Salisbury Post editorial supports Alcoa agreement

The Salisbury Post published an editorial on Sunday supporting Alcoa's efforts to attract new jobs to the Yadkin region and end the debate over the relicensing of the Yadkin hydro project:

"Like many of the diverse stakeholders involved in this process, we believe working with Alcoa is a better option than continuing this standoff in hopes of recapturing the license and taking over the Yadkin dams.

"No, there aren’t any iron-clad guarantees. But a hard-fought settlement with Alcoa offers a clearer outcome than the turbulent, muddy waters that lie in the other direction."

Alcoa has committed to attracting new jobs and investment to Stanly County, including a $300 million plant from Clean Tech Silicon & Bar that will create 450 new jobs.  In addition, Alcoa and Clean Tech have made commitments that could generate an additional $1 million a year for Stanly County schools.

With Clean Tech's December 15 deadline quickly approaching, the Stanly County Commissioners must decide whether to embrace the new jobs that Clean Tech will bring or continue legal challenges that could last another decade or more. The Commissioners meet tonight at 7:00 pm in Albemarle.

Click here to read the entire Salisbury Post editorial. 

Alcoa and Jobs

The Salisbury Post published an editorial today supporting our efforts to reach an agreement with Stanly County and bring hundreds of high-paying jobs to Stanly County. We agree that it's time to work together to bring 450 Clean Tech jobs to Stanly County. The other option -- a protracted legal battle and the loss of the Clean Tech jobs -- won't benefit anyone.

Read the editorial below.

Salisbury Post Editorial
Wednesday, September 14

Alcoa and Jobs

Alcoa and Stanly County commissioners still stand on opposite sides of the river when it comes to Alcoa's hydroelectric relicensing efforts, but at least they've been talking to one another. We'll take that as an encouraging sign.

The latest volley in the public relations battle over the relicensing centers on jobs. Alcoa, which is seeking federal approval to continue operating its Yadkin River hydroelectric dams, says securing the license is necessary to recruit new businesses and replace the jobs lost when the Badin smelting operations closed. Standing in the way, however, is Alcoa's inability to get a water quality certificate, which the state has refused to issue, citing mistatements on Alcoa's application. Stanly has sided with the state, which opposes renewal of Alcoa's federal license in hopes of taking over the Yadkin dams and using cheap electricity as its own industrial recruitment tool.

Meanwhile, caught in the middle of this power struggle are Stanly County citizens, who like those elsewhere could desperately use new jobs to help lower a double-digit unemployment rate. Their hopes were raised a few months ago when Alcoa announced that Electronic Recyclers International would move into the site of Alcoa's former smelting plant in Badin, starting with a workforce of 20-30 employees that is expected to reach 200. Now, Alcoa says another company, Clean Tech Silicon and Bar LLC, could bring in several hundred jobs and $300 million in investment. But in return, it apparently wants Stanly to drop its opposition to the water quality certification and relicensing effort. Stanly Commissioner Tony Dennis contends Alcoa is holding the promised jobs "hostage" as a way to put pressure on the county. Which is probably true to the same extent the state is holding the water certification "hostage" to gain leverage against Alcoa.

In reality, both Alcoa and its relicensing opponents have played hard ball at times. But with good jobs on the table, the need to get past the war of words becomes more urgent. The takeover attempt has lost momentum as North Carolina copes with the economic downturn. At this point, it's hard to fathom state or county officials pursuing what would no doubt be a protracted and costly court battle against Alcoa. While the details of negotiations between Stanly and Alcoa haven't been divulged, the fact they've discussed a deal suggests possible movement in this standoff.

With takeover of the dams a distant possibility at best, better to drive a hard bargain with Alcoa and gain jobs and other tangible benefits now than to continue pursuing a costly legal battle that doesn't create employment for anyone other than lawyers and lobbyists.

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.

Salisbury Post: Takeover is anti-business

The Salisbury Post published an editorial today criticizing the State of North Carolina's efforts to take Alcoa's privately-owned hydro project.  The editorial notes that "Alcoa's operation of these dams was never made contingent on employment figures, and a state takeover won't resurrect the smelters or bring back those jobs. It will simply make other companies think twice about investing in North Carolina."

Salisbury Post: Takeover is anti-business

Supporters of a state takeover of Alcoa's Yadkin Hydroelectric Project argue the action is justified because of lost jobs at Badin Works, the need for better water control, potential state revenues to be gained from the sale of electricity, environmental issues and because the Yadkin River is a public resource whose benefits should flow primarily to the people of the North Carolina.

Let's look at some of these issues:

Jobs: If loss of jobs is justification for the state to take over a company, then Freightliner, Food Lion and other businesses better line up their legal defenses. It's unfortunate that the Alcoa jobs vanished, along with tens of thousands of textile, tobacco and furniture manufacturing jobs across the region. But Alcoa's operation of these dams was never made contingent on employment figures, and a state takeover won't resurrect the smelters or bring back those jobs. It will simply make other companies think twice about investing in North Carolina.

Water control: Lake levels at High Rock and downstream impoundments have been an issue in the past, particularly during drought, and will likely be so in the future. That's one of the reasons for the federal relicensing process — to address such concerns, and Alcoa's relicensing proposal gained the approval of 23 local, regional and state groups, including the N.C. Department of Environment and Natural Resources. The relicensing agreement includes stronger drought protection and improved water management. A state takeover won't stave off drought, sedimentation or farmland runoff, nor will it magically balance the competing needs of Yadkin River users.

Potential revenue: Takeover advocates argue the state is entitled to Alcoa's revenues because they are generated via a public resource. Whether profits are $44 million (as takeover advocates claim) or $8 million (as Alcoa says), the principle is the same. If a business' use of a public resource means the public is entitled to the profits, the state could take over many other businesses — including other small hydroelectric operations. In reality, every business benefits to some degree from public resources, whether it's a river, local water and sewage lines, interstate highways or municipal airports. But the public benefits in turn from the payment of corporate income and property taxes.

Environmental cleanup: Like water-level issues, this is an ongoing concern, especially in light of questions about PCB contamination of fish in Badin Lake. However, Alcoa has shown a willingness in the past to work with state and federal officials to address such problems. Under federal law, it has a permanent legal responsibility to remediate environmental problems. Again, if the state believes Alcoa is not fulfilling their legal obligation, that’s an issue worth contending, but it's not a justification for takeover. State ownership won't spontaneously solve any remaining environmental problems; it will simply shift more of the burden to the state and its taxpayers.

Supporters of this state takeover, including Rowan Reps. Lorene Coates and Fred Steen, may raise some legitimate issues, but they fall far short of justifying the hostile usurpation of a private business that has operated in the state for more than 90 years. Rather than resulting in a public trust to operate Alcoa's dams, the takeover talk is more likely to create mistrust of North Carolina's business climate and invite a costly court battle.