Volvo's wakeup call
Published May 3, 2015
Editorial by Greenville Daily Reflector, May 2, 2015.
When Gov. Pat McCrory came to Greenville in October to announce the expansion of an existing pharmaceutical manufacturing plant — to generate nearly 500 new jobs — he called the news “a great sign that we are on the right track in building our state’s economy.” The antithesis of that statement can be applied to last week’s news that Volvo Cars has cut North Carolina from its shortlist of states it is considering for locating a $500 million manufacturing plant.
Edgecombe County’s Kingsboro industrial site was said to be in the running as a potential place for Volvo to build its new car factory. Reports indicate the Swedish carmaker has narrowed the choices to sites in South Carolina and Georgia. Those states are fierce competitors when it comes to attracting industry and it is not surprising one of them could be the home of a new Volvo plant and the initial 2,000 jobs generated.
What is surprising, and embarrassing, is how noncompetitive North Carolina has become in the arena of attracting large, new industry. With legislation for corporate incentives pending, the General Assembly appears too preoccupied with partisan social issues to agree on a competitive incentives formula.
In an interview with Triangle Business Journal, N.C. Department of Commerce Secretary John Skvarla indicated that uncertainty surrounding the state Jobs Development Investment Grant program is making it hard to attract big companies.
“We have reached our cap with JDIG, and JDIG is set to sunset at the end of this year,” Skvarla said. “I think it’s going to be difficult to give confidence to companies that want to grow and companies that want to move to North Carolina without certainty.”
The JDIG program was instrumental in convincing pharmaceutical manufacturer Patheon to expand its facilities in Greenville. To see that the winding down of that grant program is creating a drag on the state’s ability to compete for jobs is disheartening.
The downward slide of the state’s competitiveness with incentives can be traced to 2004, when state lawmakers approved a $242 million bundle of tax breaks and incentives to attract Dell computers. Forsyth County and Winston-Salem tossed in an additional $37 million in incentives, only to see the company pull up stakes five years later and lay off all 905 employees at the plant.
Tax incentives for industry have been fading from favor ever since the Dell debacle — ask anyone working in the film industry based in Wilmington.
North Carolina’s smooth roads from its higher gas tax will only help move jobs to other states if lawmakers here do not agree on a winning incentives formula.
And the sooner the better.
http://www.reflector.com/opinion/editorials/editorial-volvos-wake-call-2865359
May 3, 2015 at 11:22 am
Norm Kelly says:
Give away tax payer dollars? This is a good idea? Isn't there a more logical, more fair way to entice businesses to move here?
The obvious and logical and correct and RIGHT answer is YES. Not just 'yes' but a resounding, emphatic 'YES!'. Darn it!
And it's time, past time, more people get on board with the proper answer. I know that convincing libs and media allies that there's a logical and correct answer will be darn near impossible. But we must soldier on anyway. Because what's right is usually also RIGHT and leftists will object every time. Because leftists like playing games with OTHER PEOPLE's MONEY! And for some reason that no one can make sense of, leftists believe they are good investment bankers. Take the Dell deal as a good example if you must, but wouldn't the private sector have been a better decision maker on this deal? Or, what if NO INCENTIVES were required to get Dell and/or Volvo to expand/move here? What if the entire tax code of the state were made FAIR AND EQUITABLE for every business? What if state lawmakers didn't steal from one group to give to another group? What if state lawmakers didn't attempt to play Robin Hood? Cuz the one thing the Dell deal proves is that lawmakers are absolutely terrible, horrible, the worst investment bankers around! Need more proof? Take one long look at the current occupier community organizer unqualified leftist in Washington! Think Tesla. Think Solyndra. Think all the others, such as the bail-out of auto companies that violated existing law in order to make it happen! Poor investment banker, illegal activity, all! More leftist wastes of taxpayer dollars!
How about we get a plan in place where EVERYONE'S taxes are lowered, businesses are ALL taxed the same, everyone receives the same benefits, and no one is treated special. Because there are a multitude of truths that libs will never admit to but are still true. One major truth is that in order for government, which has NO MONEY of it's own, to GIVE money to one group, it must first STEAL that money from another group. Libs are beside themselves with anger right now because I refer to incentives as stealing from one group to give to another group. What else can it be called. By LAW, the force of government, money is taken from businesses already here, citizens already here, in order for some government agency (or agencies) to give to some other group. That's the plain English was of describing the truth of incentives. They are simply bribes. Which more often than not fail. Or cost more than they return. (i thought bribes were illegal. or is it just bribes in the private sector that are illegal? didn't communist core get adopted by a majority of states, like ours, only after central planners threw a bribe into the mix?) If we were fair to everyone, would that improve our economic standing? We have no way to know because libs in politics and lib allies in media won't let it happen. These 2 groups won't even let a proposal like this see the light of day! 'Fairness' does NOT exist in lib schemes.
