VOTES AGAINST BAILOUT LEGISLATION

Washington, Dec 10, 2008 - “Although presented as a bridge loan for the automobile industry, a vital segment of our economy, I believe this plan offers too little too late and does not address the fundamental needs of the industry -- it sets a path for more of the same,” said Rep. Cliff Stearns (R-Sixth). “I am encouraged that the plan contains warrants for taxpayers so that they share in any benefits from a recovering industry and limits executive compensation, but the plan is flawed.”

The House today approved H.R. 7321, the Auto Industry Financing and Restructuring Act, which provides loans of $14 billion to the industry to be repaid in seven years at an interest rate of 5% for the first 5years and 9% after that. It also establishes a presidential designee (the “car czar”) to carry out the requirements of the act.

Added Stearns, “The auto industry failed to make an adequate case that it can restructure itself; after all, the industry and the unions are responsible for the current situation. I would prefer to see a bill locking in the restructuring promised by the industry with a set timeline for achieving those steps under new management. This bailout simply leads to another bailout plan on March 31, 2009. The federal government has a poor record on economic management, and involving itself so directly in the industry is not encouraging. Finally, if this plan fails, the taxpayers may lose billions of dollars and may be called upon to commit more good money after bad money.”