The Red Herring of the Day: Alcoa and the Chinese

“Something that distracts attention from the real issue.” That is the Webster's definition of a “red herring” and it is a favorite tactic of the folks who support a state takeover of Alcoa's privately-owned hydroelectric business along the Yadkin River.

Their latest ploy – suggesting that the State of North Carolina needs to take control of the Yadkin Hydroelectric Project before Alcoa sells it to the Chinese. It's such an unfounded, unsubstantiated rumor that it’s hardly worth addressing. But some folks are apparently giving thought to the question, and it is diverting attention from the issues that people really care about - like the fact that a state takeover will cost North Carolina taxpayers more than $500 million.

Or the fact that people across North Carolina are criticizing the idea of a State takeover. The Salisbury Post  (April 21) said a takeover will “make other companies think twice about investing in North Carolina,” and the High Point Enterprise (April 5) said “in no way is it proper for the state and federal government to essentially seize the property of this taxpaying business - or any private property.”

But back to the issue of the Chinese.

Is there any evidence to suggest that Alcoa will be bought by the Chinese ... or anyone else for that matter? No. Alcoa is a Fortune 100 company and is the largest aluminum maker in the world. And what if another company bought Alcoa? Could they prevent the State of North Carolina from withdrawing water from the Yadkin River? No, North Carolina decides who gets to withdraw water under its regulations.

There is absolutely nothing to this rumor. At best it's a simple scare tactic aimed at those who don't understand the issues. More likely, it’s a desperate diversion from the takeover crowd whose arguments are slipping in the halls of government in Raleigh because the takeover cost numbers they have bandied about simply don’t add up.