Gutierrez: Existing money is key for auto bailout

Commerce Secretary Carlos Gutierrez said Friday that the
administration sees congressional modification of already approved loans for struggling
automakers as the “only practical” solution on the table.

In an interview with The Hill, Gutierrez said the Bush
administration continues to believe that the $700 billion financial rescue
package was not intended to bail out individual industries, and congressional
Democrats should allow a vote on the bipartisan legislation that would
accelerate the $25 billion in loans through the Department of Energy that are
already approved.

{mosads}“We have offered a solution. They didn’t even vote on
it,” Gutierrez said. “That continues to be the most practical solution.”

President Bush added Friday morning that any funds the
auto companies receive would have to be paid back.

The White House has held fast to its argument that the
automakers need to demonstrate future viability to receive any funds. Gutierrez
said there were some encouraging signs from Thursday’s Senate hearing with the
heads of the Big Three, but he said he did not want to characterize the
viability summaries the companies provided to Congress and the administration
ahead of Friday’s testimonies in front of the House.

Earlier this week, White House press secretary Dana
Perino said there were some signs that the automakers recognized the need for
some of the “hard decisions” they will have to make to ensure viability.
Gutierrez agreed that the companies did seem to be making clear that they have
taken that point to heart.

“They came back with an increased intensity and an
increased focus,” he said.

Senate Democrats were skeptical of the automakers’ summaries
Thursday, but Gutierrez said that despite the lack of consensus on a way to
move forward to aid the companies he does not think Congress will adjourn
without finding some solution.

“I thought [Senate Banking Committee Chairman Chris Dodd,
D-Conn.] said it best when he said he’s not going to pack his suitcase until
some kind of action is agreed to,” Gutierrez said. “I think that is the kind of
attitude needed. I can’t imagine that people will leave town without some kind
of action.”