Trade Groups Oppose New Rule; Proposal Would Curb Federal Socializing with the Regulated

By Devaney, Tim | The Washington Times (Washington, DC), October 26, 2011 | Go to article overview

Trade Groups Oppose New Rule; Proposal Would Curb Federal Socializing with the Regulated


Devaney, Tim, The Washington Times (Washington, DC)


Byline: Tim Devaney, THE WASHINGTON TIMES

Washington trade groups say a proposed new Obama administration rule sharply curbing the ability of federal employees to attend industry shows or interact with those they regulate goes too far.

It could have a potential chilling effect on all industries, said Alan Chvotkin, executive vice president and counsel at the Professional Services Council. That's a mistake in our view.

The Office of Government Ethics plans to strike down exceptions that allow federal employees to receive gifts worth less than $20 - like paying for a cheap lunch meeting - and attend industry trade shows for free.

It could prevent a representative from the Department of Transportation from attending the Auto Show in Detroit, for example, or a Federal Communications Commission employee from going to the Consumer Electronics Show in Las Vegas. That, in turn, could hurt innovation and stifle the economy.

We need to stop making business the enemy of government and make them a partner in job creation and economic growth, said Gary Shapiro, president and CEO of the Consumer Electronics Association. I cannot understand why the administration would seek to further segregate business and government when we need and must have economic growth and job creation.

This proposal is part of the Obama administration's crackdown on lobbying corruption to prevent scandals like the one involving Jack Abramoff. Watchdog groups are calling it a win for government ethics.

The existing gift rule for career employees has largely been ignored, said Craig Holman, legislative representative at Public Citizen. "We've had a very inconsistent and chaotic enforcement of ethics when it comes to the executive branch.

This further clarifies exactly the ethics standards that are to be followed, he added.

But business leaders and lobbyists fear it will stunt innovation and hurt the economy.

That's the concern we have, said Jim Clarke, senior vice president of public policy at the American Society of Association Executives.

The ASAE wrote two letters, one to the White House and one to the Office of Government Ethics, about the issue. The organization also plans to file an official comment on the matter before the Nov. 14 deadline.

We believe that policies restricting knowledge sharing between the government and trade associations are counterproductive to the administration's stated aspirations to work in partnership with the business community to create jobs and grow the economy, ASAE said in a letter to White House Chief of Staff Bill Daley.

There are tremendous benefits in allowing agency officials and other government employees to attend programs and other events that have a clear nexus to the government's interest, the group went on to explain in a letter to Don Fox, acting director and general counsel at OGE. …

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