[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[Senate]
[Page 31581]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  TERRORISM REINSURANCE ACT EXTENSION

  Mr. ALLARD. Mr. President, I would like to address extension of the 
Terrorism Risk Insurance Program or TRIA. I am strongly reminded of the 
words of the great economist Milton Friedman: ``Nothing is so permanent 
as a temporary government program.''
  I remember quite clearly when the insurance industry requested a 
temporary Federal backstop after the terrorist attacks of September 11, 
2001. I cannot stress the word temporary strongly enough in this 
context. Industry witnesses testified before the Banking Committee that 
they only needed a temporary program in order to give the private 
markets time to adjust. I was also promised in private meetings that 
the program would only be temporary. Insurance industry representatives 
told me repeatedly that they would not come back to seek an extension 
of the program.
  I was quite clear in expressing my disappointment with them when 
shortly after implementation of the program they began advocating for 
an extension. I very reluctantly supported the last extension because I 
believed it made progress in forcing the private sector to step up to 
the plate. I am here today, though, to say enough. I intend to hold the 
insurance industry accountable for their pledge of a temporary program 
by opposing the TRIA reauthorization bill.
  I regret that those who utilize insurance are caught in the middle. 
Unfortunately, there doesn't seem to be another way to spur insurance 
industry action to address this problem. Unless they are forced to come 
up with solutions, they will simply continue to rely on the Federal 
Government.
  It is a shame that some consider it ``the best we can do'' to avoid 
massively expanding a ``temporary'' government program. I believe we 
can do better; we can hold people to their word and say enough is 
enough.

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