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Nebraska's Senator Ben Nelson spoke on the Senate floor today in support of a resolution (S.RES.175) expressing the sense of the Senate that the federal government is only a temporary shareholder in the American automotive industry and should divest its ownership interests as expeditiously as possible. Senator Nelson is the lead sponsor of the resolution. The speech follows:
Mr. President, I rise to discuss a “Sense of the Senate” resolution I’ve proposed with several colleagues to address the government’s recent move to take significant ownership stakes in two icons of American business: Chrysler and General Motors. Joining me as cosponsors are Senators Collins, Landrieu, Lieberman, Klobuchar and McCaskill.
This resolution puts the Senate on record and makes absolutely clear: the Federal Government is a temporary shareholder” in GM and Chrysler, and that it should divest its shareholder position as expeditiously as possible.
No one ever wanted the government to be in the car business, but the alternative was worse and the turmoil in the auto industry extends far beyond Detroit as most Americans know.
Dealerships across my state of Nebraska are feeling the impacts of decisions made by automakers following their bankruptcies. Chrysler has decided to terminate franchise agreements with 9 dealerships in Nebraska and GM intends to terminate franchise agreements with 21 dealerships in Nebraska.
These decisions are affecting dealerships and their employees in communities such as Arapahoe, Hastings, David City, Omaha, Auburn, Milford, Lincoln, Scottsbluff, and West Point have already been impacted by the auto bankruptcies. Auto parts manufacturing plants in communities like Kearney, Cozad, Grand Island, and Seward are also feeling the results of the downturn in the auto industry.
According to the Nebraska New Car and Truck Dealers Association, more than 13,600 Nebraskans work in jobs tied to the auto industry in my state and accounts for $267 million in wages for Nebraska individuals and families.
However, now that an investment has been made, we owe it to the American taxpayers to be clear about what will happen with their money.
The resolution states that the Federal Government is a temporary stakeholder in the American automotive industry and should take all possible steps to protect America taxpayer dollars and divest its ownership interests in such companies as expeditiously as possible.
The government should not be involved in day-to-day operations, and as soon as the auto companies have regained their financial footing the government must divest. Its involvement should not be open-ended.
Further, this resolution calls on the Government Accountability Office and the Inspector General for the Troubled Assets Relief Program, or TARP, to continue providing oversight. In addition, the GAO and Inspector General will report to Congress on automotive companies receiving financial assistance, so that the federal government may complete divestiture without delay.
This is not a partisan issue. Our deep economic crisis has already cost millions of Americans their jobs and to add a collapse of the auto industry could add a devastating blow it would take years from which to recover.
We’ve had Presidents of both political parties recognize the need to address the current downfall of the auto industry and recognized the need to remove government involvement as quickly as possible.
On December 19, 2008, President Bush stated: “The actions I'm announcing today represent a step that we wish were not necessary. But given the situation, it is the most effective and responsible way to address this challenge facing our nation. By giving the auto companies a chance to restructure, we will shield the American people from a harsh economic blow at a vulnerable time and we will give American workers an opportunity to show the world, once again, they can meet challenges with ingenuity and determination and bounce back from tough times and emerge stronger than before.”
On March 30 this year, President Obama stated: “We cannot, and must not, and we will not let our auto industry simply vanish. This industry is like no other -- it's an emblem of the American spirit; a once and future symbol of America’s success. It's what helped build the middle class and sustained it throughout the 20th century. It's a source of deep pride for the generations of American workers whose hard work and imagination led to some of the finest cars the world has ever known. It's a pillar of our economy that has held up the dreams of millions of our people. ..These companies -- and this industry -- must ultimately stand on their own, not as wards of the state.”
So, to conclude, the government’s move is aimed at providing stability for the automotive industry and for American workers across our great nation in these uncertain economic times.
Our Sense of the Senate resolution affirms what the President has made clear: taxpayers should be protected and the government should get out of the auto business ASAP. Through this resolution, the Senate leaves no question about the government’s future role in the US auto industry.
Thank you. I yield the floor.
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