Washington, Dec 19, 2008 -

Today, Congressman Patrick McHenry (NC-10) issued the following statement in response to the Bush Administration’s bailout of two of the twelve international automakers with operations in the United States.

“This is very unfortunate news for both American taxpayers and autoworkers.  Taxpayers are forced to fund the continuation of the automakers’ bankrupt business model, which jeopardizes the long-term job security of autoworkers.  The Administration set rhetorical goals for restructuring and competitiveness but failed to commit the automakers and its union to any semblance of a tangible restructuring plan.  In what can only be described as an end run around the legislative branch, the Administration received no more concessions from both parties than Congress did.  Yet they still found it appropriate to bury another generation of Americans in debt.

“The provision that claims the loans will be called if the automakers fail to meet those goals by March 31 of next year is meaningless.  Does anyone actually believe that if these companies spend that money and fail to meet those goals, they will be able to repay taxpayers their $17 billion?

“Equally problematic is the Treasury's lack of statutory authority to direct TARP dollars to the automakers. While the statute, passed by Congress in October, grants the Secretary broad discretion in deciding how to employ the funds, it clearly limits the recipients to “financial institutions.”

“General Motors and Chrysler are terminal patients desperately in need of major surgery.  Instead, the Administration chose to apply a $17 billion band-aid and hope for a miracle.  The employees, dealers, suppliers and manufacturers of these two companies deserve better.”

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