More TARP Madness Threatening the Travel and Events Industry

Sen. Kerry has introduced legislation that would ban all 421 firms including the nation’s largest banks that received money from the Troubled Assets Relief Program (TARP) from hosting, sponsoring or paying for conferences, holiday parties and entertainment events.

This is anti-business, anti-growth, and demonstrates just how little politicians know about how to run a company. Sure, there are some stupid things that TARP recipients might do that fall into this list of banned activities, but that does not mean ALL conferences and events are frivolous. This kind of talk goes too far. The petition below recommends that the travel and events industry be allowed to join the discussion and offer some ideas about how best to monitor for junkets.
As fellow industry folks I hope you will click on the link below and it will allow you to easily email your senators and congressmen and women.

http://capwiz.com/nbta/utr/2/?a=12773376&i=91979931&c <http://capwiz.com/nbta/utr/2/?a=12773376&i=91979931&c> =

Here is the petition in its entirety:

I was dismayed to hear that Sen. Kerry has introduced legislation that bans Troubled Assets Relief Program (TARP) recipients from hosting, sponsoring or paying for conferences, holiday parties and entertainment events. I understand and share the concern that taxpayer funds are being used for questionable items, but Sen. Kerry’s comments amd actions are part of a disturbing trend that paints company travel and events as a picture of lavish, unnecessary parties. When in truth, the vast majority of meetings, conventions and conferences are cost efficient, well planned tools used by companies to drive business and are an economic boon to cities that host the meetings.

The industry recognizes there are concerns with how companies are spending money. My association, the National Business Travel Association has been at the forefront of managed travel for forty years. A well managed travel program ensures companies are following guidelines that include competitive bidding, expense reporting, cost containment, and policy compliance. Exactly the type of transparency and accountability President Obama has called for. The travel industry believes so strongly in the benefits of effectively managed travel that it has published a set of standards that are being recommended to TARP companies. The industry is also working with the Treasury Department to ensure that these real world practices are a part of the solution.

The introduction of legislation and media driven stories are having a chilling effect on the entire travel community, not just TARP recipients. Companies that have never taken a cent of TARP money are canceling meetings and other events because they are afraid of being attacked as wasteful. This hurts the business travel industry, but it also affects the bellman, the maid, the waitress and other hourly employees that will be laid off as these meetings and conventions decline.

As a member of a community that creates $244 billion in spending, 2.4 million America jobs and $39 billion in tax revenue at the federal, state and local level, I hope you will listen to our ideas and suggestions. Let the Treasury Department work with the business travel industry to set guidelines for managed travel. The worst possible step Congress can do now is to ban meetings and conferences. This knee-jerk reaction would not only hurt the targeted companies, it would hurt the entire American economy.

Unemployment Rate Nostalgia

I spoke with a college student the other day on behalf of a professor friend of mine. This young theater student was interested in a career in audio and wanted advice from an old pro in the events business. He was thinking of leaving school. I remember how eager I was at that age to start work and maybe go on the road. Thank goodness that not finishing college was ever an option in my mind. Today the big news is that the unemployment rate is up to 8.1% – the highest since 1983. Where were you in 1983? This was the year I started my professional career and at the time I had no idea there was an unemployment rate or that it would be a really, really, bad time to leave the security of a university job. When I graduated from college in 1982 I hired on at the university to work in the theater and entertainment complex as a stagehand, carpenter, rigger, projectionist, and maintenance guy. We wore a lot of hats, worked 200 events a year, and made a ton of overtime. I earned more than enough money to survive and learned how to do so many things over a year and a half.

So I left benefits, friends, a regular paycheck, and a retirement fund (which had already accumulated enough to make a down payment on a new truck – you actually had to have money to get a loan back then. OMG ) My point is – and I am going to get around to making one – I moved to the big city and found immediate work as a freelance AV technician. This was a long way from pushing road boxes for concerts at the university – I had to wear a coat and tie and I even cut my hair. But pay was good if spotty. And I had time to think and play and live. So, I got even better at my trade.

So my advice to this young man was not to make a run for it. I said stay in school any way you can. I was lucky in 1983. I had drive, work ethic, – and even as scraggly as I looked, I had a college education and practical job experience with a broad set of basic skills. A sharp kid will find work and will even advance his trade for a few years. Then one day he will be passed up by someone with more education. He asked about trade schools and said they were fine, but I would rather see a college degree and know that this person is smart and dedicated enough to have earned all the basic skills a university education brings.

I have interviewed many, many prospective employees and read (or scanned) thousands of resumes over the years. I look for a history of self-improvement and steer away from too many years at the same job. My response to the college kid did not take much thought – it’s just what I believe. I would not trade my choices for any other options, but today’s headlines made me nostalgic about my choices and so happy for anyone who can ride out the downturn in school.