Senator John Ensign today (December 12, 2008) called on the White House to take the option of using the Troubled Asset Relief Program (TARP) funds for the auto industry off the table.  Ensign led efforts in the Senate this week to stop the White House-Democrat auto bailout legislation because it took experts out of the process, injected politics and failed to require the necessary changes to make the Big 3 auto companies competitive over the long term.

“During debate last night and throughout negotiations, the Senate was only a few steps away from finalizing a deal,” said Ensign.  “By keeping the TARP funds as a last option, the White House significantly undermined any potential negotiation.  With TARP as a backstop, the concessions that had to made could not be taken seriously.”

Today, Ensign urged the White House to take the TARP option off the table and allow for the Senate to continue negotiations on a bill that will make the Big 3 automakers competitive over the long term, which will benefit the economy, American jobs and the auto industry.

Along with Banking Committee Ranking Member Richard Shelby, Ensign drafted an alternative bill that would have provided government backing to car warranties for the Big 3 if they went into bankruptcy and would have provided debtor-in-possession financing also contingent upon bankruptcy.  Instead of putting authority on a so-called “car czar,” Ensign and Shelby’s bill would have relied on the experts in the bankruptcy process.

“A car czar injects politics into a process that needs experts,” said Ensign.  “If we are serious about making these companies stronger over the long term, we need to have experts make these decisions outside of Washington, D.C., politics.  We owe it to the tax payers to be both responsible and effective.”