THE INFLUENCE GAME: Safety, trade interests clash

WASHINGTON -- An Obama administration proposal aimed at preventing air shipments of lithium batteries from causing fires in flight is drawing fierce opposition from some of the United States' top trading partners, who say it would disrupt international shipping and drive up the cost of countless products.

The European Union, China, Japan, South Korea and Israel are lobbying against requiring air shipments of lithium batteries and products containing them to meet hazardous cargo regulations, diplomatic and industry officials told The Associated Press.

At a minimum the proposal could cost hundreds of millions of dollars and disrupt the flow of products such as cellphones, laptops, medical devices, water meters and electric car batteries, among others, these governments say.

But the Transportation Department estimates its proposal would cost only $9 million a year. Pilot unions want the additional safety precautions, saying it's only a matter of time before the batteries cause a plane crash.

The fight over the regulations is an example of how lobbying often works - out of sight and taking advantage of relationships, institutional knowledge and politics to promote well-heeled financial interests. And it's become a test of the administration's resolve to place safety first.

Lithium batteries can short-circuit and catch fire. Government testing has shown lithium battery fires burn extremely hot and are exceptionally difficult to put out.

A United Parcel Service plane loaded with electronics crashed in Dubai in September. The two pilots, who were killed, reported a cargo compartment fire and smoke so thick they couldn't see their cockpit instruments. Investigators suspect lithium batteries either started the fire or worsened it.

"We take a back seat to no one when it comes to safety" has been Transportation Secretary Ray LaHood's mantra.

But Michael O. Moore, a professor of economics and international affairs at The George Washington University, said it's not always easy to balance safety needs and trade interests.

"Certainly any sensible administration would be careful when you are irritating that list of trading partners," Moore said.

The final say on the regulations rests with the White House Office of Management and Budget. Last month, its officials held separate meetings with Japanese and South Korean government officials and industry leaders, and their lobbyists, even though the official comment period had been closed for months.

The meetings were arranged by the Office of the U.S. Trade Representative, a Korean official told the AP, adding that the budget office's final review now will likely be delayed by weeks and perhaps months. The official asked that his name not be used because he wasn't authorized to speak publicly.

(source:washingtonpost.com)

Top PhRMA lobbyist starts new firm

PhRMA chief lobbyist Bryant Hall has left the pharmaceutical industry trade group to head Rubicon Strategies, a new health care lobbying shop owned by the Tiber Creek Group.

As PhRMA’s top lobbyist, Hall, was deeply involved in the health care reform debate and was one of the chief architects of the deal that the industry cut with the White House and Senate Democrats to pay at least $90 billion in drug discounts and other givebacks in exchange for avoiding unwanted policies like drug re-importation. Hall also oversaw PhRMA’s political program, which spent $25 million last year to protect its friends in Congress.

“This gave me the best opportunity to build a substantial practice with people that I know and respect,” Hall told POLITICO Tuesday.

Indeed, Hall, 43, will land in familiar company at Tiber Creek, which owns the lobbying shops Peck, Madigan, Jones and Stewart; Bay Bridge Strategies; the Ickes and Enright Group, and now, Rubicon Strategies. PMJ was one of PhRMA’s top-paid consultants last year, and Hall is close with partners Jonathon Jones and John Michael Gonzalez.

“As someone who managed a large consultant budget at PhRMA, very large, they were always regarded by PhRMA companies and PhRMA as a top consulting company,” Hall said of PMJ.

Hall, who’ll be president of Rubicon, said he’s close to signing five pharmaceutical clients and will expand his client list into other health care sectors. Rubicon will also service the clients of other Tiber Creek companies.

“We wanted to make sure that we were able to provide the best quality service to our existing clients and position ourselves to continue to grow in the health care space,” Jones said. “The goal was to … provide the kind of service that the best health care firms provide at a firm that does a lot more than health care.”

After record spending during last year’s health care reform battle, some health industry insiders say they have started trimming their lobbying budgets. Bringing Hall on to head Rubicon is a play by Tiber Creek to expand its imprint in a changing market.

“We didn’t want him to set up his own shop and compete with us,” said PMJ partner Peter Madigan. “What Rubicon does is it gives us another brand, it allows us to penetrate one of the most important and growing businesses here in Washington, D.C., which is health care.”

PMJ recently hired Andrew McKechnie, a former health policy adviser to Iowa Sen. Chuck Grassley, the ranking Republican on the Senate Finance Committee.

(source:politico.com)