House Passes Pearce’s Potash Revitalization Language
Pearce Urges Senate to Take Immediate Action on Legislation
Washington,
Oct 5, 2004 -
Yesterday, the U.S. House of Representatives passed Congressman Steve Pearce’s potash revitalization language as part of S. 1521. The language passed by the House is identical to the text of H.R. 4984, the Potash Royalty Reduction Act, which would revitalize the potash industry and help save more than 1,000 jobs in New Mexico.
“I urge the Senate to consider this important piece of legislation and pass it as quickly as possible. This bill will revitalize the potash industry and have a significant positive economic impact in New Mexico by helping the industry remain competitive with foreign imports and keep high paying jobs in the United States,” Pearce said.
About 85 percent of potash is used for fertilizer, thus making the potash industry economically tied to the health of the farm economy. However, over the last few years domestic production has fallen from a high 3.45 million metric tons in 1991 to 2.4 million metric tons in 2003. Employment has fallen from almost 3,000 employees to about 1,000 people employed in New Mexico today. This decline in a once–robust industry is due to increased foreign imports which pay little or no royalties and to the high natural gas prices in the United States which drove down demand and raised the cost of producing fertilizer.
As a result, there have been numerous bankruptcies, consolidation of companies and layoffs within the industry as well as the attendant contraction of small businesses that support the mines and the miners. At one time there were seven companies producing potash within the Presidentially–declared National Potash Reserve. Today, there are two.
The Potash Industry is an important economic engine in New Mexico, with a payroll of about $70 million, and having an impact of about $140 million. The annual taxes paid to federal, state and local government is almost $20 million dollars.
Pearce added, “We need to ensure this bill passes in the Senate and is signed into law in order to save at least 1,000 jobs and the small businesses that are dependent on New Mexico’s potash mines.”
H.R. 4984 was passed on September 15, 2004, by the House Committee on Resources of which Congressman Pearce is a Member.
