U.S. congressman raps Boeing, trade group support for Ex-Im bank

WASHINGTON, July 21 Mon Jul 21, 2014 5:50pm EDT

WASHINGTON, July 21 (Reuters) - A Republican House committee chairman scolded Boeing Co and a large U.S. trade group on Monday for lobbying to keep the Export-Import Bank alive, saying their efforts amounted to petitioning for "special privilege."

Representative Jeb Hensarling wrote a scathing letter to Jay Timmons, president of the National Association of Manufacturers, and James McNerney, chairman of Boeing, referring to reports they were visiting lawmakers to promote the reauthorization of the bank.

The 80-year-old bank promotes exports by offering financing to foreign buyers of U.S. goods, helping some major companies such as Boeing to compete internationally.

But Hensarling, a conservative Republican, said the bank's activity amounts to favoring multinational companies at the expense of U.S. taxpayers. The financial services committee he leads has jurisdiction over the bank, and Hensarling is trying to stop Congress from renewing its charter when it expires on Sept. 30.

"I respect your constitutional right to petition your government for the redress of grievances," Hensarling wrote to Timmons and McNerney. "I just wish you had used the occasion to petition for opportunity instead of special privilege."

Timmons and McNerney could come to see him on Capitol Hill as long as they were not promoting policies for taxpayer subsidies, in which case "a meeting would probably not prove to be a good use of our time," Hensarling said in the letter, which his office provided to Reuters.

A NAM spokesman defended the group's position, saying: "The NAM continues to be committed to manufacturers, their families and the communities they serve and protecting them by making sure the Ex-Im Bank is reauthorized."

A Boeing spokesman said the company had not received a letter from Hensarling.

Ex-Im bank supporters say that, in addition to helping big companies such as Boeing, it helps thousands of small U.S. businesses with trade credit insurance or loan guarantees. They argue that other countries do more to support their exports.

Last year, Ex-Im's loans backed $37.4 billion of U.S. exports and supported 205,000 U.S. jobs, the bank has said.

The bank used to be fairly uncontroversial, but growing opposition among Republicans has cast doubt on its future. The incoming House Republican majority leader, Representative Kevin McCarthy, said he also thinks it should expire. The Democratic-run Senate is more favorably disposed, but Majority Leader Harry Reid has not set a vote on the issue.

Hensarling said that, while the bank might be helping some companies, it costs jobs at other enterprises, and he does not buy the argument that it levels the playing field with other countries.

"Over 98 percent of U.S. exports are financed successfully without Ex-Im and taxpayer backing," he wrote. "So I do not find the argument that 'Everyone else is doing it, so must we' to be particularly persuasive." (Reporting by Susan Cornwell. Editing by Andre Grenon)

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Comments (1)
tomas85225 wrote:
67% of the loan from The U.S. Export-Import Bank are to buy Boeing commercial aircraft’s with GE engines
Many airlines are not replacing there exist Boeing aircraft, since Boeing CEO James McNerney, and GE CEO Jeff” Immelt are member of the board on the Import-Export Bank that made better loan to foreign airlines at a lower interest rate
Delta, and other Airline Group have file law suits against The U.S. Export-Import Bank over Air India Loan Guarantees
http://www.bloomberg.com/news/2011-11-16/airline-group-sues-
JAL lines, Delta Air Lines, British Airways, Singapore Airlines, Lion Air, American Airlines, Mexican budget airline VivaAerobus , Air China, Philippine Air, Vietnam’s VietJet, ANA (Discussions for A-350 Orders) are now ordering from Airbus
Boeing has been subsidies by the Washington states and south Caroline taxpayer with tax break and tax payer money
Taxpayer are not Boeing stock holder and any money to Boeing should be a Bond issues where the taxpayer can be pay back !
Boeing now needs 27 Billion from the Washington state payer money to build 259 777-X (the 787 breakeven points was 1100 aircrafts and that was before all the problems and payment to airline and reworking the aircrafts) and new factories.
Washington Governor Jay Inslee, a Democrat, called the session to seek roughly 8 billion in tax breaks, a streamlined permitting process for Boeing and $10 billion in funding for transportation improvements, and construction of 1.5 million square feet of new facilities in the Puget Sound Alone with the exiting 9 Billions to the year to 2040 It’s not 8.7 billion its 27 billion and state payer money
http://article.wn.com/view/2013/11/09/Washington_state_Senate_passes_tax_breaks_aiming_to_win_Boei_l/
http://www.cnbc.com/id/101185065

Boeing sells fabrication plants
http://seattletimes.com/html/boeingaerospace/2002419494_boeing04.html
Boeing’s Secret see
www.businessweek.com/…/boeings-secret‎ Bloomberg Business week
7E7- The Boeing Rip-off, The Boeing Rip-off Introduction. Boeing and Governor Locke just finished the biggest giveaway of our tax-dollars in Washington State history see
http://www.socialistalternative.org/publications/boeing/introduction.html
http://www.socialistalternative.org/the-boeing-ripoff/
Boeing, Airbus subsidy battle settled by WTO ruling – Mar …
money.cnn.com/2012/03/12/markets/boeing-airbus-wto/CNNMoney

Boeing should pay its own way like most companies

Jul 21, 2014 8:19pm EDT  --  Report as abuse
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