and energy could more profitably be spent solving real problems," Thayer says. Nevertheless, senior executives must get even more deeply involved. "The time to get to know legislators is during 'noncrisis' periods, so that we can do a better job when we meet with them when we have a real problem." There are several other things industry leaders can do to reverse the current trend, according to Thayer. For example, management should cooperate with employees and unions in common causes. "Regulations can hurt the interests of employees as well as of management." Consider, he says, the new pension reform law: Large companies, able to bear the increased costs, will comply. But more than 5000 U.S. companies have been forced to drop their pension plans because they couldn't absorb the added costs. Although the intent of the law was to provide better pension protection, the result was that "some employees who formerly abuse by a tiny segment of industry . . . had less-than-perfect retirement plans but the law or regulation developed ends now have no retirement plan at all." up being applied to all members of inFinally, Thayer notes, "There are more dustry—the innocent as well as the than two dozen bills pending in Congress guilty." A prime example, he adds, is the that provide for review and elimination of Occupational Safety & Health Act, with excessive, duplicative, inflationary, and its "mountains of paperwork, high costs, anticompetitive regulation." He advises and some notably foolish regulations chemical executives to "get busy and let dealing with trivia instead of safety." your Senators and Representatives know Top management already spends an that you strongly support such legislation inordinate amount of time wrestling with and urge them to get on with it." legislation and regulation "when the time Ward Worthy, C&EN Chicago
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C&EN Oct. 11, 1976
Fluorocarbon makers set for possible ban In the wake of the National Academy of Sciences report about the adverse effects of chlorofluorocarbons on the environment, chemical makers are taking a cautious approach to the possibility of an eventual ban, limited or otherwise, on chlorofluorocarbon use. Most producers say that existing plants can make other products, or be used to produce more environmentally acceptable chlorofluorocarbon substitutes. Few producers are ready to put the brakes on production now, but the chances of increased chlorofluorocarbon 11 and 12 production are nil. Three U.S. chlorofluorocarbon producers—Du Pont, Allied Chemical, and Union Carbide—all say that their facilities for chlorofluorocarbons can be shifted to other products, and that they won't be stuck with obsolete plants if the federal government mandates a sweeping ban on the compounds. A fourth major producer, Pennwalt Corp., Philadelphia, already is moving to minimize the financial effects at least of any eventual curtailment of chlorofluorocarbon production. Speaking to financial analysts in New York City last month, Pennwalt chairman and president William P. Drake said that "at the beginning of the year we felt it prudent to anticipate the worst—that is, that Isotrons 11 and 12 [Pennwalt's brand of chlorofluorocarbons 11 and 12] would be banned. Under the circumstances, we have been depreciating the remaining value of our facilities for these products at an accelerated rate." Drake says that the company originally planned to write off completely the value of its chlorofluorocarbon plants this year, but now that the long-awaited NAS report is out "it would not appear that the situation is anywhere as bad as it might have been." NAS concluded that an immediate ban on the chemicals was not imperative, preferring instead to wait up to two more years before deciding on further recommendations. Drake says that in light of this, Pennwalt will write off the value of its plants over the next 10 quarters (two and a half years). Pennwalt has chlorofluorocarbons capacity at Calvert City, Ky., and Thorofare, N.J. Spokesmen for the other three firms say they know of no moves afoot to follow Pennwait's lead, at least as far as accounting changes go. Chlorofluorocarbon makers, however, appear to be facing up to the reality of the situation. As Du Pont environmental control manager Robert J. Reichert said last month at the International Conference on the Stratosphere & Related Problems in Logan, Utah, "If the facts bear out the theory that continued use of certain fluorocarbon products would cause a health hazard through depletion of stratospheric ozone, we are prepared to adjust production of the offending compounds to the extent required to cope with the hazard." D
