Full Transcript: Charlie Gibson Interviews GOP Vice Presidential Candidate Sarah Palin

GIBSON: All right. You got to the bridge to nowhere before I wanted to get to it. But OK, let's talk about it.

You have said continually, since he chose you as his vice-presidential nominee, that I said to Congress, 'Thanks, but no thanks. If we're going to build that bridge, we'll build it ourselves'.

PALIN: Right.

GIBSON: But it's now pretty clearly documented. You supported that bridge before you opposed it. You were wearing a t-shirt in the 2006 campaign, showed your support for the bridge to nowhere.

PALIN: I was wearing a t-shirt with the zip code of the community that was asking for that bridge. Not all the people in that community even were asking for a $400 million or $300 million bridge.

GIBSON: But you turned against it after Congress had basically pulled the plug on it; after it became apparent that the state was going to have to pay for it, not the Congress; and after it became a national embarrassment to the state of Alaska. So do you want to revise and extend your remarks on it?

PALIN: It has always been an embarrassment that abuse of the ear form -- earmark process has been accepted in Congress. And that's what John McCain has fought. And that's what I joined him in fighting. It's been an embarrassment, not just Alaska's projects. But McCain gives example after example after example. I mean, every state has their embarrassment.

GIBSON: But you were for it before you were against it. You were solidly for it for quite some period of time...

SARAH PALIN: I was...

CHARLES GIBSON: ... until Congress pulled the plug.

PALIN: I was for infrastructure being built in the state. And it's not inappropriate for a mayor or for a governor to request and to work with their Congress and their congressmen, their congresswomen, to plug into the federal budget along with every other state a share of the federal budget for infrastructure.

CHARLES GIBSON: Right.

PALIN: What I supported was the link between a community and its airport. And we have found that link now. And that's better ferry...

(CROSSTALK)

GIBSON: Which is the bridge.

PALIN: No.

GIBSON: Which is the link. The link was the bridge.

PALIN: It's better ferry service. I'm telling you where we are today.

GIBSON: But...

PALIN: Today we have found that solution. And it's a strong and reliable ferry service back and forth. They had had that ferry service before. Some thought it would be time for a bridge to be built.

And now obviously, Charlie, with the federal government saying, no, the rest of the nation does not want to fund that project, you have choice: You either read the writing on the wall and understand, okay, yes, that -- that project's going nowhere. And the state isn't willing to fund that project. So what good does it do to continue to support something that circumstances have so drastically changed? You call an audible (ph), and you deal in reality, and you move on.

GIBSON: But you didn't say no to congress, well build it ourselves until after they pulled the plug. Correct?

PALIN: No, because Congress still allowed those dollars to come into Alaska. They did.

GIBSON: Well, but...

PALIN: Transportation fund dollars still came into Alaska. It was our choice, Charlie, whether we were going to spend it on a bridge or not. And I said, thanks, but no thanks. We're not going to spend it on the bridge.

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