[Congressional Record Volume 160, Number 121 (Wednesday, July 30, 2014)]
[House]
[Pages H7115-H7118]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EXPORT-IMPORT BANK REAUTHORIZATION
The SPEAKER pro tempore. Under the Speaker's announced policy of
January 3, 2013, the Chair recognizes the gentlewoman from California
(Ms. Waters) for 30 minutes.
Ms. WATERS. Mr. Speaker, today we have Democrats on the Financial
Services Committee here where we have gathered on the House floor to
talk about the Export-Import Bank, which supports hundreds of thousands
of jobs and levels the playing field so that American businesses, large
and small, can compete successfully in the global markets.
Tomorrow, Speaker Boehner and the Republican leadership will leave
town for a 5-week congressional recess, and legislation to renew the
Export-Import Bank hasn't even seen a vote in our committee. When we
return in September, there will be just 10 legislative days to renew
the bank before its charter lapses on September 30.
This ideological push to abolish the Ex-Im Bank is an irrational
crusade to destroy an agency that supports hundreds of thousands of
jobs and propels economic recovery without costing taxpayers a dime.
The result could be the end of an institution that, over the past 5
years, has supported 1.2 million private sector American jobs, and over
200,000 jobs last year alone.
Additionally, the Ex-Im Bank reduced our deficit by returning over $1
billion to taxpayers last year alone through interest and fees. Still,
critics of the bank say it is a risk to taxpayers, that it picks
winners and losers, and that it interferes in the free market and,
therefore, creates a less efficient economy. For all of those reasons,
it should be abolished, they say.
But first, let me say, this notion that there is such a thing as pure
free enterprise, that if left to its own devices would flourish with
total efficiency and self-discipline and allocate resources and spread
risk in such a way that accrues to the benefit of everyone in society,
this notion of just pure free enterprise simply doesn't exist.
In fact, I thought one of the lessons we learned from the recent
financial crisis is that markets must be embedded in systems of
governance. The idea that markets are self-correcting, many of us
thought, had received a mortal blow.
Regardless of the outcome, Republicans have already created
uncertainty for thousands of American companies trying to compete
against businesses in China, Korea, and across Europe, all of which
have their own version of the Ex-Im Bank.
Mr. Speaker, I would like to enter into the Record a letter from Mr.
Steve Wilburn, who is the CEO of the
[[Page H7116]]
green energy company FirmGreen, who lost $57 million in contracts
because of uncertainty surrounding the future of the Ex-Im Bank.
At this time, and before us sharing this information with you, I
would like to yield to the gentlewoman from Ohio (Mrs. Beatty).
Mrs. BEATTY. Mr. Speaker, thank you to Ranking Member Congresswoman
Maxine Waters.
Mr. Speaker, I rise today in strong support of the Export-Import Bank
and current legislation, H.R. 4950, to reauthorize the bank introduced
by my freshman colleague and fellow Financial Services Committee
member, Congressman Heck from Washington.
The Export-Import Bank has been helping United States businesses of
all sizes sell their products around the world for over 80 years. But
despite the bank's proven track record of creating jobs, helping
American businesses compete globally, and reducing the Federal deficit,
a faction of House Republicans want to close the door of this important
Federal agency forever.
Mr. Speaker, shutting down the Export-Import Bank makes no sense to
me, and it makes no sense to my constituents. In my congressional
district, Ohio's Third, 10 companies, including six small businesses,
have grown because of the Export-Import Bank. These businesses have
been able to expand sales internationally and create jobs locally
because of the Export-Import Bank.
Earlier this month I received a letter from the CEO of Yenkin-
Majestic Paint, a manufacturer in my district. In his letter, he
writes: ``Normally we would not write in context of Washington
crosscurrents about the bank. However, it would be very unfortunate if
the Congress cannot reach a responsible bipartisan reauthorization of
this work to encourage commerce for American-made products abroad and
to help expand U.S. employment from sales beyond what is available on
the home front.''
Mr. Speaker, this is just one of many letters I have received from
affected constituents.
I have also heard from a young man who works at International Risk
Consultants, a Columbus-based company that provides guidance to small
businesses to export internationally. He writes: ``The Ex-Im Bank
offers trade finance solutions that work for small businesses that
cannot find alternatives in the private market.''
He closes his letter in this way, I think most telling: ``Perhaps the
most devastating effect of not reauthorizing the Ex-Im Bank will be
visited upon the many firms that never began exporting but would, if
they were introduced to Ex-Im Bank solutions.''
Mr. Speaker, Congress should not allow an extreme faction of the
Republican Conference to execute an ill-conceived and destructive plan
to close Export-Import Bank. My constituents deserve better. Ohioans
deserve better, and the American people deserve better.
I urge the House Republican leadership to bring H.R. 4950, a bill
with over 200 cosponsors, to the floor so we can keep the Export-Import
Bank operating and, more importantly, keep Americans working.
General Leave
Ms. WATERS. Mr. Speaker, I ask unanimous consent that all Members
have 5 legislative days to revise and extend their remarks and insert
extraneous material in the Record on the topic of my Special Order.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from California?
There was no objection.
Ms. WATERS. Mr. Speaker and Members, I will read into the Record a
letter from Steve Wilburn, CEO of the green energy company FirmGreen,
who lost a $57 million contract because of uncertainty surrounding the
future of the Ex-Im Bank. I will read you excerpts from his letter.
Mr. Wilburn attended the Ex-Im Bank panel I organized in April, and
last month we invited him back to be one of our Democratic witnesses at
a House Financial Services Committee hearing on the Ex-Im Bank. He is
among the best witnesses we have ever had at a hearing.
In his letter, Mr. Wilburn explains that FirmGreen's export potential
has been directly affected by the uncertainty of reauthorization of Ex-
Im Bank U.S. and the aggressive financial terms offered by the Korean
Ex-Im Bank.
Attached to his letter is another letter from a company in the
Philippines, Green Energy Solutions, informing him that his business
lost a $57 million contract. The letter begins: ``Dear Mr. Wilburn, in
view of the uncertainty of the reauthorization of the Ex-Im Bank and
project finance structure you proposed have become problematic. We have
made the decision in May, this year not to proceed with your project
offering.''
{time} 2045
Mr. Wilburn goes on to say: ``In summation, as a combat-decorated
veteran, small business owner, job creator, exporter, and concerned
citizen, I believe we should not unilaterally disarm and abandon the
very governmental agency that allows U.S. manufacturers and other U.S.
exporters to fairly compete on the world's trading stage.''
Mr. Speaker and Members, the main criticism of the bank that I would
like to discuss right now is the assertion that the bank is the
embodiment of corporate welfare, benefiting a handful of large
companies, which they claim represents crony capitalism.
Last April, I held a panel on the Ex-Im Bank which included a number
of small business owners from across the country. They came here to
Washington to discuss their work with the bank and how the bank helped
their companies compete in the global marketplace. Every one of those
panel members were extraordinarily decent people, hardworking business
owners who create jobs and pay taxes and have families and a civic
sense of duty. And this is why I am so offended by this label of
``crony capitalists'' that critics like to attach to users of the bank.
Those of us who know what it is like to live behind a label
understand how they work. Once you are able to put a label on something
or to someone and it sticks, then you could be done with them. And if
enough people can be convinced that customers of the Ex-Im Bank are
crony capitalists, well, there is nothing left to do but get rid of
them.
It is so important to note that while a good amount of the bank's
support goes to large companies, the vast majority of Ex-Im
transactions--nearly 90 percent--help small businesses. In fact, if the
Ex-Im Bank were abolished today, it would affect small- and medium-
sized businesses just as much, or more, as large exporters--perhaps
more, given the distinct challenges and risks small businesses face
when looking to export.
Moreover, large U.S. exporters that benefit from high dollar values
of Ex-Im financing also have large domestic supply chains which
consists largely of small- and medium-sized businesses that benefit
indirectly but in very important ways from Ex-Im support.
At a later time, I will be entering into the Record excerpts from
Brek Manufacturing and Hansen Engineering.
This letter is from Mr. Greg Lay, vice president of Hansen
Engineering. I will read this letter first from Hansen Engineering:
Hansen Engineering company is one of many small businesses
in the South Bay area of Los Angeles, California, that is
dependent on Boeing contracts to support the business. Ninety
percent of our contracts support Boeing aircraft, either
directly or indirectly, through our prime aerospace companies
throughout the world. My company staffs approximately 60
employees who live in the South Bay and surrounding areas and
depend upon the support of Boeing for the well-being of their
families.
Without the reauthorization of Ex-Im Bank, it would be
impossible for us to have a big impact on the health of our
businesses and its employees and their families.
Next we have a letter from Brek Manufacturing:
Brek Manufacturing company is a small business in
California with 170 employees who have a critical interest in
foreign sales of Boeing commercial aircraft. The Export-
Import Bank plays an important role as an intermediary in the
sale of these aircraft.
This letter is to express our support for the Ex-Im Bank,
as it is key to securing additional sales of Boeing
commercial aircraft.
He goes on to say:
Our representatives who support the military should also be
concerned with the Ex-Im Bank because of the role it plays in
supporting jobs and companies like ours, both large and small
across the country.
He further states:
[[Page H7117]]
We supply critical aircraft structural components which are
key to successful, safe air transport and air defense. There
are many others like us who represent thousands of high-
skilled and well-paying positions with good benefits.
Please express our support for the Ex-Im Bank to your
colleagues. We are counting on them to do the right thing and
support American manufacturing jobs.
At this time, I would like to yield to the gentleman from Washington
(Mr. Heck) who is a leader with the bill that would reauthorize the Ex-
Im Bank, if we could get the support from the opposite side of the
aisle that we need.
Mr. HECK of Washington. I thank the ranking member of the committee
very much.
Mr. Speaker, I am going to offer four elegant, simple,
straightforward reasons why it is so critically important that the U.S.
Congress reauthorize the Export-Import Bank prior to its expiration on
October 1, and they are simply as follows: the Export-Import Bank
creates jobs; it helps small businesses; it promotes fiscal
responsibility; and it advances economic growth.
With respect to jobs, it has already been cited that in the last 5
years alone, the Export-Import Bank is responsible for the creation of
over a million jobs, 205,000 jobs in just the last year.
But here is what has not been said: export-related jobs in America
pay 13 to 18 percent more than non-export jobs. So it doesn't just
create jobs; it creates good jobs. And it helps small businesses.
Nearly 90 percent of all transactions of the Export-Import Bank are
with small businesses. And to put a fine point on that, last year, it
was 3,413 small businesses, businesses like Pexco in Fife, Washington,
which makes traffic signs to promote safety during construction. Pexco
recently sold $125,000--a small order by any measure--to the
Netherlands, I think it was. Only one entity would guarantee payment
because no one else could collect across international borders. And
that entity, of course, was the Export-Import Bank.
Stac, another veteran-owned business in Sumner, Washington, with
eight employees, they do exporting. They are going to hire three new
employees on the basis of their international sales. But do you know
what is incredibly frustrating for somebody who comes from the private
sector? It is, frankly, the woeful deficiency in understanding, because
the small business support that the Export-Import Bank provides does
not stop with direct loans and loan guarantees to small businesses
because big businesses buy goods and services from small businesses as
well.
The greatest airplane maker in the world, Boeing airplanes, uses
15,000 businesses in their supply chain, and 6,600 of them are small
businesses.
I was recently on an Alaska flight from Sea-Tac to National Airport
in Washington, D.C., and a friend of mine named Eric Hahn, who works at
General Plastics in south Takoma, was sitting a couple seats behind me.
As everybody was gathering on the plane and shoving their luggage up
above and getting seated, Eric jumped up, and he said, ``Denny, do you
see this? Do you see this?'' And he was pointing at the plastic between
the two overhead bins. He said, ``We made that. We made that.'' General
Plastics has 185 employees, another small business.
The Export-Import Bank promotes fiscal responsibility. It has been
more than a generation since there was any red penny supporting or
subsidizing the Export-Import Bank, in the wake of reforms adopted
during the Reagan years. Indeed, last October, more than $1 billion
transferred to the U.S. Treasury. If we deauthorize the Export-Import
Bank, our deficit is going up. Who wants that to happen? And finally,
the Export-Import Bank promotes economic growth.
Let me give you a series of facts. We cannot change these facts by
wishing them away. Fact number one: 95 percent of the consumers in the
world live outside our borders--95 percent-plus, actually. Another
fact: since 1980, global trade has increased something like fivefold--
fivefold. And let me give you another fact: if we in America want to
keep our middle class, we had better learn how to sell to the growing
middle class throughout the world. And the Export-Import Bank is an
outstanding tool to do that.
You know, America's economy is projected to grow by only about 2.4
percent a year over the next 10 years. And do you know what the shame
of that is? The shame of that is, it is not fast enough to absorb even
the kids coming out of high schools and postsecondary education and
colleges. We simply have to grow this economy faster. And there is no
better way than to participate in the exploding global economy.
Every developed nation on the face of the planet has an export credit
authority. And, in fact, about 60 in all, theirs are larger than ours
either in absolute dollars or in terms of a percentage of their gross
domestic product. Why? Why would we unilaterally disarm? Why would we
unilaterally disarm?
Finally, let me say this. Right now, tonight, as we sit, as we speak,
the people of China are pouring billions of dollars into the
development of a commercial aircraft. They call it the C-919. They say
it will be available for sale within 2 years. Frankly, I think it is
going to be longer than that. It will be 3 or 4 or 5 years. But
whenever it is, they are going to create even more fierce competition
for an industry that is a bulwark of America's manufacturing base, a
bulwark. And what about China's export credit authority? It is six
times larger in absolute dollars than America's. And as a percentage of
GDP, it is 35 times larger.
So I ask the Members of the House, let us not wake up 63 days from
now with no export credit authority. This is the 16th time, by my
count, we have reauthorized the bank. Almost every time by virtually
unanimous support. And there are more than 300 votes on this floor to
pass it, if they will bring it to a vote.
In the name of jobs, in the name of small businesses, in the name of
fiscal responsibility, and in the name of economic growth, let us
reauthorize the Export-Import Bank.
Ms. WATERS. Mr. Speaker, I yield to the gentleman from Texas (Mr. Al
Green), and I thank him for the leadership and the support that he has
shown for the Export-Import Bank.
Mr. AL GREEN of Texas. I thank you, Madam Ranking Member of the full
committee. I am exceedingly proud to be a part of this effort. And I
want to you know that when we succeed, it will be due in no small part
to the energy that you have provided to help us get this legislation
through.
I would also like to thank the gentleman from Washington (Mr. Heck)
for H.R. 4950, an outstanding piece of legislation. It extends the
Export-Import Bank for 7 years, and it will increase the cap to $175
billion. I think it is an outstanding piece of legislation. And, of
course, I am one of the persons who is supporting it.
Mr. Speaker, let me start by indicating that the Export-Import Bank
is not one of the too big to fail institutions. It wasn't involved in
the credit default swaps. It wasn't involved with derivatives. It
wasn't involved with no-doc loans. It wasn't involved in all of these
exotic products that nearly caused the collapse of the economy.
If the truth be told, the Export-Import Bank was one of the reasons
why the economy was able to survive. It has been thriving. It has done
well. It pays for itself by virtue of the loans that it makes, by
virtue of the fees that it collects, by virtue of the products that it
insures. The Export-Import Bank makes good sense.
I find no businesspeople in my community who are in opposition to the
Export-Import Bank. It is not too big to fail, and it should not be too
small to save. We ought to do what we have done 16 times in the
previous 80 years, and that is, reauthorize the Export-Import Bank in a
clean bill, and do it with very little fanfare.
Unfortunately, that is not the circumstance that we confront
presently. Unfortunately, there are persons who believe that the
Export-Import Bank no longer serves a useful purpose.
Well, it serves a useful purpose for the people in my district. And
the facts speak for themselves. In my district, between 2007 and 2013,
in the Ninth Congressional District, we had a total of 88 export-
importers.
{time} 2100
We had 39 small businesses, 13 minority-owned businesses, and four
women-owned businesses, and we are proud of these businesses that are
owned by women because we still contend that when women succeed,
America succeeds. The Export-Import Bank is on the agenda to help women
succeed.
[[Page H7118]]
I would add that there are businesses that have indicated that they
are supportive. I have a letter from a company in Houston, the style of
it is the South Coast Products Company, and I just shall read an
excerpt from their letter. I have many letters to read, but I shall
pick a few and just read excerpts.
This one reads--and it is addressed to the Honorable Maxine Waters:
We are a small manufacturer in Texas that exports thread
and valve lubricants primarily to the oil and gas industry.
We have used Export-Import Banks' export credit insurance for
13 years. During that time, our export business has grown by
a factor of 15 because of the security offered by our policy
with Export-Import.
I shall go to the last paragraph which reads, ``Please emphasize to
your colleagues that Ex-Im Bank is not corporate welfare''--this is a
business, a business that has written this to us--``or a charity of any
kind. It facilitates U.S. exports, especially for small businesses like
us, while supporting itself. Please do not let them put our livelihoods
on the chopping block for their own political gain.''
This is from South Coast Products, a Texas business.
I would also like to read a letter from the Greater Houston
Partnership. The Greater Houston Partnership is the preeminent chamber
of commerce in my area. It is called the partnership because we do
things differently in Texas, and the partnership has also joined in
this letter by a good many other entities that I shall name after
having read an excerpt from this letter.
It reads:
The Houston region continues to enjoy strong economic
growth driven in large part by the Export-Import Bank. In
order to keep momentum, it is crucial that Congress supports
tools encouraging businesses to expand into new markets and
create new jobs. The Export-Import Bank of the United States
is one of these tools, and we ask that you support this
legislation.
The letter is addressed to me.
It goes on to add:
Small- and medium-sized businesses in our region also
benefit directly from Export-Import. Small businesses account
for nearly 85 percent of Ex-Im Bank's transactions; further,
these transaction figures do not include the tens of
thousands of small- and medium-sized businesses that supply
goods and services to large exporters using the bank.
This is signed by the Bay Area Houston Economic Partnership, the
Baytown Chamber of Commerce, the Brenham/Washington County Chamber of
Commerce, the Clear Lake Chamber of Commerce, the Greater Beaumont
Chamber of Commerce, the Greater Tomball Area Chamber of Commerce, the
Houston East End Chamber of Commerce, the Houston Northwest Chamber of
Commerce, Lake Houston Area Chamber of Commerce, League City Chamber of
Commerce, Pearland Chamber of Commerce, West Chambers County Chamber of
Commerce, and the Wharton Chamber of Commerce.
I close simply with these words: businesses are supportive of the Ex-
Im Bank. People understand the necessity for it. We but only need to
have a vote on it to get it continued.
Ms. WATERS. Mr. Speaker, Members, you have heard about businesses in
any number of districts that receive the support from the Ex-Im Bank.
I would like to read to you excerpts from a letter from Chairman
Hensarling's district. This is from Fritz-Pak, and this letter is about
how the Ex-Im Bank helped save his business.
His name is Gabriel Ojeda, president of Fritz-Pak Corporation, and
this is the excerpt I would like to read:
During the past 5 years, we have grown our international
sales from 15 percent to over 35 percent of our business. We
now have major trading partners in over 30 different
countries, including Brazil, Russia, India, and Taiwan. Most
recently, we exhibited our products at Bauma International
Trade Fair in Munich, Germany.
So what is Fritz-Pak Corporation today? We are an American
manufacturer of the best concrete admixtures in the world,
and we sell them as far as Yellowknife, Canada, and as far
south as Wellington, New Zealand. We may be small, but we
think big. In an age where everything seems to be made
someplace else, we are thriving here in the USA and in no
small part due to the services provided by Ex-Im Bank.
Lastly, I would like to read excerpts from Mr. Mike Boyle of BES&T in
New Hampshire. The CEO and president of BES&T is Mr. Michael Boyle, and
he sent us a very good letter last week.
Mr. Speaker, at a later time, we will enter into the Record these
letters that we are not able to read this evening. I thank you, and I
yield back the balance of my time.
____________________