Governor Seeks New Legislation For New Economic Development
Program
The American Productivity and Competitiveness Act of North
Carolina
August 29,
2007
WILSON COUNTY NC NEWS -- North
Carolina Governor Mike Easley has announced he will seek new
legislation in the 2008 session of the General Assembly to
secure major manufacturing investments from existing industries in
disadvantaged parts of the state. The new program would
complement the already existing, One North Carolina Fund grant program and the
Job Development Investment Grant program.
Titled "The American Productivity and Competitiveness Act of
North Carolina," the Governor's proposal would have the state partner with
qualifying existing industrial companies that commit to invest
substantial amounts modernizing their facilities to ensure greater productivity
and global competitiveness in their operations. The program would operate in a
fashion similar to current incentive programs that require approval by the
Economic Investment Committee and award grants measured by a
portion of new taxes resulting from the investment and by training costs.
The Governor said, "As our economy has globalized, our largest
industries can now direct investments to areas of the country and the world
where they can achieve the lowest production costs. My plan will create a state
program to partner with local governments and secure commitments from major
anchor industries to modernize operations and enhance their presence in
North Carolina. The economy is changing rapidly. Those
companies that invest in technology and in a high-skilled workforce will
succeed. Those which do not will fail. North Carolina wants to partner in
success."
At least one North Carolina business has
already signaled that a grant under the proposed legislation
could secure its commitment to upgrade a major existing manufacturing plant in
North Carolina to state-of-the-art status.
Steven Akey, Vice President of Government Affairs for
Bridgestone Firestone North American Tire, LLC, which operates a large plant in
Wilson, said: "We have been briefed on Governor Easley's
proposed legislation, which is an innovative, on-target program. It would be a
major step forward in our ability to stay globally competitive in a changing
economy by supporting worker training and encouraging investments to enhance
productivity. If this were to become law, and we received a grant, we would be
prepared to move forward with substantial new investment in our Wilson facility
and retain employment at least at current levels in the years to come."
Commenting on the Governor's program, Manager
of the Wilson plant, Jim Pridgen said, "A grant from a program like this would
enable our Wilson facility to secure our position as a world-class operation
that can compete and win in the global economy."
Grants would be available to manufacturing facilities that
require assistance to modernize in the state and that employ at least 1,500
workers in high-paying jobs in Tier 1 distressed counties.
Companies receiving grants would be required to maintain
current levels of company jobs, pay wages that equal or exceed 140% of the
county average wage, and provide quality health insurance and benefits. They
would also be required to maintain clean environmental and workforce safety
records and not be delinquent on taxes owed.
A key feature of the new program would be a
requirement that local governments partner with the state when awarding
inducements for the company's commitment to invest. Current programs such as
the One North Carolina Fund also require local government participation.
Remarking upon partnership between government and private
enterprise, Governor Easley said: "Any effort to retain a major
economic engine in a community needs to be a fair partnership
between the state and local governments – one that appropriately balances
both the risks and the rewards of the expanded economic activity."
Likewise, Officials in Wilson County, where
Bridgestone Firestone has been considering future expansions,
agreed. "As it has in the past, our county stands ready to do its part and will
partner with the State," said Frank Emory, Chairman of the Wilson County
Commissioners. "It is vitally important that we work together to ensure that
Bridgestone Firestone remains an enduring presence here and enhances its
technology to meet the demands of globalization."
Senator A.B. Swindell, (Dem) of Nash County,
said, "I'm looking forward to working to build consensus in the General
Assembly for the Governor's plan. It's a creative model that can work for other
significant industries in North Carolina and guarantee that we're the most
competitive and innovative state in the country."
Praising Bridgestone and speaking in favor of the Governor's
plan, Representative Jean Farmer-Butterfield, (Dem) of Edgecombe
County, said, "Bridgestone Firestone provides high-paying jobs to many
of our citizens. The Governor's plan is exactly what is needed to keep
communities like Wilson strong."
Representative Joe Tolson (Dem) of Edgecombe County, said, "This
will guarantee that world-class companies invest in Eastern
North Carolina. We need to come together on this fair plan to ensure that we
help our long-time employers stay and grow here."
State grants under the program would be
measured against the income, franchise and sales tax revenues paid to the state
as a result of the company's commitment to maintain and modernize operations,
as well as the cost of training workers to operate new equipment and manage new
lines of production. Companies could also receive refunds for near-term sales
taxes on electricity and natural gas, which are scheduled to be phased out for
all manufacturers as a result of legislation recently signed
by the Governor.
Qualifying companies that fail to follow through on commitments
would see their benefits reduced or terminated, and companies
that shut down facilities could be required to repay any incentives received
under the program.
Published by:
Rob Cross
mailto:editor@357news.com
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