Brownback Concerned for Auto Industry

BROWNBACK CONCERNED FOR AUTO INDUSTRY

Supported Republican alternative that would have added no new debt

U.S. Senator Sam Brownback today expressed concern for the auto industry and asked the President to consider intermediate steps now that Congress has adjourned for the year.

Brownback voted against the previous bailout, but had express support for a Republican compromise bill that would have provided more reasonable loans instead of a handout, added no new debt to the federal deficit and would have reallocated money that has already been approved and appropriated for the auto industry.

"It would have been irresponsible to provide a huge handout to the auto industry without needed reforms and without any taxpayer recompense," Brownback stated. "However, after the previous bailout vote failed, as it should have, I was hopeful we could provide a reasonable bridge loan, which would have been repaid to the taxpayer, and would have required significant industry reform while at the same time not adding any new debt or any new funds appropriated."

The Senate voted last night on a motion to invoke cloture on a motion to proceed which would have formally begun debate on various plans to assist the auto industry. The vote to begin debate failed late last night.

Brownback continued, "Last night's vote was not on a bailout, it was a vote to start debate on a number of possible loan options. I did think it was appropriate to formally begin debate and I voted for cloture on the motion to proceed to debate. Now that Congress has adjourned for the year, I am hopeful that President Bush can look for alternatives from the existing pool of funds that have been designated for corporate liquidity crises while making any loans contingent on real reform that will continue the American auto manufactures on a path to be competitive and responsible."

Independent accounting firms estimate that the American taxpayer would have to take on the burden of approximately $13.7 billion in unemployment insurance benefits payments and unpaid pension guarantees if two of the three American auto companies went bankrupt and that tax revenues at all levels of government will decrease by $49.8 billion over the next two years.

Brownback concluded, "I have heard loud and clear from the car dealers across Kansas as well as from the workers and managers at the Goodyear plant in Topeka and the GM plant in Kansas City that some form of short term assistance is vital to all players in the industry that could be under threat of bankruptcy before the end of the year. This is more than just assistance to a vital industry with needed capital, this is also about saving the taxpayers billions of dollars in future expenditures if one or more of the car companies go into bankruptcy. And this is about planting the seeds of economic growth in Kansas and across the country."

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