GM Defends Decision To Retain In-House Lobbyists

General Motors is defending its decision to retain an in-house team of lobbyists despite being majority-owned by the U.S. government.

Earlier today, the giant automaker announced that it would terminate all outside consulting contracts in light of the court-ordered restructuring of the company, reports Roll Call.

Under the current bankruptcy plan, U.S. taxpayers would be 60% shareholders of GM, raising questions about the use of lobbyists paid to influence government decisions by companies largely owned by the government.

GM insisted to Huffington Post that its in-house team is necessary because it provides expert information to the larger company and keeps the company engaged with a wide array of policy issues.

"They're the experts here who explain to the rest of the company what these issues are," Kerry Christopher, says communications manager for the GM Washington office. "If the company didn't understand these issues it could be very detrimental to the company, and we could even break the law. So that's what the in house team works on day after day."

Christopher said that the issues the in-house team works on include health care, environmental issues, taxation issues, foreign trade and safety, which he described as "a big one and very important to us."

GM has suspended the activity of its PAC as of January, and will not make any political contributions until at least 2009, at which time it will review the policy.

However, the use of taxpayer money to fund a lobbying team rankles some critics. Sheila Krumholz, the executive director for the Center For Responsive Politics, said that the shareholder capacity of the American public made what had previously been an "academic debate" about the value of lobbyists an urgent question.

"I think they're hoping they can keep whatever means of influencing the legislative agenda they can and it will be interesting to see if they're allowed to," Krumholz said. "I think there's a real question if that should be allowed, because GM is gambling with taxpayer money."

While the role of lobbyists has largely been accepted in political and corporate circles, it remains to be seen what role American taxpayers will tolerate for lobbyists employed by companies that receive federal funds. According to Krumholz, other companies receiving stimulus funds, including TARP recipients, were prohibited from lobbying.

"There was a question of companies that didn't really need it getting stimulus money and going right back to the government to lobby for more," she said. "I think this issue should be discussed openly, so that Americans can scrutinize the decision and decide if GM is fundamentally different."

Comments

[hill raiser]

om your lips to Congress' ear! A comprehensive plan for a sustainable America. I would add two more items to the agenda: eliminate paid lobbyists in Washington and level-fund all campaigns for election to public office. In the age of the internet, there

good finance articles-> http://www.alexandria.lib.va.us/link/redir.pxe?iamned.com

[lvdragonlady]

With 60% of GM belongs to the American people via our government, this is like someone lobbying their boss for a raise. Stupid stupid stupid....­.......was­ting money that is not their to waste.

[ReedYoung]

Individuals have unalienable rights. Corporations do not. We can, and should, prohibit all corporate lobbying all at once, not hamstring our new investment by singling it out to be the only company subject to rule of law, unable to purchase special exceptions like its direct competitors from around the world.

[TrooAmerican]

Maybe they should just combine theirs with the UAW lobby group and consolidate since the UAW's members' existence is directly tied to the health and future of the company, and now the UAW partially owns GM.

[CAP6]

What is the problem? As if we didn't know lobbyists already own the Congress. Harry Reid himself said lobbyists are necessary for the Congress while they are doing the people's business. You do want your business done don't you?

[thenorthshore]

barrys snake-oil motors

barry is attempting to select winners and losers

barry is dumping billions into his auto company with unlimited tax revenues to come

while Ford, who is not in bankruptcy is barrys other American competitor.

[swo68]

Ya... wonder who will be getting the fleet-type contracts...

[demrepub]

Why does GM need a lobbyist when those who they will be lobbying own GM?

[thenorthshore]

headline: GM Defends Decision To Retain In-House Lobbyists

barry said he won't hire lobbyists, well only a few IF he grants waivers

now barry has even MORE lobbyists working for him and his company

barrys snake-oil motors

[kankan]

But nobody cares, wants to look at what is happening, because we have a new president and nobody wants to point out that he is following through on Bush administrations policies. His supporters are holding their breaths waiting for signs of light and rebound from recession, while his opponents are doing everything possible, or not doing anything to help, him fail. There be a new tax bracket for employees of bailed out companies until the companies pay back the taxpayers' money with compiled interest. Otherwise, this is a message that if you are a super rich executives and managers from huge companies, all you have to do is file bankruptcy to get a "Get Out Of Jail for Free" card.

[kankan]

Another reason why companies like GM, Chrysler, and banks did not and still do not deserve taxpayers' money for corporate welfare. Back in the 1970's, 1980's, and 1990's, there were constant controversal over welfare programs harboring habitual abusers, mothers that keep having more babies than they can afford to take care of, men who stand around soup kitchens, unemployment lines, and trading bridge cards and food stamps, student financial aid programs for high school and GED graduates who come from proverty stricken upbrings--you know, welfare programs that support everyday citizens who are doing what they can to survive death and demise.

Now we have welfare programs for millionaires, tax evaders, corporation executives and board of directors, and programs for worklife balance for nepitists and corporate conflicts of interestes. Government cheese, aka bailout money, for the people who got us in this mess already.

[swo68]

Obama is good with lobbyists now. So not surprised.

(google obama lifts ban on lobbyists)

[ReedYoung]

So petition your Representative in Congress and your Senators to write, sponsor or support legislation prohibiting all corporate money from politics. Or, continue to pretend the President should play by different rules than everybody else.

[swo68]

"Or, continue to pretend the President should play by different rules than everybody else."

Want to clarify that? He's the one making / changing the rules.

As for the petitioning thing, I have - but they're democrats, so I'm not expecting much.

[Carolab]

SAD.

The 'New GM': Layoffs, Factory Closings, Offshoring
By John Nichols
June 3, 2009

Published by The Nation.

It will cost US taxpayers a great deal to eliminate this many US jobs -- Washington has already handed GM $20 billion and is expected to shift another $30 billion into the coffers of the corporation. "Whether that investment will ever be recovered is still an open question," suggests the New York Times report.

So what should taxpayers make of a scheme to risk $50 billion on a project to layoff US workers, close US factories and shift work overseas in order to satisfy speculators who continue to reward only race-to-the-bottom strategies?

The Times suggests that we ought to be impressed with the "Nixon-goe­s-to-China­" courage being displayed by the president and his auto-industry task force. "The company will also have to shed 21,000 union workers and close 12 to 20 factories, steps that most analysts thought could never be pushed through by a Democratic president allied with organized labor," the paper chirps on its front page.

Spare us.

http://www.thenation.com/blogs/thebeat/439875/the_new_gm_layoffs_factory_closings_offshoring

[drymartini1]

because there is huge over capacity in this sector.

in plain speak,

GM/Chrysler (and other auto companies) produce TOO MANY cars, employing TOO MANY people compared to the demand in the market.

[illusionpainter]

But, you don't have the whole story. They plan to increase their production in China and Korea. Then, they plan to increase their foreign produced vehicles from 360,000 to 740,000 imports back into the U>S. In other words, they are firing American workers while using your tax dollars to hire foreign workers.

[noneIn2008]

They must keep the lobbyist and add more. These companies are evaluated by the power of their lobbyists, not by the quality of their product or service. Your thinking old economy. The new economy is about lobbyists.

[lazercat2008]

Your tax dollars at work.....The lobbyists cause this disaster in the first place!

[ranchero42]

Not a good time for a return to the ugly days of Pete Estes. GM needs to build decent cars, not just market the hell out of excretions built on the cheap.