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Contact: Spencer Pederson
2022254540
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Radanovich Opposes $14 Billion Bailout for Auto Industry
Demands Automakers Make Significant Reforms
Washington,
Dec 10 -
Congressman George Radanovich (R-Mariposa) today voted against H.R. 7321, The Auto Industry Financing and Restructuring Act—a $14 billion dollar bailout for Detroit's Big Three automakers.
"Unfortunately, the bill that passed today starts the ball rolling down a very slippery slope. When the government is picking industry winners and losers by throwing money at them, instead of letting the private market work, the consumers lose. It is particularly concerning that the government is not expecting much of anything in return," Radanovich said. "We are setting a dangerous precedent that invites every other industry in the country to come to Congress with their hands out, looking for taxpayer money and I refuse to help facilitate that."
H.R. 7321 provides up to $14 billion of loans to U.S. automakers. The legislation makes this money available by tapping $7.01 billion previously appropriated for the "green car" fund as part of the FY 2009 continuing resolution. None of the funding under the legislation comes from the Troubled Assets Relief Program (TARP) created by the Emergency Economic Stabilization Act.
"The Big Three have had a failing business plan for years and are in need of significant restructuring, particularly regarding their contracts with the unions. Without any guarantee of significant reforms, which this legislation does not offer, I am afraid that the Congress is about to make a bad investment on behalf of the American taxpayers,” Radanovich said.
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