WASHINGTON, DC- At the Senate Banking Committee hearing today examining the state of the domestic automobile industry, U.S. Senator Bob Casey (D-PA) released the following statement:
“Some of the questions we have to ask today as we consider additional help for the automobile industry are: what are the consequences of doing nothing today versus doing something down the road and what are the consequences of doing nothing at all?
“We’ve seen the estimates that there are potentially millions of jobs at risk in auto manufacturing, parts manufacturing, distribution and sales at dealerships. The United States has already lost 1.2 million jobs this year. In Pennsylvania, thousands of jobs could be at stake. Pennsylvania, like the rest of the country, can’t afford to lose more jobs.
“My state has some experience with industries that have taken a big hit. The federal government didn’t substantially help the steel industry in Pennsylvania. I can’t help but think what could be in Pennsylvania if more aid was given to the steel industry. Western Pennsylvania lost literally half of its jobs – good paying jobs.
“I have been saying for months that we are in a recession. The data is now catching up to what my constituents have been feeling. I worry that we risk the possibility of the recession turning into a depression.
“With all of the challenges we face I believe we are also at a crossroads for our economy.
“Now is the time to finally transform our economy into a greener one that is more energy efficient.
“Now is the time to invest in American workers and children so that we can continue to have the most productive workforce in the world.
“Now is the time to modernize our financial regulation so that a nation of spenders can become a nation of savers and they can trust their financial institutions to improve their lives, rather than tap into their wallets.
“The automobile industry has to change. To compete globally and domestically we must see more efficiency, increased technology and improved operations. The industry must prove to Congress that they will make changes.
“One way to hold these companies accountable and assure taxpayers that their money would be spent wisely is to require monthly reporting.
“Treasury should be directed to release on a monthly basis only the minimum level of funding for which there is demonstrated need, and only after the automobile manufacturers have disclosed to Congressional Committees of jurisdiction and provided to the satisfaction of Treasury, information including:
a. Cash on hand and other sources of funding available for current operations;
b. Expected monthly expenditures by category;
c. Plans to reduce cash needs and improve revenues in the immediate future; and
d. In subsequent months, progress towards meeting previously established cost and revenue goals.
“We can’t take lightly the expenditure of billions of dollars. Strict accountability is required. We also can’t lose sight of the human cost and the effects on our families, our economy and our communities.”
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