LoBiondo Explains Vote Against Auto Makers’ Bailout

WASHINTON, D.C. – U.S. Rep. Frank A. LoBiondo (R-2nd) voted against a taxpayer bailout for the auto industry on Wednesday, Dec. 10. The House passed the $14-billion bailout plan 237-170, which now heads to the Senate.
“Once again Congress is calling upon the taxpayers to bail out a specific industry rather than focusing on the national economy. While struggling to make their dollars go further, South Jersey taxpayers are increasingly angry for being on the hook for the mismanagement and corporate excess of billion-dollar corporations,” the congressman explained his reasoning in a release after the vote.
“Let me be clear, I am deeply concerned that our domestic auto industry has deteriorated to these critical levels, threatening the livelihood of workers, dealers and suppliers. But I am further discouraged that there is no clear plan to move forward. Today’s bill does not require the auto makers’ creditors to restructure debt; it does not require the Big Three to seek additional private financing to stay viable; and, most astonishingly, it does not require Chrysler’s private owner to invest any money in its own company.
“There is a clear pattern with this Congress and with these bailouts: the taxpayers are the last to benefit, if they even do at all. The record is abysmal: a housing bailout which didn’t help homeowners; a Wall Street bailout without rescuing Main Street; and now this legislation that continues to cherry-pick industries while ignoring the vast majority of small and medium businesses in need of assistance. What about our tourism industry? Our hospitals? Our non-profit organizations? Our middle class families?
“Regrettably, Congress is not embarking on a comprehensive economic recovery strategy. Rather, we are engaged in a careless giveaway of taxpayer dollars with little oversight and minimal accountability. The Big Three view this legislation only as a down-payment and it is unexplainably void of meaningful oversight. They will receive taxpayer dollars today but are not required to submit their restructuring plans until March. Furthermore, the bill does not legally require the Big Three to follow-thru with the plans they submit. Congress cannot and must not continue on this path which threatens the long term financial and national security of our country.”
LoBiondo previously voted against taxpayer bailouts of $300 billion for Fannie Mae/Freddie Mac and $700 billion federal bailout of Wall Street.