Even as acute housing shortages continue in Wyoming, the state should avoid getting into the housing business, Gov. Dave Freudenthal said Tuesday in Casper.

"I'm not into rent control," he said. "I'm not going to have state housing projects."

Which is not to say there is no role for the state government to play in addressing housing shortages. The state can help with the infrastructure - the sewers, water lines and roads - that underpin new housing developments.

Freudenthal said the state hasn't allocated enough money for infrastructure. An effort to direct millions of dollars through the Wyoming Community Development Authority for such purposes died in the Legislature this spring.

He added that the U.S. Bureau of Land Management may need to make available more federal land around communities that are essentially landlocked.

Speaking before business leaders at the Outlook 2006 Forum, sponsored by the Wyoming Business Alliance/Wyoming Heritage Foundation, Freudenthal said telecommunications, modern infrastructure and investments in education and worker training are vital for economic growth.

He said nothing is gained by arguing whether economic diversification or adding value to commodities produced in the state is the preeminent concern, because at certain junctures they become indistinguishable. A new plant turning coal into diesel fuel will have direct employment and payroll impacts, but it will also create spin-off activities and secondary businesses.

Maintaining a positive business climate is another important ingredient to economic development.

"If (businesses) make money, this economy grows. If they don't, this economy dies. It's not a very complex equation," Freudenthal said.

In terms of the burgeoning energy industry, Freudenthal said while there is much good news, the state needs to do more to ensure that it gets full value for its oil and gas - a problem that is being addressed by the Wyoming Pipeline Authority.

Freudenthal said it has been a long-term goal in the state to generate more power for export, rather than merely shipping coal to faraway power plants. It's a dream that could be fulfilled with construction of the Frontier Line to California.

"The mother lode of demand for electricity in this country is California," he said.

The turning point, Freudenthal added, has been the private sector's willingness to participate in the project. The private sector will make the business decisions, while governments will address environmental and regulatory issues across four states.

The state can be flexible with respect to how the power is actually generated to meet the demands and environmental requirements of end users, he said.

"If California wants green electrons, we'll make them green. If they want them pink, we'll make them pink," Freudenthal said.

Business Editor Tom Mast can be reached at (307) 266-0754 or tom.mast@casperstartribune.net.