Some Say GM, Chrysler Should Stop Lobbying

ALAN FRAM

WASHINGTON (AP) — If the government is your boss, you shouldn't be lobbying it.

That's the argument critics are using against General Motors Corp. and Chrysler LLC, which have continued lobbying while being kept alive, in part, with $80 billion in federal aid.

GM is under bankruptcy protection and is expected to be 60 percent owned by taxpayers when it emerges. Chrysler left bankruptcy last week under a plan that was giving federal taxpayers an 8 percent ownership share.

"Given the government's ownership, the lobbyists are in essence working for the government," said Clarence Ditlow, executive director of the Center for Auto Safety, a consumer group. "The government ought to be able to tell them, 'Do what we say because we are you.'"

Sheila Krumholz, executive director of the Center for Responsive Politics, cited the recent experiences of Fannie Mae and Freddie Mac. Both huge mortgage companies have been functioning with federal aid since almost collapsing last autumn after agreeing to stop all lobbying.

If administration officials are "not going to be consistent in applying these rules across the board, they should have to explain how this is different," Krumholz said.