Southern Co. is biggest spender in state; Coca-Cola doubled its spending
WASHINGTON — Three years ago, Congress passed tough rules aimed at lessening the ways lobbyists can influence politicians.
But one thing hasn’t slowed: The flow of money to lobbyists from companies and other organizations trying to influence legislation that could affect them.
At a time when the economy has most industries hurting, the business of lobbying is booming, and Georgia-based businesses such as Coca-Cola Co. and Southern Co. want to make sure their voices are heard.
Atlanta-based Coca-Cola and its affiliated companies, for instance, paid Washington lobbyists about $6.3 million in the first half of this year alone — double what they spent in the comparable period last year, according to public records.
The rise in spending on lobbyists by Coca-Cola and its affiliates coincided with a rise in legislation that could have affected the company, such as a proposed tax on soft drinks, new school nutrition guidelines and environmental legislation affecting water use.
Southern Co., the Atlanta energy giant, is the biggest spender on lobbying from Georgia. The parent of Georgia Power spent $7.4 million on Washington lobbyists in the first half of this year, according to public records, on everything from fighting carbon cap-and-trade legislation to promoting nuclear power programs and other issues. It spent a little more than that in the comparable period last year.
Overall this year, spending on lobbying activities is expected to reach $4 billion by some estimates. That’s more than $1 billion more than was spent in 2007, when Congress passed the Honest Leadership and Open Government Act.
The act prohibits lobbyists from giving gifts to members of Congress or traveling with senators, and requiring new public disclosures. It does nothing to limit how much money organizations can spend on lobbyists to meet with politicians or try to influence legislation.
“It’s a very lucrative business,” said Amy McKay, a Georgia State University assistant professor who researches lobbying and its effects.
Driving the rise in spending on lobbying is the slew of initiatives introduced by President Barack Obama and congressional Democrats over the past two years — health care and financial industry overhaul legislation, the school nutrition programs and cap-and-trade, to name a few.
Companies that have put money into lobbying have seen some success. The soft drink tax proposal and the cap-and-trade legislation haven’t materialized; Southern got federal financial guarantees for new nuclear reactors at its Plant Vogtle operation in Georgia; and a proposal that would have banned soft drinks from schools was supplanted with industry-designed guidelines.
Consumer advocates say the flow of money to Washington lobbyists can be worrisome.
“It’s certainly a warning sign,” said Steve Ellis of Taxpayers for Common Sense, a nonprofit government watchdog group. “You have to be concerned as a taxpayer that these numbers are kicking up and wonder why so many people are out there paying so much to talk to Congress.”
Those who spend so much on lobbying say it’s a necessary part of doing business.
“The reason you hire a lobbyist is because the government is doing something to you or for you every day,” said Dave Wenhold, president of the American League of Lobbyists. “And if you can’t be here yourself, you have to hire someone here to look out for your interests.”
Karyn Harrington, spokeswoman for Coca-Cola North America, said when there is proposed legislation that could affect the company, “we have a responsibility to our employees, share owners and other stakeholders to protect the jobs and investments in our business.”
Likewise, Southern Co. spokeswoman Valerie Hendrickson said her company’s lobbying spending could ultimately benefit consumers.
“Legislative and regulatory proposals that impact our capital expenditures may also impact our customers,” Hendrickson said. “Therefore, it is important that we are engaged in the legislative [and] regulatory process.”
Lobbying becomes a booming business (The Atlanta Journal-Constitution)
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