Deal discusses business climate

GAINESVILLE - A group of Gainesville business leaders was told Thursday there are still some deep, underlying issues that must be dealt with in light of last year's corporate scandals.

Tenth District Congressman Nathan Deal addressed the monthly meeting of the Greater Hall Chamber of Commerce.

"Sometimes you come to pivotal points because of bad situations," Deal said in reference to the Enron/Worldcom/Global Crossing debacles.

Deal outlined the corporate accountability laws that Congress passed last year that are designed to prevent future such scandals. However, Deal said the country still must deal with lingering issues.

Included are the continued emergence of multi-national companies and what they mean to the U.S. economy.

Deal noted there are those who are critical of the increased part foreign companies and foreign investors play in the economy of this country.

Other issues include the continued decline in the number of "mom-and-pop" businesses and the amount of stock workers hold in the company's they work for, especially in their retirement accounts.

Many Enron and Worldcom workers saw their retirement accounts depleted when the company stock in them became virtually worthless at a time when they were being told by company executives that everything was okay. Deal said they are victims of "deceit and subterfuge."

"Government can do so much," Deal said. "I don't think we want to get to the point where we expect government, especially at the federal level, to attempt to micro manage private industry..."

Deal said "that quite frankly" is the challenge that Congress faced last year and continues to face.