Wednesday, December 10, 2008

Coincidence Who believes Sony?

Sony phasing out its Pennsylvania operations in Westmoreland County in the coming year or so. Is this a coincidence? The lease runs out in 2010 AND current economic conditions and a worldwide 'recession' have factored into the decision.

It's more believable the state and federal government tax-breaks and grants to Sony have run out over the course of its mere dozen year history in the area, it would be a gamble for the state of PA to give the same company more breaks to stay around because the state is asking for its own bailout

Rendell says state will get $900M in federal aid

http://www.pittsburghlive.com/x/pittsburghtrib/news/state/s_602263.html

via grassrootspa.com

http://grassrootspa.com/


and continuously wants to float new bond issue referendumbs to pay for this or that.

and is in a bit of a budget quagmire

Gov. Ed Rendell's and PA General Assembly's so-called freeze on budgetary expenditures...

2008-09 Report

http://www.grassrootspa.com/blogcore/pdf/RendellFreezeList.pdf


right, but still somehow and someway they are going to divvy up the monies for more tax-breaks and economic stimulus incentives?

Thanks to Grassrootspa for this gem

Rendell’s “Economic Development” Spending October and November 2008

http://grassrootspa.com/blogcore/pdf/Rendell%27s_Eco_Devo_Spending_(October-November_2008).pdf


Where are they getting the money for all these giveaways? More emergency borrowing and bond issue referendumbs, perhaps.

don't forget about the Laurel Mountain Park Ski (Area) complex. Seven Springs seeks a new lease on the state-owned property, of course, if the state forks over some $6.5 million for updating the facilities which haven't turned a profit for decades. Somehow and someway, there's more and more millions to companies and ski resorts and bed and breakfasts, etc. that can either afford to float their own boat, or if not, go bankrupt like the mom and pops stores of lore.

blog sounds like us and vice versa just don't believe...

December 10, 2008
Pennsylvania gets it wrong again!

...Curiously, Sony announced this week that it will be closing the plant, some 12 or so years after opening, and around the time the incentives are drying up.

Anyone see a pattern here? ...

http://idiocyhappens.blogspot.com/


the Post-Gazette article reports:

He said he is hoping that "a renewable energy company" might take up some of the space that might be vacated by Sony. He said it's possible a second firm might move into the building also. He wouldn't give any more details about the companies or about how many jobs they would bring...

http://www.postgazette.com/pg/08344/933908-100.stm


And who will any newcomers be, if there are any newcomers to the abandoned site?

Most likely another Fortune 500 company receiving money from the state for job training, job enhancement, you get it.

"A renewable energy company?" Everybody hurry and search Governor Ed Rendell, renewable energy, etc. see which are likely to get the grants, get the tax-exemptions, get the job training monies from the state, and so on.

Rendell Press release

http://www.reuters.com/article/pressRelease/idUS202146+20-Feb-2008+PRN20080220

Pennsylvania Gets $650 Million Renewable Energy Fund

http://redgreenandblue.org/2008/07/10/pennsylvania-gets-650-million-renewable-energy-fund/


We've covered what has historically happened with just such state and local programs to stimulate the local economies.

Wakeup:

http://dirtline.tripod.com/wakeup/index.html

One of many commentaries on unfair tax-break/exemption programs

http://dirtline.tripod.com/wakeup/id13.html


Government officials promise hundreds upon hundreds of new well-paying jobs which are subsidized by grants and low-interest or no-interest loans, and if companies locate in a designated Keystone Opportunity Zone, more all-in-the-family aide flows to the same company.

Meanwhile, government can't force a company to stay beyond the tax-breaks' expiration dates, so most if not all simply leave to seek a new deal elsewhere.

Isn't it a slap in the face that Sony has noted it has a base of operations out of our United States?

When the company leaves, workers receive unemployment insurance, then more retraining accessibility for jobs that pay about the same.

That is if some assurance is built-in to the next group that comes in to save the day.

More give-aways, more grants, more tax-freedom for some.

You get the idea. And more campaign donations or lobbying monies flowing. Maybe more cushy jobs when elected officials' are not re=elected, or they retire.

One need look no further than former Senator William Lincoln to see how things are done in the state of Pennsylvania...

Worse, when companies receive such tax breaks, which are not given to every other company like it, other companies and other businesses end up paying the share of the company receiving the tax-break. The government entities simply do not stop spending, and they don't eliminate programs that would free up money for the tax-break.

As we've asked before - when is the Whiskey Rebellion revolt going to happen again.

Net the Truth Online

Sony phasing out Westmoreland plant by 2010
Tuesday, December 09, 2008
By Tom Barnes and Ann Belser, Pittsburgh Post-Gazette

...Late this afternoon, Sony issued a news release in which it said television manufacturing portion of the plant will close by the end of February. The facility opened in 1990 to produce large, rear-projection televisions. It currently has about 650 employees who are primarily involved with flat-panel LCD televisions, repair service and logistics. Due to current economic conditions, the company, its remaining plants in Baja, Mexico, should be able to handle market demand for the foreseeable future. Repair and logistics operations will shut down in Westmoreland in March 2010...

...Sony's lease with the Pennsylvania Industrial Developmjent Authority expires in 2010 and the company has told the state it will fulfill its lease.

He said the state Labor and Industry Department can help the workers if they are laid off, including retraining programs and additional education. He said they are very talented workers and is hopeful they could find new jobs fairly quickly.

The decisison to phase out the plant "goes to the worldwide recession and the fact that TVs are being made in different ways than they used to be made...

http://www.postgazette.com/pg/08344/933908-100.stm


Related

Pennsylvania pols push for Sony tax relief.(Top of the Week)(Sony Corp.)((Santorum, Rick))
Article from: Broadcasting & Cable Article date: February 23, 2004 Author: McConnell, Bill More results for: pennsylvania sony tax breaks | Copyright informationCOPYRIGHT 2004 Reed Business Information. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)

Sony is squawking, and two U.S. senators are listening. The media giant says it will move thousands of jobs from its Pittsburgh factory to Mexico unless Congress zaps nearly $100 million in import duties on components for new plasma screens. Closing the assembly plant, which produces some of Sony's new HDTV products, would darken a rare bright spot in America's set-manufacturing sector.

To prevent jobs from fleeing their home state, Pennsylvania Senators Rick Santorum and Arlen Specter are pushing legislation that would eliminate import duties on electron guns for cathode ray tubes, LCD panel assemblies, and flat-panel screen assemblies. With the tariff suspended, "Sony ...

http://www.highbeam.com/doc/1G1-113757778.html


Enjoy!

Digital Greenhouse Initatives

http://www.expansionmanagement.com/cmd/articledetail/articleid/15691/default.asp


Interesting Fannie Mae and Sony?

Gov. Rendell Announces Program

http://www.banking.state.pa.us/banking/lib/banking/news_and_events/press_releases/2004/040414.pdf


March 2001 - Keystone Opportunity Zones Expand in Westmoreland County

Governor Tom Ridge announced on Tuesday, March 27, 2001 that Pennsylvania now offers more than 10,000 additional acres at 75 sites statewide as tax free zones. Pennsylvania originally boasted 12 Keystone Opportunity Zones, which encompassed more than 26,000 acres.

http://www.co.westmoreland.pa.us/westmoreland/cwp/view.asp?A=1432&Q=607659


Summation of the business incentives and taxes in Pennsylvania

http://www.co.westmoreland.pa.us/westmoreland/cwp/view.asp?A=1432&Q=607414

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