Posted on 06/21/2009 2:57:39 PM PDT by reaganaut1
Today, Rep. Jim Sensenbrenner, R-Wis., the top Republican on the Judiciary Committee, wrote Atty. Gen. Eric Holder to ask if bailed-out, taxpayer-owned carmakers General Motors and Chrysler are breaking any laws by continuing to lobby the federal government while owned by the federal government, Sensenbrenner's office has told me.
Specifically, Sensenbrenner singled out GM's and Chrysler's membership in the U.S. Climate Action Partnership, a coalition of Fortune 500 companies and environmental non-profits dedicated to lobbying for federal restrictions on greenhouse gas--specifically, the sort of cap-and-trade scheme at the heart of the Waxman-Markey bill currently before the House.
A quote from the letter:
It makes no sense that taxpayer dollars could go towards a lobbying effort that will essentially raise taxes.... US CAP is advocating a carbon regulation scheme I call cap-and-tax. Higher manufacturing costs will be one of the many consequences of this bad policy, which will raise energy costs and increase the prices of many goods and services. The last thing the auto companies need are higher costs and it’s absurd that GM and Chrysler would use taxpayer dollars to press the case for pricier manufacturing.
GM announced it is cancelling all of its outside lobbying contracts--that is, firing all of the lobbying firms it retains--but has said it does not plan to close its in-house lobbying shop, which last quarter, amounted to about 83% of the company's $2.8 million lobbying budget in January, February, and March of this year.
I wouldn't expect any action from the DOJ, and it's not clear what law these companies could be breaking, but Sensenbrenner's move shows Republicans see plenty of opportunity in these auto bailouts to call shenanigans on the corporate-government alliance.
(Excerpt) Read more at washingtonexaminer.com ...
Ah. Interesting . . .
Whoops! Looks like we have a problem with “Big business” and “Big government” being in bed together 24/7.
If Rep. Sensenbrenner thinks this smells funny, then it is definitely rotten. He’s a top-notch Congressman.
Update on Recovery Act Lobbying Rules: New Limits on Special Interest Influence
White House Blog
FRIDAY, MAY 29TH, 2009 AT 5:35 PM
Posted by Jesse Lee. Another update from Norm Eisen, special counsel to the president for ethics and government reform, in the spirit of transparency as always:
I am writing with an update on the President’s March 20, 2009 Memorandum on Ensuring Responsible Spending of Recovery Act Funds. Section 3 of the Memorandum required all oral communications between federally registered lobbyists and government officials concerning Recovery Act policy to be disclosed on the Internet; barred registered lobbyists from having oral communications with government officials about specific Recovery Act projects or applications and instead required those communications to be in writing; and also required those written communications to be posted on the Internet.
That Memorandum instructed the Office of Management and Budget (OMB) to review the initial 60 days of implementation of the stimulus lobbying restrictions, to evaluate the data, and to recommend modifications.
Following OMB’s review, the Administration has decided to make a number of changes to the rules that we think make them even tougher on special interests and more focused on merits-based decision making.
First, we will expand the restriction on oral communications to cover all persons, not just federally registered lobbyists. For the first time, we will reach contacts not only by registered lobbyists but also by unregistered ones, as well as anyone else exerting influence on the process. We concluded this was necessary under the unique circumstances of the stimulus program.
Second, we will focus the restriction on oral communications to target the scenario where concerns about merit-based decision-making are greatest –after competitive grant applications are submitted and before awards are made. Once such applications are on file, the competition should be strictly on the merits. To that end, comments (unless initiated by an agency official) must be in writing and will be posted on the Internet for every American to see.
Third, we will continue to require immediate internet disclosure of all other communications with registered lobbyists. If registered lobbyists have conversations or meetings before an application is filed, a form must be completed and posted to each agency’s website documenting the contact.
OMB will be consulting with agencies, outside experts and others about these principles and will publish detailed guidance, but we wanted to update interested parties on the outcome of the initial review. We consulted very broadly both within and outside of government (including as reflected in previous posts on the White House blog) and we are grateful to all those who participated in the process.
Hmm ~ I think they courtmartialed Billy Mitchell for going around the chain of command (by referring to their treasonous management of the air service).
Oooops. Caught ya.
Go get ‘em, Jim!
We were told to bail out GM and Chrysler to "save" them, then they promptly went bankrupt. All we did was prolong their demise - they should have removed the ventilator BEFORE we gave them any the medicine many of us knew would not work. I like metaphors, so it is like the doctor gave some medicine which cause the doctor to get sick.
Lots of problems. This is worse than any Gates monopoly.
It particularly irritates me that GM is being maneuvered into having to stick together as a whole. Why can’t the cherries (e.g. Cadillac) survive, and the lemons die? At least it was good that Saturn was able to duck out.
Yep he sure is. And I am glad to have him as my congresscriter. Ask him a straight question and he will give you a straight answer. No many like that in DC these days. My only complaint with him is I think he should be more outspoken.
Saturn didn’t duck out. Saturn was sold to Penske, which is 70% owned by GE.
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