Press Release
For Immediate Release
4 February 2009
ACTE Urges Congressional Restraint in Legislation Limiting TARP Expenditures for Legitimate Business Travel
Alexandria, Va --
The Association of Corporate Travel Executives (ACTE) has today sent an urgent recommendation to Senators Feinstein, Snowe, Lieberman, Boxer, Nelson, Kerry, and Specter regarding a major clarification to Senate Bill 133, which calls for restrictions regarding corporate expenditures of Troubled Asset Relief Program (TARP) funds. According to a statement issued by ACTE’s Executive Director Susan Gurley, the association backs nearly all of the bill’s provisions, which prohibits the use of TARP funds for lobbying and political contributions, while calling for more transparency and accurate reporting in the use of these monies, but questions a blanket restriction of their use for transportation, accommodations, or the use of corporate aircraft.
“Business travel is going to play a major role in the reconstruction of both national and global economies,” said Gurley. “Executives at all levels routinely travel for business. Business travel is the ultimate form of communication for building relationships between buyers and suppliers, for closing deals, and for expanding new business. The majority of business travel represents a legitimate investment in time, money and human resources.”
ACTE leadership recommends, however, that S.133 should clearly define more appropriate travel restrictions, such as prohibiting the use of these funds for meetings of a congratulatory nature, or accommodations that do not reflect the new spirit of thrift and fiscal prudence that can save jobs.
“It appears that certain aspects of S.133 may be trying to supersede basic travel policies regarding the expenditure of emergency taxpayer bailout funds. The spirit of not wasting taxpayer resources is clear in this bill, but it should not just write off one of the most efficient means for companies to rebound – business travel.”
Gurley added that most companies were not wasteful in their travel spend, and have stringent travel policies in place that ensure their executives do not have a blank check for travel. ACTE suggests adding provisions that appear in standard travel policies that define the most appropriate class of travel, accommodations, surface transportation, and related expenditures.
“It is regrettable that excesses in corporate America have put Congress in the position of having to tell companies not to use emergency funds for parties, celebrations, and inflated executive salaries, particularly during growing joblessness, foreclosures, and companies locking their doors,” said Gurley. “It is critical not to strip TARP of its assets, especially where economically beneficial business travel is concerned.”
ABOUT ACTE:
The Association of Corporate Travel Executives (ACTE) represents the global business travel industry through its international advocacy efforts, executive level educational programs, and independent industry research. ACTE's membership consists of senior travel industry executives from 82 countries representing the €463 billion business travel industry. With the support of sponsors from every major segment of the business travel industry, ACTE develops and delivers educational programs in key business centers throughout the world. ACTE has representation in Africa, Asia-Pacific, Canada, Europe, Latin America, Middle East and the United States. For more information on ACTE, please go to www.acte.org.
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