tv Key Capitol Hill Hearings CSPAN October 2, 2014 11:00pm-1:01am EDT
a going to judge to explain see what we mean by that. we believe that intelligence fiscal policy kahlo calibrated double well-designed can actually help boost growth and jobs. but to mean by that? i am not suggesting a new stimulus package because that is not the answer. but what i am suggesting is that because so much has
already been done in terms of fiscal consolidation, countries that still need to put their finances in order have to do so at the right place, not too fast, not too brutally, and they have to adjust his circumstances and taken into account. and this is clearly what we do in the programs that we designed. we don't push countries into dasheen brutally. the pace is important, a sense of pace. second, they have to be well targeted because if so they can contribute as well to boosting growth. for a sense, fighting to oxidation. support more efficient public spending, reduce the burden of taxation and charges of labor cost, parole taxes, for instance, are clever fiscal measures
that can be taken. so it is a sensible next. the third one, and i come to my environment-friendly measures -- we have worked hard and made strong recommendations concerning the reform of energy subsidies and really believe that iran and $2 trillion is spent on subsidizing people to use energy and predominantly profile energy now, this is not particularly smart qaeda from a fiscal point of view, a social point of view or an environmental point of view because those who benefit subsidies in most of the subsidies of those in the least popular they're usually the 10% wealthiest in the population that actually consume a lot of energy and therefore require subsidies not suggesting
that they be removed altogether without paying attention puente people who are really in need. the we are suggesting that additional revenue can be generated out of the subsidy removal program. as of this group policies can actually be job of legal environment friendly. again, this is only some of the players begin a subsidy for imported reforms that need to deal with deep-seated obstacles the structural reforms would challenge the we talking about? predominantly in the advanced economies go but up only the advanced economies. we are dealing with the challenge of creating jobs
for those people looking for the man making sure that those are coming to the job market in all cultures of the world have the means to access it and make a living end of it we currently have about 200 million people looking for jobs of which 759 of under the age of 25 to win and that is a we should focus on. focusing on the fact that apart from the 01 percent of the wealthiest in canada has been stagnant for most. you quoted me put it is not just a moral issue good that sustainable growth with the labor market that works
better. some people think it's not right. there are countries that have tried and have succeeded. if you look, for instance, at some labour market policies is inside then successfully captures of germany, countries like esther oyer, countries like sweden. there is no magic recipe because it has to be specific predestine deal with the particularities of the skill set to the educational system and, indeed, the kind of growth and the kind of growth drivers that each country has with the second example of pulses that being put in place finally, policies that encourage women to join the job market. and that just came back from japan. i was delighted to see that the prime minister is not just talking about it but putting a budget on increasing the number of child care centers that will be available for japanese
three will be able to join the market. an aging country like japan or korea which is also trying the same thing, is critical. all potential be used and that those who want to join the market can actually join . they have to take place in the open end of markets that have been predominantly nicely protective of those who had access to it. there are many catchers are on the world where if you want to be a taxi driver, if you want to be a lawyer, notary, pharmacist or other protected professions you would not have access. again, without the uprising by their health or safety those reforms have to take
place. but the reforms will only go so far this money slows to a lot of fun to be norris cannot access credit. and that is where we believe we will support that. we believe that banks have to revisit their business model. hopefully supported by the appropriate forms of the insolvency and bankruptcy laws which have to help them clean and strengthen their balance sheet, but they will have to revisit their business model and focus on actually making sure that credit flows within the economy and that we do not have this unpleasantness between what some call a real economy and the financial economy parisians and as i said to me know, it is not a one-size-fits-all, one learning from everything that we are seeing at the moment. so connected proven have
been talking about it as a result of globalization. the situations are country's pacific in terms of cooperation between the players. all right i want to mention one other area where we believe that clouds can be put stop because the short-term demand can be helped and the lager term growth potential can be also remedied. and i am talking here about investment in infrastructure public investment but also public investment. because when you look at the damage caused by the financial crisis to use the data we have calculated for the g20 countries.
nbc that the g20 country's gdp is 8 percent lower than it would otherwise a been. that is a big number. there's a bigger member permit a short fall in investment is much higher, nearly 20% below. so it is no surprise that in most advanced economies when you use airports, electricity, intemperance, so on and so forth, it is release suboptimal. why is that? because the public investment has been depleted overtime. you should compare the level of investment back in the 80's. it was about, you know, 4% of gdp. it is now out of 3 percent of gdp. that is a big number. how many of you cycle? come on. hands up. i am cycling. so you know what i am going
to talk about. and it is not just me cycling. it is not use cycling. it is the american society of civil engineers estimates that in washington d.c., i did that% of the agent of and supported scott 1/6. "to do that. bleeped keith some estimates place spending on infrastructure up 6 trillion over the next few years, $6 trillion. now, it is nice to have better roads and, but it is far more important in some of the low income and developing countries that they have transportation, that the harvest does not to sit in the field because it cannot be transported to the port. the low-income developing countries have electricity available so that they can power their machines and
equipment. so investment in infrastructure is an imperative across all economies, not just low-income countries, emerging countries where there are bottlenecks but also in the advanced economies. it will be different. we will be country specific. for some it will be about maintenance. for others it will be about greenfield investment. one thing is for sure across the mall there will have to be a focus on the efficient spending because the moment you talk about public investment in infrastructure you have to focus on it being efficiently spend. now, one final point on infrastructure, and i am going to quote a number that is mentioned by the global commission on the economy and climate that indicates that integrating lower emission standards into infrastructure investments could cost only a tiny fraction of the overall project investment.
for a half percent. so efficient investment, especially at the time of historically low interest rates can be good for growth, good for jobs, and good for the environment if it is efficiently designed. so we talked about the new risk. we talked about the momentum . i would like to talk a little bit. this is what actually gave the incredible energy to the founders of the bretton woods institutions, the imf and the world bank. multilateralism was the principle on which the military chaos post-world war two has been avoided. multilateralism is always what has animated the leaders of the g21 it was a question of fighting the
terrible financial crisis that we head back into the snake and of which we are suffering the legacies. that multilateralism is what we need in. now, you will say, why would that be need? okay. i will give you a few examples. but as policymakers get together to sort out the financial sector to regulate it better, to supervise it better, they have to cooperate. they assess monetary policy. they have to cooperate because they have to be mindful of not only the effect at home but the spillover affect a broad. when they put together safety nets just in case
they can't do it in isolation. it has to be accorded effort . and when there was strong international institutions like the imf to be in a position to bring them together as they will next week but also to be together to provide budgetary support to guinea, liberia, sierra leone, they have to be together and cooperate. and it is for that very reason that i hope that the united states of america will actually ratify the governments of reform. so much wanted to happen back in 2010 and which is currently stuck between the legislative and the executive branch because the imf has to be representative of the economy in the
changes in the economy. north to kuwait has to be financially solid to respond in case their is a crisis. because we are an institution that is capable of adopting, adjusting to new circumstances. we have done it. when the crisis hits we have to very surely change from our financial instruments to invent new ones, put in place programs and lending conditions of zero percentage straight for the low-income countries not having those programs. the more focused. we have to adjust our analysis and thinking as well. we have to enlarge.
brady said the bilateral surveillance. together with the multilateral analysis. we have to adjust from seeing the exchange rate roughly the the talked-about to being in a position to provide surveillance, to provide monitoring as we will do concerning the 2 percent growth objective that this trillions of set for veggies 40 to providing capacity building got to providing training and technical assistance. we do that using what i will mispronounce. a see it in my veins. online education system from which 2,000 civil servants and others have graduated in the last year.
and trying to compete with you, president. the sustainability analysis. so we do that. as i said, which diet to constantly adjust to the needs of our. as i like to say sometimes the way it is not your father. is you. not together as we look forward to the future, as we just i hope that together we can actually pushed the clouds out and see a lot more of the blue sky then many people have far around the world. thank you. [applause]
>> thank you very much. agreed to honor georgetowns tradition not only by wearing this handsome start but by agreeing to take questions from our students. so we are going to bring out the microphone. i think that there might be one in the middle aisle. would you please step up to the microphone, identify yourself, and as your question briefly so that everyone has an opposite of the task third question. thank you. >> i am engineering college. the law says about international development little bit and sort of your opinion, micro finance and community banking as new innovations.
>> critically important. you know, when i talk about exclusive growth is also based on inclusive finance. and micro finance community finances at the very base of finance or inclusion. as i am supportive of it. we encourage you were rican. i think that we are seeing some major developments the fuel their base on new technologies and the extensive use of sulfites in countries that have not seen fixed lines but where they use of self funds actually help with the moving of money around without corruption and can actually help those who want to start
something predominantly women and actually do it whenever the official financing is not available. >> hi. thank you very much for coming to speak to us. my name is marco. i am the freshman from switzerland here georgetown. i was lucky enough to have a conversation with former chancellor darling a few years ago. he made quite clear that he believes the only path to a genuinely sustainable economic union in europe was through stronger political union which falls into your multilateral aspects. today this was soon, the politics. don't ask what you think of
that initial assertion and secondly, given the current, of possible lead is in that direction. >> you know, i think the only response is precisely starter corporation, a clear picture of what the leaders want to achieve together. you know, you have the euros on which is clearly a currency. you look at the euro, not bad. but additional layers are needed and have been built. of talking about the fiscal year you, the banking union. and where there has to be political union with a brighter future and people feel included so that they have a future and it is something exciting to do. what suggests that more and more throughout europe would go a long way to pushing the european ideal often project for the earth.
think it is where the response is needed. >> so. thank you for speaking to us today. i am a canadian, a first-year law student. i am requesting more about yourself and less about the imf. as an individual you have done so many courageous and often as a lot when you're the first to do them. so when you're young, like many of us here, what gives you confidence that interest rates reach further, take risks, and except new challenges. then smell someone who has a great deal of responsibility and also experience. what continues to give you that conference and in the strength.
>> it would be unkind to my parents of i did not say is of good health. you need that. you can work on. i see some of you sometimes turning around and exercising. think it is also the basis on which you can develop that love. >> em -- papyrus and the finished a book by one of your countrymen. >> he finishes? >> yes,. [laughter] >> it only took about two months. >> not a dismissive comment on my part. south could be wrong. great, great information. >> my question is about a central thesis that in the long run, the returns on
capital will always be greater than economic growth to what extent would that be, the implication is going for a? >> we at the imf have done quite a lot of work on in the quality. please that his group contributed to putting that topic in the limelight. this subject, but one that actually matters enormously for economic growth and dividend would not pass judgment on these overall pieces because for wondering about finished the book myself. and there is so much information and data. it would be unfair always trying to do that and dishonest. but what we've studied on the particular point of inequality is, well, too important conclusions. the first one is that excess of a quality is bad for
sustainable growth. it is not conducive to sustainable growth. if we want sustainable growth which is the aim of, you know, all g20 leaders when they get together in excess of inequality has to be the target or one of the targets and the second finding is that contrary to conventional wisdom of distribution, redistributive policies actually did not harm sustainable growth. they are part of the toolkit this should be used up policymakers. thank you. >> hello. thank you very much for coming to speak. international economics. my question is what sort of relationship, if any, do you think that the imf should have with the new development bank? >> may i restrict your question to the contingency reserve marines are? that is really what is and
more on the part, right? you're talking about this initiative taken by the bridge countries. >> direct. >> at think that the bank is more an initiative that is parallel all will play with the world bank and of the imf. what is being announced as something that is called the contingency reserve arrangements which is an arrangement where the central banks of the brick countries took together and related sub lines along themselves from which they can draw problems. i see it as an area for operation because in excess of certain thresholds that condition for the kutcher to access those contingency reserves is that there is an agreement with the imf. so we needed to continue to work together with regional financial arrangements of that nature. there is one in europe.
the european stability mechanism is one. there is the general arrangement which has been put in place in south asia. and all of those provide more cooperation with the imf. >> take you very much. >> thank you for coming to speak to us. seen here in the college my recumbent test your question together. a discussion about your comments regarding the need to improve efficiency in terms of of research reform. realize that oftentimes the challenge to that is corruption within governmental officials, the distribution application. with regard to foreign aid to developing countries was
steps in the imf take to reduce corruption? >> you're right to point that out. i think the best remedy to that is transparency, transparency, transparency. the opinion is often the strongest way to actually defeat corruption. and an nbc something that has not been made transparent by country with which we have a poor relationship to the chair lending money would just up wwor
natural resources available if they exploit those resources with the purpose of collective well-being or not to. surrounded by countries it is a different story. where the economy -- economic development has prosperity. so when we look at the various, the highest growth rates like southeast asia, with the technical assistance and training everything is focused on
them to help lift them up. [applause] >> really have time for just one more question. >> researching george show lot coming from portugal picking up 12 points the one about equality that is not a moral choice but that economic choice end the part to talk about the interventions made it a try to adopt those other group friendly or job friendly or environmental friendly.
as those of measures used for budget cuts by portugal or greece or spain or italy or with the sensible applications of the quality? >> in supporting a reasonable pace. they're one of the members of the troika. and they were initially considered but having said that, those measures had to be taken in by gates is said to be restored and put together so those countries could finance themselves.
because when they face the economic crisis and solution keeps running. because the markets had closed on them. but we also believe they have done a lot now moving into a direction of supporting growth to focus on what will create the jobs that are needed. [applause] >> 84 in reaching our knowledge to the imf in a courteous to exercise more. [laughter] that includes the program please read seated while the
>> retired general petraeus and representative talk by u.s. relations with mexico in and canada. their interviewed by jonathan carl of abc news of the council of foreign relations. [inaudible conversations] today's council of foreign relations independent task force report the north america focus we have never cochairs here of course, somebody who last time we were both in sudan. thank you and janet o'neill the director and coach share and last time i interviewed you mr. petraeus we were in iraq. but i want to get to the
question of why now and why this? the attention it focuses with the current crisis in the middle east to administration clings to the idea of up to visit to asia. and talking about in the passport report is a pivot to north america. >> their reasoning is when you come back to it not the other countries or regions of the world. with the extraordinary opportunities as a result of u.s. energy revolution that will be replicated and is already producing a great deal of energy in canada. a couple months ago i was in london for a conference i was asked that expectation
but i responded with chinese aviation or whatever but the north american decades. the teacher of course, of the s the with each passing semester i am more convinced the tower of north america 20 years later after the north american free trade degree view see the level of intimidation -- integration in the strength each country presents in a region that really doesn't have the security issues you find in most other countries to be allied with canada since world war ii. with shared values and our democracy in the uterus the
integrated we're not looking for the u.s. north america. >> but the first point on energy is a staggering fact that the united states is passing a producer as natural gas from russia. and oil liquids passing saudi arabia with crude-oil production in fact, it would not be trading what it is today by the way if it dropped another $2 today it is plummeting. the reason is it has been stable despite 1 million parent -- 1 million barrels coming off the market from iran.
>> but what has happened in baghdad a 1 million barrels per day we have more than compensated them what you lost from iran what came out from libya because of the violence there with other disturbances elsewhere. than those energy markets that large that is the foundation. >> first we have a number of task force members here. also looking at david and sharon and we had some great meetings but picking exactly where we started with sudan
what distinguishes the report to the experience is global. just looking at this as a regional policy the heart of the idea how north america as a continental basis dealing with the future power and strength we take what has been missing in u.s. policy is a recognition rather than dealing with north america we have to start in the process the big difference here is it has a logic dash shared sovereignty with canada and mexico in the united states heightened sit in the sense of independence.
in how to rebuild of nafta and 20 years ago to take a vantage of integration to build the economy at the same time respecting sovereign day? that is the a goal we try to take. >> but nafta remains mostly unfulfilled those steps proving to immigration with the last administration it seems we have gone backward. >> may be not backwards buy you saw almost tenures after nafta a huge explosion of trade as a huge amount of investment within the three countries. after 2001 because of china coming to the wto and targeting of the border and
9/11 and slowing down of movement of goods. so we thought how do we know this makes them economically competitive in the world? they're very competitive in the increasingly electronic they can compete and expand in terms of production so how to remove the four were? the bigger it is energy all of the countries are changing. it'd mexico the jury take advantage of that? to provide resiliency?
and to integrate our networks? also looking at economic competitiveness. is there are other barriers in regulatory differences some important are outdated infrastructure that flows back and forth so how do we know to slow the speed of trade that we are economically sensitive and also look at security we have seeded change periodically after 9/11 batteries are working with our partners to make sure every day is saved but allow the economic benefits than trade back and forth in this has to do with people in the region but it is more than
that a regional work force as we see it deepening on every side of the border going back and forth so what happens in mexico the expertise because of this on the border so how do think about auctioning the regional work force to go back and forth to enhance? >> to a the recommendations are hot-button political issues. one is in favor of approving the keystone pipeline another of the immigration reform. so with keystone you spent some time with the state department and the secretary of state the explanation i
get i was just over the state department. [laughter] knu tell me why is this decision taking so long? [laughter] >> i should remind everybody [laughter] >> but to say the administration has some political party. that goes to the heart and going up to canada is much more than the infrastructure or the pipeline even people you might suspect would not support the pipeline even begin diplomacy 30 years you don't treat your friends and partners that way. if you go the long term
partnership you're the biggest country you have to be sensitive. the point is the state department also made the case environmentally you were not doing anything for climate change or safety or potential dangers the oil will move anyway. but in terms of what is holding it up. but how energy is of catalyst with reform to mexico or the demographics in asia and elsewhere i think the technology innovation to combine the best of developing countries but one of the issues to make this work you have to
create the infrastructure. but we actually have electricity grid connections with 2% but we started this with mexico to say these energy reforms and there is a lot of opponents out there. and frankly oil reforms show up and if we can expand the electricity grid across the southern border than we can get lower electricity prices based on lower natural-gas prices and then with 40% from the value content. that is another example that you connect to the pipeline
to the overall question of superstructure and energy. and with those controversial recommendations because frankly if you want this revolution to continue that if we don't export we don't get the benefits. another ploy is natural gas a ready is concerned as they come from america. the countries are fragile states, so we can extend the pipeline that goes down to central america so how we think about north america not only among the three of us with the western hemisphere. >> the one thing i did not see much was alternative energy and not a lot of
discussion of climate change. >> did you talk about creating a market based? that is also very controversial. >> but our bigger concern is quite. >> it is a big concern civic the fact is our industries the diastase codes about this in a way that is responsible. >> said tuesday that china does more than the e.u.. and by the way we were assuming wealth so as ticket aggregate sarah out the world for oil and so forth
that demand has gone down and as a result a large measure. but this will be the foundation for the progress. it requires natural gas you will build your plant here in the united states. just ask all the other petrochemical industries. but certainly we say there should be a support for sustainable energy in indeed that should be promoted hands in the meantime to look at what you have done in a climate friendly way as possible. >> in the first bush
administration of was in charge of the strategy of the last climate change treaty. and 50. -- the key point is from the leadership role. but what we saw is actually the overrun. and as a successful climate change summit in the cancun hate to part the problem with military technology, energy efficiency with huge savings looking at energy, and technologies. to lead effectively if they
were working together. and to have low-cost energy resources to start is a good example across the board as we start to think about north america how we leverage them. >> is there a national security implications and? to have the oil and natural gas and actually the production is down. >> among of the of constitutional reform approved just in the first year, among those is the energy industry in mexico. not just the oil and gas production but also
electricity production. >> water their broader implications for the u.s. dependence from the middle east? >> it is the huge issue it is conceivable that could be self-sufficient in a certain number of years. no question we are more independent. that does not mean we do not cover national interest with oil and gas through our trading partners. so they still have a vital national interest. that will not be the way that it used to be. [laughter] speesix so i wondered that
other hot-button reforms the way you describe it as the task force strongly recommends of the security borders to to economic need and offers a pathway to legalization fear undocumented workers in the united states. were you talking about the senate bill? >> i don't think so. these are very carefully chosen words and task force members contributed to this. but everybody in washington agrees our practice shows there is a need for immigration reform it does include border security and various measures. but we have to have the most skilled workers and of legal
pathway to come to our country and we also need that h1p mimicked we have this situation where reeducate the best and brightest then we don't keep them even though the industry needs them there is so limited number that could be given for that category. >> and may try to work out what is said definite position on immigration reform we don't have that tactical judgment but what shannon touched on to look beyond immigration reform one of the strengths of north america is the 500 million. looking at the future of any economy or society and what they do with human capital.
there is a big challenge of that but what made talk about when we were a and canada to describe how they need petroleum engineers. because they don't meet certain certifications because frankly you can start to see in north america they have skills but frankly with professional certification so reintroduced the idea that moves away from citizenship this has been discussed at some of the areas but then what is coming out is the
program that frankly has not been used very much because of a the restrictions but after 20 years let's make that work that cert area compared to europe or japan the demographics are better paid and have the same aging work force but that only works if you have the supply or the trading to be on the edge of the transformation perhaps different degree programs in to concede this in the public and private sector well therein is of a need to focus on local control education we missed a big opportunity because the core resources.
and frankly i think there are good politics in this when people look at the hispanic american community as well. there's a political base to go forward on some of these issues but frankly a few people understand foreign policy is not just what you are reporting daily instead of the hot story but it's the story. but the congress have to say with democrats and republicans i stay in touch on some of the trade issues when you present these items and you make the point about how this can help our economic competitiveness compared to other regions of the world there is an odd answer this there are number of people that said when you get the task force report we would like to follow that. we have now provided the eight -- for the mail and the question is can we get political attention? >> let me add to this. it could be 10 or 20 years but some of the things to get us a pretty long way there don't have to be these huge comprehensive immigration reform. there are things to take away
some of the little bumps in the road so particular industry some of the real atari differences would make a huge difference for particular sectors and those who work in them. improve the upper structure the border. one department of transportation study said it would cost between six and $10 billion which is not a lot of money but can make a huge difference on the flows back and forth. start working with their counterparts on the other side of one of the main themes we lay out in the task force is that in all of these areas whether economic energy security we should start thinking trilateral where we can and bilateral where we must. i think some of that change we could start doing those things now and later on if there is more political will or core whoppers and try to go for the bigger things. you can make a lot of progress with smaller shoes. >> the chamber of commerce were joining as part of this group. i belong to the ceo task force that the u.s. and mexico is put together and these are major
companies going back to something david david said that say look we are applying information technology in ways he couldn't conceive of in much of our business. why can't we apply this to get stuck across the border safer and quicker? >> keep in mind that mexico is in the midst of the manufacturing boom. the number of -- i was in tokyo last week. they mention toyota's new plant is not japan it's actually in mexico. we are by the way the production facilities for just about every other make and model car in the world. so what's going on there is quite extraordinary and now you see the 16 reforms start to be implemented and you see them get the benefit of our cheap natural gas and pipelines being built that will help them lower their electricity costs which are some 75% more than ours are right now. so this will actually provide even greater opportunities for integrating our markets and as
bob mentioned earlier a car that is produced in mexico is 40% american and the same if you do that in the north. there are really historic opportunities here in the question is can we take full advantage of them? >> let me give you two practical examples. shannon mentioned the transpacific partnership so this is the united states negotiating with 11 other countries. we countries. we are to have free-trade agreements with six of those including canada and mexico. took us a while to include canada and mexico as part of this investigation -- and why not use the tpp to be able to try to clean up some of those things and also in the process start to think about a north american market. we have a trade negotiation going going going on at the opinion in the transatlantic trade and investment partnership. i've been a trade negotiator. i know it's not easy with more people at the table but frankly it's a big room strategic
mistake not to include canada and mexico at the table. one of the key areas in the ttip is supposed to be regulatory standards for example for the auto industry. when we are in canada they pointed out they don't have auto industry they have in our parts industry and a lot of it's based on assembly if someone were to design infection -- manufacturer. frankly we are being short-sighted in terms of our future competitiveness. those are practical things practical things and you don't need to pass a lot to do that. >> i want to get to questions next up before we do i want to ask you about another issue that we haven't touched on much which is security. general petraeus what is the greatest security concern for us now? is that the whole issue of foreign fighters we are talking about now? is about violence in central america? is of the criminal cartels? what do you see going forward is the central security concern? >> i think it's all of them -- elements of all of the above so
there's an emphasis on a report on improving border security but there's also a suggestion to try to move beyond the internal borders with their neighbors and actually look at the overall regional corridors. there could be in a sense a defense in depth you obviously would have a better chance of ensuring some of the security threats don't materialize. but beyond that though we also want to while improving security at shannon mentioned improve the flow of people, goods and vehicles across the border which is actually slowed as a result of nature's undertaking since 9/11. yet there are all these technologies. there are hosted different initiatives that could be pursued and we have not yet really pursued those to the extent we should begin to make the most of these highly integrated economies very time is money at the border and there's a lot of wasting that goes on.
>> just connect as for example with what people seen in the newspaper. at the terrible example of these poor children coming from central america. they didn't climb here. they came across mexico so part of this is if we develop a deeper cooperation on some of those issues from mexico, frankly you will deal with them in an earlier point and we need to go beyond that. we have to talk about looking at the plan colombia example and seeing where mexico colombia pantomimed the united states and canada can go with the root issues in central america. we have fragile states dealing with criminal networks that goes to the energy issue and it goes to a larger development issue that we dealt with at the bank of the state department and elsewhere. wouldn't it be much more effective if we are doing that in concert with the mexicans as well as the colombians as we did was central america 20 years ago? part of this is to stretch people thinking and david mentioned this too. you will have new shoes like cybersecurity.
you have a bullet issue so you'll have other disease issu issues. part of this is to get people to recognize that for our own security, not just out of niceness we need to try to create a unified security logic. you have another set of issues through central america. >> let's get to some questions. to remind you stand up and state your name your affiliation and remember to keep the question short. so do we have our first question? that has never happened. >> thank you very much. davis robinson a member of the executive committee of the canada-u.s. law institute. i have been struck by the fact that none of you has either mentioned water or the effect of the inability of the national
governments of these three nations to act upon the states in the provinces. just as one single example the great lakes are losing an enormous amount of water. neither washington nor ottawa has been able to do anything about it. so now the two provinces and the six states, they have gotten together and they are going to do what ottawa and washington should have done, what they may be doing may violate the constitution of the two countries. but at least they are doing something. >> it's a good opening because they are certainly discussion of water in this report. >> there actually is an interestingly it came in large measure as a result of the encouragement initially by the canadian ambassador. we have both ambassadors quite involved in this in addition to
their trips we made to ottawa and mexico city. water is in there and if you go through that you will see it as a strong recommendation and we do need to confront these kinds of issues. these are the issues of the future by the way. >> two additional connections. one as you undoubtedly know there is a century long history with the u.s. and mexico and canada and from our examination of that the boundary waters commission has worked relatively well in part because they involve a lot of stakeholders outside the capitol's. your second i really want to draw attention to. one of the challenges for north american policy is a lot of it's not made in washington and ottawa are mexico city. a lot of that is made in the state province is local and private sectors on someone's part of what we are trying to address here is how do you think about foreign-policy in a different way where you are dealing with a set of transnational actors? we talk about the role of the
governors and the provincial authorities in how you can connect with us. all countries have to be respectful of federalism or in the case of canada and federalism and the limits of that but it led us to do something which i was a little skeptical about it first. i'm not one who believes government organizations tend to solve problems. i tend to think you need to deal the problem but what we did say is look because of this challenge about getting attention to north america we need to change and frankly we talked about the north and high-level champion on officials and part of this is not only to bring attention to these issues in the u.s. government that part of it is to try to work on this challenge of how do you work more closely with the states local and other authorities capture the energy knowledge and activity of those bodies? i'm glad you raised it. >> next question.
>> bernie aronson. one of the points the panelists made is that we need greater political leadership and a focus to move this agenda forward. that's a perennial problem with regard to the united states and latin america. we oscillate between involved with the region and then we go off and do other things. so are their structural changes we need and i will make one other parenthetical point. also makes a difference to the personnel are in the bush 41 administration via the president and secretary of state from texas. secretary of commerce and the vice president wanted to be involved and not. >> even though we did not let him. >> he was for sure period of time. [laughter] >> but that's all quixotic and we can't depend on where the president was raised in the
secretary of state was raised or the commerce secretary peter their structural changes we need to make to make sure the north american agenda is at a higher level than is currently active and is focused? >> bernie thanks for that and also for your contribution to the task force but clearly that is the idea being the nsc you have someone truly focused on urban america. the same with the state department. interestingly the department defends already does have that because you have northern command which encompasses those three countries and is focused indeed on the security aspects of those various relationships. so indeed structural change would help as would begin, as does personality. in fact the fact that the secretary of commerce has been as active and actions with mexico in particular but also canada has been a real plus in our view over the course of the year or so that we have done this report. so certainly there does need to
be that and the reason for that is you do have to have champions in our government for different regions and initiatives and activities and if you don't they never get on the table until you are a week away away from at your summit in some basis what are we going to talk about next week? so you know the principles committee is dominated by the crises of the day and arguably right now we have more crises than you can funnel through the situation room on a daily basis. it would be a tough time to be a definite deputy cabinet secretary right now. in fact he would live to the white house i would imagine. so how do you get north america onto an agenda that is already overcrowded? you give people that are invested in it and constantly push it back into the table. >> let me compliment this a little. we talk about champions and i
want to draw it out a little bit because we have a lot of people in this audience who have served in the government have a sense of this. the danger of course is that each bureaucratic agency just kind of sticks in its route and it's hard to move things throu through. with north america it's compounded because as we know everything from social security to transportation becomes part of quote foreign policy in north america. what we tried to capture with this notion that i personally think it takes a very senior posts state, treasury may be nsc adviser and maybe vice president and it can be one of these deals where that office gets 100 of these assignments because they are all deluded and is probably less important to see that the person believes in. frankly as you know bernie you have to push the system and you have to have a sense of how to break through some of the restrictions that when bureaucratic issues comes up. that's the champion idea but the office is if you have
experiences it helps to have right now with the u.s. government has western hemisphere. that's very important that they tend to think latin america and indeed canada has moved back and forth from the european to the western hemisphere bureau reflecting different hemispheres of topics. you created an internal advocate so that when people are talking about negotiating with the european meet union someone says will let about our north american logic? are we missing this issue? so we try to drive it without point and frankly we had a bit of discussion that also said where should central america fit in this? my own sense is that central america is a key part of our security as you see with narcotics are their issues but there is a debatable point. frankly i think you will forever avoid this pendulum of ignoring some of these regions until fires break out and burning your fingers. we need to add central american bank of north america and morse strategic way. i have to say this is a complement to mexico, when i was
working with augustine carson and is now a good example of three central bankers and in north america are world-class. he was finance minister and he was the first mexican finance minister that i know that would meet regularly with the central finance ministers because as you know mexico often treated central america with the distance that we treated mexico. that won't work if you want to try to deal with these underlying problems and frankly as i mentioned before it helps to have latin americans deal with central america as well as the north. >> one of the very granular level and one of the examples you cite on nafta and things that happened during nafta is the issue they mexican truckers. by 2000 trusts were supposed to be able to go all over the united states. and right now you point out, is at 45 mexican trucks are
permitted, individual trucks. we are talking about trucks. >> 14,000 that cross. see that the rest are limited to the states or on the border. so another question? >> thank you. my name is ozzy brown and i'm an i.t. and information security specialist i notice you have a few paragraphs about cybersecurity. my interest is what did you learn in terms of your work in terms of best practices that canada and mexico may be employed that we get the benefit from and then the other question is in terms of this i will call a joint unified cybersecurity so on the north american continent how do you envision that working? can you tell us about that a little bit? >> i think this so clearly is going to have to link to dhs.
we will be able to drawn them less for homeland activities and we otherwise might have so eventually it's going to have to link to the growing expertise that's being developed in dhs without question. having said that there is a need for legislation of course in cyber. a couple of years ago when the chairman and vice chairman of the house intelligence committee were moving to roger ruppersberger bill would have been a good solid modest step forward and even that couldn't get through unfortunately. again this is an issue that we do need to do it right here in washington very much even as our own domestic cybersecurity authorities are working more closely with those of canada and mexico. >> was just -- just let me me add infrastructure special the
canadian side that beginning on the mexican side since we share the structure electricity gives pipelines and the like a cyberattack on one side would affect presumably the whole northeastern electrical grid so working to establish common protocols and also if there is an attack, sort of a post-attack of valuation sharing the experiences and effects that in the long run would be useful for us. >> david is much more expert on this in terms of the policy and security but your question is particularly interesting because like david i work with a lot of financial audiences. they asked was going to be the next crisis and what's going to create the next illiquidity event and the first answer answer is besides the one you don't foresee but frankly if i were to pick one i would pick something a cyberarea because i could see what created for
examples of months in thousand and eight is markets won't clear if you can get a price. so that can happen through financial terms. it can also happen through the breakdown of the system. i was with mike rodgers earlier this week and with a group of chief financial officers and i was trying to say if you are not looking at this be aware it's not only a question of business management but in a world where you know we have got issues with russia or iran you had better be darn well prepared for them going after your system. it's a good example of stretching people's thinking msn frankly as shannon mentioned this will go to the heart of electricity grid another utility areas. >> this is an area where we have much tighter relations in one bilateral relationship because the intelligence sharing agreement than we do with our southern neighbor with whom we don't have that same level of relationship so it gives you an
idea of what it is we need to do here even though without getting into the detail that's quite a bit of cooperation. >> justice pick up on the strategic point here and bernie and others, david talked about the depth of their relationship with canada as opposed to mexico to when i first started to work with mexico on foreign-policy issues in the 1980s basically if i needed to know mexico's foreign policy i could find it in the u.s.. that's because in the old system under the old pri in those days the foreign ministry in mexico was partly an intellectual haven that basically collected anti-americanism while the pri did business with the united states. when i came back to the government in 2001 they had totally transformed particularly in the economic area, my closest partners on international trade issues were my mexican and canadian counterparts. we were handing glove not only in north american issues trying
to solve the trucking and other problems which people then reverse that basically going back and trying to play a role globally. i guess my hope is that a group like this 25 years from now might be able to sit and talk about deeper cooperation with all three countries on these other security issues. as a little bit of the vision we are pushing for. >> thank you. i'm kristina wong from "the hill." my question is for general petraeus. sir you have had great experience and expertise in iraq and i would be remiss if i didn't ask whether there are some data in washington of whether or not the strategy against isis will be successful, and what are your views of whether the strategy will work, how it will end and went -- what are your views on that? >> i don't want to turn this into an isil q&a but i can see how it can end in iraq with the
strategy in which we have embarked has a reasonable chance of success. it really comes down as the president has been very clear, it comes down to prime minister a body performing tasks and the iraqi security forces performing tasks that we had to do in 2007 because the place was literally on fire and it burst into civil war flames had we not done that. we should not underestimate all the challenges that we have had and we should not underestimate the ability of this new government to reach out to the sunni-arab community and to make them part of the fabric of society and also to accommodate very legitimate demands and requests from the kurdish regional government as well. if that becomes the foundation you can reconstitute in some cases the iraqi security forces with help from us in terms of
the intelligence picture assistance with planning and the provision of air support and fires. i think that those forces can and must, again if this is to be sustainable this must be a result of actions by the iraqi security forces noting that term is inclusive of what will undoubtedly stand back up the former sons of iraq that will part of va iraqi national guard and certainly encompassing the actions of the kurdish peshmerga and other malicious as well. >> if i can get a quick follow-up. they promise from the start no boots on the ground. will there need to be special forces? is their north american boots on the ground? [laughter] >> nice try. as we look to the north american decade of the future here i think general dempsey has been appropriate and forthright in noting that if it comes to if you would ask for certain
capabilities as required to assist iraqi security forces on the ground. but by and large again my point is that this can and must be done by an iraqi security force and that includes not just their army but also the police elements and indeed even the air components that they are gradually developing as well. >> yes. >> sack zach with the german marshall fund of the united states. i would like to ask the speakers regarding the current trade negotiations between the united states and europe and how those negotiations would affect north american partnerships. >> why don't i start? those trade negotiations are in trouble. they have been drifting. it goes a little bit to jonathan's political question. until you get trade promotion authority which is the ability for the executive to bring an
agreement for congress for an up-or-down vote without amendment it's going to be harder to make people face up to the toughest decisions for the transpacific partnership is a little bit ahead in the negotiations and you are seeing that with japan. the japanese are not going to take sensitive decisions on agriculture unless they know the executive is ruling to carry out his side of the pacific and frankly push it with congress. i am actually helpful but i'm enough domestic person back from talking with members of congress there is strong interest on the republican side in moving this as there was the senator baucus the democratic chairman of the finance committee and a cancer republican chairman of the house ways & means committee earlier in the year until senator reid said he didn't want this issue in the administration backed off. if they are going to prospects for transatlantic or tpp they will have to move that forward. speaker boehner said he would do it if he got 50 democratic votes. even the tough deals that i did
with only 30 democratic votes i think that's a doable number. frankly if you get a republican senate you be in a stronger position to move this forward but i urge senator wyden and i wanted to talk to him and urged him to start the markup earlier because i think it will be good to have democratic answers in this. this is the key question. there's a lot of talk in washington 80s got to decide whether you're going to push the stuff or close the deal. he comes back on the transatlantic side in the reason i feel so strongly about this is in trade if the bicycle is moving forward it falls down. what you can see in europe is there has been an increasing criticism of this element in that element and there is not a forward momentum going forward. i see that agreement difficult. that's terrible given the fact that probably the most important partner in europe going forward is germany and chancellor merkel has a strong interest in this. so coming back to the north american point i would just say
we support the tpa and also we say we have to look at this mark in the north american context. europe is on a free trade agreement with canada and they were back and forth about the closing aspects of that so i congratulate the canadians and europeans. i think united states needed to get its act together. >> affected by the way we have the canadian ambassador here and we are grateful to him for what he did and i fail to see them earlier. yesterday we had the mexican ambassador for the segment that we have at the council to release this there. so there has been very good involvement in this. the answer that bob was just giving, task force strongly looks forward to confirming the excellence of our legislative and executive branches in the wake of the upcoming elections and passing tpa and then getting
tpp down and moving on to -- there's huge interest in tpp. i was out in hong kong and tokyo last week and i can assure you our asian partners out there are very keen to get this done as well. it will help not just the united states, ttp will help all of north america because they are all three involved as bob mentioned earlier. >> one last point, people often look at these as vero there are trade agreements. this is big-time strategy because they have spent a lot of time in asia. i was there just last week. economics is the -- and frankly if you are not moving forward with your economic relationships than they wonder what's the pivot and rebalance, 25 hundred marines? it's a very serious question and frankly in the transatlantic side it fits in with the challenges you see mario to ruddock talking about.
questions on whether his new monetary policy will move forward. the french came out without -- with their budget of. ttip is a vehicle for structural reform so if you want to create a global economic strength and you want the u.s. to play with leadership world get tpa done and close the two deals. >> yes. >> lewis colbert. i just wanted to ask how out of the box did the task force consider creating new multinational organization so for example things that would provide investment funds for the structure, rule of law investments, education and all of those kinds of things and i know you started by saying we are thinking about this in the sovereignty context as opposed to perhaps the way the europeans did it where there were cross investment funds. is that part of it now or is
that a bridge bridge too far? >> we started with what exists so one of the items we went back and looked at was the north american development bank which is part of the nafta process. it was part of the political vote trading but it had an interest -- interesting constraint. whether that could have its mandate expanded to be used more effectively. frankly and these are some of the things david and i were kind frequently is the question is how do you connect the private and public sector in this? we also talk about the role of the american development bank and perhaps the world bank. i think we are biased more towards how you can upgrade and use existing structures as opposed to create new ones. it's a little bit on your water question as well. just to give you a sense of the possibility here again, when i
was in singapore a week ago i was struck when i was talking to some of my former colleagues and one of the things they told me is fascinating. we created an asset management company which allowed sovereign funds and pension funds to join with our equity investments which are 20% rate of return. we started this with africa and latin america. one of the things they told me was china had gone to the asset management company of ifc and said look we would like to do more investment in mexico but rather than do it bilaterally maybe we could do with the mexicans are ifc so it has a different shape to it. that's a creative use of multilateral institutions. it doesn't require a new one although this asset management companies quite interesting. the first subsidiary of bono -- multinational.
no one paid attention to it but it's working quite well. my sense is we are looking towards evolutionary models in a pragmatic way. >> yes, in the back. >> thank you. i want to get to something that wasn't directly addressed in the report but that we touched on a little bit here and there. as far as common security threats. >> could you give your name? >> lawyer with "cnn." we talked a little bit about the threat posed by foreign fighters particularly going to and possibly returning from syria. it's estimated there are about 100 foreign fighters from the united states in the region and about the same amount from canada. what can be done between north american allies to first of all key people from going there, monitor them as they returned and also before that i guess prevent the kind of radicalization that can happen so easily on a computer that could lead to an attack within
any of the three countries? >> this really comes down to basically to intelligence sharing and as i mentioned earlier we have long had a close relationship with canada and they are one of the side imap's. there is actually a good deal more perhaps than people realize that goes on with their mexican colleagues as well. it's all about creating access to common databases, sharing threat streams, sharing information and also sharing tactics taking procedures at the will of a variety of different methods of collecting information that then becomes intelligence on the flow to and from these areas of conflict. >> one other point that david mentioned yesterday in new york and the americans here and certainly the canadians need to know this but david was in command of central command.
he had canadian soldiers that were fighting for the united states in afghanistan when we were attacked on 9/11 and lost 150 lives or more. we have this in iraq. we are the multinational force in iraq headquarters that included all the members of the coalition. in afghanistan we had some 50 countries in headquarters but in between that when i was in central command is that this really works quite well and iraq. why can't we locate that right here in tampa with their headquarters and we did. we had a number of other countries that have very robust elements and several dozen of those as well. >> the canadians were making the ultimate commitment to go to
canada. >> very much. [laughter] what they did was add to the number of canadian license plates. actually to come back on a serious note, canadians i think had the highest loss rates per-capita of any of the coalition containment in afghanistan. they did some very heavy fighting and during the surge in afghanistan the canadian contingent in kandahar was part of important offensive gains that helped not only hold the taliban where they were pushing them back in districts to enable the time of accelerated development of afghan security forces and certain institutions of its governance to start the transition process. >> you need to tell the "cnn" audience on the 200th anniversary of the war of 1812 we are glad to --
congressional district republican congressman jeff. denham: -- denham and michael eggman met at a forum hosted by the "modesto bee." the district is located in northern california's central valley and includes modesto, turlock and tracy. the rothenberg political report rates this race as republican favorite.
>> thank you to representative jeff denham and candidate michael eggman for joining us other editorial candidate form today. joining us today as reporter nan austin, columnist jeff jardine, opinions page editor mike dunbar and their visiting editors john logan, dr. modi and cap playing a rogue london. our ground rules are pretty simple. we will start by asking a question with representative denham answering first and then the next question will be answered first by mr. eggman. they will alternate afterward. some of the questions will be customized for each candidate. we will have two minutes to answer. john will test the table when you have 10 seconds left. the first question goes to congressman denham. please explain your priorities for what you hope to accomplish over the next two years in congress. sigh. i am someone has continued to work is not only a bipartisan legislator for somebody who
works with a valid delegation. it's important for republicans and democrats to work together on a water come on water stora storage, making sure that our economy is vibrant. to get a highway bill then we'll need bipartisan support as well as a new water bill. i think because of my track record that's one of the reasons nancy pelosi has never been able to find a local candidate to run against me. the democrats in this area have supported me and that's a bipartisan work ethic to get things done for the valley. you have to fight for the valley when he updates like water and so many other issues affecting our jobs and our economy. subform running for congress to bring back the dash my first years of congress i hope to stop the washington dysfunction that i want to stand up to the professional politicians that are causing that dysfunction. i want, hope to find and stop
members of congress working for themselves and the special interests and start working for the people they represent so the people that are going to elect me to go to congress the top of their list are the things they need your jobs. in ag economy waters the thing that fuels the economy and that economic engine. we need for what and when invest in new service -- surface and groundwater storage and new technologies that are going to help us conserve and make new water trade also creating jobs. we have to cut this regulation that is choking small business. i am a small business is -- small business and we have a stack of regulations this tall. we had to figure ways to streamline the regulation that is choking business. in my small business i met beekeepers so i travel up and down the valley pollinating crops for a few problems with crime in failing schools. icefield problems with a
crumbling infrastructure. those are conditions that are conducive to businesses opening so we need to fix its problems. want to create an atmosphere that's going to be good for economic expansion. we can fix those things without raising taxes. for every dollar we pay in income taxes we get 75 cents back. i'm going to fight to fix these things. and to streamline and simplify our tax code. congress needs to work together to create a tax code that's going to help small business compete with big business. need to stop the loopholes for big corporations that ship our jobs overseas and went to start giving tax credits to companies that want to expand here at home. democrats republicans alike anyone who's interested in creating jobs i'm going to work with them. i will never put politics before people of the district were ideology before our economy. >> moderator: thank you.
the next question we will start with mr. eggman. secret water negotiations are going on in each chamber of congress. we worry itself of the delta farmers will dictate how numa lowness and san luis reservoirs are managed to the detriment of oit farmers. how do we make certain water needed here is not shipped south? eggman: waters a very important issue and personally it's an issue for me. i met beekeepers so the growers that i work with and the bees that pollinate their crops they need water. as a farmer i need water to grow my own crop. this year he didn't get enough water. might allotment was done july 29 and it certainly showed in my craw. i was down 35% and it was that way across the board at valley. so we need to work on -- you know water is that an issue.
to me it's a failure of political leadership. if you are in a drought condition we don't have water because we haven't done anything to the politicians haven't built anything in over 60 years. the watershed that was built right now was built for 18 million people. what is their populace in california now? 38 million growing. we need to do more than just use water is an issue as a political football. case in point congressman denham has been attacking me on this issue of water instead of attacking each other we'd worked together to solve the water needs of the district and asset be done in a transparent and equitable fashion. in its work together to solve this problem. myself and my neighbors so we will never have to go through the pain of not having enough water again. denham: there are no secret negotiations. there were negotiations between republicans democrats house and senate. dianne feinstein has been a willing partner to come to a
resolution between the house bill in the senate bill. our big challenge is not between political parties or even between the two houses. it's getting the president engaged in a water policy that will create jobs in the valley. as it pertains to candidates and the campaign you know we have very different perspectives. i got the support of the form bureau and irrigation districts and he has the support of the nrdc. even dianne feinstein says the environmentalists have not been helpful in the water debate. when you have the very groups supporting you that have launched lawsuits against each of our irrigation districts launched lawsuits against our water bond bond want to increase water storage rather than increase it be created division between the two of us. i'm fighting to get greater water storage. a federal project, we should have two teeth and 10 million acre feet of water. that's something we are negotiating with dianne feinstein.
issues i have worked on for many years finally getting into the water bond as well as the st. louis reservoir. but for me where i'm fighting is saltier addition districts. not a dollar will need to be spent just regulation change that would allow them to have that increase. that is bipartisan. as well as working with the district and the south san joaquin area in a project project. it's ridiculous to continue to spend millions upon millions to save salmon when we are allowing the predator fish to come in and eat them. this is a project that would help prove the science across the state. up in temperance flat nrdc has sued because of the scenic area. it's a bipartisan issue when you have extremists from out of our community come in and attack us.
it affects all of our jobs and families. >> moderator: the next question will start with congressman denham. turlock and modesto irrigation districts are trying to relicense that the state water resources control board under chairwoman felicia marcus the chief counsel for the nrdc has said unimpeded flow should be 40% instead of the current 12 to 16%. in private she agrees with eric wasserman of friends of the river that it should be 60%. as a member of congress how would you help her districts resist this pressure from the state and the nrdc? >> you know it's going to be a battle. that's why we have a coalition of republicans and democrats working together. i'm working with adam gray and the reservoir assembly and the state to make sure we are addressing state as well as a
federal perspective. we have an opportunity right now. this is one of the few times in the history of the valley where we have local irrigation districts, state and federal government working together to find a solution. that's what is going to take. i'm supportive of the water bond and i'm glad that is moving forward but it's going to take republicans and democrats in the house working with senator feinstein and encourage the president to come to the table to have a real water solution not only for today not only for conveyance but actually to have significant water storage for future generations. we cannot lose this opportunity. our kids or farms or jobs depend on it. >> moderator: mr. eggman. eggman: again waters what makes the agricultural -- a move. need to invest in the surface storage areas and need to get ear gates in ditches the water they need.
i'm against the tunnel because it spends billions of dollars on the combat system that we are to have. we need to make investments with the federal government grants like we did in the project 60 years ago to develop new dams, expand existing surface facilities but we also need to look into investing in groundwater storage and investing in regional reclamation systems that will create useful water along with systems like hard d. cell in any water. there are ways we can create new water to help us meet the needs of our agricultural economy. >> moderator: okay the next question mr. eggman into on to this one first. if you want to fly into this district and you don't own a plane you have to drive about 90 minutes to the airport. representative denham as chair
of the transportation committee. how can we better connect with the world's? denham: we need to work on her structure because that would enable, keep up the population and if we want our economy to grow we need to work on infrastructure. you can just go over to the west end of our district the altamonte pass every morning at 5:00 a.m.. you will see a sea of taillights going into the bay area and a sea of cars coming back. it's one reason we have the worst air in the whole country is right here. a children's asthma rates are off the charts because of our congestion and traffic. we need to invest in her infrastructure to keep up with those needs and moving people and products easily not just in our district than our state and in our country. what we don't need to do is what congressman denham propose to do which is to send $6 billion, 3.5
from the federal government in 2.5 from the state and sent to the northeastern corridor rail system. your paper editorialized about the senate had every right to do so. it's absurd. we need a congressman congressman from california to represent californians not new yorkers. denham: jerry and i just got a -- helping out at different airports. a string is a tremendous success story here. the commuters able to go back and forth and go to a 49'ers game on a sunday. it's tremendous. we have to make sure it stems into modesto and turlock and elsewhere. one of the ways we can do that is the passage rail reauthorization bill which we passed through the committee not only bipartisan, i worked every member not only the republican side but the democrat side to make sure we hadn't unanimous
vote. to get rail moving quicker and get passengers home quicker and to make sure amtrak is running much more efficiently. i make no secret about california high-speed rail. i'm against it because it has tripled in cost. it has grown beyond what the voters approve. it's knocking down buildings and dividing farms and while we have had a conversation about and a b -- the bee is quoting me on this. i just very strongly believe a proposition that was passed by voters should either go back to voters that the project is going to change brought to be stopped altogether but to spend a hundred billion dollars if you don't have some misguided priorities i think is the wrong direction. we should be using what delicate resources we have two pics are water supply. we are going to finish her work
on the passenger rail reauthorization bill presented the highway bill california received money for bridge funding. the seventh street bridge is ridiculous. we have commuters going across that every single day that we don't allow school buses to go on there because it's falling apart. we have big infrastructure needs we need to fix locally. start with the highway bill and passenger rail reauthorization. >> moderator: the next question will start with congressman denham. you have moved around a little bit from salinas to atwater to turlock is your districts have changed. candidate eggman was the residence of kingsburg as recently as october when they did a lovely story about the family at both of you talk about being local. please define what local means. denham: goodby asked me by was going to move in 2013 and yes i did. i am in and out of atwater.
might kids go to school there but when i was elected to congress not only was it difficult to continue to farm on a daily business going back and forth to washington d.c. but it was time to downsize to a smaller home and turlock. it's been a great transition in their local community is something i had told the voters and the bee that i would do. i stick by my promises. eggman: indeed i met beekeeper so i travel throughout the valley are they share my time between the south fell in the north valley but most of the time i spend here and turlock on the farm. the farm i grew up on the farmer still run today. i love the community and another community and understand how the community works and understand the issues that are holding our community back because they are the same problems i find on my farm everyday. indeed congressmen denham is from southern california. he started his blue cookware and salinas and his run for office all over the state.
as he says he lives -- his family lives in northern virginia. i put my connection to this district against his any day. >> moderator: would you move to d.c. if you won the election? eggman: right here and turlock is worse than the majority of my time. >> moderator: if you were elected would be moved to d.c.? eggman: i would stay here. >> moderator: is your family live with you here and turlock? eggman: i have a home and turlock and my wife come in -- commutes. my boss neal cut scarry called high-speed rail the crazy train which is funny even if you support the concept. representative denham has been clear about his position. candidate eggman.so much we can find to explain your positions on high-speed rail or if you prefer the crazy train.
eggman: high-speed rail is a complicated issue. we have to remember the people of california voted for it by what they voted for was an apple and what they got was an orange or more aptly a sour lemon soap with a project to move forward i think the state has to figure out a way to get back on budget and on track. as we said before we need to do something about the congestion in our valley in their state. it's polluting the air and it makes it difficult to do business. we need to look for ways to invest in infrastructure that is going to help keep up with their growing population. >> moderator: t. support the project in its current form? eggman: the form that was voted on, it needs to get back on budget, back on track.
denham: no. i've been clear in california high-speed rail. i don't think we can afford it but i think the voters would vote it down if they could did go back to them but ultimately this is about trusting government. he passed an initiative voter support you better stick to what that initiative says and does. right now we are spending federal dollars on this project. at a certain point the state has to pay its matching share and if we don't have it that money comes from our education system. it comes from areas of government that we can't afford to lose money on and i think it not only puts us in a difficult situation but it's an unproven technology that the ridership numbers continue to change. talking to high-speed rail companies around the globe, they don't want to invest here. you wouldn't invest in something that the ridership numbers didn't match up. if it did we would be stuck with that ongoing subsidy taking money away from our schools and away from our law enforcement.
it's misguided priorities that i think will leave a black eye on the central valley. >> moderator: the next question was her with congressman denham. president obama can't seem to get us out of iraq. you support his plan to do with isis or do you have a better plan? denham: first of all he doesn't have a plan. certainly i voted for his request for funds. i believe we have to do something. we have christians in our community that have relatives, armenian and syrians in the middle east that are being attacked right now. we have got to make sure we are addressing those from that perspective but we also have americans are being murdered. we have isil that is now saying they are going to launch attacks on u.s. soil so yes we absolutely have to fight them back. i'm looking forward to a real plan. ..