Claiming that federal air, water and noise laws will force his firm to spend $2.3 billion on projects of questionable value by 1935, E.I. Du Pont de Nemours & Co. Chairman Irving S. Shapiro yesterday called for system of "zero-vased regulatory review."
Such a policy is necessary to step potential "regulatory overruns" that may force capital expenditures by industry "in national scandal proportions," he told a meeting in Atlanta.
Id Du Pont could spend the required $2.3 billion to increase its productive capacity rather than for projects "that will deliver no significant benefits" to the public, the Washington company could build or expand 20 plants and provide about 15,000 Du Pont jobs and as many more in related industries, Snapiro told the Atlanta Rotary Club. A copy of the speech was made available here. Shapiro said yesterday that second-quarter profits for Du Pont, the nation's largest chemical manufacturer, should be higher than the $128.3 million ($2.60 a share) earned in the 1976 period. He declined to predict actual profits, but told Dow Jones New Service that business is better for Du Pont "across the board."
Synthetic fiber production has moved from a deficit to a modest profit, and prices are expected to rise gradually as demand increases, Shapiro said. He noted that prices for crude oil (from which polyester fibers are made) will increase and that such price boosts would be passed on to consumers.
In his speech, Shapiro noted that President Carter has directed that the next federal budget use "zero based" principles which require a review from scratch of each program's justification and the amount of funding.
For the same reasons of identifying "waste and obsolescene," Shapiro said zero-based regulatory review would assure that expensive environmental and health regulations "are still needed in their original dimensions."
Altogether, the DuPont Co. faces the need to spend $3 billion by 1985 to meet noise, water and air pollution standards.