Honorable Thomas S. Foley 2 in the public interest. Some deregulation of rates and charges can be accomplished by a change in administrative policy. The Department plans to issue a proposed policy statement setting forth modification of our current policy, with proposed implementing regulations. The public will be given an opportunity to comment on the proposed changes prior to the issuance of a final rate policy. Because of the uncertainty as to the effect of deregulation on the livestock producers and the marketing industry, the Department, after one year, will review the program to assess the economic impact of deregulation. This is a first step in the Department's effort to carry out the President's commitment to reduce unnecessary regulation and unnecessary paperwork requirements. This proposed policy would permit stockyard operators and market agencies to file any level of per head rates and charges they select after adequate notice to livestock producers. If no valid complaint is received, the tariff would be accepted for filing without any review or other action. Each market operator would be required to apply the tariff charges uniformly to their market users. Such a change in policy would give market operators unlimited flexibility in determining their own rates, adjusting them because of changing costs of operations, and will provide for livestock producers to be involved if they believe the proposed rates and charges are unreasonable. We believe that enactment of this proposed legislation would result in approximately the same expenditure needs as are required in the present budget since all markets would be required to file tariffs and be subject to investigation to determine if they are properly assessing tariff rates and charges. Furthermore, a new and additional program activity would be required to review the volume of the various markets and determine whether new markets have been built or markets have been discontinued within 75 miles of another market of 20,000 animal marketing units or more volume. This would be necessary in order for the Secretary to determine whether the authority under the Act regarding the justness and reasonableness of rates and charges is applicable to the various markets. The Office of Management and Budget advises that there is no objection to presentation of this report from the standpoint of the Administration's program. Sincerely, Bob Bergland |