White House backs Republican alternative on auto aid

WASHINGTON (Reuters) - The White House said on Wednesday it supported an alternative Republican proposal for aid to the auto industry that would call for using $25 billion in advanced technology funds for automakers.

White House spokeswoman Dana Perino said the Bush administration remained opposed to giving automakers money from a $700 billion financial rescue package, as some Democrats have urged. "There's no appetite for that," she told reporters.

Sen. Christopher Bond and Sen. George Voinovich, both Republicans, have made a proposal in line with what the White House has been pushing -- the use of $25 billion of auto retooling loans already approved by Congress but not yet disbursed by the Energy Department.

Perino expressed concern that Harry Reid, the Democratic Senate majority leader, might not allow a vote on the measure.

"We believe that the Bond-Voinovich amendment would have bipartisan support if Senator Reid would allow it to come to a vote," Perino said.

"And we are extremely concerned that he may not even be willing to allow a vote on such a proposal," she added.

She spoke as U.S. auto executives appeared on Capitol Hill for a second day to argue their case for a bailout package.