Washington, D.C. – The Big 3 auto makers made their case to the Senate Banking Committee this afternoon about why they think their flailing businesses should be bailed out by taxpayers. U.S. Senator Mike Enzi, R-Wyo., a member of the committee, said a $25 billion bailout is not the answer and auto makers should do what it takes to restructure instead of seeking billions from taxpayers.
"If this package were taken to a banker with a request for $25,000 he'd send the applicant back to work to actually do a business plan. Small business owners jump through more hoops for a few thousand than the auto industry's $25 BILLION. The auto industry with their experts and analysts should know better and do better. They should be embarrassed with where they are and how poorly their request is prepared. "Labor costs, enormous pension and health care liabilities and inefficient production have contributed to the current crisis in the auto industry. But the Big 3 executives are pointing the blame entirely on the economy and that does not add up, especially when other car companies are staying afloat. They are not taking responsibility for what has been in the making for years, instead they are looking to you, the taxpayer, to bailout their bad decisions and blaming it on the economy. "There is nothing in this bailout proposal to prevent the same problems from returning to the auto industry in the future. If this bailout package continues to lack details for an appropriate business plan to curb future problems, I will vote on it the same as I have on previous bailouts - no. "Some people say that the definition of insanity is repeating the same action again and again, expecting different results. That is exactly where we are heading today. Where does this stop? Congress should stop writing billion-dollar checks expecting different results," said Enzi. Other Alternatives Enzi urged the Banking Committee to examine ways to modify the existing proposal to make it more taxpayer friendly. His ideas include: securing the $25 billion loan with unencumbered assets of the participating auto companies and boosting private sector investment through a matching program similar to the one proposed by U.S. Department of Treasury Secretary Paulson. Committee Process Obstruction Enzi also stressed his concern with the normal committee process being ignored for this bailout consideration and the Emergency Economic Stimulus Act. "The committee process is the method by which we consider legislative proposals, weigh alternative ideas and build coalitions through the process of deliberation. Lately this vital process has been thrown out the door and replaced with a process completely controlled by the Majority Leader. Bills only see the light of day on the Senate floor the day we are expected to vote on them. Unless a bill is referred to a committee where problems can be worked out and stake holder input included, the bill starts out flawed. This auto bailout bill is not only fundamentally flawed but procedurally flawed. It makes no sense that the bill is still being finalized behind closed doors and we’re here today having a hearing on it," said Enzi.
