Press Release
Auto Bailout Legislation a Roadblock to the Real Solution
“The legislation that passed last night is a step in the wrong direction on the road to a solution to this massive problem. This bill essentially writes a $14 billion blank check paid for by American taxpayers who are not yet born. Bringing this problem to the halls of Congress only wastes valuable time that could be better spent fixing the problem the same way every other industry does – filing for Chapter 11 of the United States Bankruptcy Code. Chapter 11 exists for precisely this type of issue, allowing companies and industries to reorganize and renegotiate to allow themselves to emerge from bankruptcy and get their feet back on solid ground."
Last night, the U.S. House of Representatives voted
to pass H.R. 7331,
the Democrat Auto Financing Bill. Congressman Mike Conaway (TX-11) issued the following
statement in opposition to the legislation: “The
legislation that passed last night is a step in the wrong direction on the road
to a solution to this massive problem. This bill essentially writes a $14 billion
blank check paid for by American taxpayers who are not yet born. Bringing this
problem to the halls of Congress only wastes valuable time that could be better
spent fixing the problem the same way every other industry does – filing for
Chapter 11 of the United States Bankruptcy Code. Chapter 11 exists for
precisely this type of issue, allowing companies and industries to reorganize
and renegotiate to allow themselves to emerge from bankruptcy and get their
feet back on solid ground. “This is
a challenging time for our nation and for the automobile industry in particular. However,
legislation such as this prolongs the pain instead of addressing the problem
and productively rebuilding the industry.” |
