Lou Dobbs

LOU DOBBS Speaks out...97% surveyed say No!

Portions of interstate highway systems built with your tax dollars are now being sold to the highest bidder. And incredibly, it's being done with the federal government's encouragement. The Bush administration likes this idea. Some of the leading bidders: Foreign investors. Lisa Sylvester reports.

LISA SYLVESTER, CNN CORRESPONDENT (voice-over): Wall Street is paving the road to highway privatization, with help from the Bush administration. Nearly 50 investors submitted bids to buy or lease the Pennsylvania Turnpike. Indiana and Illinois have already signed over its toll roads to a group of foreign investors. And other states are eyeing privatization as a quick fix.

ROBERT POOLE, REASON FOUNDATION: People are frustrated, both public sector people and citizens are frustrated that their roads are very congested, they are overcrowded with trucks. There's not enough capacity. And yet nobody really wants to raise gas taxes.

SYLVESTER: Transportation Secretary Mary Peters offered model legislation, encouraging states to tap into the billions of dollars that the private sector and lenders have amassed to invest in transportation.

But Congressman Peter DeFazio says it is a deal for corporations and investors, no deal for taxpayers.

REP. PETER DEFAZIO (D), OREGON: These private interests would have the power of eminent domain, and they basically would have unlimited authority over the term of the contract to raise tolls. A private entity beyond the reach of any future state legislature, governor, or Congress under contract.

SYLVESTER: Critics also call it fiscally irresponsible. States receive a lump sum up front. Future generations receive no toll revenues. And public sentiment is solidly against selling off taxpayer-owned assets. especially to foreign companies.

In Indiana, more than twice as many people were against the deal than were for it. The transportation groups are dismayed the Bush administration has officially backed these private-public arrangements.

TODD SPENCER, INDEPENDENT DRIVERS ASSN.: We were stunned. We were amazed, but I'd have to say, unfortunately, we were not shocked. They have been shopping this idea, this draft legislation, this proposal to states for over a year now and, you know, to them, rather than responsible transportation policy, their answer is to sell-off our highways. (END VIDEOTAPE)

SYLVESTER: Despite the many concerns, privatizing highways is gaining momentum across the country. Legislation is expected to be introduced in Pennsylvania in the coming weeks that will call for a long-term lease of the Pennsylvania Turnpike.

Right now, Lou, the leading bidders are from Australia and Spain -- Lou.

DOBBS: It -- I mean, this is just -- it's incredible. The ideas that are being put forward to avoid public responsibility, the idea that a state government or an authority of any kind could sell infrastructure, highways, it just boggles the imagination.

SYLVESTER: This, if there's ever been an example of where private corporate interests and the Bush administration are sort of working hand-in-hand, this is a perfect example of that, Lou. And, unfortunately, the average person, the average consumer, may not be a winner out of all of this, Lou.

DOBBS: Well, if they're not aware, we're going to do our best to make them aware. The idea that whether it's Indiana where it's 2-1 opposition and yet they went ahead and sold that highway in Indiana, the fact that people haven't got the energy and the commitment to stop these kinds of -- I mean, this is public treasure infrastructure, national assets, that are being given away, sold away to interest, private interests.

It's, as I say, mind-boggling. Lisa, thank you very much. Lisa Sylvester from Washington. Lisa will be following this story throughout.

That brings us to the subject of our poll question tonight. Do you believe U.S. highways and roads should be owned by private companies? Yes or no? Cast your vote at LouDobbs.com. We'll have the results for you later. I may add something for the suggestion box tonight. What do you think should be done with the public officials who approve and encourage such things? But we'll save that for a later time.

DOBBS: Let's turn to some other developments. First of all, let's turn to the idea that there is a growing trend encouraged by this administration, Bob Picket, to sell-off highways and super- byways.

PICKETT: You know, Lou, I saw that piece that ran a little earlier. It boggles my mind that the American public would allow their major assets, their infrastructural assets to be sold off to foreign interests. I mean...

DOBBS: How about sold to anybody?

PICKETT: Am I drinking bad water here? What are the folks in these states drinking?

GAMBLING: Well, you know Jon Corzine, the New Jersey governor? He wants to do the same thing to the New Jersey Turnpike. It's outrageous. It's idiotic.

DOBBS: Tell me the heartland, Steve Cochran, is going to rise up and rebel against these fools.

COCHRAN: We're going rise up. We're going to rise up and we're going to identify the fools and give them the spanking that they need.

DOBBS: Because the coasts apparently are lost.

COCHRAN: Yes, the coasts have been lost for a long time.

PICKETT: You know, next thing they're going to be doing is selling off the White House maybe.

DOBBS: Well, we don't want to start a strong...

GAMBLING: The tolls are already big enough on the George Washington Bridge. Can you imagine is some private corporation owned it?

DOBBS: It just -- it boggles the mind.

GAMBLING: It does boggle the mind.