REMARKS
FOR
THE
HONORABLE NORMAN Y. MINETA
SECRETARY
OF TRANSPORTATION
ANNOUNCEMENT
ON AMTRAK AGREEMENT
WASHINGTON,
D.C.
June
28, 2002
I am very pleased to join
Amtrak Chairman John Robert Smith, in announcing that the Department of
Transportation, and Amtrak, have reached agreement on the first phase of a two
phase financial assistance package. Our goal was to ensure uninterrupted service
for the over 750,000 Americans who rely on Amtrak and our nation’s commuter
rail services every day -- we have
accomplished that goal.
Both
parties have agreed on a direct $100 million loan under the Railroad
Rehabilitation and Improvement Financing (RRIF) program, to be followed by a
joint request from Amtrak and the Administration for the Congress to provide not
more than an additional $170 million in operating
funds for the remainder of this fiscal year.
I thank Chairman Smith and
Amtrak’s entire Board of Directors for their ongoing efforts toward improving
the company’s financial accountability and operational transparency. Mayor
Smith arrived in Washington Monday to help solve this crisis, and he has stayed
with the effort all week long. Thank you John Robert.
As
I have said before, it is not the sole responsibility of this Administration to
solve Amtrak’s immediate or long term economic situation.
So
I call on the Congress to join the Administration in developing long-term,
fundamental reform of our nation’s intercity passenger rail system, consistent
with the principles I outlined last week that will ensure consistent, reliable
passenger service for all Americans.
In
fact, this agreement is an initial, very modest downpayment on implementing the
Administration’s first principle for passenger rail reform
– placing Amtrak’s
operations on a sound financial footing.
The conditions agreed to today
by the Administration, Amtrak’s Board of Directors, and Amtrak management,
reflect a new approach to running this railroad in a more open, business like
fashion.
Under this agreement, Amtrak
will provide clear, timely, financial information to the board of directors and
DOT; Amtrak will complete a third-party
study to identify a full range of possible management efficiencies and cost
reduction options; Amtrak
will provide a complete list and value of its current assets;
Amtrak will provide a list of at least $100 million in operating
reductions. In addition, Amtrak agrees to seek the cooperation of all of its
employees in achieving the operating cost reductions needed to meet Amtrak’s
financial crisis.
The Bush Administration is
committed to a viable system of intercity passenger rail. However, this crisis
proves clearly that without real reform, Amtrak will continue to lurch from
crisis to crisis.
The debate over the future of
reform will not be easy. Now I’m not under any illusions. But one thing remains for sure, this crisis,
temporarily resolved, will inevitably be repeated again and again, until we
develop a lasting solution.
This is no time to stand on
the sidelines offering unrealistic solutions and criticism to those who are
engaged in trying to resolve this issue.
I urge all parties, including
the Congress, Amtrak, labor leaders, state officials and, of course, the
traveling public, to join the Administration in a national debate for lasting
and meaningful reform of our intercity passenger rail system. Americans deserve
nothing less.
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