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Speedy auto rescue vote urged
Fri, Nov 21, 2008
AFP

WASHINGTON, US - THE White House urged US lawmakers on Thursday to pass 'as soon as possible' a compromise plan to save crisis-hit 'Big Three' automakers, after congressional leaders put off a vote until at least December.

Spokesman Dana Perino hailed a bipartisan accord by senators from states which have millions of jobs depending on the industry, saying it met the White House test that the industrial giants prove they will be liable.

'While we need to review the language, this is an agreement the president could support. We encourage the Congress to pass it as soon as possible,' Ms Perino said in a statement.

Earlier, Democratic Senate Majority leader Harry Reid said it was a 'sad reality' that there was not yet sufficient support for a bailout and told industry chiefs to come up with a new rescue pitch.

Mr Reid said Congress could consider whether to act on a rescue package, likely to involve significant restructuring, in December.

'The executives of the auto companies have not been able to convince the Congress or the American people that this government bailout will be its last,' Mr Reid told reporters.

Earlier a bipartisan group of senators from Michigan, Missouri and Ohio said they had reached a deal to support the industry with bridge loans.

The deal would have used funds from a 25 billion dollar (S$38.3 billion) Energy Department loan to the auto industry which was originally designed to spur development of fuel efficient vehicles as emergency funding.

Repayments by the recovering industry would replenish the fund and it would be returned to its original purpose.

US President George W. Bush 'has insisted that help for the auto industry be contingent on the industry making the changes needed to be viable. We are pleased the Democratic Leadership now agrees that is necessary,' said Ms Perino.

'The bipartisan Bond-Levin compromise meets that test. Their plan provides assistance from already-appropriated funds, and has strong taxpayer protections,' said Ms Perino.

Mr Reid said the auto industry chiefs must come up with a new plan by the week of December 2, and the Congress could hold another lame duck session to mull an emergency cash injection in the following week. -- AFP

 

 
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