U.S. to get energy dept

Press, 4 August 1977, Page 8

U.S. to get energy dept

NZPA-Reuter Washington

An energy department, the first new department of the United States Government in 11 years, is expected to be created this week after getting overwhelming Senate approval last night. At its head will be Mr James Schlesinger, the 48-year-old former Defence Secretary and head of the Central Intelligence Agency who is at present President Carter’s energy adviser. As Secretary of Energy, he will become a member of the Carter Cabinet. Mr Schlesinger’s task will be to direct Mr Carter's war on America’s increasing dependence on foreign oil, now approaching half of all United States consumption. The Senate approval — by 76 votes to 14 — followed a 353-57 vote in the House of Representatives earlier in the day. In that vote, Opposition Republicans lost their bid to end the new department after five years by a 257-157 margin. The House will vote today on Republican proposals to end all price controls on natural gas, instead of the President’s plan to keep the price ceilings but allow a higher price for new natural gas.

But the leader in the House of Mr Carter’s energy

conservation measure, a Democrat, Mr Thomas Ashley, predicted at a news conference that the Administration would win its fight to keep price controls on natural gas. Another major battle is likely over the Administration’s proposal to raise the 4c tax on petrol. Mr Carter wants either a 4c tax over two years or a 5c tax starting in 1979.