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If only Micron was a nuclear company
Submitted by Ken Dey on Mon, 02/25/2008 - 2:18pm.
Dangle a $2 billion uranium enrichment plant in from of their faces and Idaho legislators suddenly think incentives aren’t that bad.
The Idaho Falls Post Register had a story last week about a company called Areva. The company, which is controlled by the French government, has made Idaho one of five states that it might locate a new plant.
But here’s the kicker. The company will only keep Idaho on the list if Idaho lawmakers come up with an incentive package.
Company leaders say Idaho’s tax rates aren’t as competitive as the other states they’re looking at.
Now the very same Legislature that has balked at providing any meaningful funding to help give Idaho’s smaller developing tech companies a leg up, have wasted no time in jumping on the incentive bandwagon for this company.
According to the story, legislation has already been drafted that would cap the facility’s tax valuation at $400 million if the company invests $1 billion in Idaho during the next seven years.
Another bill is in the works that would give the company a sales tax exemption for production equipment. Sen. Brent Hill, R-Rexburg, who authored the legislation, is quick to point out that the incentives would be open to other companies as well.
“If anyone else wants to make a $1 billion investment, why should we discourage them?” he told the Post Register. “We’d love to have a few businesses make those type of investments.”
Both bills were introduced Monday in the House Revenue and Taxation Committee, which agreed to print both bills.
And what do we get for this type of break. The story says the company would bring in a whopping 200 jobs. If they chose Idaho, the plant would be built near Idaho Falls.
Any time there’s a company coming to Idaho, that’s a good thing, and this company probably qualifies as a tech company.
But I can’t help but be a little bewildered at why legislators are so quick to offer incentives to this company. I’m sure that being a company that services the nuclear industry helps.
If legislators jump to support this type of “tech” company, why can’t they support the smaller companies that together provide far more than 200 jobs?
I also find it interesting that the sudden support of this company shows how much Micron appears to have lost its luster with the Legislature.
No one in the Legislature from the Governor on down is giving any indication that they want to help Micron through its recent troubles. I’ve actually heard that Micron has asked for help, but legislators have balked.
Last time I checked, 9,000 jobs is still more significant than 200.
I think some lawmakers believe that Micron somehow betrayed the state by not building a new plant after receiving a similar tax break a few years back. But if they had even a rudimentary understanding of Micron’s business they would understand that much of Micron’s problems are beyond the company’s control. Yes, believe it or not, I’m defending Micron.
I used to think that the only way for Idaho legislators to finally wake up and realize what a mistake it was to not support technology would be for Micron to pack up and leave Idaho. But now I’m becoming more convinced that our Legislature wouldn’t even wake up long enough to tell Micron goodbye.
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Time to face facts
We need to look beyond HP and Micron and move on to find companies are ARE interested in locating here.
Micron is old news. It's fairly obvious at this point that they are not all that interested in Idaho anymore. I find it incredulous that they would ask the legislature for help. They have been helped to death already!
We need to find the next great company to locate here, and do what we need to do to make it happen. If it takes an incentive package, then so be it. We need to start working on replacing the higher income jobs that have been lost over the last decade. Maybe it's not Areva, but it's out there.
Bribery
I'm really sick of officials who cave in and give our money to anyone who claims they'll bring lots of jobs and whatever to our area.
If these officials think our area is so bad that they have to bribe companies to come here, we have a lot more problems they they realize.
Evil corporations?
Did you ever stop to think that HP and Micron employ thousands of people making good money? This is good for the valley. Let's get rid of Micron and HP and see what happens. The housing industry is flat so what's left? Attracting or retaining companies does benefit some fat cats but it also benefits the thousands of employees that work at those companies. You have to look at the big picture. Unless of course you just want to rely on Californians moving here and bringing money with them. Our kids can all work fast food because big business is evil and we want to do all we can to drive them out or keep them from coming. Meanwhile some other city or state will roll out the red carpet and benefit from all the jobs. Micron and HP provide more than they take.
The twilight of our economic system.
When companies outsource they become fat cats. Unions are vitually nonexistent in this state. Even though Idaho wages and salaries are low they outsource to foreign countries. Where they pay their employee slave wages.
In exhange for incentives what do they provide the local government, and the local worker who pays taxes in that community?
Global Economics is nice in theory but in reality it means America is on a service economic system. Can America exist as a service based economy?
Just a point
HP and Micron are outsourcing as fast as they can. We need to plan NOW and not be so dependent on two companies that are both in a highly volatile industry. They are on a downcycle, what are we supposed to do, sit around and hope they don't ship all their jobs overseas? There are other options!
Then many of the more lively posters on the IS site would...
never have been here?
The best incentives we can provide...
are a well educated workforce and a good infrastructure.
If Idaho wants to "run with the big dogs"...
we gotta stop "pissin like a puppy". The Areva deal is down to 3 states: Idaho, Virginia, and New Mexico. Yeah, we got to pay something to get in this game...duh, what's unique about that? With the selection comes downstream suppliers, recognition, and more opportunities.
Get real, you whiney wingnuts: life is progressive. Those with advantages, get more advantages...those with handicaps get more handicaps. If you want Idaho to end up as the 'Mississippi of the Rockies'... just join the Clan of the C.A.V.E. People (Citizens against virtually everything). See how far that takes you, your kids, and grandkids.
Uranium...uh HUH
That's retarded. Make it in FRANCE.
At last a voice of reason is
At last a voice of reason is heard from on these posts. Thank you WildBill and keep on speaking out.
As for Ken's view, a 180 degree turn from his previous blogs on economic development and high tech jobs, it is apparent he was co-opted by his boss. Apparently the only thing the Statesman editorial board knows about uranium enrichment is that it is somehow connected to people's emotions, and that alone is sufficient reason to oppose the most progressive piece of legislation of the whole 2008 session.
Some "reason"
How in the world does adding stuff that dosn't filter down to actual IDAHOANS with their given capabilities, and you WILL be IMPORTING foreigngeeks from foreigngodknowswhere to do work instead of giving good jobs to people that live here?
At least you can get training to be a prison guard or a cop here.
NEXT and I mean that most sincerely.
Giving jobs?
not exactly an intelligent approach. "...their given capabilities"?? Are you saying that Idahoans don't have the capabilities to learn the skills needed for high-wage jobs?
If you want high-wage jobs, that means high-skill jobs. Are you saying we should pay high wages for low skills? What we need are mechanisms to train people in those skills. (And those skills are going to be highly transferable, not just for nuclear or energy industry jobs. Might even work for new tech companies...)
If you did a little homework, that is EXACTLY what is underway over at ISU. A partnership to train technicians led by ISU, INL and Partners for Prosperity called the Energy Systems Technology & Education Center. (Also in process is a *national* center of excellence for energy workforce training with ISU as a partner.) Contact Jessica Sotelo at Partners for Prosperity. (You might be well-served to read up on P4P itself, http://www.p4peid.org/.)
If you really want to control your economic destiny, start a business (oops, you'll need training for that) or find a career there's a long-term shortage, like engineering techs (oops, again you'll need training...)
Look at what Ireland did versus Wales -
Oversimplifying a bit, but Wales decided to give low-wage jobs to their low-skill displaced workers (your strategy).
Ireland went upscale. They provided juicy incentives but only to firms that fit existing or projected Irish competencies & focused hard on workforce development and entrepreneurial development. Even focused university research funding in those targeted areas. (Tax cuts didn't hurt either.) This wasn't industrial policy, mind you, this strategy was bottom-up & driven by industry and citizens.
And it worked. Wales' strategy is now headed to the dustbin.
Wanna be Ireland? Or... Wales?
p.s. And, yes, we need to help our entrepreneurial sector. Idaho is #1 in startups per capita, but we're not too good at growing them (e.g., jobs generated by startups). That is critical, Ken, you know I agree. But it's not a zero-sum game. Why not invest in both?
No, I'm not.
This whole stupid front of a scheme has nothing to do with helping any Idahoan though.
Delorean bled the Irish dry and if they even knew how to handle it they'd be Idaho, wouldn't they?
Honestly!
Don't be Norton and holler about any crap that floats in.
DeLorean?
That was ages ago... and Ireland has STILL done much better.
A $1 Billion investment is
A $1 Billion investment is quite a risk even for a large business such as this one. For a small town such an investor is not only welcomed, but the town hall will do anything necessary to help this transaction. Imagine just how many new working places will be open in that area.
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Johanna Bartley, Key Account Manager in charge for the Exhibition Stand Contractors.
Why does it matter that you have this website?
They would not make DRAM,