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The Honolulu Advertiser
Posted on: Sunday, December 30, 2007

Wal-Mart, a latecomer to lobbying, makes up for lost time

By Dibya Sarkar
Associated Press

WASHINGTON — Wal-Mart's message to America is "Save money. Live better." Its motto in Washington might best be summed up another way: Spend more. Lobby harder.

The world's largest retailer spent nearly $1.8 million in the first six months of 2007 and is on pace to break the nearly $2.5 million it spent for all of 2006.

A relative newcomer to lobbying, the company is making sure Capitol Hill knows it doesn't take a discount approach to getting its message out about everything from immigration to financial-services licensing.

Wal-Mart spent more than $4 million lobbying in the past 18 months compared with the $6.6 million it collectively spent in the prior seven years, according to federal lobbying reports.

Wal-Mart spokesman David Tovar would not comment on specific legislation or issues. He said the company's spending depends on the congressional agenda.

This year, that agenda included immigration legislation that failed and a minimum wage-hike bill that passed. The company has said higher wages will push up the cost of goods for customers.

For their part, Wal-Mart lobbyists pushed for tougher tactics against organized retail crime and for legislation promoting electronic health records and other technology aimed at reducing healthcare costs.

But, Wal-Mart, long criticized for having skimpy employee health-insurance benefits, also lobbied against legislation that would allow employees to form, join or help labor organizations. Its employees are not unionized.

Wal-Mart dropped a bid for a bank license earlier this year after it was opposed by banks, unions and other critics. It continues to push for the ability to offer other financial services, such as prepaid Visa debit cards for millions of low-income shoppers who don't have bank accounts. Other issues listed on the disclosure form included legislation on international trade matters, currency, taxes and banking.

Wal-Mart, which established a Washington shop about 10 years ago, spent just $140,000 in 1999. It spent about $1 million annually for the next several years, before increasing its lobbying representation and funds in 2005 amid increased criticism of labor practices and benefits.

"For a long time, Sam Walton really didn't think that Wal-Mart should be involved in politics," said Lee Drutman, a University of California at Berkeley doctoral student who is writing his dissertation on lobbying. "That was part of his actual belief so Wal-Mart was late to the game."

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