Absolutely, completely and uttlerly wrong.
You have assumed that the advice will be bad public policy (a position I find myself in almost complete agreement with) but good for company x. That's what the fear is here, isn't it? That public policy decisions are made with what's best for corporate Murica foremost in mind, with almost total disregard for what is truly in the public's interest.
You have implied that company x will tell the public officials what is good for company x and not the public. If that is correct then company x will, rightly, suffer massive PR attacks.
Part of my job is to write policy. In writing policies, I've found it very effective to have the worst offenders offer their advice on how the policy should be written. I ask very specific questions about their violations and how they would recommend the policy be changed to stop further violations or "rulebending".
Do you think that >anyone< would do that if the CEO were sitting in at every meeting. Do you think >I< would want this guys ideas on how to violate policy spread around so that everyone else knows how to do it?
Bias? No. Good management technique. Yes.
So...me wanting the branch responsible for public protection afforded the ability to get frank and candid advice from >everyone< (even the >bad< people) makes me pro-bizness.
Yeah...sure.
Think it through...