Public Works Contracts for Minority Businesses White House Statement on a Supreme Court Decision.

The President strongly applauds the Supreme Court's decision upholding the constitutionality of the minority business set-aside provision in the 1977 Local Public Works Act. The Court's decision substantially strengthens Federal efforts to increase participation of minorities in our Nation's free enterprise system. Moreover, the Court's decision once again approves the use of affirmative action as a proper tool to remedy past acts of discrimination.

The set-aside provision in question required that 10 percent of the contracts let under the $4 billion Local Public Works Act of 1977 be made with minority business firms. When the set-aside was first proposed by U.S. Representative Parren Mitchell, D-Md., critics doubted whether minority businesses had the capacity to handle the $400 million in public works contracts involved in implementing this provision. Congressman Mitchell, this administration, and other supporters of minority business knew that such a goal could and would be met.

Department of Commerce records show that the 10-percent goal has been met and exceeded. Indeed, over 15 percent of the contracts entered into thus far, more than $600 million, have been with minority-run firms. The records further indicate that these contracts have all been or will be successfully completed.

The Court's decision firmly establishes that Government efforts to assist minority businesses in obtaining economic equality are on solid constitutional ground. This administration will proceed vigorously with its set-aside program as well as other efforts to support minority business.

This administration will continue to work to increase minority participation in Federal procurement at the prime and subcontract levels, strengthen minority banks, and increase minority ownership of broadcast properties. With the assistance of advocates like Congressman Mitchell, Joe Addabbo, the National Business League, NAACP, and other leaders in this fight, we will continue to increase the Federal role in assisting minority businesses become more productive.

This administration will also work aggressively with organizations like the Business Roundtable, the Chamber of Commerce, Minority Purchasing Council, and others to see that the private sector does its share toward making the promise and potential of the free enterprise system a reality for all Americans, regardless of race, color, sex, or national origin. Such efforts increase competition and productivity, help produce stronger and more viable businesses, create more employment opportunities for our people, and help improve the quality of our lives.