Firms fear costs of new security

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Industry representatives warned yesterday during a conference on homeland security that new government regulations risk hurting their competitiveness.

The conference at the Washington Convention Center represents an effort by the Department of Homeland Security to work with industry to develop antiterrorism policies.

It also responds to a presidential directive in December that ordered the Homeland Security Department to cooperate with the private sector to "identify, prioritize and coordinate the protection of critical infrastructure" against terrorism.

Retired Coast Guard Adm. James M. Loy, deputy homeland security secretary, acknowledged consumers would need to pay for higher security costs imposed on companies but said the costs are "a very logical extension of how America has worked for years."

He also said the costs would be small.

"I don't think it will hurt American competitiveness," said Adm. Loy, who was promoted last year from head of the Transportation Security Administration.

He said government alone could not protect the 85 percent of the nation's critical infrastructure owned by private operators.

"You are in the best position to tell us where your vulnerabilities lie," he told about 300 corporate executives.

He mentioned new methods for inspecting imported cargo containers as an example of how government can minimize the effect of tighter security.