Monday, May 15, 2006

Corporate Pork-busting

Robert Novak takes on "corporate welfare" in the defense industry:

The Northrop Grumman earmark was inserted by the Senate Appropriations Committee chairman himself, Thad Cochran of Mississippi. That once would have guaranteed passage without public notice, even though the Defense Department and the Navy oppose the spending as wasteful.
But pork-busting freshman Sen. Tom Coburn of Oklahoma now scrutinizes money bills, and he caught the Northrop Grumman earmark. The company, whose revenue last year totaled $40.7 billion, has received $500 million from its insurer and is in litigation seeking another $500 million. The Defense Contract Management Agency has declared "it would be inappropriate to allow Northrop Grumman to bill for costs potentially recoverable by insurance because payment by the government may otherwise relieve the carrier from their policy obligation." Factory Mutual Insurance Co., with 2004 revenue of $2.7 billion, then would be receiving indirect corporate welfare.

It's greedy companies like these that are hurting as much as helping America's security.