Transcripts

The President's proposal for the pump

SUSIE GHARIB: President Bush today tackled the issue of skyrocketing prices at the pump, even as a new report showed consumer confidence is at its highest level in four years. The president ordered a halt to deliveries of the nation`s strategic petroleum reserve and leading Democrats countered with their own suggestions on how to bring down gas prices. We have two reports tonight, looking at those proposals and why Americans are still so optimistic about the economy. We begin with Stephanie Dhue in Washington.

STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: With some consumers spending $80 to fill the tank, President Bush says he has a plan to help bring prices down. It includes temporarily halting the purchase of oil to fill the nation`s strategic petroleum reserve.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our strategic reserve is sufficiently large enough to guard against any major supply disruption over the next few months. So by deferring deposits until the fall, we`ll leave a little more oil on the market. Every little bit helps.

DHUE: The president`s plan also calls for easing environmental standards on fuel grades, calls on Congress to repeal about $2 billion in energy company tax incentives and calls for the increased use of alternative fuels like ethanol. Democrats blasted the president`s strategy, calling it too little too late.

SEN. CHARLES SCHUMER (D) NEW YORK: There are five words missing from the president`s speech today -- "get tough on big oil." The president refuses to do that.

SEN. HILLARY CLINTON (D) NEW YORK: We need more than a speech. We need more than a line in the state of the union. We need specific legislative recommendations that the White House will get behind and make sure we get enacted as soon as possible.

DHUE: Democrats are proposing a windfall profits tax on oil companies. The president takes a different approach, calling on the energy industry to invest in domestic production and alternative fuels. Advocates for energy efficiency say what`s missing in the political blame game is a serious effort to decrease energy consumption.

BILL PRINDLE, DEPUTY DIRECTOR, AMERICAN COUNCIL FOR AN ENERGY- EFFICIENT ECONOMY: Market conditions are such that we can`t promise people abundant supplies of cheap energy in the short term and maybe not in the long term. So under those conditions, what are our choices? We really have to focus on the demand side.

DHUE: With congressional elections in the fall, there aren`t too many politicians calling on consumers to use less fuel. But with gas prices now over $3 a gallon, there`s certainly many consumers that will start using less on their own. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.