40 



investment made is guaranteed by the SBA. I have some concerns 

 about where that leaves me. 



The uncertainty that this allocation has created, I think, troubles 

 all of us. Prdcessors can't do adequate business planning. I can't. 

 It's reeking havoc. If there is anything that this committee can do 

 to offer some stability or some sense of certainty, we would all be 

 grateful. 



[Mr. Duncan's statement, with attachments, may be found in the 

 appendix.] 



Chairman Wyden. We thank you, Mr. Duncan. It is very helpful. 



Let me say to all of our witnesses again. I'm going to have to 

 keep you on 5 minutes or we will be here until dinnertime. 



We welcome you, Mr. Libby. 



TESTIMONY OF TOM LIBBY, GENERAL MANAGER, POINT ADAMS 



PACKING CO. 



Mr. Libby. Thank you for the opportunity to be here. 



There is one comment that I would like to start with. It is in 

 regard to some of what Mr. Johnson had to say in relation to the 

 economic analysis of this. The economic analysis did show, however 

 small, an advantage shoreside. 



He said that because of the recognized volatility of the market 

 and the tremendous drop of the market, that the economists in 

 Washington, DC felt that it skewed the economic advantage to the 

 Nation to the factory trawlers. 



The fact is the market has nothing to do with it. Whether it is a 

 high market or a low market, the advantage is the same. So, that 

 justification for throwing an economic analysis out doesn't stand 

 the test of logic. 



With that, I would like to see if I can give a few details that are 

 related to a single processing company on the coast. I represent 

 Point Adams Packing Co. We have a small processing operation in 

 Hammond, Oregon, to produce surimi from the whiting. It is small 

 in relation to the operation that exists here in Newport and ex- 

 tremely small in relation to the operations that exist on the factory 

 trawlers. 



In 1991, when the window of opportunity in the market opened 

 to allow people into surimi production and whiting, surimi was be- 

 coming more acceptable in the market. Many of us along the coast 

 here made a determination that this may be a fairly reasonable in- 

 vestment. 



In watching from what happened, from the council standpoint, it 

 looked like a fairly reasonable investment. Then it seemed, again 

 in 1991, prior to the 1992 season, what happened with the Depart- 

 ment of Commerce and their rejection of the support— and this was 

 a year's worth of support development that the regional council 

 put into their recommendation— it was rejected. Everybody held off 

 on their decisions. 



At the last minute, a decision was made— an emergency rule was 

 issued— that made it appear that it was supporting the stated goals 

 and objectives of the council, as well as the legislated direction 

 under the Magnuson Act. 



