Bush Aides: Terror Bill Needs Groundswell

By Steven Brostoff, Washington Editor

NU Online News Service, Jan. 8, 3:37 p.m. EST, Washington?Members of Congress will need to hear from their constituents if terrorism reinsurance legislation is to have a real chance of enactment this year, Bush administration officials reportedly told industry representatives.

Administration officials, industry sources said, told insurance and banking sector representatives during a conference call yesterday that there must be a perception of widespread economic disruption for Congress to take up the issue again when it returns Jan. 23 from recess.

The sources said that the conference call began with a statement from President Bush's domestic policy advisor, Karl Rove, that the administration remains committed to passing legislation. He was said to have noted that the House has passed a bill that would establish a federal loan program to assist insurers following a major terrorist event.

Sources said Mr. Rove stressed the need for the affected industries to pick lobbying efforts up where they left off in the Senate, which recessed without approving legislation.

However, these sources said, the Treasury Department officials who spoke next were more cautionary. They said that Congress must hear from their constituents that problems exist in the marketplace, sources said.

It will not be enough, they said, if the only groups pushing for the legislation are the insurance industry and owners of skyscrapers in New York, according to sources.

One source said it may be difficult making that type of case to Congress. "If we have to get ?Joe's Garage' to contact his member of Congress and complain, we are in trouble," the person said.

The upshot of the conference call, sources agreed, is that the Bush administration still regards terrorism reinsurance as a serious issue.

The administration said it is willing to work to get a bill enacted, sources said, but the administration emphasized that it is up to the industry to make its case to Congress.

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Bush Aides: Terror Bill Needs Groundswell

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