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Influencing Government: Food Lobbies and Lobbyists

Influencing Government: Food Lobbies and Lobbyists. Marion Nestle. What is Lobbying. Lobbying: “any legal attempt by individuals or groups to influence government policy or action”. Why it is done. Promote interests of special interest groups

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Influencing Government: Food Lobbies and Lobbyists

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  1. Influencing Government:Food Lobbies and Lobbyists Marion Nestle

  2. What is Lobbying • Lobbying: “any legal attempt by individuals or groups to influence government policy or action”

  3. Why it is done • Promote interests of special interest groups • Attempt to influence policies that will effect the group • Communicate to government officials about current legislation and interests of group

  4. How it is done Offer expertise on subject (why it has not been more restricted) Make social contacts Contribute to political campaigns Lawsuits and harassing critics

  5. History of loopholes • 1787- James Madison concerned over potential disruptive actions of “factions” • 1911- Congress makes lobbying legal; must register and state source of funds. Trouble enforcing, lobbying seen as unstoppable • Lobbyist spends 20% of time on activities, receives $5000+/ 6 mths, have contact with govt. officials If the person does not meet all of these criteria, then they are not considered lobbyists and do not have to register

  6. Tried limiting gifts that are allowed No recreational trips or gifts worth $100+/yr • 1.42 billion spent in 1998 • Estimated that 38 lobbyists spending 2.7 million/ congress person

  7. Government and agriculture • At the end of WWII, farmers see USDA as “their department”, have most of the control • In the 70’s farmers begin to lose control to public, large companies, and advocacy groups • House changes committee members, as well as duties

  8. Revolving door: people involved in government often do, have or will work for lobbying firms or private companies. Done throughout all branches (USDA, congress, FDA) • 1998- 128 former members of congress were working for private lobbying firms • 1971- USDA secretary and head of Ralston Purina trade places • 2001- Secretary of Agriculture appoints lobbyist from National Cattleman Beef Asso. as chief of staff

  9. WHY • Often private positions pay better than government positions, where they get training. • Is it possible for people to forget former employers when they join the government?

  10. Lawyer for FDA Now part of a think tank in DC Michael Taylor- he got around

  11. The money chain • Hard to distinguish how much money is spent because so much happens at social events • 1998- estimated 67 million by tobacco, 52 million elsewhere • Hard money vs. soft money

  12. Hard money • Given through Political Action Committees • PACs meant to collect and distribute money through voluntary campaign contributions. PACs that represent public interest, safety or consumer rights are the minority! • Federal Election Campaign Act: • Totals are governed by legislation • does not restrict total number of candidates that it can contribute to, or number of PACs an individual can donate to 1974- 608 PACs, 12.5 million 1982- 3400 PACs, 83 million 1990- 4700 PACs, 370 million 1998- 4700 PACs, .5 billion

  13. Money usually goes to the candidates who are likely to support the groups interests, and those of the people making the donations People argue over whether the contributions change peoples minds, or whether the PACs choose to support people with similar interests

  14. 95% of PAC money goes to incumbents, suggesting that the money is a reward for voting records. Research in the 1980’s showed that people who received funds from dairy PACs were twice as likely to vote for price supports. Legislators rewarded by the dairy industry for their voting record were 2.5 times as likely to continue to vote that way. This was seen in a more recent study done with sugar PACs; that those who voted for them got the largest donations, and those who received donations were likely to stay that way.

  15. Soft Money The Election Campaign Act was only for federal elections, so people get around it by making donations to state or national political funds that candidates might like. These donations have no cap, no restrictions, and do not have to be recorded.

  16. Happy Birthday Senator! 1996 Lobbying reform Law: Cannot accept a gift worth $51+ or more than $100 in one year Restricted the vacations that senators can accept lOOPS-holes: can take trips of it is • Sponsored by a political party • A fact finding mission • Conference invited to speak at

  17. 1989-1990: House members took over 4,000 trips sponsored (390 from agriculture), over $500,00 in gifts 1996-1997: 87 Senators. 356 House members, 2020 staff took over 8.6 million worth in trips. *Most agricultural companies make donations to the Republican party because they are more likely to support business.

  18. Banana example • Chiquita Banana • 1998- gave $176,000 to Dems and $360,000 to Reps in soft money through an insurance business • 1998, EU put limits on banana imports, to try and help former colonies with their bananas • US reps file suit with WTO, saying it “violated international trade agreement” • US puts tariffs on EU luxury goods, and WTO supports

  19. WHY • Government actions towards the banana industry were different than those towards other products • Reporters suggested it was an attempt to strengthen WTO power in disputes • Could have been trying to help recoup losses… BUT • When EU offered to drop, Chiquita refused, blamed Clinton admin, threatened bankruptcy, and sued EU for $525 million

  20. Sugar, Sugar • Weird relationship between industry and health. • Lower prices: good for health, bad for economy • Of 15,400 sugar cane and beer farmers 42% of government subsidies go to 1% of farmers

  21. Owners give to both parties, although more to democrats. • Sugarcane fields thought to block water to the Everglades, as well as using workers from Caribbean countries in conditions that have raised human rights concerns • Farmers resist attempts to be forced into improving conditions, or return land for Everglade restoration.

  22. Conclusions • Connections with government officials allow agricultural producers to affect the legislation that is pertinent to their product • “Job of food lobbyists is to see that government” • Does not hinder sales of product • Creates “supportive sales environment”

  23. This is done through the “revolving door” and contacts made within the field, as well as through financial contributions Despite the legislation that is put into place to prevent people in government from being bought, lobbying continues to be a powerful force in decision making

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