Making Supplemental Appropriations For The Fiscal Year Ending September 30, 2009 - Conference Report

Floor Speech

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Mr. DURBIN. Mr. President, I thank the majority leader for his statement. I know there is controversy involved in this so-called cash for clunkers, which is a humorous name for a very serious proposal. Let's be real honest about where we are in America today. We have seen the largest decline in automobile sales in 50 years. Sales are down 29 percent. Automobile production is down 46 percent from where it was just 17 months ago. Plummeting auto sales have reduced production, and it has had a ripple effect across the economy, forcing dealerships and factories to close. We have lost 280,000 American jobs in the automobile industry. That is what this is about, 280,000 American jobs that are lost and more that will be lost if we do nothing.

Some would have us do nothing. While the automobile industry is roiling from job losses and declining production, many consumers in the market for new cars are waiting. They are holding back. The purpose of this legislation is to put some movement into the purchasing of new automobiles. It is a targeted way to give incentives to Americans to buy cars, get them back in the showrooms, back on the lots buying the cars that start moving the inventory, creating demand, and creating a more positive feeling about the automobile industry. Are there better ways to have written this? Yes. I think I could have sat down with others and spent more time. But that is the case in almost every bill that comes before us.

Some have argued: Listen, this just came up in the conference committee. It passed the House of Representatives before it was brought up in the conference committee. I will concede that I wish that bill would have been debated and passed here, but we didn't have the opportunity to do it. We literally did not. This is a matter of seizing an opportunity that could make a profound difference.

Has this concept of giving cash incentives to customers to buy cars ever been tried? It turns out it has. It was tried in January of this year in Germany, where they offered $3,300 to consumers to replace old cars with new ones. At the end of the program's first month, car sales in Germany dramatically increased by 21 percent. The bad news? That same month automobile sales in the United States went down by 41 percent. Germany knew how to create a surge in purchasing by consumers with similar legislation to what is being brought to the floor.

Let's be honest about the automobile industry. Next to the housing industry, it is at the base of our economic pyramid. We need to make sure a strong auto industry is available to America so we can rebuild out of this recession and start creating jobs. Those who want to kill this provision are walking away from incentives to put people back to work in dealerships selling cars, servicing cars, and producing cars across America.

I beg those who oppose this to understand what we will face if we do nothing, which is what they want to do, nothing. I think that is a terrible outcome. If we want to stand behind recovering from this recession and restoring consumer confidence, if we want to move old cars off the road, the so-called clunkers, and bring new cars on the road with higher gas mileage, this is our opportunity. Let's not get caught up in some procedural tanglement. Keep our eye on 280,000 Americans out of work in this industry, more to follow if we do nothing. This is going to be an important measure for us in the long run. We need to build on it. First, we need to pass this today.

As Senator Reid has said, it is an important provision in the House of Representatives. Without it, we are not sure we can pass this supplemental bill, which has so many other important provisions, not the least of which is providing for our troops in the field. It is a delicate balance that brings this to the floor. I hope those who oppose it don't want to stand back and do nothing as this recession continues, understand the gravity of this automobile industry being flat on its back at this point in time, and realize that we owe President Obama passage of this supplemental legislation. President Obama did not want to ask for this bill to pay for the wars in Iraq and Afghanistan. But, unfortunately, the previous President made us fund these wars on an emergency basis. So we had to come in with a supplemental appropriations bill to pay for the war. That will not happen again.

Next year, President Obama is putting it in the regular budget. This is one of the last things we have to do to clean up a situation left for this President by President Bush. This bill for automobiles--this one that has a broad cross section of bipartisan support--includes support of business and labor: the United Auto Workers, the National Association of Manufacturers, the U.S. Chamber of Commerce, and the National Automobile Dealers Association, as well as more than a dozen Governors.

It is important we defeat this procedural objection to this program, that we put this money into our economy, give people a chance to buy a new car that is more fuel efficient, and put people back to work across America, so we can start digging ourselves out of this recession hole.

Mr. President, I yield the floor.

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