Sen. Cornyn: Government Of Iraq Must Start Paying Its Own Way

Press Release

Date: Aug. 12, 2008
Location: Austin, TX


Sen. Cornyn: Government Of Iraq Must Start Paying Its Own Way

Sends Letter to Secretary of Defense Urging Redoubled Efforts to Shift Reconstruction Responsibility & Costs to Iraqi Government

In a letter sent late yesterday to Secretary of Defense Robert Gates, U.S. Sen. John Cornyn echoed his remarks from Sunday on CNN's "Late Edition" that America must remind the Government of Iraq "that our willingness to lend a hand in their country's reconstruction has limits." Sen. Cornyn asked Secretary Gates to redouble his efforts in shifting to the Iraqis the role and responsibility for the reconstruction effort and asked for a detailed report on this matter as soon as possible.

Sen. Cornyn, who is supporting a provision in the fiscal year 2009 Defense Authorization bill that would greatly restrict the use of U.S. dollars for Iraqi reconstruction, expressed his concern regarding the findings of a recent report from the Government Accountability Office (GAO) that stated the Government of Iraq has amassed a considerable budget surplus but has spent little of that money on the reconstruction of its own country. "As I am sure you would agree, the American taxpayer should not be forced to shoulder the burden and cost of reconstructing Iraq when Iraq itself has large budget surpluses," Sen. Cornyn wrote in his letter to Secretary Gates.

According to the report from the GAO, the Iraqi government generated an estimated $96 billion in revenues from 2005 to 2007, 94 percent of which are attributable to oil revenues. For 2008, the GAO estimates that Iraq will generate an additional $73 billion to $86 billion in revenues, primarily driven by the high price of oil, resulting in a budget surplus of as much as $50.3 billion. The GAO report also states that the Iraqi government spent only 28 percent of its $12.2 billion capital investment budget in 2007.

"I commend you for your determination in seeing the surge strategy through to completion, even in the face of constant criticism and second-guessing from many on Capitol Hill. The tireless efforts of our troops have resulted in a security situation in Iraq that is vastly improved, setting the conditions necessary for the Government of Iraq to stand up and take the lead in ensuring a successful future for its country….While we continue to help the Government of Iraq build its institutional capacity, we must also remind the Iraqis that our willingness to lend a hand in their country's reconstruction has limits. The Iraqis are beginning to govern their own nation; we must ensure this includes paying their own way," Sen. Cornyn's letter concluded.


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