public Broadcasting (CPB). I am honored to be here
today.
It is an exciting time to be a part of public broadcasting. Our
rapidly changing technology offers new opportunities to expand public
broadcasting's educational mission and to reach even more diverse
audiences than are already being reached today.
The CPB Board has identified three priorities for the next year and
for years to come: education, technology, and diversity. If confirmed
to serve on CPB's Board, I will support these three priorities with
enthusiasm, and I believe that my background will further add to serve
CPB's mission along each of these priorities and beyond them.
As an educator, I am deeply committed to advancing the educational
goals of CPB for all Americans. I have been involved in academia for
more than 25 years. I began my career as a teacher abroad in Zaire and
eventually taught political science at the University of California,
Berkley; the University of Pennsylvania; and the University of
Michigan, Ann Arbor. Currently, I am on the faculty at the University
of Maryland, College Park and serve as the Director of the Center for
International Development and Conflict Management. In addition, I have
experience in broadcasting that includes work with the United States
Information Agency (USIA), Radio Free Europe, and Radio Marti. I also
have held numerous positions in the Executive Branch including the
National Security Council and the Global Information Infrastructure
Commission.
I am also strongly committed to helping public broadcasting think
through and advance its commitment to take full advantage of the
benefits of the newest digital technologies. Much of my recent career
has been spent researching and analyzing the impact of the global
information revolution. I am deeply engaged in studying the educational
possibilities of digital technology. I have worked on the subject of
the impact of information technology on society with research groups
such as RAND and the Center for Strategic and International Studies
(CSIS), and lectured at Harvard, George Mason University (GMU) in
Virginia, and abroad.
As public broadcasting has always been a leader in putting
technology to work for the benefit of all Americans, if confirmed, I
will work to ensure that public broadcasting remains a leader in
developing, testing, and implementing new technology, and embraces
digital technology's promise of new learning opportunities for all.
For public broadcasters, the goal of universal access means not
only providing broadcast service to individuals living in areas across
the United States that are geographically isolated or rural, but also
means reaching out to unserved and underserved populations. It is
important then, that public broadcasting continue to ensure that
underserved communities have access to new technology. Technology
allows adults and children to learn about the world around them--
outside of their immediate families, their friends, and their
neighbors--and helps all racial, ethnic, and socio-economic groups
understand each other better.
I am committed to working to close the digital divide in technology
that exists today, and if confirmed, will work to ensure that public
broadcasting continues to meet the needs of underserved communities. By
providing these communities access to new technologies, we can enhance
the opportunities for them to tell their own stories. I believe that
public broadcasting can have a significant impact on helping to close
the digital divide.
I have been a long-time admirer of public broadcasting--I believe
it is unique in reaching broad segments of the population, including
minority youth, who have grown up on shows like Sesame Street where all
children can find something to spark their intellectual curiosity and
interest in reading.
A new program aimed at helping children with literacy skills,
Between the Lions, demonstrates public broadcasting's commitment to
utilize television as a teaching tool. Preparing and helping children
age 4-to-7 learn how to read is a national education challenge. Public
broadcasting meets these and other challenges in an effective and high-
quality way.
If confirmed, I hope to serve the nation in these areas where I
have experience and some expertise to offer, especially in helping CPB
meet its objectives in education, technology, and the digital media
convergence. I am committed to upholding the high ideals of public
broadcasting, and serving unserved and underserved audiences, in
particular, minorities, educators, and children.
Thank you.
a. biographical information
1. Name: Ernest J. Wilson III (`Chico' childhood nickname).
2. Position to which nominated: Board member, Corporation For
Public Broadcasting.
3. Date of nomination: November 10, 1999.
4. Address: 415 St. Lawrence Drive, Silver Spring, MD 20901.
5. Date and place of birth: May 3, 1948, Washington, D.C.
6. Marital status: Married.
7. Names and ages of children: Malik Ernest Wilson, 22; Rodney
Rusan Gregory Wilson, 15.
8. Education: High School: Capitol Page School, Washington, D.C. 9/
63-6/66; College: Harvard University, Cambridge, MA. 9/66-6/70;
University of California at Berkeley, M.A.: 6/73, Ph.D.: 1/78.
9. Employment Record:
Director, Center for International Development and Conflict
Management, University of Maryland, College Park, and Associate
Professor, Government and Politics Department, 8/95-present
Deputy Director, Global Information Infrastructure Commission,
Washington, D.C. 7/94-8/95
Director, Policy Planning, U.S. Information Agency Washington, D.C.
2/94-7/94
Director, International Programs and Resources National Security
Council, White House 1/93-2/94
Associate Professor, Government and Politics Department, University
of Maryland, College Park 7/92-1/93 (given 2\1/2\-year leave of
absence for service to work at White House, USIA, GIIC)
Visiting Senior Fellow for Africa Council on Foreign Relations New
York, 8/92-1/93 (part time while at Maryland)
Associate Professor, Department of Political Science, University
Michigan, Ann Arbor, Michigan, 1986-1992
Director, Center for Research on Economic Development; and Associate
Research Scientist, Institute for Public Policy Studies 1987-
1992
Assistant Professor, Department of Political Science, University of
Michigan, Ann Arbor, MI 8/1981-8/1986
Assistant Professor (on leave), Department of Political Science,
University of Pennsylvania, Philadelphia, Pennsylvania (While
on leave, was a Gilbert White Fellow at Resources for the
Future, Washington, D.C. and Post Doctoral Fellow, Kennedy
School of Government, Harvard University, Cambridge MA 1980-
1981
Assistant Professor, Department of Political Science, and Energy
Management and Policy Program, School of Public and Urban
Policy, University of Pennsylvania, Philadelphia, Pennsylvania
1977-1980
Acting Assistant Professor, Department of Afro-American Studies,
University of California, Berkeley, ``Afro-American Political
Strategies'' 1977
Editorial Assistant, The Black Scholar Magazine, Sausalito, CA 1976-
1977 (graduate student, University of California, Berkeley,
1972-77)
Teaching Assistant, Department of Political Science, University of
California, Berkeley, 1974-75
Field Research Worker, Survey Research Center, University of
California, Berkeley; Conducted and assisted in the evaluation
of social science survey in the Bay Area, 1972-1973
Legislative Assistant to Hon. Charles C. Diggs, Chairman, House
Subcommittee on Africa, 1972
National News Desk, The New York Times, Washington Bureau 1971-1972
Teacher, L'Ecole Secondaire Lapsley, Kasai Oriental, Zaire. Taught
Social Studies in French, 1970-1971
10. Government Experience: The Center which I direct at the
University of Maryland, (Center for International Development and
Conflict Management) has received grants and contracts from USAID, for
which I am the Principal Investigator. The support is from the `Leland
Initiative' for Internet connectivity in Africa; and a pending grant
for work in Rwanda. Advisory/consultative position with National
Intelligence Council for scholarly research initiative on global
conflict and sovereignty. In addition, I have in the past served as a
consultant to various federal agencies, including the State Department,
USAID, USIA, NSA, the Interior Department, an advisory board for the
state of Michigan (on trade), and several advisory boards for the
Congressional Black Caucus.
11. Business Relationships: The following activities are those for
which I was a paid consultant:
2000
University of Denver
State University of New York Press
World Bank
National Intelligence Council
1999
Corporate Council on Africa (writer)
Economic Commission for Africa
Global Information Infrastructure Commission (advisor and
consultant)
Keizai Koho (speaker)
World Bank
National Intelligence Council
1998
American Academy of Ophthalmology (speaker)
Center for Strategic and International Studies
Economic Commission for Africa
George Mason University (speaker)
Global Information Infrastructure Commission
International Development and Research Center and Department of
Communications, South Africa
NEC (speaker, consultant)
NSA
University of Arkansas Medical School (speaker)
University of Denver (speaker)
University of South California (speaker)
Washington Strategy Group
World Bank
1997
Corporate Council on Africa (writer)
Rockefeller Brothers Fund
University of Denver (speaker)
World Bank
1996
United Nations Commission on Science and Technology for Development
USAID
12. Memberships:
Council on Foreign Relations
Pacific Council on International Policy
American Political Science Association
African Studies Association
Member, Overseas Development Council, 1996-present
Journal of Democracy, Editorial Board
The Black Scholar, Editorial Board
Member, International Advisory Board, National Academy of Sciences
Member, Research Advisory Board, Internet Policy Institute
Member, Advisory Committee, ``Briefing the President'' Project
Internet Policy Institute
Sigma Pi Phi (fraternity)
Chair, Y2k Advisory Committee, National Research Council (1998-2000)
Member, Advisory Board, Telecommunications Project, Rainbow Push
Coalition
Member, Cyber Threats Task Force, Center for Strategic and
International Studies
Member, Study Group on IT and International Relations, Carnegie
Endowment for International Peace
Member, Africa Regional Advisory Panel, Social Science Research
Council
Member, Anwar Sadat Chair Advisory Committee, University of Maryland
13. Political Affiliations and Activities:
(a) List all offices with a political party which you have held or
any public office for which you have been a candidate. None.
(b) List all memberships and offices held in and services rendered
to all political parties or election committees during the last 10
years. Volunteer for Gov. Bill Clinton campaign for President, 1992
(made telephone calls in Michigan state primary); wrote occasional
policy pieces on foreign affairs. Volunteer for Vice President Gore
campaign, 2000.
(c) Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years. Contribution to Gore
presidential campaign, 1999, $1,000.
14. Awards and Honors:
Professor-in-Residence and W.E.B. DuBois Lecture, George Mason
University, 1998
Fellow, Center for Global Communications, Tokyo, Japan 1997
International Affairs Fellow, Council on Foreign Relations, 1985-1986
National Science Foundation, 1983-1986
Outstanding Young Men of America, 1983
Grantee, ``Public Sector-Private Sector Relations in Africa''
Gilbert White Fellow, Resources for the Future, Washington, D.C.
1980-81
Grantee, Rockefeller Family and Associates, ``The
Institutionalization of Alternative Energy Technologies in
Africa,'' 1979-81
Post Doctoral Fellow, Southern Fellowship Fund, 1980
Ford Foundation Post Doctoral Fellow, Alternate, 1980
Post Doctoral Fellow, J. F. Kennedy School of Government, and Joint
Fellow, Energy and Environmental Policy Center, and Center for
Science and International Affairs, Harvard University, 1980
Andrew W. Mellon/Aspen Institute for Humanistic Studies Fellow, 1979-
80
Ford Foundation Doctoral fellow, 1972-76
University Consortium for World Order Studies Fellow, 1975-76
Ford Foundation Middle East and Africa Research Fellowship for Afro-
Americans, 1975
First Prize, W.E.B. DuBois National Essay Award, 1975
African American Scholars Council Grantee, 1973
Ralph Bunche Fellowship, Finalist, 1973
Graduate Minority Program (Berkeley) Fellow, 1972
American Political Science Association, Fellow, 1972
Michael Clarke Rockefeller Fellow, 1970
Harvard Regular Scholarship, 1966-70
15. Published writings:
Books and Monographs
``Global Information Revolution and Africa,'' CIDCM Working Paper,
College Park, MD, March 1997.
The United States and Africa: Toward A New Relationship, with David
F. Gordon, report of a study funded by the Ford Foundation,
published by the Center for International Development and
Conflict Management, College Park, MD, April 16, 1997.
Co-Editor, National Information Initiatives: Political Vision and
Public Policy. Cambridge, MA: MIT Press, 1997 (with Brian Kahn)
(translated into Chinese).
Does the Global Information Highway Lead to Africa? Center for
Strategic and International Studies CSIS Notes, Washington,
D.C., May, 1996.
International Economic Reform: Theoretical and Comparative
Perspectives. (editor) Ann Arbor: C.R.E.D., 1991.
Politics and Culture in Nigeria. Ann Arbor: Center for Political
Studies, Institute for Social Research, University of Michigan,
1988.
``Privatization In Ivory Coast: Three Case Studies.'' Center for
Business and Government, J. F. Kennedy School of Government,
Harvard University, 1987.
The Decade of Energy Policy: Policy Analysis in Oil Importing
Countries, Ernest J. Wilson III and Paul Kemezis. New York:
Praeger, 1984.
Chapters in Books
``What Social Science Theory Can Do For Policy Makers: The Relevance
of Theory For Foreign Policy'' in Miroslav Nincic and Joseph
Lepgold, eds. Being Useful: Policy Relevance and International
Relations Theory, Ann Arbor, Mich.: University of Michigan
Press, 2000.
``The What, Why, Where and How of National Information Initiatives''
in Brian Kahn and Ernest J. Wilson III, National Information
Infrastructure Initiatives: Vision and Policy Design,
Cambridge, MA: MIT Press, 1997.
``Business Associations in Africa: New Directions for Comparative
Political Economy'' in Peter Lewis and Ernest J. Wilson III,
eds., Business Associations in Africa, forthcoming.
``Building the African Information Society with Public and Private
Sector Cooperation,'' UN Economic Commission for Africa, 1997.
``Interest Groups and Foreign Policy Making: A View from the White
House,'' in The Interest Group Connection: Electioneering,
Lobbying, and Policymaking. Paul S. Herrnson, Ronald G. Shaiko
and Clyde Wilcox, eds. Chatham, NJ: Chatham House Publishers,
1997.
``Privatization in the Ivory Coast,'' in State Owned Enterprises in
Africa. Barbara Grosh and Rekaza Mukandala, eds., Boulder, CO:
Lynne Rienner, 1994.
``Creating a Research Agenda for the Study of Political Change in
Africa,'' in Economic Change and Political Liberalization in
Sub-Saharan Africa. Jennifer Widner, ed., Johns Hopkins
University Press, 1994.
``Privatization,'' Oxford Companion to Politics of the World. Joel
Krieger, ed., Oxford University Press, 1993.
``The Politics and Economics of Privatization in Nigeria,'' in
Nigeria: The Economics of the Transition to Civilian Rule. T.
Bierstecker, ed., Hoover Institution, forthcoming.
``Paradigms and Paradoxes: Political Science and African American
Politics,'' (with Michael Dawson), in Political Science:
Theories, Methods and Scope, William Crotty, ed., Evanston, IL:
Northwestern University Press, 1991.
``Nigeria's Position in a Restructured World Oil Market,'' in
Nigeria's International Economic Relations, Joy Ogwu and R.
Omotayo Olaniyan, eds. Lagos, Nigeria: Nigerian Institute of
International Relations, 1990.
``A Political Puzzle of African Perestroika,'' in Richard Joseph,
ed., Glasnost and Perestroika in Africa, Carter Center,
Atlanta, GA, 1989.
``Privatization in Africa'' (with Thomas Callaghy) in Raymond Vernon,
ed., Privatization. New York: Council on Foreign Relations,
1988, pp. 179-230.
``The Petro-Political Cycle,'' in Richard Ender and John Kim, eds.,
Energy Resources, Development Politics and Policies. Greenwood
Press, 1987, pp. 7-19.
New ``Introduction'' (co-author), Crisis of the Negro Intellectual.
Harold Cruse, New York: Morrow, 1984.
``Public Corporations: Goals, Structure and Strategy,'' in Elliot P.
Skinner and Pearl Robinson, eds., Transformation and Change in
Africa. Washington, D.C.: Howard University Press, 1982, pp.
45-68.
``A Social Science Research Agenda Through the Year 2000,'' Blacks in
the Year 2000. Joseph Washington, ed., Afro-American Studies
Program, University of Pennsylvania, 1981.
``Nigeria,'' National Energy Profiles. Kenneth Stunkel, ed., New
York: Praeger, 1980, pp. 315-358.
``Nigeria: African Giant,'' Chapter in Yardbird Reader, Vol. V, with
Franeille Rusan Wilson; William Lawson, editor. Yardbird Press,
Berkeley, California, 1976.
Journal Articles
Rubin Patterson and Ernest J. Wilson III, ``New IT and Social
Inequality: Resetting the Research and Policy Agenda,'' The
Information Society. 16:77-86, 2000.
``Electronic Commerce in Africa: The Contribution of Business
Associations,'' Electronic Markets.
``The Role of Leadership in Making the Information Revolution:
Information Revolutionaries in Brazil,'' DataGram, April 2000.
``Development of National Information and Communications Services: A
Comparison of Malaysia and South Africa,'' Journal of
Developing Societies. Vol. XV, April 1999, pp. 47-60.
``Meeting the Challenges of Internet Inequality,'' On The Internet
(official publication of the Internet Society), November/
December 1999, pp. 26-30.
``Inventing the Global Information Future,'' Futures, February 1998.
``French and United States Commercial Relations in Africa: Explaining
Conflict and Cooperation,'' in Perspectives on Africa, Vol I,
No. 1, Fall 1997.
``The Digital Diaspora,'' Our World Press Web Page, August, 1996.
``Africa and the Global Information Infrastructure,'' in Africa
Communications, Vol. 6, 3, May/June, 1995, pp. 40-43.
``French Support for Structural Adjustment Programs in Africa,''
World Development. Vol. 21, 3, 1993, pp. 331-347.
``Rational Choice Applications to Developing Areas: A Critical
Assessment of the Work of Robert Bates,'' with Howard Stein,
lead article in a special issue devoted to the work of Robert
Bates, World Development, Vol. 21, 6, 1993, pp. 1035-1050.
``Poland's Third Revolution: Property Reform,'' Public Enterprise.
Special Issue, Privatization in Reforming Socialist Economics,
Vol. 11, No's 2-3, pp. 119-132.
``Global Economic Reform,'' Review Essay, American Political Science
Review. December 1991.
``Strategies of State Control of the Economy: Nationalization and
Indigenization in Black Africa,'' Comparative Politics, Volume
22, No. 4, July 1990, pp. 401-419.
``Privatization et reforme des enterprises publiques en Afrique:
Reflexion generale et etude du cas Ivorian'' Annee Africaine
1987-1988. (Leading French language annual review of political
and economic development in Africa (University of Bordeaux,
1990).
``The Wide Scope of Economic Reform'' (with David Gordon), Economic
Impact. March 1990.
``Price Tag of Reform,'' Christian Science Monitor, June 29, 1989.
``The Crisis and Challenge of African Development,'' (Review), H.
Glickman, Ed., in Studies in Comparative and International
Development.
``The Iran-Contra Affair--Errant Globalism in Action, ``National
Journal of Political Science, Vol. 1, 1989, pp. 110-113.
``Privatization: Domestic Causes, Current Status and Future
Scenarios'' Issues: XVI, 2, 1988 pp. 24-29.
``Patterns of Public Enterprise Control in Africa: Ideology and
Administration in the Public Enterprise Sector,'' Public
Enterprise 8, No. 2 (April 1988) pp. 188-199.
``Trials and Tribulations of Petroleum Development: Lessons and
Advice for Prospective Producers,'' with Harry Broadman,
Natural Resources Forum Vol. II, No. 3, 1987, pp. 241-249,
reprinted in Law and Policy Issues for Petroleum in Non-Opec
Developing Countries. K. Khan, ed. Martinis Nijhoff, 1988.
``The Privatization Process in Action: Some Lessons from
International Experience'' in Restructuring The Nigerian
Economy: The Place of Privatization. Lagos: Securities and
Exchange Commission, 1987.
``The Public-Private Sector Debate,'' Africa Report, July-August
1986, pp. 93-95.
``Why Political Scientist Don't Study Black Politics but Historians
and Sociologist Do,'' PS, Summer, 1985, pp. 600-606.
``Nigeria and OPEC: More Troubles Ahead,'' Geopolitics of Energy,
Vol. 7, No. 1, January 1985.
``Contested Terrain: A Theoretical and Comparative Re-Assessment of
Public Enterprises in Africa,'' Journal of Comparative and
Commonwealth Studies, March 1984, reprinted as ``Public
Enterprises in Africa,'' Public Enterprises in the World.''
R.K. Mishra & S. Ravishankar, Bombay: Himalaya Publishing
House, 1986, pp. 67-97, and in Estado y Sociedad en el Africa
Actuel. Peter Nyong'o, ed. El Colegio de Mexico: Mexico City,
1989 as ``Territorio en disputa: reconsideration comparativa y
teorica de las empresas estatales en Africa.''
``African Governments between Domestic and International Markets,''
Rural Africanan, Special Issue on the World Bank Report on
Accelerated Development in Africa, 1984.
``Blacks and the Industrial Policy Debate,'' Focus, April 1983, pp.
3-4. Reprinted in Entrepreneurial Economy.
``Industrial Policy and Minority Concerns,'' Washington, D.C.:
Congressional Black Caucus Foundation, September 1983.
``The Energy Crisis and African Underdevelopment,'' Africa Today,
October/December 1975. Updated and published in Dunstan Wai,
ed., The Triangular Relationship: Africa, the Arabs and the
West, Westview Press, 1982.
``The `Oil Crises' and African Economics: Oil Slick on a Tidal
Wave,'' with Dr. Willard Johnson, Daedalus, 1982, pp. 211-241.
``Two Rivers: An African Journey Home,'' Harvard Advocate, Spring
1974.
``The Great Energy Gap: 1970-1990,'' Black Scholar, March 1974.
``Energy, Africa, and World Politics,'' Review of Black Political
Economy, 1973.
Current Publishing Activities
The Information Revolution and Developing Countries. MIT Press, under
contract.
MultiCulturalism, Double Diversity and U.S. Foreign Policy. Routledge
Press, under contract.
Negotiating the Digital Divide: The Policy and Politics of Internet
Diffusion in Africa, under preparation (co-editor).
16. Speeches: None.
17. Selection:
(a) Do you know why you were chosen for this nomination by the
President? I believe my experiences working with Radio Free Europe,
Radio Liberty, Voice of America and other international public
broadcasting bodies, and my publishing and professional work in the
information revolution, led the President to nominate me.
(b) What do you believe in your background or employment experience
affirmatively qualifies you for this particular appointment? I believe
that my experiences with international public broadcasting, my
knowledge of digitalization and globalization, and my commitments to
reducing the `digital divide' and to diversity qualify me for
membership on the Board.
b. future employment relationships
1. Will you sever all connections with your present employers,
business firms, business associations or business organizations if you
are confirmed by the Senate? Since this is a part-time unsalaried board
appointment, I will retain my current employment as a professor at the
University of Maryland.
2. Do you have any plans, commitments or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, explain. See above. Not applicable.
3. Do you have any plans, commitments or agreements after
completing government service to resume employment, affiliation or
practice with your previous employer, business firm, association or
organization? Not applicable.
4. Has anybody made a commitment to employ your services in any
capacity after you leave government service? Not applicable.
5. If confirmed, do you expect to serve out your full term or until
the next Presidential election, whichever is applicable? Yes, I do
intend to serve out my full term.
c. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients or customers. None.
2. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated. None.
3. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated. None.
4. Describe any activity during the past 10 years in which you have
engaged for the purpose of directly or indirectly influencing the
passage, defeat or modification of any legislation or affecting the
administration and execution of law or public policy. None.
5. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items. (Please provide a copy of any trust or other agreements.) I
would seek the advice of the Office of Government of Ethics, CPB
General Counsel, or other appropriate legal counsel to ensure than any
future conflict of interest, should one arise, is properly addressed.
6. Do you agree to have written opinions provided to the Committee
by the designated agency ethics officer of the agency to which you are
nominated and by the Office of Government Ethics concerning potential
conflicts of interest or any legal impediments to your serving in this
position? Yes.
d. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
for unprofessional conduct by, or been the subject of a complaint to
any court, administrative agency, professional association,
disciplinary committee, or other professional group? If so, provide
details. No.
2. Have you ever been investigated, arrested, charged or held by
any Federal, State, or other law enforcement authority for violation of
any Federal, State, county, or municipal law, regulation or ordinance,
other than a minor traffic offense? If so, provide details. No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in interest in an administrative agency
proceeding or civil litigation? If so, provide details. No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination. None.
e. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines set by congressional committees for information? Yes, to the
best of my abilities.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes, to the best of my abilities.
3. Will you cooperate in providing the Committee with requested
witnesses, to include technical experts and career employees with
firsthand knowledge of matters of interest to the Committee? Yes, to
the best of my abilities.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
f. general qualifications and views
1. Please describe how your previous professional experience and
education qualifies you for the position for which you have been
nominated. I believe that my professional and academic background
qualifies me for the position on the CPB Board. My professional career
encompasses more than 25 years of engagement with international
affairs, in particular on globalization and information technology. My
experience in broadcasting includes work with the United States
Information Agency, Radio Free Europe, and Radio Marti on modernization
and consolidation. Presently, I am engaged in academic research for an
upcoming MIT Press book on Information Technology and the digital
divide in developing countries. I am also deeply engaged in studying
the educational possibilities with digital technology, including
distance education.
I have held numerous posts within the executive branch that will
help me perform well on the CPB Board of Directors. I served as the
Director of International Programs and Resources on the National
Security Council, Director of the Policy and Planning Unit, Office of
the Director, USIA. A decade in the private/NGO sector, I was Deputy
Director of the Global Information Infrastructure Commission. My
professional and academic career has taken me to live on the East and
West Coasts and in the Midwest. I have a graduate degree and Ph.D. from
the University of California, Berkeley and a Bachelor's degree from
Harvard University. I have a unique perspective on public policy issues
based on my experiences.
I currently serve on the faculty at the University of Maryland,
College Park and as the Director of the Center for International
Development and Conflict Management. I have also held faculty positions
at the University of Michigan, Ann Arbor and the University of
Pennsylvania.
2. What skills do you believe you may be lacking which may be
necessary to successfully carry out this position? What steps can be
taken to obtain those skills? I believe I have all the skills necessary
to successfully fill the position. At the same time, I look forward to
the opportunity to expand my knowledge of public broadcasting. For
example, I intend to learn more about the broadcasting activities and
contributions of local public television stations, as well as the non-
broadcast services these stations provide to their communities.
3. Why do you wish to serve in the position for which you have been
nominated? I want to serve the nation in an area where I have
expertise, particularly in the policy area of the emerging technology
of digital media convergence. The technological changes now taking
place are important to the United States. I believe my expertise in
this area is well suited for the position for which I have been
nominated.
4. What goals have you established for your first two years in this
position, if confirmed? I am particularly interested in public
broadcasting's role in digitalization, the digital divide, diversity,
and education. I would like to help further public broadcasting's
leadership in these areas.
5. Please discuss your philosophical views on the role of
government. Include a discussion of when you believe the government
should involve itself in the private sector, when should society's
problems be left to the private sector, and what standards should be
used to determine when a government program is no longer necessary. I
believe in partnerships, for example, public/private sector
partnerships. The government should set the parameters and can
contribute in instances where the private sector cannot. I believe in a
competitive marketplace, but in some instances certain societal
objectives cannot readily nor feasibly be achieved by the private
sector. Government programs should be judged on their effectiveness and
efficiency. If certain programs do not meet these standards, I do not
believe they should be automatically extended.
6. In your own words, please describe the agency's current
missions, major programs, and major operational objectives. CPB was
established to facilitate the full development of programming of high
quality, diversity, creativity, excellence, and innovation from diverse
sources. CPB is committed to continued funding of the highest quality
programming on television and radio. CPB has also made education,
diversity, and conversion to digital technology its top priorities for
next year.
7. In reference to question number six, what forces are likely to
result in changes to the mission of this agency over the coming five
years. I do not foresee the mission of CPB changing over the next five
years. Some of the challenges unique to the coming year will be
converting public stations to a digital signal, repositioning public
broadcasting in a way that maintains its noncommercial, educational
nature, yet addresses the changing way people are using media in the
face of expanding choices, and maintaining federal and non-federal
sources of financial support.
8. In further reference to question number six, what are the likely
outside forces which may prevent the agency from accomplishing its
mission? What do you believe to be the top three challenges facing the
board/commission and why? Based on what I know now, I believe the top
three challenges facing the Board will be converting to digital
broadcasting, addressing the growing competition from other media
outlets, and securing future funds for public broadcasting.
9. In further reference to question number six, what factors in
your opinion have kept the board/commission from achieving its missions
over the past several years? The pace of technological change and lack
of federal funding for digital conversion could hinder CPB's mission.
10. Who are the stakeholders in the work of this agency? The
stakeholders are the American people, Congress, and unserved and
underserved audiences, particularly minorities, educators and children.
11. What is the proper relationship between your position, if
confirmed, and the stakeholders identified in question number ten? My
relationship with the stakeholders would be to foster openness, seek
advance consultation and input into the process.
12. Please describe your philosophy of supervisor/employee
relationships. Generally, what supervisory model do you follow? Have
any employee complaints been brought against you? Throughout my career,
I have developed a reputation for being accessible and fair.
13. Describe your working relationship, if any, with the Congress.
Does your professional experience include working with committees of
Congress? If yes, please describe. I have served as a Congressional
aide for a member of Congress, testified before Congress on policy
matters, and done pro bono work for the Congressional Black Caucus.
14. Please explain how you will work with this Committee and other
stakeholders to ensure that regulations issued by your board/commission
comply with the spirit of the laws passed by Congress. I would, when
appropriate, consult with the Committee and other stakeholders to
ensure that CPB policy complies with the spirit of the laws enacted by
Congress.
15. In the areas under the board/commission jurisdiction, what
legislative action(s) should Congress consider as priorities? Please
state your personal views. I believe Congress should consider CPB
reauthorization, authorization of digital conversion funding, and CPB's
annual appropriation as legislative priorities.
16. Please discuss your views on the appropriate relationship
between a voting member of an independent board or commission and the
wishes of a particular president. A voting member of an independent
board should be truly independent while taking into account the wishes
of federal interests and other stakeholders.
The Chairman. I want to thank all witnesses for their
willingness to serve. I believe that all of you are well-
qualified, and I appreciate again your willingness to take up
very important responsibilities.
I would like to discuss one issue with all of you that is
in the process of being addressed in some fashion or another,
by Congress or by the FCC.
As you may know, recently the FCC has made a decision to
allow low-power FM stations to operate, and these broadcasts
would take place in neighborhoods and obviously limited
geographical areas because of the low power FM status.
In the view of many, including me, this is an opportunity
for churches, for neighborhood organizations, and for
minorities to set up small broadcasting facilities and have an
opportunity that otherwise they would not have if they were
required to set up the more elaborate, more expensive, higher
power FM facilities.
The National Association of Broadcasters, not surprisingly,
is in opposition, basing their opposition that somehow this
might interfere with other broadcasting stations.
I have legislation that requires there to be proof these
low power FM stations do interfere, and then they can be shut
down, with that determination being made by the National
Academy of Sciences. There is legislation that is attempting to
be inserted in appropriations bills and other ways which would
basically shut down low power FM stations.
Much to my surprise, National Public Radio has come out in
opposition to my legislation and in opposition to these low
power FM stations being set up. All four witnesses have talked
about the necessity for diversity, for as many Americans as
possible to partake in this business, and I would hope that you
would urge the National Public Radio to reexamine their
position on this issue.
I don't expect you to respond unless you wish to on this
issue, because I don't expect you to be totally up to speed on
it. But I hope you will look at this issue, because I view it,
as the FCC does, as an opportunity for minorities, for others
to have a voice that they otherwise would not be able to take
part in broadcasting.
If you would like to make any comments, I would be glad to
respond.
Mr. Cruz, you look as if----
Mr. Cruz. I couldn't agree with you more, Senator McCain,
that the idea of the concentration of media in America as we
can see has been getting into smaller and smaller and fewer and
fewer hands; and this is an excellent opportunity, I think, for
community groups and minorities and churches and others to
perhaps utilize the airways with the low power FM.
I think your efforts, with your legislation, is a positive
step to helping resolve that particular issue and that concern.
The concern that we have had really is one more of
technology, and it's not that we're against the concept; it has
been more of trying to find out if indeed there is
interference.
I might add, in addition to National Public Radio we have
about sixty-some odd minority owned radio stations, public
broadcasting stations across the country. Most people just know
of NPR, but there is Claudio Bilingual, the bilingual station
throughout the Southwestern part of the United States. And
there's one for Native Americans also, Radio Arrows, and
several others across the country that we already support. So
we endorse that concept of many voices and diverse voices.
But the issue has been one of the technology influencing
and interfering, and I think the suggestions of the legislation
you have offered might be a good compromise or a good way of
getting at the issue.
The Chairman. I thank you.
Would you like to comment on any of the other issues?
Ms. Anderson. I applaud the policy and agree with you, I
would like to see more movement toward the solving of the
interference problems.
The Chairman. Thank you, but Ms. Anderson, I also want to
make--it's perfectly clear. The proposed legislation of the
opponents--who to my understanding National Public Radio is
supporting--will shut down low power FM. Let's be very clear as
to the effect of it, because these people don't have the
resources or the expertise to prove that they will not
interfere under any circumstances.
So let's be very clear about the effect of pending
legislation on low power FM. And I don't think any objective
observer would argue differently. No one would support any
entity beginning that which would interfere with existing
broadcasting that is licensed--it would be totally unfair.
The question is whether there should be an organization
such as the National Academy of Sciences to make the judgment
or not. And that body, in my view, is perfectly qualified and
objective enough to make that decision.
So I don't want to belabor it, but I think that time after
time throughout the years that I have been on this Committee,
we lament the fact that minorities, community-based
organizations, religious organizations, et cetera, do not have
an opportunity. This is an opportunity and it's about to be
killed.
There ought to be a way to make sure that they have that
ability and at the same time prevent them from interfering with
existing broadcasting capability.
Senator Rockefeller.
Senator Rockefeller. Thank you, Mr. Chairman. I agree with
your legislation, and I think it's a very good solution to the
problems that have been raised, including by many that just
simply don't want to face competition.
I have two questions, really. The first is more
philosophical, the second is more specific. One of the things
that troubles me as a lover of classical music is that only
about 4 or 5 percent of CDs bought in this country, purchased
in this country, are classical; and all the rest is what I
would refer to, with the possible exception of bluegrass and
jazz, as junk.
Interestingly, I just came back from a week in Thuringia,
which is the province of East Germany, where Johann Sebastian
Bach grew up, and we traced his footsteps in the various places
he had been to; and that is an area which has an enormous
loyalty, obviously, to him and to the music of the high
baroque. All their record sales are 4 to 5 percent of CDs.
Now I may be wrong, but it's my general impression that
although public broadcasters refer to the number of Americans
who watch or listen to National Public Radio or television,
they always talk about 100 million people a week, but still
it's about 4 or 5 percent of the American people who listen to
public broadcasting or watch public television on a regular
basis.
It's very, very disturbing. We can have all of the talk
about digital divide and technology and the rest of it, and I'm
very curious, because it comports with things that worry me
about democracy, for example; I think there's only about 6
percent of Americans who vote for boards of education. We have
16,000 boards of education; typically they're placed last on
the ballot, right before the bond levy, where everybody comes
out to vote ``no.'' And I don't know why we place them last on
the ballot, but we do, so I've always been of the mind that the
local board of education is probably one of the most important
elected offices in the land. And, again, the 6 percent factor.
So philosophically, how do you react to that, Mr. Cruz?
What does CPB, what can they do other than funding, set certain
kinds of policies, to fight that trend? I don't believe that
one should accept that as a condition of the American people. I
think the condition of the American people depends upon the
forces that are applied to them or the enticements that are
presented to them.
The 4 or 5 percent is not good. CPB, both public
broadcasting and public television is excellent, but the
viewership is insufficient and it has not changed in a while. I
wonder how you worry about that and what you contemplate when
you think about that.
Mr. Cruz. Let me answer your first question in terms of the
classical music. I so happen to be the trustee of the
University of Southern California, and it is one of the
classical stations for public radio KUSC. There are at least
eight, if memory serves me correctly, or so dedicated classical
public radio stations across the country.
And in an effort to help them in terms of perfecting fund
raising and in terms of getting them to have a better and a
higher profile of interest in reference to classical music, we
have funded several projects aimed at bringing them together;
we have one with the University of Southern California and one
in the State of Colorado where we are getting them together so
that they can find better ways of running their, if you will,
subset of classic music business and industry.
But I couldn't agree with you more. Philosophically, I
don't know why the American public doesn't take to that kind of
music more or why they don't vote and turn out--I think these
are issues that we could debate for quite some time.
In terms of the viewership of public broadcasting,
philosophically as a whole and the loss of audience that you
were saying, I so happen to have worn that hat of the
commercial side for twenty-some-odd years. On the English side
for about 16, on the Spanish-language side for about 6. And
quite frankly, Senator, sometimes I'm almost embarrassed to
tell you how I feel about what the commercial side is doing.
Clearly what drives me with a passion, and in my belief of
public broadcasting, is because of the alternative that it does
offer. Public broadcasting, study after study recently has
shown that--at least one out of Princeton showed that 82
percent of the American public still believed that PBS is as
important if not more important than before; indicative of the
fact that they feel that we are providing a good alternative
service to the American public.
When I sit in Los Angeles in the suburb of Orange County
where I live, and I tune in to ABC News or--not to pick on my
old networks that I worked for, it's downright embarrassing
when an hour's newscast is interrupted because they're going to
have a 45-minute high speed chase on the freeways. I mean, that
is really a great news disservice and a great disservice to the
American public.
We don't do that in public broadcasting. Whenever there are
hearings pertaining to violence, violence to children to
violence in America, we are conspicuously absent from those
hearings because public broadcasting has always been a safe
haven for our kids and for our children, and that's really what
motivates me and pushes me, to say nothing of what the digital
conversion technology has in store for us in the future.
Hopefully in the next 4 or 5 years when it takes over, you
will have your regular PBS schedule, and then you will have a
working mother come home at 4 or 5 in the afternoon after she
picked up her child and on the PBS kids can see Arthur and
Barney and Dragon's Tales. Or a young man who is growing up in
East Los Angeles or in South Central Los Angeles and hasn't
been able to get an advanced degree, the Adult Learning Service
channel hooked up through his local college can do that for
him, late at night when they come in with that extra channel.
So I'm very, very--to use a business phrase, ``very
bullish'' on the future of public broadcasting and the things
that it can really do. We often say within staff and with
public broadcasting that ``Finally, the technology has caught
up with the mission of public broadcasting.'' Because we look
forward to the things that we can do.
Senator Rockefeller. Let me just, without pursuing that,
ask if you would be willing to spend a little bit of time
writing out for me what I would consider a more direct answer
to the question, which is: How do you get the 4 or 5 percent up
to 8 or 9 percent? In other words, CPB is the source of funding
for all of these places, and it just strikes me as something
that CPB would think about, worry about, be unhappy about, 82
percent of the people approving notwithstanding, since
obviously a lot of them aren't listening or watching.
Second question I have stems somewhat from that. Because of
the lack of, the 4 or 5 percent or whatever the figure is
exactly, PBS has shown, it seems to me, signs of self-
preservation in ways that aren't healthy. There have been a
number of instances where it seems to be they're reaching for
the--they're looking at the bottom line more than they are at
what works, and what's right for America and what the mission
that you've all talked about really is.
That's obviously made up of stations all over the country,
those station managers may be sophisticated or not in national
policy, but they have tremendous control, enormous power; more
than you all do to the point on programming. It seems to me
increasingly there is an instinct to make decisions based upon
bottom line financial considerations.
Now one can defend that, because if you're at 4 or 5
percent, you're probably having a survival problem. Or if
you're in a small market, you may be having a survival problem,
so you can't automatically condemn that. But I just want to
note for the record that it's troublesome to me that they are
perhaps willing to take a look at eliminating very, very good
programs that uplift the national consciousness about news
events, whatever, in favor of degrading what they offer because
it might in a sense reflect upon what I just said--it might
attract more viewers but be of a lower quality.
Now that's a dilemma which I don't pass judgment on at this
point, but one that I'd like to raise to you and wonder if you
have any thoughts at all on that.
Mr. Cruz. It's a troubling one for us. Let me just say that
for many years, public broadcasting has almost caught itself in
a Catch-22 situation: There are those who would like it to be
more commercial and then there are those who castigate it for
being too commercial. And a lot of it stems from funding, and
the lack of or having to constantly meet those kinds of budgets
and goals that they must meet.
And it's a difficult one, but I think that--you know, were
there to be adequate funding, and we could have a discussion on
what ultimately that could be, certainly is an area to pursue,
to find other alternate sources of funding.
Commercial radio in some major markets right now, out of an
hour's time probably devotes, some major markets, to 30 minutes
of commercials. On the television side, an hour on television
on prime time can have about 24 minutes of commercial time.
Fortunately, ours is down to about 3 minutes or so at the
beginning and at the end. So we are very conscientious and very
concerned about that, and still trying to keep it as
commercial-free as we can. But it's a difficult one because it
ultimately hinges on funding and the stations surviving. Four
or 5 of the major stations in public broadcasting could
probably do well, but after that, many of the others--it's a
struggle, and it's difficult for them to make it. So they must
rely on their viewers, on their subscribers to make ends meet,
to meet their budgets, and take to some underwriting to do.
But it is a concern to me. Ultimately, if I had my druthers
and had an open check, I'd like to get rid of all the
commercials, all of the underwriting in public broadcasting.
But it's a difficult budgetary dilemma.
Senator Rockefeller. Thank you, sir.
The Chairman. I thank you all, and we'll move your
nominations at the earliest time we can, and I thank you again
for your willingness to serve.
This hearing is adjourned.
[Whereupon, at 10:46 a.m., the hearing adjourned.]
A P P E N D I X
Corporation for Public Broadcasting,
Washington, D.C., July 28, 2000.
Hon. John D. Rockefeller IV,
United States Senate,
Washington, D.C.
Dear Senator Rockefeller:
Thank you for your continued support of public broadcasting. Your
comments during the recent Senate Commerce Committee confirmation
hearing for the nominees, including myself, to the Board of Directors
of the Corporation for Public Broadcasting (CPB), were important and
timely. You specifically asked what public broadcasters could do to
increase the percentage of Americans who both watch public television
and listen to public radio.
Public broadcasting is unique from commercial broadcasting in the
sense that programs produced for noncommercial television and radio are
first considered on the basis of high-quality content, educational
value, and diversity, and not ratings potential. However, ratings are a
way to discover who is watching and listening to public broadcasting,
but they do not measure the impact of the programs on people's lives.
In fact, public broadcasters have taken measures to increase
viewership. While public broadcasting does not have the promotional or
advertising budgets that are available to commercial outlets, public
television has initiated a national promotion and awareness campaign.
The Public Broadcasting Service (PBS) recently announced significant
changes to its national schedule. The new changes will start in seven
major cities in September with the ultimate aim to expand viewership by
moving programs to different time slots to appeal to more viewers.
More than 92 million Americans watched public television each week
during the 1997-98 season. Today, nearly 160 million people tune in
sometime during a month. Public television's ratings in prime time
average 2.0, the percentage of the population tuning in to a program.
The public television community recognizes the need to reach more
Americans, and continues to create and offer programs to draw more
viewers without compromising quality. Considering viewership trends of
leading commercial networks, public television has fared well. But we
continue to strive to do better.
At the same time, public radio's audience has grown steadily; over
the past 10 years the audience size has doubled. In 1999, 22.4 million
people listened to public radio weekly. Public radio's cumulative
audience is 10 percent of the American people.
Public radio is continuing to pursue ways to reach more audiences,
particularly minority communities, and to increase the 10 percent
listenership rate. I would like to include, for your review, a recent
article by CPB's Vice President of Radio, Rick Madden, which provides a
detailed account on the growth of public radio and future steps to
attract listeners.
Thank you for your interest.
Sincerely,
Frank H. Cruz
Enclosure
It's Time Again for Public Radio to Aim Higher
Richard Madden, VP, Radio, CPB
Public radio's world is changing and changing rapidly. While our
public service is growing, listener choices are increasing even faster.
Confronted with what appears to be an overlapping sequence of
unprecedented challenges, we should remind ourselves about how the
industry succeeded when it faced earlier and just as remarkable tests.
Put simply, public radio asked more of itself. We did so by shifting
our public service expectations.
The result is that public radio's programming is strong and getting
stronger. Our audience continues to grow and become more diverse.
Listener-sensitive revenues grow annually at double-digit rates. Public
radio is on a roll. This paper recounts how we arrived here and
suggests some of the issues that must be resolved going forward.
The late 1980s are key to understanding public radio's current
achievements. At that time, CPB began redistributing most of its
national programming dollars to stations, reserving for itself some
funds to launch new programs--that is, the Radio Program Fund. NPR had
retired a debt that had nearly caused its bankruptcy. Since CPB was no
longer contracting with NPR directly for the production of its major
series, NPR began assessing stations a fee for the program purchases.
Because stations were being asked for the first time to pay directly
for national programs, stations began considering their acquisitions
and their air time in a much different context. As our expectations
shifted, so did our standards.
Informing all of this was the release of a sequence of CPB-funded
research papers titled Audience 88.\1\ Audience 88 advanced the notion
that programming causes audience. Though this may seem obvious today,
it was not a widely held or well understood idea in 1988. Quoting, the
study concluded:
---------------------------------------------------------------------------
\1\ Audience 88 was written by Terry Clifford, David Giovannoni,
Linda Liebold, and Tom Thomas.
Listeners who choose public radio are significantly
---------------------------------------------------------------------------
different from those who do not.
Listeners who make a public radio station their favorite are
different from those who just sample its programming.
These differences extend to the kinds of listeners who are
attracted to each of public radio's distinctive formats and
services.
All of these differences are reflected in the extent to
which listeners consider public radio important and worthy of
their financial support.
As outlined in Audience 88, the key linkage between programming and
audience is programming appeal--the special attraction that specific
programming holds for specific listeners. As the study noted, ``appeal
is the mechanism through which programming shapes the audience, with a
cascade of ramifications for the entire public radio enterprise.''
Audience
If programming causes audience--then the character and quality of
public radio's public service has improved during the past 10 years.
Over the 22 years from CPB's 1967 creation through 1988, public
radio's cumulative audience grew to about five percent of the American
people. Over the next decade, public radio nearly doubled audience
penetration.
From a different context. Public radio is only reaching about 10
percent of the American people. Can we do better? If so, how?
Public radio's audience is also more diverse. The chart and table
below show that all public radio audiences are growing, with some
audience segments growing faster than others. As the diversity of this
country's population continues to expand and as delivery platforms
multiply, we must again ask if we can do even better.
Measured minority audience growth can be attributed to public
radio's twin strategies of transcendence and targeting.
Because public radio's mainstream programs transcend race, most
minority listening results from this approach. Since programming causes
audience, this public service outcome affirms the inclusive nature of
public radio's mainstream programming.
Average Quarter Hour Audience
------------------------------------------------------------------------
1989 1998
------------------------------------------------------------------------
All 797,000 1,368,600
African American 48,300 102,200
Hispanic 15,200 44,800
Percent >8% >12%
------------------------------------------------------------------------
CPB has also pursued a targeting strategy, funding dozens of
minority controlled and managed stations and creating American Indian
Radio on Satellite and Satelite Radio Bilingue.
Because Arbitron does not measure all minority listening or even
all African American or Hispanic listening, we can be confident that
public radio's minority audience is larger than indicated and,
therefore, greater than 12 percent of the listening audience.
Public radio's share of overall listening has also increased. It
has done so because of the relative excellence and special character of
our public service.
Further, the public radio audience time spent listening has
increased modestly over the past five years or so--up three percent
from 7.8 hours per week to 8 hours per week--while listening to
commercial FM has decreased over the same period--down six percent,
from 23.25 hours per week to 21.75 hours per week. Commercial AM
audience is down considerably.
In a more competitive environment, what share and time-spent-
listening benchmarks should we seek?
Listener Sensitive Revenues
If programming causes audience, audience causes listener-sensitive
income. Consistent with the audience growth trend, public radio enjoys
similar growth in the amount of listener-sensitive income--member
income and underwriting--per the graph to the right. This graph plots
growth rates, with underwriting growing much faster than member income.
The table below offers the context. Underwriting has become a more
important element in station revenue patterns. Still, in 1998, even
after such growth, stations received more than two dollars in member
income for every one dollar in underwriting.
Contributors & Listener-Sensitive Income
(millions)
------------------------------------------------------------------------
1989 1995 1998
------------------------------------------------------------------------
Contributors 1.2 1.8 2.2
Underwriting $21 $42 $71
Member Income $60 $114 $154
------------------------------------------------------------------------
The role underwriting plays in station budgets began to shift in
1995. Two things happened--federal funding was challenged and CPB and
public radio accepted the challenge. How?
Public radio shifted expectations with an increased emphasis on
listener service. Another element of our response was to create the
Future Fund. One analysis of the Future Fund may flow from a detailed
focus on the numbers. However, no more simple but compelling argument
exists for the Future Fund's value than the above picture.
Further, the number of public radio contributors about doubled over
the past decade, from 1.2 million to 2.2 million. Much of this growth
results from audience increases.
From a different vantage point, the ratio of contributors to AQH
audience remained relatively stable--between 13 percent and 15 percent
over the decade.
As intriguing as this analysis may be, this examination also
suggests the fragility of listener-sensitive income.
For instance, the average member gift decreased almost one dollar
between 1997 and 1998. With more than 2 million public radio members,
the industry ``lost'' $2 million.
In addition, these broader listener-sensitive revenue increases
occurred in a healthy economy. What is the exposure, if any, for public
radio when the economy is not as healthy? Some listeners may have
become anxious about the character of the fund raising.
And, in a new media environment, sustained audience growth is not
guaranteed. If the audience size plateaus, the number of contributors
may do so as well.
Listener-Sensitive Revenues Relative to Other Funding Sources
Not all revenue sources have enjoyed the same relative growth as
listener-sensitive income--that is growing faster than the broader
economy.
If radio cash income is divided into three sources--listener-
sensitive, CPB, and all other--the graph to the right explains public
radio's focus on listener-sensitive income.
In 1989, listener-sensitive revenues generated about $80 million,
one dollar in three of direct income. By 1998, stations were reporting
an additional $145 million per year from this source, significantly
outperforming the economy and other public radio revenue sources. As of
1998, listener-sensitive income provided one of every two dollars of
direct income to stations.
Public Radio Direct Income
(millions)
------------------------------------------------------------------------
1989 1998
------------------------------------------------------------------------
Listener-Sensitive Income $80 $224
CPB Station Grants $47 $50
Other Cash Income $115 $167
------------------------------------------------------------------------
From CPB station grant support, stations reported an increase of
only $3 million from 1989 to 1998, well below the growth rate of the
nation's Gross Domestic Product (GDP). The consequence is that CPB
station grant support played a more modest role in the mythical average
station's budget, down from one in five dollars in 1989 direct income
to only one in nine dollars of 1998 income.\2\
---------------------------------------------------------------------------
\2\ CPB station grants were also spread across more grantees. The
number of grantees increased by nearly 100 during the period.
---------------------------------------------------------------------------
Note that this is before the significant increase in federal
funding scheduled for FY 2000. Even accounting for this major increase,
the rate of CPB station grant growth would remain less than the growth
in GDP.
Other cash income--for instance, institutional support and state
governments--grew but not as fast as GDP. It remains a significant and
a relatively stable portion of public radio's revenue stream.
These other income sources suffer from much the same fragility as
listener-sensitive income. Put simply: what goes up may also go down.
This is why it is useful to compare public radio's and public
television's experience.
Public Radio/Public Television
Public radio and public television are at two distinct points in
their life cycles. The graph to the right shows one element of the
fundamentally different financial trends of the respective public radio
and television industries.
Over the past decade, public radio listener-sensitive income has
exceeded the compound annual growth rate of Gross Domestic Product
(GDP).\3\ Public television viewer-sensitive income has not grown
relative to GDP. Why this difference?
---------------------------------------------------------------------------
\3\ Different indices have different assets. Gross Domestic Product
was chosen for this analysis. GDP is the broadest measure of economic
change in the country. For the 1989-1998 period, the compound annual
growth rate of the GDP was 5.1 percent.
Another widely used, but more focused index is the Consumer Price
Index or CPI. This is considered a measure of inflation. During this
same period, its compound annual growth rate was 3.1 percent.
---------------------------------------------------------------------------
To begin, public radio's audience is growing--for now--and public
television's audience is not.
PTV faces direct competition. Public radio's programming remains
unique--for now.
Further, public radio is more local, with about half of a typical
station's schedule produced locally. Less than 10 percent of a standard
PTV schedule is local. (Playing CDs is counted as local programming in
radio, a possible soft spot in the new media environment where music
will be available from many more sources.)
Radio listeners connect differently with stations, with public
radio listeners spending about eight hours listening to just public
radio. Television viewers surf dozens of channels, spending only a
couple of hours per week with their public television station.
Radio's use of regular programming in its fund raising strengthens
the connection between the listener and the station's public service.
PTV's extensive use of stunt programs during pledge may have the
opposite effect.
Public radio stations may fund raise around their entire schedule.
Public television appropriately does not raise funds around children's
or instructional programs.
Finally, PTV faces an immediate and sizeable digital programming,
technological, and financial hurdle. Though this awaits public radio,
the guestimates are that the effect will be less dramatic.
All of that occurs on top of industries where the costs of doing
business are markedly different.
The consequence of these differences is that public radio and
public television are moving along different vectors as each works to
define its public service future.
Despite these factors, CPB has substantially shifted expectations
on the minimum nonfederal financial support necessary for public
television stations to receive a CPB station grant. Based on the
recommendations of an industry advisory committee, CPB has established
an FY 2001 minimum NFFS of $1 million, an increase of more than 50
percent from the FY 1998 requirement of $650,000 in FY 1998.
What steps should public radio consider regarding its own
standards? While our public service is growing, listener choices are
increasing even faster. Just as public radio met and surpassed recent
funding challenges by focusing on listener service, is it prepared and
is now the time to confront new media opportunities with the same
emphasis? More important, in an environment that will be shaped more by
content than by delivery mechanisms, is there value in expecting more
of ourselves as a means of affirming and strengthening our public
service?
Future Assumptions
The preceding pages describe in public service terms a dynamic
enterprise or, as Audience 88 described it, the ``cascade of
ramifications'' flowing from changes within public radio. In short, the
industry's dynamism results from a willingness to ask more of itself.
The character and quality of the programming listeners consume today
bear witness to the value of a mature industry dedicated to improving
its public service--to raising the standards we apply to our work. Our
responsibility today is to interpret, freshen, and advance those
standards which foster accountability to the public we seek to serve,
regardless of platform. As we proceed with that task, CPB begins with
several assumptions.
The American people have entered an era defined by the
widening public square of ideas, culture, and values and by the
growing virtual communities redefining our existing civic
landscape. For these reasons, public radio enjoys multiplying
opportunities for public service on existing and new delivery
platforms.
Listeners should find the content they value as they move in
unpredictable ways to an unpredictable array of new media.
Though this may mean that public radio must redefine, if not
reinvent itself, our future will continue to be driven
primarily by our public service aspirations, which result from
the content we are uniquely qualified to produce and the size
and character of the audiences we seek to serve.
Increased public service opportunities will remain available
through broadcast for some years to come.
Public radio is reasonably well-positioned to offer
additional public service to a wider audience through multiple
new distribution platforms but must accomplish more if it is to
be as successful as it is through broadcast.
To achieve a better position, public radio must address a
variety of questions about how to strengthen our existing
public service, our values, the diversity of audience, content,
and delivery mechanisms, our infrastructure, the regulatory
environment in which we operate.
Despite the issues and their answers, we believe our future will
continue to revolve around the equation that significant programming
plus significant audience will equal significant public service--with
significant public service always at the core.
Note: An edited version of this paper was reprinted in Current, May
22, 2000, p. B1.
______
Response to Written Questions Submitted by Hon. Slade Gorton
to Francisco Sanchez
Question 1. Mr. Sanchez, what role will you play in DOT deliberations
over the soon-to-be-announced U.S.-China frequencies and new
designation? What are your views on this matter? When do you expect a
decision?
Answer. I recognize that this is an important case for the
Department. While it would be inappropriate for me to comment on the
merits of a case now pending before the Department, I can assure you
that I would make a review of the record an immediate and top priority,
if confirmed. The Department has consistently stated that it would
issue its decision in this case in time for the selected carrier to
begin service when the rights become available in April 2001. To
facilitate this goal, the Department intends to issue a show-cause
order by the end of the summer. Because the Assistant Secretary is not
the decision maker in this case, my arrival would not have a delaying
effect on the procedural timetable.
Question 2. Do you foresee the United States and China reaching an open
skies agreement in the near future? What are the obstacles to reaching
a full open skies agreement with China? Would granting China permanent
normal trade relations status have an impact on opening up that air
services market?
Answer. I understand that it is unlikely that the United States and
China can reach an open-skies agreement in the near future.
Historically, China has been extremely protective of its airlines. The
last agreement was reached in April 1999, and the Chinese granted the
US the right to designate only one new carrier in the market, and add
27 additional frequencies. Chinese carriers today only use 26 of the 54
frequencies available to them per week; accordingly China has extensive
room to increase services under the present agreement.
While an open-skies agreement is unlikely in the near future,
Chinese officials indicated to Secretary Slater during his visit to
China this past winter that they are interested in resuming
negotiations, and he informed them that the US would be seeking a more
liberal regime than currently exists. The Department anticipates such
possible talks before the end of this year.
Obviously, granting China permanent normal trade relations should
provide a stimulus for increased trade and the need for additional air
services to accompany such an increase. However, it appears doubtful
that China is ready for an open-skies aviation regime.
Question 3. I understand that there are two important Deputy Assistant
Secretary positions beneath the job you are seeking. One of these
positions has been vacant for about a year. What are DOT's plans to
fill this key position?
Answer. Secretary Rodney E. Slater recently named Susan McDermott
to be the Deputy Assistant Secretary for Aviation and International
Affairs, filling this key career aviation position in the Office of the
Secretary.
Question 4. If confirmed, what role would play in the oversight of
ticket distribution issues involving computer reservation systems and
the Internet?
Answer. If confirmed, I would continue the Department's effort to
examine carefully recent developments in airline distribution so that,
if the need arises, the Department can exercise its regulatory
authority to prohibit unfair methods of competition and unfair and
deceptive practices intelligently. I would also make every effort to
expedite the Department's review of the rules governing airline
computer reservation systems, taking into consideration the tremendous
changes that have occurred as a result of the Internet.
Question 5. As a general matter, do you believe international air cargo
talks should be negotiated separately from passenger talks?
Answer. Cargo services are subsumed in all bilateral provisions. In
most agreements, including standard open skies, separate provisions for
cargo services have not been necessary, because the full array of
rights and flexibilities are provided under the scheduled and charter
clauses, including intermodal rights. In addition, in the most
progressive open skies agreements, the Department has, wherever
possible, included 7th freedom rights for cargo services (that is, the
ability to serve between our bilateral partner's country and a third
country without having to serve the U.S.). In restrictive regimes, when
it has been possible to solve problems or negotiate additional benefits
for cargo services that are not achievable for combination services
(that is, passenger and cargo combined in one aircraft), separate cargo
provisions are created (e.g., better route and traffic rights or lesser
transition restrictions). For example, DOT negotiators recently
concluded an all-cargo open-skies agreement with Australia. A few years
earlier, the U.S. conducted a whole series of separate talks with Japan
on cargo, resolving many of those issues well ahead of the eventual
agreement on combination services. In sum, the Department tries, on a
case-by-case basis, to approach each negotiation in the manner with the
greatest likelihood of success for our cargo interests as well as
passenger services.
Question 6. What would your position be if a country denied U.S. air
carriers' rights that are guaranteed under an existing bilateral
agreement? What actions should the U.S. take in response to such a
situation?
Answer. I believe that our bilateral rights should be enforced. If
a country denied rights to which a U.S. carrier was entitled, I would
expect DOT and State officials first to consult with the appropriate
officials in the foreign government to vindicate those rights. It is my
understanding that most such difficulties yield to bilateral
consultation. In a case where consultation did not succeed, I would
review the full range of measures that might be employed to resolve the
problem successfully, including the formal complaint process
established by Congress in the International Air Transportation Fair
Competitive Practices Act.
Question 7. What is your view of the practice of linking an open skies
agreement with the granting of antitrust immunity to an airline
alliance that included an airline based in the foreign country?
Answer. The existence of an Open-Skies aviation agreement between
the United States and a foreign country is necessary for the Department
to consider granting a request for anti-trust immunity from an airline
of that foreign country. However, as U.S. negotiators have emphasized
to our foreign partners, Open Skies is not a guarantee that immunity
will be granted. The merits and competitive implications of any
application for immunity are determined by the Department in a
regulatory proceeding separate from the negotiation of the Open-Skies
agreement.
Question 8. What is your view of the current trend toward global
airline alliances? Are there potential problems for consumers if this
trend continues?
Answer. Global airline alliances are playing a key role in the
evolving international aviation economic and competitive environment.
Alliances are changing the structure of the airline industry and are
generating new pressures to overcome the limitations of restrictive
bilaterals. They provide improved, more competitive services in
literally thousands of markets, stimulating additional demand. They
have also provided consumers the benefit of substantially lower prices.
Consumers recognize the product and service benefits which global
alliances provide: a comprehensive route network with the convenience
of coordinated schedules, single on-line prices, single point check-in,
seamless service and product familiarity, reciprocal frequent flyer
programs, and service upgrade potential.
In my view, however, alliances are not ipso facto pro-competitive.
Each alliance must be examined on a case-by-case basis. It is
fundamentally important to consider all aspects of an alliance and the
market configuration in which it is set to operate. We are at the very
early stages of global aviation liberalization. I am mindful that
international aviation and its competitive dynamic are constantly
changing. I would therefore maintain the Department's commitment to
monitor the development of alliances within the context of aviation
liberalization to evaluate their effect on the aviation industry and
consumer welfare.
Question 9. There has been talk recently of creating a single, open air
services market between the European Union and North America. Do you
think this is a realistic prospect in the near term? What would be the
obstacles to attaining fully open skies over the Atlantic?
Answer. The possibility of a transatlantic common aviation area is
a useful stimulant for thinking about moving beyond bilateral
agreements. Possible US-EU aviation negotiations could offer an
opportunity for the US and EU, working together, to lead the world away
from the traditional, bilateral paradigm as the model for organizing
international aviation relations. I am told that Department staff held
informal, exploratory discussions with European counterparts in
Washington just last month, and I believe it is useful to continue this
dialogue. With respect to realistic near-term prospects and the
obstacles to be overcome, there are two significant factors to
consider: First, the European Commission still lacks a comprehensive
negotiating mandate from the member states; there is no current basis
for speculation on when that mandate might be achieved. Second, the
TCAA proposal includes several issues that present significant policy
concerns for the U.S., such as cabotage, foreign ownership and the
right of establishment, and carriage of government traffic.
Question 10. In 1995, the U.S. was on the brink of fully liberalizing
air cargo rights with the British. Instead, the U.S. concluded a mini
deal for passenger carriers only. Five years later, we still don't have
such cargo rights. Will the U.S. agree to any aviation pact with the
British that does not include full and open cargo rights for U.S.
carriers?
Answer. The U.S. objective from the beginning of the Clinton
Administration has been to secure an Open-Skies agreement with the
British covering both cargo and passenger operations. Late last year,
following the unilateral British grant of expanded cargo rights for
services to Scotland's Prestwick Airport, the United States gave the
British a proposal for immediate open cargo rights for both U.S. and
U.K. all-cargo airlines. Unfortunately, the British were unwilling to
proceed on that basis. I can assure you that, in the current
liberalization talks, the U.S. Delegation has made clear to the British
the importance that the United States attaches to cargo liberalization,
and we will continue to pursue cargo liberalization aggressively with
the United Kingdom.
Question 11. It seems that the U.S. is making little or no meaningful
progress in opening the British air service market. Should the U.S.
consider renouncing this protectionist agreement?
Answer. The U.S. goal remains an Open-Skies agreement with the
British. As a result of contacts between Secretary Slater and U.K.
Deputy Prime Minister John Prescott, liberalization talks have been
renewed. However, even though the Department is cautiously optimistic
that these talks will yield positive result, all options for opening up
the U.S.-U.K. aviation relationship, including renunciation of the
current agreement, remain available to it.
______
Response to Written Questions Submitted by Hon. Ernest F. Hollings
to Francisco Sanchez
Predatory Pricing
Question 1. DOT proposed predatory pricing guidelines in 1998, which
were fairly controversial. DOT clearly has authority under existing law
to address ``unfair methods of competition.'' The Commerce Committee
held a hearing on the guidelines in April 1998, at which Alfred Kahn
testified, noting that carriers did engage in predatory conduct and
that it was critical that the government preclude such activities. When
do you anticipate that you will issue the predatory guidelines, first
proposed by the Department of Transportation (DOT) in 1998?
Answer. I agree that the question of potential predatory behavior
in the airline industry is important and that the Department should
issue soon a final decision about its proposed competition guidelines.
The Department published those guidelines for comment because the DOT
Secretary determined that the public's input should be obtained, since
he wished to begin a debate on the issues and adopt the best possible
final policy. The Department has received over 5,000 comments on the
proposed policy. In addition, as directed by Congress, the
Transportation Research Board of the National Research Council issued a
report on airline competition that included an assessment of the
Department's proposed policy. I understand that the Department
continues to work on its proposed policy statement. The Department felt
it necessary to proceed deliberately with this important and very
contentious matter. The matter is difficult because of questions on how
the Department can best proceed to deal with potential anticompetitive
conduct. I understand that the Department plans to make a final
decision soon on its proposed policy.
Hub Concentration
Question 2. Included in the recently enacted AIR-21 (FAA
Reauthorization bill), airports have to develop and submit plans to
increase competition at their airports, which should facilitate the
building of gates and facilities for carriers other than the dominant
carrier. Will you use the authority of the Department to aid carriers
that want to get into fortress hubs?
Answer. The Department must be committed to eliminating unnecessary
entry barriers at airports, thus providing all carriers--new entrants
and incumbents alike--with opportunities to expand service and compete.
As outlined in the Department's October 1999 report on airport business
practices (Airport Business Practices and Their Impact on Airline
Competition), airport managers have a legal obligation to ensure that
air carriers have reasonable access to essential airport facilities.
Moreover, over the past several months, OST and FAA staff have worked
with new entrant carriers and airport managers to resolve certain
complaints that have been raised about airport access.
Beginning in fiscal year 2001 certain large and medium hub airports
must submit airport competition plans in order for the FAA to approve
the collection of a new Passenger Facility Charge (PFC) or for a grant
to be issued under the Airport Improvement Program (AIP). The
underlying purpose of this new statutory requirement--and one with
which I fully concur--is for those airports that are dominated by one
or two air carriers to demonstrate how they will provide for new
entrant access and the expansion of service by incumbent carriers. The
DOT has issued (May 8, 2000) a regulatory guidance document for
airports, as well as a ``template'' as to what type of information and
data the typical airport plan should contain. If confirmed, I will see
to it that the Department reviews the plans carefully to ensure that
airports are taking all appropriate actions to ensure reasonable
access. Further, I will work closely with the Committee in recommending
additional steps that may be taken should the current actions prove
inadequate.
Question 3. Should we give DOT back the authority to review and approve
airline mergers, with tougher standards than were applied before so
that other factors can be taken into consideration?
Answer. I do not believe that DOT should be given the authority to
review and approve airline mergers. Transferring the authority to DOT
to determine whether a merger should be disapproved on antitrust
grounds would be inconsistent with deregulation. The Department of
Justice has been responsible for enforcing the antitrust laws and
blocking anticompetitive mergers and acquisitions since the sunset of
the statutory requirement that such transactions obtain the prior
approval of the Department of Transportation. Congress' deregulation of
the airline industry thereby caused mergers and acquisitions in the
airline industry to be treated like mergers and acquisitions in other
unregulated industries. I am confident that the Justice Department will
effectively enforce the antitrust laws and challenge any airline
mergers that may substantially reduce competition in any relevant
market. The Justice Department is currently suing Northwest Air Lines
to keep it from influencing the operations of Continental Air Lines. I
understand, moreover, that, when DOT had the authority to review
airline mergers, it approved a few mergers that the Justice Department
had opposed.
I do believe, however, that DOT has an important role to play in
the analysis of proposed mergers and acquisitions. I fully support that
role and look forward to working closely and cooperatively with the
Antitrust Division of the Department of Justice on these important
matters.
International Aviation/Cargo Rights
Question 4. For years we have complained about the highly restrictive
Bermuda 2 air service agreement with the British but we made little
progress in improving opportunities for all our carriers. After years
of ``negotiations,'' which have done little to improve the ability of
passenger and cargo carriers to provide service to the U.K., do you
believe that the Administration should seriously consider renouncing
this agreement?
Answer. The U.S. goal remains an Open-Skies agreement with the
British. As a result of contacts between Secretary Slater and U.K.
Deputy Prime Minister John Prescott, liberalization talks have been
renewed. However, even though the Department is cautiously optimistic
that these talks will yield positive result, all options for opening up
the U.S.-U.K. aviation relationship, including renunciation of the
current agreement, remain available to it.
Question 5. Given your background in trade issues, you know how
important air cargo is to our economy, Mr. Sanchez. Can you assure me
that the U.S. will not agree to any aviation pact with the British that
does not include rights for U.S. cargo carriers?
Answer. The U.S. objective from the beginning of the Clinton
Administration has been to secure an Open-Skies agreement with the
British covering both cargo and passenger operations. Late last year,
following the unilateral British grant of expanded cargo rights for
services to Scotland's Prestwick Airport, the United States gave the
British a proposal for immediate open cargo rights for both U.S. and
U.K. all-cargo airlines. Unfortunately, the British were unwilling to
proceed on that basis. I can assure you that, in the current
liberalization talks, the U.S. Delegation has made clear to the British
the importance that the United States attaches to cargo liberalization,
and we will continue to pursue cargo liberalization aggressively with
the United Kingdom.
______
Response to Written Questions Submitted by Hon. John McCain
to Francisco Sanchez
Question 1. I know that you are not able to comment on specific matters
pending before DOT, such as the United-US Airways proposed merger. I
also understand that you are not yet familiar with all the complicated
facets of the airline industry. Nevertheless, I am hoping to get a
better sense of how you would approach a critical issue like airline
industry consolidation. As a general matter, I want to know what
concerns you might have, even just as a member of the traveling public,
about the possibility that the six largest airlines will pair off to
become three mega-airlines. What might be the negative consequences for
consumers if there are fewer competitors for passengers? Can you
foresee any positive aspects to an industry with three enormous
competitors rather than fewer? Please feel free to elaborate on your
responses.
Answer. The Department must ensure that airline markets remain
competitive in light of the proposed and possible future airline merger
and acquisition proposals. It should thoroughly and carefully review
the proposed United/US Airways merger and any future merger proposals
to see whether they would likely reduce competition. If the Department
concludes that any such transaction would likely reduce competition I
would urge the Justice Department to challenge the proposed merger or
acquisition.
Since the Department has just begun its investigation of the
proposed United/US Airways merger's likely impact on competition, I
cannot say what the Department will recommend to the Department of
Justice. Consumers, however, are generally more likely to obtain the
benefits of competition when there are more rather than fewer large
airlines operating in the United States. I would be concerned that
reduced competition resulting from fewer large airlines would mean
higher fares and less choice for the traveling public.
It is important to emphasize that Congress assigned the Department
of Justice primary responsibility for allowing or disallowing airline
mergers and acquisitions. I believe that the Department of Justice and
the Department must prevent any significant loss of competition in the
airline industry. Further, I am confident that the Justice Department
will oppose any merger or acquisition that reduces the number of large
airlines unless the Justice Department has determined that the
transaction will not likely reduce competition. As you know, the
Justice Department filed an antitrust suit in 1998 to keep Northwest
Airlines from retaining the major block of Continental Airlines voting
stock. Justice took this action after it concluded that the transaction
would violate the antitrust laws (Northwest and Continental are the
fourth and fifth largest airlines).
United and US Airways have told the Department and have testified
before your Committee that they believe that many consumers will value
the greater geographical scope of the network that would be created by
their proposed merger. Whether or not that is true, the decisive factor
in determining whether the airlines should be allowed to complete the
merger must be whether the merger is likely to reduce competition. I
look forward to working closely and cooperatively with the Anti-trust
Division of the Department of Justice on these important matters.
Question 2. The General Accounting Office and other highly regarded
analysts have found the perimeter rule at Reagan National Airport to be
an impediment to competition that tends to harm consumers and keep
airfares relatively high. Understanding that you are not fully versed
on all aspects of this particular issue, can you nonetheless give me a
general sense of whether federal laws and regulations that prohibit
private airlines from flying routes sought by their customers are
warranted in a deregulated industry? To look at it another way, would
you view as credible an attempt to limit the distance that passenger
ships or rail carriers could travel from a particular port or station?
If you believe that these types of federal restrictions on interstate
commerce and transportation are acceptable, please explain why.
Answer. Let me say, at the outset, that I believe one of my key
responsibilities at the Department will be to protect and promote
competition. Enhancing competitive choice for consumers has been a
priority for this Administration. Working on a bipartisan basis with
you and this Committee, I believe we have made important strides
together. There is, however, more work to be done. If confirmed, I will
come to my new position with that understanding and pledge to you that
maximizing consumer choice and competition will be a guiding principle
of every decision I make.
The decision whether to repeal the Perimeter Rule is a difficult
one for Congress to make. You and other supporters of this policy have
made strong arguments that such a change would benefit consumer choice
and competition. I am convinced that the Perimeter Rule, on its face,
operates against all that has been achieved through deregulation.
Further, I have noted with great interest the degree of carrier
participation in competing for the outside-perimeter slot exemptions
authorized by AIR-21, and I recognize that there remains a great deal
of pent-up demand for additional service beyond the perimeter.
Moreover, the Department's order articulates the potential competitive
benefits that can be achieved by allowing airlines to serve cities
outside of the perimeter. I fully concur with this assessment.
On the other hand, as a resident of Washington D.C., I am aware
there are strongly held local concerns about elimination of the
perimeter rule. Up to now Congress has lacked solid empirical data to
assess whether the concerns local officials and some of your colleagues
have raised are as significant as they fear. For the first time,
however, such data will be available. I am referring to the mandate in
AIR-21 that an assessment be prepared for the Congress on the local
impact of the six daily roundtrip flights beyond the perimeter.
Mr. Chairman, I look forward to reviewing the impact assessment of
the new beyond the perimeter flights when it is prepared. I think that
the study will be very useful to the Department and to Congress should
it revisit the Perimeter Rule issue in the future.
Question 3. As I am sure you are aware by now, there has been an
intensive lobbying campaign on Capitol Hill and at DOT with respect to
the award of new flights to China. In a Wall Street Journal article,
the Acting Assistant Secretary conceded that politics will play some
role in the upcoming decision, even though it is supposed to be based
solely on the public interest. While the views of members of Congress
and what is best for the country are not mutually exclusive, political
pressure should in no way affect such decisions. If you are confirmed,
can you assure me that you will do what is best for the public, even in
the face of political pressure from Capitol Hill or elsewhere?
Answer. I can assure you that, if I am confirmed, I will do what is
in the public interest. I will not be swayed by political pressure.
Question 4. Our skies are becoming ever more crowded. With the numbers
of flights and passengers increasing each year, the air transportation
system seems to get closer and closer to the breaking point. Many
observers say that the air traffic control system is simply not up to
the task of handling future demand. The problems with the ATC system
are in turn said to affect the competitive environment in the airline
industry. The airlines have even been known to blame the ATC system for
passenger dissatisfaction with their customer service. Do you believe
that the ATC is in need of a dramatic overhaul, or will the current
system allow the airline industry to remain healthy for the foreseeable
future? Do you think that privatization is an option that should be
considered to improve the ATC system?
Answer. I believe the air traffic control system needs to be
enhanced to match the growth of the industry and to be prepared for the
future. Addressing the increasing demand for air travel will require an
intense and coordinated effort by the FAA, the airlines, the airports,
and Congress. The FAA has taken steps in an effort to improve overall
operational efficiency of the National Airspace System. Those efforts
include the collaborative decision-making of the Spring/Summer 2000
plan and its successful efforts with Free Flight Phase One. The FAA
continues to work with the entire aviation industry to build upon the
successes of these initiatives. In addition, the Administration
supported the reforms contained in the recently enacted FAA
reauthorization, the Wendell H. Ford Aviation and Investment Reform Act
for the 21st Century, Pub. L. 106-181. The management and financial
reforms contained in the statute are expected to yield considerable
benefits towards the modernization of our nation's air traffic control
system. The Administration is committed to exploring other options or
structural changes that are necessary to respond to the growing demand
for air traffic services.
Question 5. As you may know, Richard Branson, CEO of Virgin Atlantic
Airways, expressed interest in starting a low fare carrier in the
United States. However, federal law currently prohibits him from doing
so. Wouldn't a new low fare carrier, regardless of its ownership,
inject much needed competition in the U.S. market? Should the Congress
lift the statutory limits on foreign ownership of U.S. air carriers?
Answer. You have identified a key issue in the ongoing debate
regarding our ownership and control statute. To relax the current
limits clearly would create broader opportunities for additional
capital, and therefore more competition, in the domestic airline
industry. On the other hand, such an initiative would also involve
significant national security and economic policy issues, of many
years' standing. I do not believe that, in light of these significant
issues, that it would be appropriate to lift the statutory limits on
foreign ownership at this time.
Question 6. DOT retains significant authority with respect to slot
restrictions at several key domestic airports. As Assistant Secretary,
would you urge opening up these airports beyond what was provided in
the recent FAA reauthorization act?
Answer. The Administration's legislative proposal to Congress
recommended that the slot rules be eliminated at all airports except
Ronald Reagan Washington National Airport by September 30, 2004. The
administration also recommended the exemption of regional jet services,
meeting specific noise requirements, from the High Density Rule at all
airports except Reagan National as of September 30, 2000. I fully
support the subsequent approach taken by Congress and the difficult
compromises it reached in drafting the Wendell H. Ford Aviation
Investment and Reform Act for the 21st Century (AIR-21) legislation.
The Department has expeditiously implemented this legislation,
which relaxed the slot rules at all four slot-controlled airports in
varying degrees. At Washington Reagan National, the Department granted
12 exemptions beyond the perimeter and 12 within. At the other three
airports, the statute exempted essentially new service to small and
non-hub airports with less than 71-seat aircraft. At LaGuardia and JFK,
the Department issued two orders per airport: one granting exemptions
to new entrants and one granting exemptions for service to small
communities. At Chicago O'Hare, the Department issued an order granting
blanket exemptions for service to small communities and a separate
order granting a total of 30 exemptions to new entrant/limited
incumbent carriers. Under the AIR-21 legislation, the slot rule ceases
to exist at Chicago O'Hare on July 1, 2002 and at LaGuardia and JFK on
January 1, 2007. I believe that the phased approach enacted by Congress
will provide the time required for all interested parties to adjust to
the changes and ensure a smooth transition. I am also committed to
monitor this process and work with the Committee to consider whether
additional changes ought to be implemented.
Question 7. One provision in the recent FAA reauthorization act
requires DOT to ensure that gates and other essential facilities are
available at fair and reasonable prices at large, dominated airports.
It is intended to prevent major carriers from using their dominant
positions in ways that deter entry by new carriers. What can the
Department do to ensure that new entrant airlines have reasonable
access to gates at airports they wish to serve?
Answer. The Department must be committed to eliminating unnecessary
entry barriers at airports, thus providing all carriers--new entrants
and incumbents alike--with opportunities to expand service and compete.
As outlined in the Department's October 1999 report on airport business
practices (Airport Business Practices and Their Impact on Airline
Competition), airport managers have a legal obligation to ensure that
air carriers have reasonable access to essential airport facilities.
Moreover, over the past several months, OST and FAA staff have worked
with new entrant carriers and airport managers to resolve certain
complaints that have been raised about airport access.
Beginning in fiscal year 2001 certain large and medium hub airports
must submit airport competition plans in order for the FAA to approve
the collection of a new Passenger Facility Charge (PFC) or for a grant
to be issued under the Airport Improvement Program (AIP). The
underlying purpose of this new statutory requirement--and one with
which I fully concur--is for those airports that are dominated by one
or two air carriers to demonstrate how they will provide for new
entrant access and the expansion of service by incumbent carriers. The
DOT has issued (May 8, 2000) a regulatory guidance document for
airports, as well as a ``template'' as to what type of information and
data the typical airport plan should contain. If confirmed, I will see
to it that the Department reviews the plans carefully to ensure that
airports are taking all appropriate actions to ensure reasonable
access. Further, I will work closely with the Committee in recommending
additional steps that may be taken should the current actions prove
inadequate.