[Congressional Record Volume 143, Number 67 (Tuesday, May 20, 1997)]
[House]
[Page H2928]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              INTRODUCTION OF THE AMTRAK PRIVATIZATION ACT

  The SPEAKER pro tempore. Under the Speaker's announced policy of 
January 21, 1997, the gentleman from Colorado [Mr. Hefley] is 
recognized during morning hour debates for 5 minutes.
  Mr. HEFLEY. Madam Speaker, what do the Americans think of when they 
hear the statement ``free of Federal subsidy''? What about ``self-
sufficiency''? I think these terms refer to programs that receive no 
Federal funding. It means that the program runs like a business and its 
survival is dependent upon its business practices and its customers.
  Madam Speaker, someone needs to tell this to Amtrak. Tom Downs, 
Chairman and CEO of the National Railroad Passenger Corporation, or 
Amtrak, has been frequently quoted as saying Amtrak could become a 
self-sufficient operation if Congress would give it a permanent source 
of funding.
  Amtrak was created in 1970 as an independent and self-sufficient 
corporation and was given a one-time grant of $40 million. Twenty-seven 
years and $19 billion later, I would think Amtrak and Congress would 
realize that a dedicated funding source is not going to help passenger 
railroads make money or become self-sufficient. But Amtrak continues to 
cry ``Show me the money.''
  Madam Speaker, let us face it. Amtrak is in crisis. The question is 
not whether Amtrak can reach sufficiency by 2002, as mandated by 
Congress. The question has become will Amtrak still be in business next 
spring?
  As long as the Federal Government is involved in Amtrak it will not 
survive, and it is not as if we have not seen the light at the end of 
the tunnel. In 1995, with Congress pushing for a balanced budget and 
making cutbacks, Amtrak realized that they could no longer depend on 
the Federal Government for nearly a billion dollars every year. To 
their credit they did what a number of large corporations have done in 
the 1990's. They undertook a major corporate restructuring and began to 
look at themselves as a business. They reduced services on 16 routes 
across the country and saved about $54 million. They cut staffing and 
tried to improve service and make rail travel more attractive to the 
average consumer.
  Amtrak has shown that if the tough decisions are made money can be 
saved. Much of the problem, however, is not Amtrak's fault; we are to 
blame. See, Federal law is prohibiting Amtrak from making the most out 
of their staffing reductions or forcing Amtrak to provide ridiculously 
generous severance packages and preventing them from making the truly 
tough business decisions, and as long as the Federal dollar keeps 
flowing to Amtrak, we will always attach a fistful of strings.
  Today I am reintroducing the Amtrak Privatization Act. Some people 
will call this the Amtrak killer. I call these reforms Amtrak's only 
chance for survival. My bill will do three very important things that I 
think will help Amtrak survive. First of all, we need to let Amtrak 
operate like a business. Congress should not mandate what routes the 
trains take or where they should stop. Congress should no more force 
Amtrak to run an unprofitable route than mandate what items a local mom 
and pop shop stocks.
  The Amtrak Privatization Act will free Amtrak from those Federal 
controls and allow them to make the necessary cuts to survive. Some 
routes may be eliminated. But remember, Amtrak has said it will be out 
of business by next spring if nothing is done. That means all routes 
would then be eliminated.
  So let us say Amtrak eliminates some routes and must lay off some 
rail workers as a result. Congress has mandated that a laid off Amtrak 
employee receive up to 6 years full pay, 6 years. Show me another 
employee who gets full pay for 6 years after being laid off. My bill 
will allow them to receive a more reasonable 6 months pay after being 
laid off. Amtrak's labor agreements have got to go.
  Finally, this bill creates a glidepath toward self-sufficiency in 
2002. Until Amtrak gets off the Government till, including stealing gas 
tax dollars to support rail, Congress will be trying to mandate how it 
should operate. I contend if we take all Federal control over Amtrak 
away, including Federal dollars, Amtrak will find a way to survive. If 
we do not, Amtrak will stop rolling perhaps even next spring.

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