For Immediate Release
Office of the Press Secretary
April 28, 2006
President Discusses the Economy, Participates in Press Availability
Rose Garden
In Focus: Jobs & Economy
11:47 A.M. EDT
THE PRESIDENT: Thank you very much for joining us today. I'm joined my two top White House economic advisors. The reason why is because we've had some very positive economic news today: the Commerce Department announced that our economy grew at an impressive 4.8 percent annual rate in the first quarter of this year. That's the fastest rate since 2003. This rapid growth is another sign that our economy is on a fast track.
The good news comes on the heels of two other important economic indicators
reported earlier this week: new home sales surged forward by nearly 14
percent last month; consumer confidence reached its highest level since May
of 2002. This confidence is largely driven by the many jobs being created
in our country -- 5.1 million since August of 2003.
This good news cannot be taken for granted. With gas prices on the minds
of Americans, we need to keep our foot on the pedal of this strong economy.
The surest way to put the brakes on our economic growth would be to raise
taxes or spend too much of the people's money here in Washington. That's
why I'm going to continue to work with Congress to make the tax relief that
helped spur this economic growth permanent. That's why I'm going to work
with Congress to restrain the federal government's appetite for spending.
And that's why I'm going to work with Congress to make this country less
dependent on foreign sources of oil.
I commend America's workers and small business owners, innovators and
educators for contributing to the strong economic health of our nation. I
will continue to pursue pro-growth policies so that opportunity reaches
every American neighborhood and every American family.
With that, I'll be glad to take a couple of questions --
Q Mr. President --
THE PRESIDENT: Excuse me, please. Jennifer.
Q Thank you, sir. The IAEA says that Iran is not in compliance with the
Security Council. What sort of sanctions would you like to see and that
could bring Russia and Chinese support?
THE PRESIDENT: The IAEA statement is an important statement. It reminds
the nations of the world that there is an ongoing diplomatic effort to
convince the Iranians to give up their nuclear weapons ambitions. It
reminds -- it should remind the Iranians that the world is united and
concerned about their desire to have not only a nuclear weapon, but the
capacity to make a nuclear weapon or the knowledge to make a nuclear
weapon, all of which we're working hard to convince them not to try to
achieve.
I will consult and continue to consult with our allies on this issue. I
spoke to Chancellor Merkel this morning about this issue. She will be
coming to Washington next week. We will continue discussions about how we
can continue to maintain a united front. It's very important for the
Iranians to understand there's a common desire by a lot of nations in this
world to convince them, peacefully convince them, that they ought to give
up their weapons ambitions.
Steve.
Q Thank you, sir. You mentioned gas prices; would you go along with an
effort by some Senate Republicans that could levy a significant tax on oil
companies' profits? And does it bother you that the oil companies are
racking up these record profits when people are paying $3 a gallon?
THE PRESIDENT: My attitude is that the oil companies need to be mindful
that the American people expect them to reinvest their cash flows in such a
way that it enhances our energy security. That means pipeline construction
for natural gas deliveries. That means expansion of refineries. That
means exploration in environmentally-friendly ways. It also means
investment in renewable sources of energy. And that's what the American
people expect. They also expect to be treated fairly at the pump, and
that's why the Federal Trade Commission is going to monitor the situation
very carefully to make sure the American people are treated fairly.
Q So "no" to a tax on profits?
THE PRESIDENT: Look, the temptation in Washington is to tax everything,
and they spend the money -- "they" being the people in Washington. The
answer is, is for there to be strong reinvestment to make this country more
secure from an energy perspective.
Listen, these oil prices are a wake-up call. We're dependent on oil and we
need to get off oil. And the best way to do so is through technology. And
I've been traveling the country talking about the need to develop
alternative sources of energy, such as ethanol, and to spend money to
advance technologies such as new battery technology that will enable us to
have plug-in hybrid vehicles. We signed a good energy bill a while ago,
and that encouraged, for example, one thing it's got in there is a tax
credit to encourage people to purchase hybrid vehicles so that the
consumptive patterns of the American people change.
And the American people have got to understand that we're living in a
global economy, and so when China and India demand more oil, it affects the
price of gasoline at the pump. And, therefore, it's important for us to
diversify away from oil.
But it's also important for the people to understand that one of the
reasons why the price is gasoline is up is there's tight gasoline supplies.
And one reason there's tight gasoline supplies is because we haven't built
any new refineries since the 1970s. And, therefore, Congress needs to
provide regulatory relief so people can expand their refineries.
So it's a combination of people investing the cash flows, as well as
regulatory relief to enhance the ability for people to achieve the
objective, which is more gasoline on the market, which will help our
consumers.
Dick Keil.
Q Thank you, Mr. President. You have a meeting later today on Darfur,
and the Sudanese government continues to thwart efforts by the U.N. and
other multinational organizations to take a firmer control of the situation
there. Is there anything you can do to leverage the Sudanese government,
and what's your message to them?
THE PRESIDENT: My message to them is we expect there to be full compliance
with the international desire for there to be peace in the Darfur region.
We have taken the situation to the United Nations Security Council. My
belief is that the AU forces that are on the ground -- and by the way, we
helped the AU forces get in there in the first place; we think that force
needs to be expanded and blue-helmeted with the NATO overlay, with NATO
help.
And so, therefore, the message to the Sudanese government is we're very
serious about getting this problem solved. We don't like it when we see
women raped and brutalized. And we expect there to be a full effort by the
government to protect human life and human condition.
We also recognize there's a parallel political track taking place, and that
we urge the rebels, as well as the government, to forge a consensus at
Abuja, so that there is a way forward from this -- from the impasse,
political impasse that has taken place thus far in Sudan. There is a good
go-by for people to look at, and that is the North-South agreement that
this government helped fashion under the leadership of Secretary of State
Colin Powell, as well as Special Envoy Jack Danforth. The North-South
agreement shows that political solutions are possible.
So we expect the Sudanese government to be good faith bargainers; we expect
the rebels to be good faith bargainers. But we also expect people to --
particularly the Sudanese government, to make a more concerted effort to
control the jinjaweed and protect human life. The meeting today and the
rallies around the country are a clear signal that the United States is
committed to peace in Darfur.
Mark Smith.
Q Let's come back to Iran, if we can. The Iranians have said they're
going to ignore what happens at the U.N. Security Council. Doesn't that
mean the diplomatic options are dwindling?
THE PRESIDENT: No, I think the diplomatic options are just beginning. As
you might recall, about six or seven months ago you were asking me
questions about the United Nations Security Council vis-à-vis Iran, and now
we're headed to the United Nations Security Council. And I look forward to
working with all interested parties to make sure that there's a common
voice.
Listen, the first thing that has to happen diplomatically for anything to
be effective is that we all agree on the goal. And we've agreed on the
goal, and that is the Iranians should not have a nuclear weapon, the
capacity to make a nuclear weapon, or the knowledge as to how to make a
nuclear weapon. And now that we've got the goal in mind, we're working on
the tactics. And today's IAEA report should remind us all that the Iranian
government's intransigence is not acceptable.
David Gregory.
Q Mr. President, we're seeing some turnover and some change within your
administration, and I wonder what it says about what you think is necessary
to turn your presidency around at this point?
THE PRESIDENT: I think it's necessary to continue doing -- to achieving
results for the American people. We've got big challenges for this country
and I've got a strategy to deal with them.
The biggest challenge we face is winning the war on terror and to protect
the American people. And we'll continue to keep on the offense, to keep
the terrorists off balance, to find them and bring them to justice. And at
the same time, we'll continue to work to spread democracy, understanding
that democracy is the best way to defeat an ideology of hatred.
At home, it's important to make sure this economy continues to grow. And
that's why I'm working with Congress to make the tax cuts permanent. I
fully understand there are some here who would like the tax cuts to expire
or raise taxes. In my judgment, that would be bad for the economy. It
would hurt small business formation and hurt the entrepreneurial spirit.
So I will continue to work with Congress to make these tax cuts a real part
of economic life for a long time coming.
And we've also got to be wise about spending. I issued a veto threat the
other day because I was deeply concerned that the supplemental was getting
out of hand. And I recognize that in order for us to cut the deficit in
half, we've got to keep pro-growth economic policies in place, as well as
control federal spending.
I talked about the need for this country not to fear the future but to
shape it. In other words, we shouldn't worry about competition from China
and India. And because -- we can out-compete those countries if we're wise
about what we do here at home. And one of the most wise things we can do
is to make sure our children have got the skills necessary to fill the jobs
of the 21st century.
I've been talking about energy independence for a long period of time. You
might remember last summer I was urging Congress to pass a comprehensive
energy bill so that we could deal with conservation and new technologies
and diversification.
And so I'm going to keep working hard for the American people to get
results.
By the way, we're in the midst of implementing now a Medicare bill, which
is helping our seniors a lot. And if you -- if a senior has not signed up,
I urge you to take a look at the Medicare prescription drug program,
particularly if you're a low-income seniors. It's an enormous benefit, and
it's a necessary benefit.
So there's a lot to do today, but we'll continue to be results-oriented.
Martha Raddatz.
Q But I asked you about your internal changes and what that says about
how you think things need to be changed. They've been very public, your
internal changes.
THE PRESIDENT: Well, David, I'm a results-oriented person, and my job is
to achieve things for the American people, positive results that make us
more secure and more prosperous. And of course, I will have people by my
side that work toward that objective.
Thank you for your penetrating question.
Q Thank you.
THE PRESIDENT: Plus, I'm not going to hire you, if that's what you were
suggesting. (Laughter.)
Q I was not suggesting that. (Laughter.)
THE PRESIDENT: I would, except you can't pass the background check.
(Laughter.) Okay, an unnecessary cheap shot, I take it back.
Martha.
Q You often say Iran is not Iraq.
THE PRESIDENT: Yes, I do say that.
Q There are many people who fear that this will turn into a military
confrontation. Why is Iran not Iraq? There's WMD --
THE PRESIDENT: Iraq went through 16 different Security Council
resolutions. There was resolution after resolution after resolution. Iraq
had invaded its neighbors. Iraq was shooting at U.S. aircraft. Iraq had
actually used weapons of mass destruction on its people before. There's a
difference between the two countries.
Iran's desire to have a nuclear weapon is dangerous, in my judgment. The
diplomatic process is just starting.
Q But when you talk about that, how many resolutions are you going to
let go here? How far --
THE PRESIDENT: We haven't had one yet.
Q I know, but how far can you let them go? If you really fear that
they're building a nuclear --
THE PRESIDENT: Wait until we even get one resolution first, before you ask
me about the second resolution. The diplomatic process is just beginning.
We're forming a strong coalition of like-minded countries that believe that
the Iranians should not have a nuclear weapon. And I've told the American
people that diplomacy is my first choice, and it should be the first choice
of every American President in order to solve a very difficult problem.
There are significant differences between Iran and Iraq.
Kelly.
Q Mr. President, a cultural question for you. There is a version of the
National Anthem in Spanish now. Do you believe it will hold the same value
if sung in Spanish as in English?
THE PRESIDENT: No I don't, because I think the National Anthem ought to be
sung in English. And I think people who want to be a citizen of this
country ought to learn English, and they ought to learn to sing the
National Anthem in English.
Axelrod.
Q Mr. President.
THE PRESIDENT: Yes.
Q I just want to follow up one more time on Iran. Mr. Ahmadinejad was
quoted this morning as saying those who want to prevent Iranians from
obtaining their right "should know that we do not give a damn," his words,
sir, "about such resolutions."
THE PRESIDENT: Okay.
Q When you're talking about diplomacy, sir, a question of tactics, at
this point, not goals. If you have, for instance, Russia saying they don't
want a Chapter 7 resolution, if you're dealing with a gentleman who uses
this kind of rhetoric, what kind of tactics can you possibly come up with?
THE PRESIDENT: I guess the first thing I would do is refer those comments
to our partners and get their reaction, to see what they say, see how they
react to those kind of comments. And I haven't had a chance to do that
yet, since it just happened today. But I will continue to work with our
friends and allies.
Listen, key -- step one is to have a common goal. I know that sounds
simple to you, probably, but it wasn't always that way. The world wasn't
always of like mind that the Iranians were, you know, headed for a weapon,
and that that would be a dangerous course of action. And now we are of
like mind. And so we are in the stage now of formulating a strategy to
achieve a diplomatic solution to this problem.
Q But Mr. President, given everything you've been hearing from Mr.
Ahmadinejad over the past several weeks and months, in your estimation, is
this someone you can work with?
THE PRESIDENT: That's going to be his choice, eventually. And it's going
to be very important for Mr. Ahmadinejad to recognize the world is united
in our desire, and it's his choice to make.
Carl Cameron.
Q Thank you, Mr. President, good morning.
THE PRESIDENT: Thank you.
Q Back to gas prices just a moment ago. Insofar as you directed some of
your Cabinet this week to look into the possibility of price gouging, do
you have a suspicion yourself, do you have evidence here at the White
House, and should the American consumer believe that you think they're
being ripped off?
THE PRESIDENT: I have no evidence that there's any rip-off taking place,
but it's the role of the Federal Trade Commission to assure me that my
inclination and instincts is right. More importantly, it's up to the
Federal Trade Commission to assure the American people that they're being
treated fairly at the pump.
Let's see -- Mark Smith.
Q Another one?
THE PRESIDENT: Oh, you already asked one?
Q Call on my colleagues.
THE PRESIDENT: Did you ask one?
Q Yes, sir.
THE PRESIDENT: Oh, you did ask one -- (laughter.)
Q It was a memorable question.
Q Really a great question. (Laughter.)
Q Can I follow up on the energy question, Mr. President?
THE PRESIDENT: No, you can't, because I just embarrassed myself by calling
on Smith twice. (Laughter.) That's right, it was that brilliant question.
How could I forget?
VandeHei.
Q In talking about gas prices, in 2001, when you did your first energy
policy, and gas prices were about $1.50, a lot of people were saying, you
know, you have to push CAFE standards higher for the entire fleet of
vehicles; you have to scrutinize oil companies more closely; you have to
spend a lot more in alternative fuels than even you were proposing. Do you
have any regrets now that gas is $3 that you didn't do enough in your first
term to prevent these prices?
THE PRESIDENT: As you know, in order for there to be a CAFE standard
increase on cars it requires congressional action. I think it's a good
idea to give the President, through the Secretary of Transportation, the
opportunity to raise CAFE standards, just like I did on light trucks.
We're spending -- I think it's about $10 billion since I've been President
on alternative sources of energy, and we're close to some significant
breakthroughs.
The point is, is that it's very important for us to diversify away from
oil. You might remember when I first came in -- I think the price of oil
was like -- I know it was below $20, and it's all of a sudden now that the
price of oil is up, alternatives become much more economically viable, and
therefore I think the American people are going to see a lot of
technological development happen quickly, which will enable people to have
different options and different choices.
The hybrid vehicle has just hit the road recently, as you know. There's a
big demand for hybrids. I think it makes sense to have tax credits to
encourage people to buy hybrids. Increase in demand will cause producers
to produce more. And as you know, that there's limitations on the number
of -- the amount of tax credit issued per manufacturer. I think we ought
to just make sure the tax credit is applied to all people purchasing hybrid
vehicles.
Herman.
Q Thank you, sir.
THE PRESIDENT: Yes. Glad to work you into a national press conference for
the first time in a long time.
Q Proud to be here, sir. Are there inherent and unavoidable risks in
allowing the sale of a defense firm to interests owned by Dubai?
THE PRESIDENT: That question has been looked at very carefully, has been
analyzed by a CFIUS committee. I signed off on it this morning because I'm
convinced, at the recommendation of the CFIUS committee, as well as our
military, that it's a sale that should go through.
April.
Q Mr. President, some have questioned your efforts in having every vote
count in the station, especially after the April 22nd New Orleans election.
Now with that, what are you looking to do with the three sections of the
Voting Rights Act that are set to expire in 2007? How are you planning to
enhance those sections, because we understand that you want to study it
prior to any passing of a bill by the Senate.
THE PRESIDENT: I think I'm on record, as a matter of fact I'm pretty
clearly on record, particularly at the Rosa Parks -- signing of the Rosa
Parks bill, that I'm for the extension of the Voting Rights Act, right?
Q Yes, yes you are on record. But there is word that you want to
enhance it, or people within your administration want to look at it to
tweak it.
THE PRESIDENT: I wanted to make sure the Voting Rights Act is strong and
capable. I'm not exactly sure what you're talking about. But my statement
is my statement. The Voting Rights Act ought to be extended. The Voting
Rights Act is a very important part of the civil rights legislation.
Everybody ought to be encouraged to vote. Voting is a valuable part of
democracy, and we want people voting.
Q Do you think it was valuable in April -- for the April 22nd elections
in New Orleans?
THE PRESIDENT: I'm not going to second-guess the federal judge. I was
just down there yesterday, I didn't hear much complaining about it, though,
when I was there. And, obviously, it's a more difficult election with
people scattered around, but the state worked very hard to encourage people
to vote. And I was with Mayor Nagin and Governor Blanco, and the subject,
frankly, didn't come up. That's not to say it's not on their minds. It's
on Mayor Nagin's mind because he wants to win, he wants people voting.
But the state bent over backwards to encourage people to participate in the
mayoral election, and it looked like the process, given the circumstances
the city has been under, pretty smooth process, which is not necessarily a
given.
Yes, sir.
Q Mr. President, yesterday Senators Lieberman and Collins said they want
to see FEMA abolished. I'd like you to comment on that. But, also, with
hurricane season only a month away, can you assure the American people that
your government has learned the lessons of Katrina?
THE PRESIDENT: I thank them for the question. That was obviously on
people's minds when I went down to New Orleans and Mississippi. The
lessons of Katrina are very important. We've learned a lot here at the
federal level. One, there needs to be better coordination between local
and state governments; secondly, that there needs to be a communications
package that will be available to help deal with the situation that
happened last time, which was total destruction of communications
capabilities; third, that there needs to make sure that there is a law
enforcement alternative in case there's a local -- a breakdown of local law
enforcement; fourthly, there needs to be a pre-positioning of assets so
that if a major storm were to come, we'd be able to move equipment in
faster.
But most important, there needs to be a coordination and an understanding
of the evacuation and relief plans. And I talked to the Mayor and both
governors that I met with yesterday about our seriousness in working with
them to make sure that the plans are as effective as possible.
The communications, obviously, this time around are a lot better than last
time around. And so the lessons are being learned. And my attitude toward
the recommendations by Fran Townsend, as a part of my administration, or
the Congress is we ought to take them all seriously. The objective is to
respond to these natural disasters as well as we possibly can.
The other issue down there for New Orleans, of course, are the levees. And
we've got money in the sup to make sure that these levees are pre-Katrina
or better prior to June 1st. I think we'll achieve that objective.
Additional money will be spent so that the levees are improved
significantly by September of '07. The levees are important -- the
rebuilding of the levees, or improving of the levees, are very important to
assure the people of New Orleans that if there is a storm, they're built to
pre-Katrina levels, as least in the initial stage. But also it's important
to convince people that it's okay to risk capital in New Orleans.
The amazing thing in the area down there -- I don't know if you all went
with me -- but it was -- there's this totally different attitude from when
we were there before, early on, obviously, after the storm. People are
coming back. Sales taxes along the Gulf Coast of Mississippi are higher
today than they were a year ago this date. And that's positive.
But, look, there's still a lot of work to be done, a lot of reconstruction.
The CDBG money -- and it's very important for the Congress to pass the
CDBG money I requested so that the housing issue can get -- people can get
back to rebuilding their homes. And Mississippi, the CDBG money will be
coming out pretty quick. New Orleans, they've still got a little work.
The Governor has proposed a plan that will be in front of the legislature I
think this weekend. It's a very important step to getting this process
moving.
And so, got a lot of work to do. But, yes, we're much more ready this time
than last time. And we're taking very seriously the lessons learned from
Katrina.
Q Abolish FEMA?
THE PRESIDENT: I've looked at all suggestions, but my attitude is let's
make it work. We're about six weeks away from -- we're getting pretty
close.
Who are you again? (Laughter.)
Q I got a few more, if you like.
THE PRESIDENT: You've had a big day. (Laughter.)
Q That's three. That's three.
THE PRESIDENT: Butting in once, called on unnecessarily once.
Cooper.
Q Yes, sir, regarding FEMA, do you think that they're prepared for the
season? And is there any way to measure that at this point?
THE PRESIDENT: I think preparation is -- Chris, preparation is preparation
at all levels of government. Most governors will tell you that the main
responsibility for disaster relief is at the state level. And the job of
the federal government is to step in and help.
And so Chertoff has been down there. Secretary Chertoff has been down
there working with these local governments to review their plans and to
analyze where the federal government can help if there's any breakdown
whatsoever.
One of the key issues, of course, again, in New Orleans, is transportation.
We remember those pictures of those buses -- people looking to get out,
and yet there were these buses in flooded areas. And so one of the areas
where Homeland Security Department, working with the state and local
governments, is to make sure there's a transportation plan that will work.
It's going to be interesting -- let's pray -- first of all, pray there's no
hurricanes. That would be, like, step one. Step two, if one is coming, I
suspect people are going to take hurricane warnings very seriously and that
evacuation orders will be heeded very seriously. And so it's going to be a
-- and, therefore, there's a need to make sure that the forecasting is
accurate -- and this is pretty much the way it is these days, been very
accurate forecasting -- and that the response by all of us is in a timely
fashion to give people time to prepare.
But now is the time to put these plans in place, and we're doing it. And I
feel pretty good about the coordination and the sessions that have been
taking place down there. And as I understand, Secretary Chertoff will be
going back down there again.
And, by the way, the plans are not just for New Orleans and Mississippi;
they're for Alabama and Florida and Texas, as well. In other words, it's
for Hurricane Alley.
Yes. Dallas Morning News man.
Q Yes, Mr. President, on Monday, several million illegal immigrants
worried about some forms of immigration legislation in the Congress are
going to walk off the job and keep their kids home from schools. What is
your view of this call for a national boycott on Monday?
THE PRESIDENT: I'm not a supporter of boycotts. I am a supporter of
comprehensive immigration. I understand how difficult this issue is for
some people here in Washington and around the country, but there is -- my
judgment that enforcing our border requires a -- and by the way, I think
most Americans agree that we've got to enforce our border. I don't think
there's any question about that --
Q Do you think --
THE PRESIDENT: Let me finish, please, Bob, thank you -- that there needs
to be interior enforcement, as well. But I recognize it's hard to enforce
the border and have interior enforcement if there is a smuggling network
that's bringing people across and there's a forgery network that's
providing people false documents. And, therefore, I believe a temporary
worker program will make it easier to enforce the border, as well as have
interior enforcement.
If somebody is coming across to do a job on a temporary basis, they don't
need to sneak across. They don't need a coyote to stuff them in the back
of an 18-wheeler. They don't need to walk across the desert and risk their
lives. And so a rational way to make sure our border is enforced is to
have a temporary worker program. And that's what I support.
I think it's very important for people, when they do express themselves,
they continue to do so in a peaceful way, in a respectful way -- respectful
of how highly charged this debate can become. One of the things that's
very important is when we debate this issue that we not lose our national
soul. One of the great things about America is that we've been able to
take people from all walks of life bound as one nation under God. And
that's the challenge ahead of us.
And I look forward to working with members of both political parties to get
a bill out of the United States Senate and into conference, which would
then mean we have a chance to get a comprehensive bill to my desk. And I
want a comprehensive bill, one that enforces the border, one that makes
sure that we've got interior enforcement procedures in place that actually
work, one that provides a temporary worker process for people, one that
does not provide automatic citizenship -- I don't think anybody really
wants there to be automatic amnesty for people -- one that allows somebody
here to be able to get in -- if they want to be a citizen, to be able to
get in line, but not the front of the line but the back of the line.
And that's what I'm for, a comprehensive plan. I think we can get one done
if people would set aside politics and focus on what's best for the United
States of America.
Thank you for your time. I've enjoyed this. I will see you all tomorrow
night, I guess. Looking forward to it. I hope you are, as well.
END 12:20 P.M. EDT
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