K Street Confidential

K Street Confidential columnist Jeffrey Birnbaum was online to discuss the intersection of business, politics and government on Monday, Oct. 30 at 1 p.m. ET .

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Jeffrey Birnbaum: Hello everyone.

Thanks for writing in.

Please send some more questions; there's plenty of room.

My column today is about the crackdown on lobbyists Rep. Nancy Pelosi would lead if she became Speaker of the House. This is real stuff--Pelosi would change House rules and that would impose changes immediately.

The big change would be a ban on gifts and travel provided by lobbyists and by organizations that hire lobbyists.

What do you think of that? What else should be done? Don't be shy. Write in and let me know.

Now, let's get started.

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Chantilly, Va.: Rumors are rampant at my Dulles defense contractor (not a Halliburton affiliate) that when the Dems take control of Congress, they'll start issuing subpoenas for dozens of people, from CEOs down to the rank and file, investigating supposed waste and fraud in government contracting. People are worried the company will go out of business and they'll be on the hook for huge legal fees.

I've been telling people no way this will happen but I keep hearing that this has a prime spot on the agenda. Have you heard any of these stories?

Jeffrey Birnbaum: Yes, I've heard plenty of stories like this and, to some extent, they are likely to be true is Democrats come to power on Capitol Hill.

It's likely that a Democratic House or Senate would hold lots of hearings into the doings of defense contractors. Oil companies, too, and drug companies as well.

But whether that will mean huge legal bills for employees of those places--I doubt it. There would be a lot more scrutiny, but I wouldn't bet on more legal actions or anything so dire as bankruptcy.

So be prepared, but don't worry too much.

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Washington, D.C.: Your article in today's Post was very interesting. Is it really true that under the present House rules, the lawmakers don't have to be given an opportunity to read the actual final bills before they have to vote on them? Some of the bills are hundreds of pages long and very convoluted in construction. It's easy to see why the Highways, Rivers & Harbors, and Miscellaneous Trade bills are so loaded with dubious special interests, so say nothing of pushing a host of trade breaks into the Pensions bill at the last moment, though appearently that was done by Frist in the Senate rather than in the House, where Nancy Pelosi hopes to become speaker next session according to your article.

Jeffrey Birnbaum: Rep. Pelosi wants to change the way Congress operates. She is serious about that, I believe. But stating an intention is different than making it happen.

I would not be surprised if a few of the items in my column fall away under pressure from lobbyists and others. But I do think that what Pelosi wants, Pelosi gets for most of these druthers. If she becomes Speaker, she will place a high priority on putting some distance between lawmakers and lobbyists.

That would be a popular move (though not so popular on K Street).

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Chicago, Ill.: It appears that the Republican party has a much sharper apparatus for pairing money interests with public officials who will do their bidding. With an eye on this important mid-term election, should we fear that the Republican party is less willing to find solutions to the real problems that our country is facing? Is it true that the Republicans are much keener at the money game than the Democrats, or are they equally sophisticated?

Jeffrey Birnbaum: Republicans raise more money, but both parties are acutely aware of who their money constituents are and are very good at catering to them.

I wouldn't give one party an edge in pandering to "special interests." If Democrats win control of the House, they will help labor unions, trial lawyers and environmental groups in the same way that Republicans have helped small businesses, and oil and drug companies. You pick who's right and who's wrong. I try to focus on who wins and who loses--that's how Washington works.

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Washington D.C.: I recall that earlier in the lobbying reform debate there was a proposal to restrict but not ban privately-funded travel. If memory serves, the idea was that trips would be pre-screened to ensure they are legitimately connected to giving legislators information they need to do their jobs. Do you think there's any chance this will be resurrected, or is it going to be a ban or nothing?

Privately-funded Congressional travel has obviously become a big problem, but still there are legitimate trips, even sometimes funded by groups that lobby. It would be a shame if the good couldn't be saved in order to stamp out the bad.

Jeffrey Birnbaum: If I have read Rep. Pelosi's proposal correctly, privately paid travel from lobbyists and from nongovernmental groups that hire lobbyists would be banned. Lobbyists can't now pay for travel, but their employers have been able to. That would be out the moment that the House rules are changed, which can be done with a simple majority vote in that chamber. If that happens, it will be a big deal.

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Arlington, Va.: There is something in the papers this morning about an Arab Institute connected with Grover Norquist paying to ship Chris Shays to the Middle Eat with intimations that it was at least unwise for Shays to accept. Without taking a particular stance on Shays, what sort of lobbying empire has Norquist set up and how close is he to indictment on the Abramoff-Reed money laundering scheme?

Jeffrey Birnbaum: I don't know Norquist's legal status.

But his group, Americans for Tax Reform, is large and influential among Republicans in Washington.

I don't know the details of Shays' trip, but sensitivities are so high about "special interests" these days that any revelation linking a lawmaker to them can be very damaging, especially this late in the campaign.

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Stuck in Security Line: As someone who has taken private jets to get to out-of-the-way spots that are either super expensive or difficult arrival/departure times, I see the benefits of private air travel as becoming more and more a necessity. While I understand the role of corporate jets in the Abramoff scandal, is the real issue the private jets, or the lack of disclosure? Personally, I would think it's fine if it's disclosed...

Jeffrey Birnbaum: You are among a small minority of people who take private planes. To most of America the practice is elitist and way too fancy for representatives of "the People." The problem is that this has turned into a year of "corruption" and any lawmaker who has been tainted with being too close to lobbyists or "special interests" is having a tough time according to the polls.

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Ben Lomond, Calif.: On a scale of 1-10, what's the panic level on K Street?

Jeffrey Birnbaum: About 9 if you're a Republican.

About 3 if you're a Democrat.

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Rockwall, Tex.: Please provide your opinion of the notion that, in the post-cold war world, national security is no longer the exclusive province of government. Businesses, for various reasons, are on the firing line as targets of U.S. adversaries, and must share responsibility for national security in such areas as global information networks, and critical infrastructure. This requires a reconfiguration of traditional business risk models to appropriately value exposure to an attack, the effects of which would extend beyond the specific financial interests of the company.

Jeffrey Birnbaum: Corporations have been boosting their security procedures, as well they should.

But only the government can provide the kinds of protections that are needed in a global war against terrorists. Securing the borders and protecting American lives is the provenance of the central government primarily and must always reside there. That's one of the main reasons we have a government at all.

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Ben Lomond, Calif.: Why are you only answering questions from the East Coast?

Jeffrey Birnbaum: I'm not.

This is proof.

Actually, I didn't even realize that I was ignoring anyone.

Let me find another question from your side of the country and I'll be back in a moment.

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Ben Lomond, Calif.: Who on K Street should be worried the most about Post November 7?

Jeffrey Birnbaum: Ah, here you are, West Coast.

My column two weeks ago laid out which industries should worry most, and which ones least, if Democrats take control of the House, the Senate or both.

Oil and pharmaceutical companies would surely be targeted. Democrats would try to repeal some drilling subsidies and require competitive bidding on drugs purchased for Medicare.

Other industries that have been big backers of Republicans--and Republicans of them--include chemical companies, insurers, manufacturers and food processors. These industries might also be wise to watch their backs after a Democratic wave.

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Funny: Usually the shills hop on to declare they do us all a service by helping Congress on highly technical issues, etc...

Now it seems to me none of these rules will get in the way of that. After all, since all they are doing is explainig the legitimate and honest concerns of their pay masters, these lobbyists should have no trouble doing so in an office setting. Or by inviting Congress folk to a meeting here in DC.

After all, such honest noble concerns don't need free expensive lunches, or private jets to resorts to let the light of their truth shine free!

Funny how these rules expose a lot of these lobbyists for the mercenary cockroaches they are. A littlke sunlight and they go scurrying for dark corners.

Jeffrey Birnbaum: Come now, tell us what you really think.

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Washington, D.C.: I was watching C-SPAN last night and there was this big panel discussion from a law firm, DLA Piper, led by former Congressman and Ambassador Jim Blanchard with other former Congresspeople like Dick Gephardt. Do firms do this often and why do they? It seemed interesting but how does speculating about who will win or not help the clients? Hope you like the WP better than Fortune.

Jeffrey Birnbaum: I do like the Washington Post better than Fortune. Thank you asking.

Lobbying firms like the one that sponsored the forum you saw do such things all the time, though not on television necessarily. One of the main jobs of a lobbyist is to keep clients up to date about the political environment in which their issues have to move. It makes a very big difference whether Republicans or Democrats are in charge on Capitol Hill--and which Republicans and Democrats have the power to do things.

The forum you saw is repeated hundreds of times in smaller ways all over Washington or in memos sent to clients.

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Columbus, Ga.: Why is the Post ignoring the contest between Lynn Westmoreland (currently Republican incumbent of the GA-08 Congressional District) and Democratic newcomer Mike McGraw, businessman from Newnan, for the new GA-03 Congressional seat??

One of McGraw's big issues is the way Congress has been ignoring the real problems facing ordinary, middle class Americans. He wants a government of fiscal responsibility which isn't beholden to special interests. Check out his website at www.mikemcgrawforcongress.com to see where he stands on the issues.

He's giving Westmoreland a real run for this seat.

Jeffrey Birnbaum: The Post can't possibly cover all 435 House races this year. You are about the first person to mention that this race is one worth covering, meaning that it could have a surprise outcome. Thanks for letting us know.

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Monroe Township, N.J.: Do you think the business coalition to "reduce" Sarbanes-Oxley will succeed?

Jeffrey Birnbaum: I do not, especially if Democrats take control of the House, the Senate or both.

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Sanibel, Fla.: Regarding your column today, and Nancy Pelosi's lobby reforms, the real pros on K Street will emit a silent "Amen." They never needed those kinds of perks anyway. They know that the system is out of control and will be happy to see things like this curtailed. Thugs like Abramoff couldn't have made a living lobbying twenty years ago. The only losers will be air charters, restaurants, hotels and the local sports franchises.

Jeffrey Birnbaum: Maybe.

I agree with you that lobbying will continue to thrive no matter what rules changes happen.

But that does not mean that lobbying will be as easy as it once was if new rules are enacted.

In this case, a lot of trade groups would be hampered because they couldn't entertain lawmakers at their regular conventions.

What's more, Pelosi sees these rules changes as merely a first step. Bigger changes might be coming down the pike in the way of changes in law as well, and those could bite more deeply.

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Indianapolis, Ind.: The NY Times reported yesterday how large corps. and accounting firms are planning to change the sec rules to get protection from shareholder litigation. It's not going to Congress. Former administration folks (Evans and Hubbard) are directly involved and current folks (Paulson) are cheerleading. How will the Dems. control this type of circumvention?

Jeffrey Birnbaum: They would just say no.

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Monterey, Calif.: Jeffrey, with a Dem House in the cards, will the Dems be able to handle all that cash from K St. Who will be the go to person to herd the Dems into some sort of order to get Bills of Concern earmarked.

Jeffrey Birnbaum: I thinks the Democrats are up to that task. There will be plenty of lawmakers who can handle the task you suggest--and they're more than willing to do so. Whether we like it or not.

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Falls Church, Va. : Maybe I should have listed a west coast location, in order to catch your eye -wink-

My question is - ok, Pelosi bans gifts and travel. But that still leaves campaign donations (and what else?) for ways that lobbyists can influence politicians/legislation? I mean, this isn't going to put all lobbyists out of business...

Jeffrey Birnbaum: You are correct. Lobbying will not be stopped nor can it be; it's a right guaranteed by the Bill of Rights.

And you are also right to suggest that only clamping down on campaign finances will make a real difference to the lobbying world. That isn't being suggested by anyone, by the way.

Nonetheless, there has been so much talk about corruption this year I would not be surprised to see more than Pelosi's rules changes happen and that lobbyists' wings will be clipped even more than she suggests.

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Palm Springs, Calif.: Mr. Birnbaum, Is there hope that Mrs. Pelosi can go farther with her plans for accountability and do something about completely eliminating the "earmark" program, allowing nothing to be included in a funding bill other than the exact matter at hand. To me the earmark system is nothing more than bribery and corruption performed daily by those we elect to represent us. Do you think this can be stopped as well as pulling in the reins on lobbyists? Thank you.

Jeffrey Birnbaum: I don't see how earmarks--narrowly focused appropriations--can be outlawed. Full disclosure of them is a step toward keeping them relatively small, however.

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Falls Church: Not that I am a complete fan of Republicans, but how can anyone vote for Democratic Congressmen when it would put Nancy Pelosi as House Majority leader and Rangel as Chair of Ways and Means? Pelosi is arguably the most active, left-leaning liberal with nothing to show that she would represent the country as a whole and Rangel is a special interest left-leaning liberal who would hold hostage any votes he did not like. I can't think of a more dangerous team to put in charge of our country's legislative branch.

Jeffrey Birnbaum: Your argument is one that the Republican party will be making with increasing volume in the final days of this campaign. We'll see how many voters buy it.

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Washington, D.C.: In your article today, you claim Speaker Pelosi will introduce a rule to ensure members AND staff must tell a congressional committee they are looking for a new job? Am I reading this right, and if so, such a draconian measure placed on staff seems unrealistic.

Jeffrey Birnbaum: Members and top staffers, is my understanding of the proposal.

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Palm Springs, Calif.: Mr. Birnbaum, Can you explain why neither party is willing to take the inital step of "closing the borders" and then working on the other issues related to the illegal immigration problem? Without taking that intial step of drastically reducing the number of illegals entering this country, by walking, swimming, however they want to do it, it seems that there will never be a solution to any aspect of the problem. Seems we will just continue in the same manner, every 20 years or so, amnesty is given to another 15 to 20 million people and it's business as usual, complain, complain, complain. There has been no party or politician with the guts to stand up and fix the problem for the past 40 or 50 years, if ever. Thank you. David Smith

Jeffrey Birnbaum: Congress tried to take the first step by authorizing a fence--both physical and virtual. I think immigration will be a focus of the end of the current Congress and the beginning of the new one next year--no matter who is in charge.

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Scottsdale, Ariz.: Pelosi would not be my choice by a long shot. With that said, I do agree whoever and support her position an cleaning up corruption in the House and Senate. That is long over due.

Jeffrey Birnbaum: Yes, I think cracking down on lobbyists would be a popular proposal these days (though lobbyists probably don't agree).

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Charleston, W.V.: Thank you for an excellent column. What kind of reaction could come from the lobbyists and congress members? I cannot believe they would easily give up the lucrative arrangement they have now.

Jeffrey Birnbaum: I haven't heard much yet. But I expect there will be lobbying against these proposed lobbying changes. I bet that they get watered down in the process, too.

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Reston, Va.: Hi Jeff. It seems that one of OMB's recent initiatives, "strategic sourcing", is a classic intersection of business, politics and government. I know some state and federal agencies have experienced some successes here, but was wondering what your opinion was about the level of lawmaker awareness or interest concerning strategic sourcing. Do you detect a growing interest on the Hill for this or similar cost-cutting/procurement efficiency initiatives? I ask because there is some concern in the small business community that initiatives of this type may reduce their opportunity to compete - is this on Congress' radar?

Jeffrey Birnbaum: I'm afraid I am not an expert in procurement policy.

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Phoenix, Ariz.: The one way to get around the Pelosi travel ban mentioned in your article is to turn any trip or speaking engagement into a fundraiser. Then, the new rules would not apply. Wouldn't this worse than the current situation? Those groups with the biggest PACs would be the big winners.

Jeffrey Birnbaum: Yes, you are correct. And I bet that happens more often if the rules changes happen.

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Washington, D.C.: I'm frankly baffled by the conventional wisdom that says contracting governemnt activities out to the private sector is the answer to government waste and sloth.

I'm a manager in the federal government and my experience over the years with contract companies has been an eye-opening experience. The ONLY thing that matters to a company is the bottom line. If necessary companies will deliver less than promised and even lie and cheat to enhance the bottom line.

Part of my workforce is provided by a contract company. Those employees are miserable. I'm not supposed to know anything about the way their company treats them, but what they tell me makes me in private makes me very upset. These employes are paid much less than my federal employees yet cost the government just as much.

My son has also worked as a contract employee for four different companies providing a service to the government. His experience is about in line with what I'm hearing from my employees.

The goal of private sector companies and the government are at odds. I'm not against contracting out per se. I have one contract that I'm very pleased with. Even so, the majority of the contracts I've been associated with over the years have not worked well for the government. The contractor has almost always delivered less, sometimes far less, than what they were paid for.

Jeffrey Birnbaum: The success of the practice is mixed I believe. But thank you for passing along your experience. I think outsourcing will continue to grow in Washington and your warning is worth listening to.

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Washington, D.C.: Jeff:

Thank you for your column in today's Business Section. Reading it, I had a concern with the proposed changes regarding privately sponsored Congressional travel. While I understand why this is an attractive reform, I feel as though it would unintentionally impede legitimate fact-finding and educational trips by members. Golf trips to Scotland are obvious abuses of this privilege but the majority of travel by Congress allows them to interact with citizens outside the beltway and engage in an exchange of ideas about policy. Wouldn't a pre-approval process accomplish the intent of the reform and prevent abuse?

Jeffrey Birnbaum: Pre-approval might work and it might not. Banning the practice completely eliminates doubt.

Your argument killed a plan earlier this year to bar privately funded travel. It might do so again.

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Bethesda, Md.: Jeff

What do you think of Mike Steele picking up the endorsement of Wayne Curry and 5 members of the Prince George's County Council?

Jeffrey Birnbaum: Certainly a fact that will help Steele. That race is closer than expected, so anything that happens could potentially be important.

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Washington, D.C.: Should the Dems take over one or both houses, to what extent does this fall on the shoulders of the recently-revved-up business lobby, who in the past decade has been more and more involved in elections? Does this damage their power on the Hill, or is the election more about non-business-related issues?

Jeffrey Birnbaum: Many, but not all, business interests prefer Republicans to Democrats and send their campaign donations accordingly. Business would be a loser overall if the Democrats take over on Capitol Hill. But most industries have been smart enough to hedge their bets and to keep lines of communication open with Democrats. Don't expect a wave of anti-business legislation, just some targeted pieces.

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Responding to Falls Church - Pelosi and Rangel..: Falls Church wrote: Not that I am a complete fan of Republicans, but how can anyone vote for Democratic Congressmen when it would put Nancy Pelosi as House Majority leader and Rangel as Chair of Ways and Means?

And compare them with WHICH Repubs that are indicted (Scooter Libby, Ney, Cunningham, Delay), under investigation (Frist, Hastert) among others......

Jeffrey Birnbaum: So there!

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Jeffrey Birnbaum: Thanks for so many questions, and good ones, too.

I'll be back at this in a couple weeks. We can rehash the election and its implications then.

Until then, vote early and often.

Cheers!

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