McHenry votes no on Big 3 bailout
WASHINGTON — U.S. Rep. Patrick McHenry voted against H.R. 7321, the legislation authorizing the use of American taxpayer dollars to bail out domestic automakers.
McHenry said, “At its essence, this bill is nothing more than the Democratic Congress, President Bush, President-elect Obama, the UAW, the automaker CEOs, and a to-be-determined ‘car czar’ saying to American taxpayers, ‘Trust us with your money. We’ve got a secret plan.’ Well, that doesn’t cut it.
“Before a single dollar is extracted from taxpayers, a concrete reorganization plan should be presented to the American public and debated by their representatives in Washington. Instead, we’re told, ‘trust us and vote yes.’”
In the Washington Post, an automotive analyst accurately and objectively characterized the legislation saying, “With only broad goals of viability and competitiveness outlined in the bill, the depth and pace of [American automaker] restructuring will depend on the tough-mindedness of the ‘czar’ to extract meaningful concessions from labor and bondholders.”
“With absolutely no assurances that this first $15 billion of taxpayer money will do little more than delay the inevitable, I cannot vote for the bill,” McHenry said. “In the long run, far more American automobile-related jobs will be saved under Chapter 11 reorganization than tweaking and perpetuating the failed business practices of the Big Three and the UAW.”
The congressman raised concerns about whether a successful bailout would yield positive results for Americans. In a Nov. 6, 2006, interview with the Wall Street Journal, General Motors CEO Rick Wagoner said, “China is a natural” to produce “built–up cars and components.”
Another Journal article the following day stated, “The manufacturing of vehicles is starting to shift to China, in much the same way that production of garments, televisions and computers did.”
In light of this, McHenry asked, “Does this secret plan include a means to reverse the industry’s trend of shutting down American auto parts dealers and manufacturers in favor of cheap Chinese competitors?
“If American taxpayers are forced to bail out the American automakers, then they deserve absolute assurances that American automobile-related workers and businesses will reap the benefits — not Chinese competitors. Otherwise, what exactly is the point of saving so-called American automakers if the outcome will be job creation in China?”
From the office of U.S. Rep. Patrick McHenry, 10th U.S. House District, http://www.mchenry.house.gov.
