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Sensenbrenner calls the cops on GM and Chrysler's green lobbying
By: Timothy P. Carney
Examiner Columnist
06/19/09 5:51 PM EDT
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.
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