From Myrick’s Washington, DC office:
(Washington, DC) – US Representative Sue Myrick (NC-09) voted no today on the proposed financial[singlepic=414,270,190,,right] bailout for the automotive industry. The bill, H.R. 7321, provides up to $14 billion in loans to US automakers. It passed by a vote of 237-170.
“There is no guarantee this bailout will be the last for the auto industry,” said Rep. Myrick. “I opposed this bill because it would create a government ‘car czar’ to oversee the domestic auto industry without the authority to ensure the Big Three address their underlying structural problems. Unless the domestic car makers make substantial changes to fundamentally change the way they do business, the reality is they’ll need additional taxpayer assistance in the very near future. ”
Rep. Myrick instead supports an alternative plan set forth by Republican House leaders. The plan requires that the automotive industry restructure – the way they do in business – by setting firm goals. Rather than using taxpayer money to provide loans to the auto company, the Republican alternative would use government-backed insurance to attract private investment. Additionally, unlike H.R. 7321, the Republican plan would set firm goals to address the legacy costs of union-negotiated wages, and health and retirement benefits that impede domestic automaker competitiveness.
To accomplish these restructuring goals, companies are urged to use a structured bankruptcy to bring all of the stakeholders to the table to determine the best way forward.
“This isn’t an easy situation, but compromises must be made. People have to work together, and this problem has to be solved without the government taking control of the industry,” said Rep. Myrick.