BP Should Suspend Dividend Payments, Marketing Campaigns, Say House Democrats

By Robert Hune-Kalter
Talk Radio News Service

Rep. Peter Welch (D-Vt.) and other House Democrats today called on oil company BP to suspend making dividend payments and creating marketing campaigns.
A letter sent by Welch to BP CEO Tony Hayward earlier this week contained the following statement:

“As BP presides over one of the greatest environmental and economic catastrophes of our time, we find it troubling that your company plans to divert financial resources to shareholder dividends and slick marketing campaigns."

Despite the fact that Hayward told the House Transportation Committee that his company had a plan in place to deal with large spills, Cohen charged on Wednesday that this was not the case. The Tennessee Democrat said BP's legacy will forever be tied to the ongoing spill.

“We’re two days after World Ocean Day and we’re polluting one of our most precious bodies of water and possibly destroying the economic vitality and future of the Gulf Coast. BP is going to be known in the future as Biggest Polluter,” he said.

Rep. Lois Capps (D-Calif.) suggested that the best public relations campaign for BP would be transparency and responsibility, putting its profits in reserve to meet its obligation to the Gulf Coast.

“The public does not like these ads, and when they hear of these dividends they’re going to see right away how terrible this is, that a company would be thinking so much of its shareholders when so many people are suffering on the Gulf Coast,” she said.

Cohen said Democrats are hoping to put BP into receivership so that the company cannot escape its financial responsibility through bankruptcy.

“I believe that they will eventually go bankrupt. I see BP pulling out, just like they pulled out of New Orleans after Andrew Jackson went to New Orleans in the Battle of Britain. The losers will be the people who obligations are due to,” he said.

How to stimulate the economy while saving the environment

Congressman Peter Welch (D-Vt.) unveiled a new piece of legislation regarding the retrofitting of buildings to increase energy efficiency, which was targeted directly at the middle class. The crux of the bill involves the use of progressive financial incentives to encourage homeowners and small business owners to make their property more energy efficient. The national government would give $10 billion over four years so that the state can decide the type of program that they would like to implement. Mr. Welch found inspiration from a similar plan implemented in his home state of Vermont, and he cited an example where a small family was able to save $1300 merely from retrofitting their home. Asserting that this plan would be another form of stimulus, Mr. Welch stated that families would have more money to spend due to a decrease in energy charges. Additionally, the bill would help increase workers in the construction industry because they would be needed to install materials, such as solar panels.

Several individuals who the bill directly affects spoke after Mr. Welch. Jeff Presswood, an analyst for the Natural Resources Defense Council, commended Mr. Welch for having the foresight to create such legislation because the world is approaching a “point of no return” in regards to the detrimental affect of global warming. Also, Mr. Presswood stressed how such a plan would put money back into the local economy, as the construction jobs could not be sent abroad.

After Mr. Presswood spoke, Michelle Moore of the United States Green Building Council discussed how the legislation would create 2 million jobs in the construction industry. Ms. Moore praised Mr. Welch on creating a bill that did not merely deal with energy efficiency, but also with other natural resources, like water conservation. Additionally, she stated that it is “easier to put granite countertops in one’s house than to retrofit the entire house to become more energy efficient.”

Several other congresspersons spoke in support of Mr. Welch’s bill and other energy efficient legislation that the House of Representatives is crafting. For instance, Congressman Chris Van Hollen (D-MD) remarked that such legislation is not about partisan politics, but about a greater issue confronting the nation--global warming and energy independence. Mr. Van Hollen described how such retrofits would cost nothing in the long-run, as the individual can pay back the cost through the profits they make from becoming energy efficient. This only proved Mr. Welch’s closing statement that “We all want to save the planet, but no one wants to go broke doing it.”

22 Democratic Members of Congress join to form Populist Caucus

Representative Bruce Braley (D-Iowa),, announced the formation of the new Populist Caucus. It is aimed at protecting and expanding the middle class. "This is the moment, and the time is right to form the populist caucus because many of us feel that the needs of the middle class are being ignored or not been given the proper attention."

Rep. Peter Welch (D-VT) said that this country has been founded on the proposition that people who want to work hard to get into the middle class can make it, and that those who are in the middle class can work to do better. "We have never seen, since the 1920's, the greatest disparity of wealth that we have had in this country. And it's shocking, it's unconscionable, and it's wrong. And many Americans have a sneaking suspicion that part of the reason is that Congress has lost its way." He said it is time for Congress to start advocating for the middle class, which is what the caucus intends to do.

"As we move forward and debate the policies that will hopefully rebuild this economy and re-build the middle class in this country, we will lean heavily on the lessons that we've learned over the last ten years or so and work again to make this an economy that works for everyone," said Rep. John Yarmuth (D-KY).
In order to strengthen the middle class, the caucus outlined 6 issues that they plan to focus on: creating good jobs and a secure retirement, cutting taxes for the middle class, affordable and quality for healthcare, quality and affordable education, fair trade, and protecting consumers.