[Congressional Record Volume 154, Number 194 (Saturday, January 3, 2009)]
[Extensions of Remarks]
[Page E2388]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E2388]]
             AUTO INDUSTRY FINANCING AND RESTRUCTURING ACT

                                 ______
                                 

                               speech of

                        HON. PETER J. VISCLOSKY

                               of indiana

                    in the house of representatives

                      Wednesday, December 10, 2008

  Mr. VISCLOSKY. Mr. Speaker, I rise today in support of H.R. 7321, the 
Auto Industry Financing and Restructuring Act.
  I voted twice against the Emergency Economic Stabilization Act of 
2008, more familiarly known as the Wall Street bailout, because I felt 
that it was an irresponsible use of $700 billion of taxpayer dollars. 
There was no concrete plan for how those funds would be used or what 
specifically they would accomplish. I opposed the Wall Street bailout 
because it was in essence a blank check.
  So I thought long and hard about the proposed use of $15 billion in 
hard-earned taxpayer dollars to provide assistance to auto 
manufacturers. I have concluded that these are substantially different 
circumstances, and that the Auto Industry Financing and Restructuring 
Act represents a practical and fiscally responsible approach to saving 
millions of jobs and a key pillar of our fragile economy.
  I want to emphasize that the approach taken in this measure is in 
sharp contrast to the Wall Street bailout. I continue to believe that 
it was a mistake to blindly hand Wall Street everything it wanted, and 
to rush to such a decision in just seven days. The Government 
Accountability Office released a report on December 2, 2008, that shows 
that the proper and effective distribution of those funds remains 
impaired by a lack of adequate transparency and accountability.
  Congress has taken a more measured approach to addressing our 
struggling automotive industry. Congressional leaders correctly turned 
down the auto manufacturers' initial request for tens of billions of 
dollars with no strings attached. We sent the auto manufacturers back 
to the drawing board to develop specific plans to restructure their 
operations and to provide a credible account for how they would use 
federal funds to build a viable industry, with quality jobs, while 
protecting taxpayer investments.
  I am encouraged by the auto manufacturers' good faith efforts since 
that time, and I am pleased that this Act would provide the 
transparency and accountability that should have been built into the 
Wall Street bailout. In addition to strong independent oversight by the 
GAO and a Special Inspector General, the auto assistance funds would be 
subject to rigorous oversight with the government having full 
information access and veto powers over large industry expenditures. 
Auto executives will be held accountable for implementing their 
restructuring plans and complying with Congress' terms. The funds also 
would be subject to strict conditions, such as requirements that 
innovation funding be set aside to build advanced technology vehicles 
with improved efficiency and carbon emissions. Additionally, this 
measure establishes hard deadlines for progress in restructuring, and 
includes provisions for cutting off aid if these deadlines are not met.
  For example, companies receiving assistance would not be allowed to 
pay dividends to their shareholders until they repay the loan, and the 
government could require immediate repayment from any company that does 
not make adequate progress by February 15, 2009. Further, unlike the 
Wall Street bailout, taxpayer dollars would not simply be given to 
executives to line their pockets. These companies would be explicitly 
prohibited from giving their highest-paid employees large bonuses or 
golden parachutes.
  It is true that $15 billion is a significant investment. However, 
given that this assistance is only two percent of the amount given to 
Wall Street, under the circumstances I believe that we have no choice 
but to view this as a moderate approach to preventing catastrophic job 
loss. It is my hope that this sober-minded package will function as a 
bridge to keep the auto manufacturers functioning into the next 
Administration, and provide additional time to figure out how to save 
the domestic automotive industry.
  Having said that, I intend to carefully follow the implementation of 
this program, to ensure that taxpayer money is spent properly.