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

[Veritas 1]

Lets just call them what they now are, investor relations managers.

[HST]

I think the 60% GM shareholders don't want the company to take our money so they can hire lobbyists to work aginst our interests.

[ObamAtomic]

Business as usual,why you need them? American people own GM.
You people still don't get it!

[carljr]

Exactly!!! Business as usual and in our free enterprise, democratic society people attempt to influence the government. We're attempting to build a car company not a monastic here.
What the President wants is a good GM and business as usual.
GM's got a couple of broken legs. Cutting off the legs will not produce a good transportation company.

[lvdragonlady]

Still have not figured out how to plan by the rules have you GM?
Stop wasting the tax payers money on lobbyists.

[killpack]

I'm sorry, but I just can't stop laughing over this whole thing! This is just too funny. I mean, has it really come to this. I mean, are we that close to the end of the world. I'm still trying to imagine how this whole thing might go down. I mean it's really amusing when you picture it:

Some Senator: Okay, go give 'em heck up there on the Hill.

Lobbyist: Sir, I won't let you down.

The same Senator : Okay, son, what can I do for ya.

Same Lobbyist: Here's a list from my boss.

Same Senator: Why, that looks like my handwriting.

I should start writing political cartoons with end of the world material like this. Hell, we all could.

[killpack]

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

HAHAHAHA! That just made my freakin' day! That may be the funniest thing I've heard all week, maybe all month!

However, I'm going to ask it, even though it's a painfully obviously question and has probably already been asked a hundred thousand times since this story broke: How do you lobby yourself?!?! I wish I could lobby myself! That sounds like a good freakin' time!

[dclobbyist]

It's clear this is above your level of intelligence. Don't worry, Beavis and Butthead will be on soon.

[killpack]

No, I watch C-SPAN, it's much more entertaining. It has all the juvenile infantile humor I need.

dclobbyist, please don't tell me your one of the GM lobbyists. That would really make my day, like icing on the cake. I couldn't believe GM (a Congress owned entity at present) would actually still have lobbyists going to Congress. I thought, this certainly has to be a joke. But, if I'm really talking one of the actual chosen ones, I mean WOW! I feel totally blessed and privileged. I'm like a VIP getting to talk to you.

[alleycat32]

Doesn't matter who gets worked over in this fiasco. Bondholders, creditors, dealers and the workers are taking a bath.

When GM comes out as a "new company" nothing will have changed. They will still be arrogant, greedy, slime balls. They are so far out of touch and the government will help them.

Death to GM in 2009. Please do not buy into the web they are spinning. BUY A FORD OR A FOREIGN CAR.

[01202009]

No way! Back to the drawing boards. GM should not (and cannot afford) any political contributions. It should not have anybody lobbying the government. Not with my money.

[E4B32787]

GM doesn't define the game played in Washington, they only play the already defined game. Corporate influence in Washington has changed this government from being a government of the people to being a government of the corporation.

We need a lot bigger change than GM simply unilaterally deciding to not play the game. The game of corporate bribery and influence peddling needs to disappear altogether.

[kelo]

What can they lobby for Gm already is set to receive 49 billion. O I know they want foreign companys to not sell any more cars.

[brklynivn]

They are paying lobbyists with taxpayer money? The new leaders are as stupid as the old ones.

[Deaninphilly]

"and will not make any political contributions until at least 2009"

Now I could be mistaken, but last I checked we are in 2009. So exactly what does this statement mean?

[Servility]

it's 2009, they are evaulating political contributions now. duh!

[Coyote2]

Fire the i.diots. Sue them for incompetence!
That lobbying on the behalf of GM to stifle change and innovation in the automotive industry was the direct cause of GM's failure.

the EV would have revolutionized the auto industry: little need for regular maintenance and parts; no need to buy fuel; cars are so simple, any start up could compete, etc....

That is why the auto and oil industries worked so hard against CAFE to klll the EV. Note that when Bush was elected he kllled the CAFE requirement for the EV, just when it was perfected with the nickel metal hydride battery.

GM is d.ead because of their shortsighted focus