November 09, 2024
Column

Business associations ignoring Maine’s promise

The recent editorial “Doom, Gloom and Taxes” (BDN, April 26) puts Maine’s economic challenges and opportunities in the right light. It also rightly described how Maine’s hurdles are made more difficult because prominent business lobbyists constantly brand our state as a bad place to do business. These negative opinions from powerful voices permeate policymaking at the State House, public morale throughout our state, and spread a negative impression to those thriving in the global economy.

Using concrete facts, the editorial pointed out the many ways our state succeeds businesswise, so it was especially disappointing, but not surprising, that the reaction from Maine’s two largest business associations, the Maine State Chamber of Commerce and the Maine chapter of the National Federation of Independent Businesses, was defensive, negative and without solutions, “Gloom or no gloom, new levies bad for business” (BDN, May 3).

Oddly, the first point in their OpEd response focused on the loss of Maine’s textile and shoe industry. It is surprising that their economic vision of Maine begins with industries that paid low wages and gave few if any benefits and that most would agree are victims of trade polices negotiated at the federal level such as the North American Free Trade Agreement. Does this mean NFIB and the Chamber are going to take a strong view against free-trade policies such as NAFTA?

NFIB and the Chamber also point to Maine’s paper industry and blame Maine leaders for not doing anything to help it. The fact is that Maine is producing more paper now than it ever has, and the Business Equipment Tax Reimbursement program is one of the reasons this industry is doing well, despite heavy foreign competition. This is another interesting point they make because they apparently aren’t aware of some exciting work being done in our state to transform some of our 20th century-based products and industries into cutting-edge 21st century ones, which will create new well-paying jobs.

A great success story is research and development at the University of Maine in connection with Maine businesses. In a relatively short period of time, UMaine research has developed composite materials now being used to reinforce military tents from blasts in Afghanistan. It is important to realize that the taxpayer-funded research used to develop composites is being reinvested into Maine businesses. For example, Hodgdon Yachts is planning to use a 16-acre parcel of land on the Penobscot River to build state-of-the art carbon-kevlar military-grade patrol boats. This site will create jobs, help our economy and breathe new life into Maine’s boat building industry. Meanwhile, another Maine company just received a $12.9 million Department of Defense grant to continue its work with the university to develop secure shipping containers made from composite materials.

Maine’s research and development recently paid off in a big way when the Department of Energy announced that it will fund a $30 million research grant to help develop its partnership with Red Shield in Old Town to develop and create ethanol fuel from forest-based biomass. This is Maine’s largest-ever research and development grant and adds to Maine’s energy independence portfolio.

Wood composites, boats and energy independence are not the only success stories. Businesses like the Cianbro construction company are using state incentives such as the Pine Tree Zone tax break to convert a former paper mill in Brewer to a manufacturing facility that will create prefabricated, self-supporting building structures. Pine Tree Zones tell businesses that they do not have to pay corporate income tax for the first five years of their operations and only half in the five years after that. The Brewer plant is projected to create 500 well-paying jobs. When talking about this success story, Peter Vigue of Cianbro proudly talks about how the Penobscot River, which long ago was used to move timber, will now once again be used to transport these new modular building structures.

Cianbro’s success clearly shows how our state is reinventing itself while drawing on ways of doing business that have served well in the past.

It’s too bad the Chamber and NFIB failed to mention that state leaders recently repealed a tax on business equipment purchases, reduced unemployment taxes for Maine businesses by close to $70 million over the next two years, and worked hard to keep health care accessible for 700 small businesses that use the DirigoChoice plan. It is also unfortunate that they failed to talk about the $1.5 billion in repairs to state roads and bridges that will be taking place over the next four years. Maine companies, engineers and laborers will do the work so that people, goods and services may continue to navigate Maine safely.

There is no question that our state is feeling the pain of a weakened national economy and high fuel prices,. We need to put in perspective that Maine is not alone in this problem. However, investing in residents, businesses and resources that will provide sustainable, well-paying jobs will separate Maine from other states. That’s why I’m bullish on Maine.

Sen. Joe Perry is the Senate chair of the Legislature’s Taxation Committee and represents Senate District 32, which includes Bangor and Hermon.


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