December 11, 2008 – U.S. Congressman Trent Franks (AZ-02) gave the following statement after voting against the $14 billion bailout legislation for the “Big Three” Automakers:

“Congress bears a responsibility to the American people to ensure that taxpayers are protected and that the Big Three Automakers are enabled to become competitive again.” Franks stated. “I firmly believe that the Majority’s bailout legislation we voted on yesterday will accomplish neither of those things, and for that reason I voted against it. 

“When I voted both times against the $700 billion treasury bailout package last month, I stated that if we started down this path of nationalizing our financial sector, we would only see more bailouts to come.  People are beginning to awaken to the fact that over the past several months, this Democratic-led Congress has begun to plummet down a slippery slope of ineffective, government-managed, taxpayer-funded bailouts; and there is no telling where the stampede will end. 

“It’s unquestionable that the auto industry is struggling, but there are few businesses that aren’t struggling right now, and this government simply does not have the money or the Constitutional authority to continue passing these unprecedented, multi-billion dollar ‘bailout’ packages that will not bring the restructuring necessary to stabilize these failing companies and stimulate new productivity and growth.

“Furthermore, no organization is more singularly unqualified to provide oversight to “Big Three” auto industry than the United States Congress.  Unless we are able to catalyze the private sector to inject capital into these industries, we are only filling one hole by digging another; filling the financial hole in the auto sector by digging a larger one in taxpayers' pockets. 

“The Detroit automobile companies must be encouraged to seek restructuring under Chapter 11 bankruptcy   This would allow them to put a stay on all creditor claims, downsize its overextended dealership network, break free from the unsustainable Union contracts currently forcing them to pay uncompetitive labor costs, and it would keep politicians out of the management — all the things which are necessary to saving these companies and provide long-term viability.”