Madam Speaker, I rise in support of H.R. 7321, the Auto Industry Financing and Restructuring Act.  It is clear that the auto industry itself carries a great deal of responsibility for the crisis it faces today, due to an inability or unwillingness to take the steps necessary to compete in a 21st century market.  Nonetheless, I recognize the urgency of extending federal loans to Detroit’s automakers, as their collapse could trigger massive job losses and ripple effects throughout a wide range of industries. One in ten American jobs is linked to the domestic auto industry, and it is estimated that as many as 10,000 jobs could be affected by its failure in my home state of Rhode Island. 

To win my support, it was imperative that this bill place strict conditions and requirements on the automakers receiving assistance, and I believe it meets that test.  These companies will have to submit a final and acceptable long-term restructuring plan by March 31, 2009, and if adequate progress has not been made by February 15th, 2009 on efforts to stabilize the auto industry, they companies will be forced to repay their loan.  Their restructuring plans must show how the companies will achieve long-term viability, international competitiveness and energy efficiency.  Furthermore, upon enactment of this bill, the administration must immediately appoint a “car czar” to monitor the progress of these plans.  This designee will also have veto power over company expenditures of more than $100 million.  H.R. 7321 also demands accountability to taxpayers by banning golden parachutes to company executives, bonuses for the 25 most highly paid employees, and corporate jets.  Finally, a company may not pay dividends to shareholders over the duration of the loan.    

Madam Speaker, our domestic car manufacturers have made some unwise business decisions in the past.  However, the fall of the U.S. auto industry would be a devastating blow to our already fragile economy, impacting millions of workers and countless businesses, large and small.  Today, we have the opportunity to give these companies a chance for survival and to point them in the right direction for our future needs as a country, which includes a strong manufacturing base for fuel-efficient vehicles.  I encourage my colleagues to vote for H.R. 7321 and in support of the future of our country’s auto industry. 

Thank you, Madam Speaker.