E2388 CONGRESSIONAL RECORD — Extensions of Remarks January 3, 2009 

AUTO INDUSTRY FINANCING AND 

RESTRUCTURING ACT 

SPEECH OF

HON. PETER J. VISCLOSKY OF INDIANA

IN THE HOUSE OF REPRESENTATIVES

Wednesday, December 10, 2008 

Mr. VISCLOSKY. Mr. Speaker, I rise today 

in support of H.R. 7321, the Auto Industry Financing and Restructuring Act. 

I voted twice against the Emergency Economic Stabilization Act of 2008, more familiarly known as the Wall Street bailout, because I felt that it was an irresponsible use of 

$700 billion of taxpayer dollars. There was no 

concrete plan for how those funds would be 

used or what specifically they would accomplish. I opposed the Wall Street bailout because it was in essence a blank check. 

So I thought long and hard about the proposed use of $15 billion in hard-earned taxpayer dollars to provide assistance to auto 

manufacturers. I have concluded that these 

are substantially different circumstances, and 

that the Auto Industry Financing and Restructuring Act represents a practical and fiscally 

responsible approach to saving millions of jobs 

and a key pillar of our fragile economy. 

I want to emphasize that the approach 

taken in this measure is in sharp contrast to 

the Wall Street bailout. I continue to believe 

that it was a mistake to blindly hand Wall 

Street everything it wanted, and to rush to 

such a decision in just seven days. The Government Accountability Office released a report on December 2, 2008, that shows that the 

proper and effective distribution of those funds 

remains impaired by a lack of adequate transparency and accountability. 

Congress has taken a more measured approach to addressing our struggling automotive industry. Congressional leaders correctly turned down the auto manufacturers’ initial request for tens of billions of dollars with 

no strings attached. We sent the auto manufacturers back to the drawing board to develop 

specific plans to restructure their operations 

and to provide a credible account for how they 

would use federal funds to build a viable industry, with quality jobs, while protecting taxpayer investments. 

I am encouraged by the auto manufacturers’ 

good faith efforts since that time, and I am 

pleased that this Act would provide the transparency and accountability that should have 

been built into the Wall Street bailout. In addition to strong independent oversight by the 

GAO and a Special Inspector General, the 

auto assistance funds would be subject to rigorous oversight with the government having 

full information access and veto powers over 

large industry expenditures. Auto executives 

will be held accountable for implementing their 

restructuring plans and complying with Congress’ terms. The funds also would be subject 

to strict conditions, such as requirements that 

innovation funding be set aside to build advanced technology vehicles with improved efficiency and carbon emissions. Additionally, this 

measure establishes hard deadlines for 

progress in restructuring, and includes provisions for cutting off aid if these deadlines are 

not met. 

For example, companies receiving assistance would not be allowed to pay dividends to 

their shareholders until they repay the loan, 

and the government could require immediate 

repayment from any company that does not 

make adequate progress by February 15, 

2009. Further, unlike the Wall Street bailout, 

taxpayer dollars would not simply be given to 

executives to line their pockets. These companies would be explicitly prohibited from giving 

their highest-paid employees large bonuses or 

golden parachutes. 

It is true that $15 billion is a significant investment. However, given that this assistance 

is only two percent of the amount given to 

Wall Street, under the circumstances I believe 

that we have no choice but to view this as a 

moderate approach to preventing catastrophic 

job loss. It is my hope that this sober-minded 

package will function as a bridge to keep the 

auto manufacturers functioning into the next 

Administration, and provide additional time to 

figure out how to save the domestic automotive industry. 

Having said that, I intend to carefully follow 

the implementation of this program, to ensure 

that taxpayer money is spent properly. 


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