CQ TODAY ONLINE NEWS
– ECONOMIC AFFAIRS
Nov. 20, 2008 – 2:36 p.m.
Democrats to Auto Industry: Show Us a Plan for Viability
By Joseph J. Schatz and David Clarke, CQ Staff
Democratic leaders of Congress slammed the brakes on efforts by Rust Belt senators to push an auto industry loan through Congress this week, saying they first need to see a plan to make the industry viable going forward.
House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid , along with other key Democrats, said Thursday they will give the Big Three until Dec. 2 to submit a proposal in writing to Congress that shows a path to viability that will protect taxpayers and auto workers.
If they do, the banking committees in both chambers will hold hearings that week, with floor action possible the week of Dec. 8 in a resumed lame-duck session of the 110th Congress.
“Until they show us a plan, we cannot show them the money,” said Pelosi, D-Calif.
Reid said the chief executives of the domestic automakers, who have been on Capitol Hill this week begging for an emergency loan to deal with a cash flow crisis, have failed to convince lawmakers — or their constituents — that they have a plan for restoring a viable domestic industry.
“We’re prepared to come back into session the week of December 8th to help the auto industry, but only if they present a viable plan that gives us, the Congress, the confidence that taxpayers and the auto workers will be well served,” said Reid, D-Nev.
A spokesman for Ford Motor Co. released a statement saying, “Ford welcomes the opportunity to provide our plan to Congress. We have a great plan that will continue Ford’s transformation into a lean, profitable company that delivers the safe, fuel-efficient, high-quality new products that our customers want and value.”
The leaders moved to the microphones shortly before four Rust Belt senators — two from each party — discussed a compromise loan package for the automakers.
The compromise was struck by Christopher S. Bond , R-Mo., George V. Voinovich , R-Ohio, Carl Levin and Debbie Stabenow , both D-Mich. It would have relaxed requirements on a $25 billion Department of Energy loan program for automakers that was enacted last year to help the industry shift to more fuel-efficient vehicles (PL 110-140).
In an effort to address concerns of many Democrats and environmentalists, when the loans are repaid, the money would go back into the energy efficiency program, allowing it to continue operating.
The compromise effort came after Republicans led by Minority Leader Mitch McConnell , R-Ky., blocked Reid’s effort Wednesday to advance legislation (
The White House opposed Reid’s effort and criticized him for blocking use of the energy loans. But he struck back.
“What purpose would be served in having a bunch of failed votes here?” Reid said Thursday.
Democrats to Auto Industry: Show Us a Plan for Viability
Reid praised the hard work of the Rust Belt quartet, but said the votes were simply not there to push any type of auto aid through the Senate at this point.
The auto state senators, he said, have been “working hard this week to fashion a bipartisan compromise . . . but it’s their compromise.”
Reid and other leaders said “skepticism” is the predominant sentiment on Capitol Hill when it comes to bailing out an industry that many Americans believe brought its woes on itself.
The leaders basically challenged Detroit to sell the public first — and then Congress — on a plan that shows a real change of direction going forward without simply stripping autoworkers of their pay, benefits and jobs.
Sherrod Brown , D-Ohio, a supporter of the compromise efforts, said that the leadership’s decision was a “positive step. . . . This keeps the ball going down the field.”
But Levin, a key industry ally on the Hill, said the leadership’s move is “a delay I think is risky and unnecessary.”
“They run the show, so that’s what has to be done,” Voinovich said. ““I was surprised. I thought what was going to happen was that Carl was working with Harry, and I was working with Mitch, and the two leaders would talk about how to get this done in the next few days.”
Kathleen Hunter and Bart Jansen contributed to this story.
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