Gulf Oil Spill, Part 2

My previous blog stated my position on what is required to prevent this kind of tragedy with an oil spill and how the government is essential in keeping the oil companies focused on that.

Congress's behavior interrogating BP's CEO showed that there was no intention of having a meaningful exchange. This CEO knew the plan because words like 'slice and dice' and 'skewer' were tossed around by the representatives who would be questioning him. Why couldn't they rise above their normal patterns and participate productively?

Assigning the head of Naval Operations 'part-time' to come up with a plan for cleanup again reflects the lack of understanding of what it takes to manage something of this magnitude. I suggest the president rise above his political inclinations and beliefs to put the former mayor of New York, who handled the aftermath of 911, in charge.

The $20B agreement spread over 4 years is inadequate. That means only $5B would be available for this year. Here is what I recommend to the 'pay czar' who has been assigned to manage this money:

1. Get a broader understanding of the total amount needed now by having the IRS provide information on these states in the towns who are affected by this spill. Also, 10% of GDP is the estimate being tossed around. If GDP is $1 trillion, that is $100 billion exposure.

2. To get off the ground timely, have all the affected people and businesses submit the last 3 years of their tax returns to be used to verify they are in business and live there, and also use them as a basis to determine how much to pay them for the lost income this year. With that submission, have them provide their financial status. For example, those who are unable to meet their expenses, like being late on their mortgage payment should be first in line in receiving these funds (I did read that Citigroup has decided to forego foreclosures in these areas for 3 months).

3. Once there is data to show how inadequate the $5B is, there needs to be a working relationship between the government and BP to move the other $15B up.

Time is of an essence here, yet it will take a miracle for the federal government to act in time for those dependent on the gulf and clean beaches for their livelihood. This is an opportunity to test us to see if we are able to put aside all our personal beliefs and political orientation for the greater good of all, and choose the best of the best to handle this situation.