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McConnell Renews Call for Taxpayer Protection, Business Reform

December 9, 2008



‘I want to support a bill that revives this industry. But I will not support a bill that revives the patient with taxpayer dollars yet doesn’t secure a commitment that the patient will change its ways so future help isn’t needed’



WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Tuesday regarding proposed auto legislation:

“The auto industry is vitally important to our nation’s economy and it is vitally important to my home state of Kentucky. This is not in dispute. The question before us is how to reverse the decline of some of these auto manufacturers after decades of complicity between management and labor.

“I understand congressional Democrats sent a revised proposal to the White House late last night. We will reserve our judgment until we see the latest text. But the proposal we saw yesterday afternoon fails to achieve our goal of securing the long-term viability of ailing auto companies.

“I want to support a bill that revives this industry. But I will not support a bill that revives the patient with taxpayer dollars yet doesn’t secure a commitment that the patient will change its ways so future help isn’t needed.

“To do so would be a betrayal of the millions of hardworking taxpayers who are not at fault for the troubles in the auto industry. And it would be unfair to the millions of Americans who depend on these companies.

“On the management side, the draft plan released yesterday fails to require the kind of serious reform that will ensure long-term viability for struggling auto companies. By giving the government the option of cancelling government assistance in the event that reforms are not being achieved – rather than requiring it – we open the door to unlimited federal subsidies in the future.



“Instead, we should demand that management make the tough choices that are required for long-term viability. This is the only fair approach from the standpoint of the taxpayer, who’s footing the bill.



“On the labor side, this bill proposal fails to require any serious reform of legacy costs. Indeed, it states explicitly that one of its purposes is to preserve the same retirement and health care benefits that have made these companies so uncompetitive. It’s delusional to expect a company that spends $71 per labor hour to compete with a company in a neighboring state that spends $49 per labor hour.



“In short, this proposal is deeply flawed because it fails to assure taxpayers — who rightly expect us to be good stewards of their hard-earned money — that they will not be asked to shell out billions more a few years or even a few months from now.



“There are times when help is needed. But one thing most people expect when they’re asked for help is that the one asking makes a commitment to change. This proposal does not go nearly far enough. It holds neither management nor labor truly accountable. And in areas where one side is held accountable, the other side isn’t. One example is a provision that requires automakers to drop all legal challenges to state fuel economy standards that are inconsistent with the federal standard.



“Where is the offer from our friends on the other side to call on environmental groups to drop their lawsuits? Democrats say they want to solve this problem as much as we do. Yet they seem all too eager to tip the scales to the detriment of the manufacturers. There is plenty of blame to go around for the problems that ail the auto industry. But fixing half of a problem is not a real solution.



“Any successful proposal would force companies to reform, either inside of bankruptcy or outside of bankruptcy. Without that mandate, there can be no real expectation of reform.



“A good proposal would force automakers to get control of their benefit costs.



“A good proposal would make wages at struggling companies competitive with other automakers — not tomorrow, but today.



“A good proposal would end the practice of paying workers who don’t work.



“And a good proposal would rationalize dealer networks. Just as struggling airlines adjust their capacity to respond to market conditions, automakers must respond to market demands as well.



“I regret to conclude that this proposal Republicans saw yesterday afternoon does not do enough to fix the whole problem. It subsidizes it. A real solution must protect the taxpayers by forcing the changes needed to put these companies on a path to long term success.”



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McConnell Calls for Taxpayer Protection, Oversight, Accountability

December 8, 2008

‘As we consider new legislation this week, we must first ensure that we do no harm to taxpayers later in our efforts to help any one particular industry now’

WASHINGTON, D.C.—U.S. Senate Republican Leader Mitch McConnell made the following remarks on the Senate floor Monday regarding proposed auto legislation:

“Congress returns this week at a time of grave concern about the state of our nation’s economy.

“Americans are worried about the credit markets that serve as the lifeblood of our Main Street economy. They are worried about the broader financial industry. And now they are worried about the possibility of another major convulsion coming from the auto industry — an important source of jobs throughout America, including my own state of Kentucky.

“As we consider new legislation this week, we must first ensure that we do no harm to taxpayers later in our efforts to help any one particular industry now.

“That is why Republicans insist that any proposal aimed at helping the auto industry include a firm commitment on its part to significant and fundamental reform. Troubled automakers cannot expect taxpayer help without a serious commitment to change their ways — permanently.

“Any assistance from Congress would hold the auto industry accountable to essential reforms from day one. And it would include enforcement capabilities, including strict, immediate accountability and oversight. Automakers should not expect any new appropriations. And Congress will not draw on funds that have already been designated to stabilize the entire economy in order to help one sector of it.

“As Congress works to help stabilize the broader economy we cannot expose the taxpayers to new burdens without the promise of avoiding in the future the same mistakes that created these problems in the first place. This is the principle that should guide all of us in this week’s negotiations. I know it will guide Republicans.”

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A Path to Accomplishment, Not Gridlock

November 21, 2008

42 Republican Senators call for bipartisan achievement, a voice for their more than 157 million constituents in legislative debate



WASHINGTON, D.C. – U.S. Senate Republican Leader Mitch McConnell delivered a letter discussing the role of the Senate Minority to Senate Majority Leader Harry Reid on Friday. The letter, signed by 42 Republicans representing more than 157 million Americans, calls on the Majority to work with Republicans to accomplish bipartisan legislative achievements. The text of the letter appears below:

The Honorable Harry Reid

Majority Leader

United States Senate

Washington, DC 20510



Dear Senator Reid:



As we begin our work together in the 111th Congress, Republican Senators are united in our support for the Senate’s Constitutional duty to freely debate and amend.



During the 110th Congress, the Senate was frequently stalled by periods of partisan gridlock. Too often in the previous Congress, legislation bypassed the committee process and was considered with no input from Republican Senators. Further, when those bills were considered on the floor and there were no opportunities for Republican Senators to offer any amendments, millions of our constituents from many states were denied the right to be heard. A record number of cloture petitions were filed, and the “amendment tree” was filled in order to stymie efforts of the Minority to shape legislation of critical importance to those very constituents. During the 111th Congress, we will need to work together across the aisle to ensure that the Senate returns to the regular practice and tradition of allowing all Senators their fundamental right to debate and amend legislation.



As Senator Robert C. Byrd told the incoming Senators-elect in 1996:

‘As long as the Senate retains the power to amend and the power of unlimited debate, the liberties of the people will remain secure.’



Senator Reid, we agree with your statement earlier this year that, ‘A filibuster is the minority’s way of not allowing the majority to shut off debate, and without robust debate, the Senate is crippled.’



As we learned in 2007, when Senators are permitted to fully debate and amend, we can work together to pass bipartisan legislation. The Senate passed several pieces of landmark legislation that were debated and amended with full participation from both Democrats and Republicans.

The leaders and bill managers worked together to structure debate so that Senators could consider and vote on different approaches to major issues. But we also learned that filling the tree and filing cloture to stifle the Minority’s right to debate and amend is invariably counter-productive.



As a caucus, Republicans will insist on our basic right to participate in the legislative process. The Republican Conference intends to protect the Senate’s history of full and open consideration of major legislation, which includes a fair amendment process and the opportunity for debate.



We look forward to working with you and your fellow Democratic Senators to enact legislation that will make a difference for the American people.



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