COLLINS DISCUSSES HER PLAN TO USE IRAQI OIL REVENUE TO OFFSET IRAQ CONSTRUCTION COSTS

WASHINGTON, DC -- During a hearing held earlier today at the Senate Armed Services Committee to examine the President's proposal for $87 billion for US efforts in Iraq, Senator Collins, who is a member of the committee, discussed her plan to offset some of these costs by using future Iraqi oil revenue to repay the American taxpayer for some of the costs of building Iraq's infrastructure. Testifying before the Committee was the Administration's Envoy to Iraq, Ambassador Paul Bremer who expressed the need for Congress to immediately approve the President's spending request.

During the hearing, Senator Collins said, "The American taxpayer is very generous, recognizes the need to support our troops, and is willing help the people of Iraq by constructing the infrastructure that Saddam Hussein left in shambles. And the American taxpayer does not expect to be repaid in the short term. But in the long term, Iraq will be a prosperous nation and has the ability to repay America a portion of these costs."

Senator Collins explained that Iraq has the second largest oil reserve in the world. Once its government is in place and its economy stabilized, it will have the ability to repay a portion of these funds.

The President's request includes $15 billion for construction efforts with the remaining to be used to support troops in Iraq. Senator Collins called it "logical" for the construction portion of the funds to be repaid.

While Ambassador Bremer pointed out that Iraq already has a large national debt, Senator Collins responded by saying that that Iraq is indebted to nations such as Saudi Arabia, France and Germany, all nations that have refused to assist the US in ‘Operation Iraqi Freedom.' She predicted that "the American people will be justifiably outraged if even a dine is sent to France or Saudi Arabia while the American people are pouring millions of their hard-earned tax dollars into building Iraq's infrastructure."

"Do you believe that France, Germany and Russia should be paid for debts while the US invests billions of its own dollars in Iraq," Senator Collins asked.

Senator Collins, who in July visited Iraq, said that she was amazed by the small amount of damage that was sustained in Iraq as a result of the war. She explained that construction costs were not related to war reconstruction; rather they would be used to help build schools, roads, and hospitals and refurbish the nation's energy infrastructure, all of which were neglected by Saddam Hussein's regime.

Senator Collins is working on an amendment to the President's Iraqi Supplemental proposal that is expected to be considered by Congress next week.