Herger Opposes Big Three Auto Bailout; Calls For Restructuring

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Herger Opposes Big Three Auto Bailout; Calls For Restructuring

Congressman Wally Herger submitted the following statement to the House of Representatives today during the debate over providing a bailout for the Detroit automakers. The House is expected to vote on the bill later this evening. The full text follows below:

"Madam Speaker, I rise in opposition to this legislation. The truth is that the "Big Three" didn't get into this position overnight. They are suffering from decades of poor management decisions, uncompetitive labor agreements, and failure to stay at the cutting edge of innovation. And while this bailout may provide some short-term relief for these companies, it doesn't fix their fundamental problems.

"My constituents want to know why their tax dollars should be used to bail out companies that haven't been willing to make the necessary changes to stay competitive. They also want to know where we will draw the line. Lots of businesses are hurting because of this recession. How many more bailouts will they be asked to pay for? We all know that this $14 billion is only the first installment. Until these companies are thoroughly restructured and modernized, they will just keep coming back for more taxpayer money.

"As a member of the Ways and Means Committee, I'm also concerned by the last-minute inclusion of a provision that requires the federal government to insure certain leases that the IRS has ruled are illegal tax shelters. Taxpayers who play by the rules certainly don't want to see a bailout for agencies that participated in questionable tax deals. The collapse of AIG does raise some difficult issues, but this provision needs more consideration and should not be in this bill.

"Madam Speaker, this is an all-around bad deal for the taxpayer. I urge my colleagues to vote no."

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