Jan 18, 2012|
Garland talks with Senator, Conrad Appel and President & CEO of Agility Transoceanic, Greg Rusovich. Import/export state tax credit provides the incentive for importers and exporters to use your port.
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Automatically Generated Transcript (may not be 100% accurate)
66889. Always seventy. Sears Garland and -- a good. Americans the thing to improve before. -- lose you can secretary -- Element Michael most of you know by you know we can. We always took some good -- to tell me about what's going and Satan backed. And show a couple of weeks ago and we Republican -- do's and took some of the information Stevens given -- him permission. A gun from Michael Erickson a million from dish out from the business council and -- for six -- It's three minutes nothing more than in the title it's. Of everything that good that was going on in state. It was very encouraging -- try that again today. -- even more his secretary economic development welcomed the show. I think gong going to be attendant who were just talking about technology lesson you know looked to me yet you've been on that I -- he got in there and let it happen your your assistants on the I pulled -- over -- -- just tell me when I when I got this job initially. It doesn't show you turn the microphone on you studied the night you talked knowledge. Directed me to hear and do FaceBook and dual blog and I mean all we're gonna hit a point where. We don't really need to see each other we just simply clouds and converts it. And and a well let me -- -- I want to go to all the good stuff did you won't sell me about a new additional things that come up politically. But there's there's topic -- and sticking in my -- I have talked about the Brooklyn and wetlands laws -- ad nauseam. Over the last forty years. And we go to Gary graves on the other day and alma millions and they said that's what everybody else shall always subject. Well Webb told them they usually -- to Wimbledon -- port here and with a forked. Are you can't afford to lose screwed on the -- and -- have a wetland going to -- -- blah blah blah blah. And when I talked to the port people say how -- doing financially noted -- and and and there's some semi good news but it doesn't sound like. Everything else is going. Now I've talked to a number of people support -- made some notes. And the and the one thing Dennis Duncan out there when -- ask about the tax credits that have been. I think approved and in you can told me if I'm wrong there but I'm looking at. Still the little little little. Some details for so global training you -- the economic development strategy news. And it's -- secretary Moret has agreed to subject funding immediately and take implementation major elements. Of propose initiative. And it's an initiative. That seems to be submarine to go and plunged incorrectly detect script. Pretty much like the film credits for canceling the digital presence gives a little credit here and we. Take off and Nicole have more money and jobs for the -- Marcia Anderson -- quest showed captain Kirk or how we don't. Have we implemented tax credit nobody -- though that the the tax credit from port development just. Yes there's well there's two tax credits there were created some time ago by the legislature one is and infrastructure tax credit. That we have implemented that'll basically allows a company making an investment. Out of port. To be able to use essentially get tax credits over the course of twenty years of fully refund them. -- that investment -- we've incorporate that into some of the offers we've made attract new investment to Louisiana. There's a second tax credit program that's an import export tax credit. And for that program. The legislature created a requirement that you need to use of that program had to show that it provided a net positive return. On investment to the state. And so we're we're ready to implement the program however that that provision has meant that we we essentially are unable to use it because the level tax credit that was created. Is such that now the analysis says it does not actually produce a positive our return investment. But nonetheless we're seeing tremendous. Growth import activity the -- New Orleans for example. We're seeing new interest in Louisiana with port related activity connected agricultural sector in the chemical industry to energy. It's a great time to be in trade in Louisiana right now. Well I've got to doctor Jane Richardson. I was shooting. And there's so you prepared economic analysis of the exporting ports state tax credit. And he's says so don't do what works big -- election sexual associated with the exporting importing. Initial core gore of five dollars and twenty cents. -- slick -- -- five dollars per Thailand. Should projected state tax collections offset. The cost of the touch for. Well certainly got to -- analysis suggests that if you could implement the tax credit we only provided it. For new cargoes to Louisiana that there would be slightly more revenue to the state. Than the revenue given up do the tax credit. But as we've talked to the ports and then the shippers and so forth they've indicated there's no practical way to implement their tax credit just for. New tax revenue you cargo is going to the we can't we actually had to be provided for all the existing cargoes as well. And so the challenge is not how much as the revenue per -- incinerated by attacks are the challenges. If you have to give the Castro for all the existing activities well we start off with. Tremendous loss a net loss of tax revenue to the -- -- -- actually incentivizing. Cargo is that are already coming to Louisiana today. In order to try to capture or summon an incremental revenue what the what the ports came back with incentives that day. With that analysis shows rather -- doctor Richardson's analysis shows in in our meetings is that the -- would need to believe is roughly triple. They're total volumes through Louisiana. In order for this to be revenue positive when you take into account the fact that the -- and it would have to be provided not just for the new. Cargoes but for the existing cargoes as well that that's what's made it difficult. To implement. If we believed or someone can provide analysis is suggesting we would have a and again I believe it was it was at least triple that might have more than tripled but that that the volume and at least triple. Did certainly -- the only implement the program based on doctor Richardson's analysis but his analysis. Shows that only works if you have a massive increase its and volumes. We're broke well we stood -- confused because it's intellectually -- the state skin can do -- we'll have to re not too. Arkansas -- -- and Arkansas Iowa Illinois Missouri new supreme. Tennessee all have very similar. Import export tax credit. And. Right the difference the difference in those states as they do not have this limitation the legislature put in our law on the Louisiana. That the tax credits have to provide a net positive return on investment in the state. So it's what religiously to the way they send up the building doesn't work usage and more of peninsula that's current. Period if they change that if we can we copy. What these other states that. Yeah I think as long as the state was legislatures wanna take a net loss on the program. From a fiscal perspective and now we can implement it immediately. I mean when do we sure over the -- launch with the film I mean that shorter all the time when we're film program does not have the same limitation as this program here correct. And so we've we've recruited together did something similar to the film into Sri then. Additionally it would go yeah absolutely and the question. Are set to decide that obviously the impact you know on on. You know funding for our education and health care and other state authorities know that the cut there would be -- that for the incremental volume. Will be picked up because we're from -- -- Richardson and a couple of other things that went through the silicon broad repelled so. -- test for some global trade went through that -- platoon. And they're talking about their slowed as shown and it's a study that's not put on the show up there ready to go wouldn't. -- 150000. Jobs. A picture real long irons. Affects other forms of commerce and one of the things is that caught my and it's -- tourism in Louisiana brings in about nine billion dollars in economic. Progress. Maritime commerce. Has been -- don't play is having a 32 billion dollar. Impact. And that we do the tax credits increased the -- coming through here. We get a big big hit job was end in financially -- -- I agree that a significant increase in volumes and cargo is the Louisiana would make a significant difference. In total economic activity in the state but candidly are focuses more on the creation of new permanent jobs looking at. For example when you look at trade looking -- value added manufacturing opportunities like the Folgers expansions currently underway. Where they're relocating operations from Missouri and Texas to the he's -- in this evaluated him from going to other countries in. Increasing imports and exports would then we are replaced or if you're simply increasing. The basically trade just trade. In the sort of going through the ports there are some incremental jobs there's a lot more jobs if he can actually. Increase the amount of foreign direct investment in Louisiana increase the amount of value added manufacturing. This related to trade that's coming through Louisiana. We've only put a lot of focus there mention the Folgers project PS enough project -- ever -- have. You can have mentioned that in the senator. Propelled. -- -- to hear it it just seems like. They've got to study that says we've got to William value added we've got a way of creating jobs here do not agree. No I don't agree with that -- the our focus has been on attracting foreign direct investment of the week when you look from the perspective international trading commerce. We focus a lot of activity had a lot of success attracting new foreign direct investment to Louisiana. By making Louisiana's business climate more attractive about providing the incentives and more Porsche illusions that are going to attract those companies to state. Those projects have generated a significant amount of increase tray we work. One of the top three or four exporting states in the country last year number one in the country imports and exports by the US chamber of commercial one of the top performing states. In the south when it comes of foreign direct investment when it comes to trade when it comes to value added. Manufacturing were having a tremendous amount success by just one of the reasons why. Louisiana's economy has so thoroughly outperformed almost every other southern -- like every other southern states attacks. Well one final question Newman took a break come back in -- -- good stuff. -- the industry it came to you and said look we can show you value added we contribute proved that exactly what you're looking for we've got in this plant. Would you be. Agreeable. Well we certainly share the goals that senator -- and others have have. Ford when it becomes when it comes international trade and commerce attracting foreign direct investment. The real only the challenge that we've had I think you know between the groups if you will as the legislature adopted legislation. There were not able to implement the cause of this return on investment requirement. All right can -- back we're talking with Stephen Moret as secretary of economic development or did some good news -- come back this is done. All right more conduct we're talking to Stephen Moret as secretary of economic development. Let's get to some of the good news I'm I'm looking -- in front of me everything from. 120000009. Million poor four point five million a lot of good things happening to America. For Carl we had we had a very good year and 2011 still difficult time for our country but Louisiana was able to recover. Signature going in fact and the last few months we became along with Texas who won the second state. In the south of fully regain our pre recession on employment totals. Never say in the country ever -- in the south is down about four and a half percent roughly total employment. Since the beginning of the national recession that's about December 2000 seven's are basically four years ago. We have come back she wrong in fact -- Louisiana's economy from a job growth perspective has grown about twice as fast. As a south in the US overall over the last twelve months through November latest. Available time that's really the result of a lot of things some of it is certainly our aggressive business development efforts homers policy reforms a legislature and the governor of adoptive like. Business tax cuts ethics reform and so forth summit is the result of the states dramatically improved business climate rankings and we moved up an average of twenty spots. And for years to our highest ever position -- all of those. A big part of that's actually been an international trade as well once I wanted to share the today than. Is -- we look toward the future. I think usually for relatively new reasons to be optimistic. About Louisiana's economic prospects. The first one is the -- was stable natural gas prices is having a profound impact from our state it's not just. The haynesville shale activity -- that's very exciting as the impact that's having. On the chemical industry in the Louisiana that uses natural gas is the key feed stock in -- an energy source. The chemical industry is about to experience a Renaissance in south Louisiana in particular this opening a new energy opportunities like. Gas to liquids projects Nassau announced eight to ten billion dollar project just a few months ago in southwest Louisiana almost three times the size of the new core project. And it's lowered the electricity rates for people across Louisiana that's the big deal. Second big opportunity. As China. And specifically that the cost escalation in China and wages and electricity in real estate and logistics. This such that many experts believe in the next few years -- -- abroad Friday manufacture products but with total cost them and in the United States is going to be almost comparable. The cost of manufacturing and brought it projects in China and that's gonna mean. A return of hundreds of thousands potentially millions of manufacturing jobs to the United States. We think the vast enjoy those are gonna come to the southeast United States and we intend for Louisiana to be one of the top states and trucks -- Roger you know me I'm always aware of molecular and James Carville appear your time. And news talk about what he thinks it could could be patient and the death of -- shooting is talking about. How form we're brew we're doing so much better and -- issue academically. But at the same time because of budget cutbacks in itself -- they're all kind of problems and I could've sworn he sent. That big -- on natural gas find that -- talking about. That there were no severance taxes -- that bet that the universe who's confused that I misunderstood and then present truth. Well the way that Louisiana's tax structures set up for. Severance taxes related. Horizontal drilling and fracking operations. Does result in perhaps less sever sexism might otherwise exist that was a pre existing situation. The point now is trying to emphasize was it's not so much extraction activity. They were gonna benefit from mean certainly there are many thousands of jobs there it's all the secondary effects. And all the other things I'm talking about that we're gonna benefit from a most -- natural gas prices. All those tax revenues are going to be new tax revenues to Louisiana. I heard yesterday for the first somewhere you we have Elliott stonecipher monitored. Quite frequently demographer Freeport. And -- has said that for the person in particular New Orleans are we got more people -- and people around and the state itself was turning around. But I just heard two days ago -- newspaper report for Simon a couple of years -- in here whatever. A more people leaving them then staying in the state. How do you convince businesses to come here if that's true. Well first of all the the people -- for a lot of reasons -- the most common reason name is to follow job opportunities. And that's why Louisiana had the early decades of consecutive years of more people moving out commute -- The last four years we've performed better economic plea from a job perspective -- -- perspective and so forth. Consequently we've had net population and migration every single year from us for years in Iraq. The report the you're talking about the came out last week a bully her release was reported last week was by United Van Lines and as one of the moving companies. Reporting that. -- I think this for 2011. They did a total of roughly 2800 news they're almost exactly 14100 in almost exactly fortunate now but it was a few more people. Moving out communion. The important in understand is that they typically move less than their typical response rather for far less than 5%. Of the total news into and out of Louisiana -- a couple of examples the year 2006. That was a huge and migration year for the Louisiana. The cause of Hurricane Katrina we have people coming back in that year that same United Van Lines report actually -- we have more people moving out of Louisiana the union's recent. The point of all that is that. The United Van Lines study is it's not really good indicator because they're only looking a very small percentage. Of the total news in the Louisiana our expectation based on census data based on economic and employment numbers and so forth is that we're gonna have another good year the migration this year. All right always say when I make a mistake on the year made a mistake not letting you know on one talk about the port. Spent a lot of time talking about it it's very complicated subject and it's not clear to have you come -- here. Talked to me about it when I'm giving you chance. At least think about your -- from homework so -- Paula Newton and lose money so. Apologize I actually wanted to emphasize. I think you're gonna have on shortly senator pell grant Gregory you're actually has some very good discussions about. International trade and and -- and we CNN and they're really three big goals that we agree on a fully with them. They were very excited about -- we're gonna pursue working the other one is the opportunity to expand imports and exports really tell exploit. And develop. And dominate trade with south and Central America that is that is the route. That Louisiana is particularly well positioned. To take advantage of there's going to be a lot of growth because of what's going on and there's markets secondly. We've we've we've agreed that we want to secure more trade related value added manufacturing projects things like the Folgers project Karen ones like. The -- issue SA project in southwest Louisiana and third we wanna attract more foreign to vast foreign direct investment in general projects like. Shun Tak and that's enough project for example. 500 jobs you know and and favorable parish just west of that -- I think if it if they were sitting here today unfortunately just scheduling -- it can't be on the same time. We agree completely on what those goals are and what those opportunities Saint Louis from the WWL -- similar -- Bob frost have a traffic -- cold 260 info. I'm Chris Miller WWL first news. You're in the think tank with Garland Robinette on WWL AM FM and dot com and C news talk and sports leader 504260187. The or 8668890. -- seventy. Junior our constitution -- browser is concerned. A lot of battles trying to get blown over wetlands here and everyone I've talked juices flow we could just convince arrests in the country. How important are reporting is Pope when I've talked to people friends of mine and the renewed. Important business with a -- the maritime when the -- from the bureau should businesses. They say that the amount among them on backing that goes into the port is not. Wanted should be so I have seen memorial and and percent per -- trying to get a handle on Bittermann standing in my part. And on the industry so out of whatever else goes senator Conrad repelled two or join me and Greg -- -- bitch -- -- Greg thank you for joining. When when I just spoke to sue and Lauren. Asking them a -- what I read about -- -- read it correctly. It's proposed tax credit very much like the Coleman's true very much like that. Did you ruined country and I had reported here by -- issue economist. They've basically said it would work. And Stephen said no what the legislature put together. Is not like the film in the room. -- -- -- -- Digital industry and -- wouldn't work under that that monetary model. I don't wanna -- sinister or immigrant. Well taught Garland that thought this was passed this import export tax credit was passed in 2000 on -- legislature. And it was used as a there's an effort to promote importers and exporters can use we'd have a ports. And we're losing calling for thirty years now I have -- back and you know in the industry personally not watched all -- leave our ports and go over to Texas go to Houston go to Miami. So this was a way -- war ought to step in and say you know for thirty years and a lack of appreciation and understanding and importance of global trade. Lack of appreciation for our best medical resource knows -- -- -- can get our jobs back. So will we get on its import export tax credit got to pay it back in 2000 none of the consulates leadership and then there was a segment in there -- senate had to be revenue neutral. So then going you don't vote -- a whole bunch of economists come -- and it depends on which economists can bring in decide whether it's revenue neutral not. The data we have shows that it is indeed revenue neutral that you could bring in an economist that would claim it is not revenue do provide small amount of money. It's a matter of fact we look at the worst case and say the small amount of money is 500000 dollar difference. So it took worst case are a 100000 dollar difference is not important enough to the state. Implement this import export tax credits -- not god we will obviously be industry. -- the industry but all the business community in the region regionally as serious concerns that. Future. Well I agree but Greg is saying I think. We we won't. Can't look at the possibility of altering language of the bill this year unfortunately it's not a fiscal session and therefore we can't. We could by next year but that's just an appeal launched. I guess we have the battle foot dueling economists and -- interpretation of economists and there's only one person blows the whistle on and that's secretary Moret. I would think is doing is considered job he believes what. What he's saying is correct and in accordance with the law. I'll meet. -- every bit and -- -- to who was a brand for governor last time. He said to us repeatedly that the film industry. Cautious more than an imprint from that in the -- legislation was so working they're benefiting much more than we. What what's the differences is the film industry bringing in a profit group of people do good economic models like Richardson -- the only issue. Do you see a model that says yeah we do this from we're gonna make money rather than losing a little bit. Well than this that this particular road cargo. And incentive. -- was -- is my understanding is the only incentive in the in all of the you know history Louisiana's -- it has a revenue neutral requirement on it. It's. That film film industry doesn't. Now and I think we spending and we've spent several hundreds of millions of dollars on the film industry I can't say because they Google -- sure. Now who is the only one. -- it was a compromise even though when the legislation was passed there was some reticence on the part of legislators to help ports quite frankly and there was. I -- well I can't tell you that was ten years ago and I don't know the answer to that due to problem getting it passed and not. Someone in this senate actually I might have been central area put in this compromise is an effort to get to bill passed in the past. Unfortunately no one that -- taught duty and be an issue with this sort of differential columnists -- A little bit of bright garage and bridges to vigils tomorrow and I've coached in a little too much on talk in the military who -- a comeback fell short with you Greg and what triggered -- -- But also more to mention that Stephen Moret I think I got a bright. So did render three. But what sinner has a question for you bleed black and -- come through but I don't. Owners will receive an exclusive I bleed black and gold teacher. For more information call 886 blood or visit the blood thinner dot -- donate blood with a blood thinner and show your true colors. We'll receive time because recover a little bit left and we're thinking and talking about the port. Frederick -- bitch prison and secure and salute to troops -- Oceanic and con brother told. Local senator. Greg our control open mid cents. -- Garland you were as schools very legitimate questions about why did it why the pop. Why tax credits for Portland international cradle encumbered by certain actions which film tax credits and digital media credits and others were knocked. This built exactly dark frustration are going which we just don't understand is an industry. All 160000. Jobs and we channel one in every eight -- from -- on commerce and global prayed. All we're asking for here is we need the state of the highest levels to say this is our priority a top priority upon as global trade Conrad can discuss his -- -- put into place. Through weekend international trade initiative a structure for this we're saying is -- through the tax credit. Through the structure that's being organized. And be able to vote of confidence. Yeah what's a cool dark cool kids to go as for the compete with the Panama Canal opportunity coming forward. Give us the opportunity the it was the touch credit -- vote of confidence. All of the business council's goal and in the region that change in virtual book on this and supportive all the the super regional committee it's supported the maritime industry. Give -- a vote of confidence. -- -- -- -- What approach do you got to help me for the shuttle brilliance soon politics but a James Karbala period yesterday and Jane I'm talking about how much federal issue is doing but it's can -- to disintegrate because. Of cutbacks and bunch more of Wall Street Journal today talking about -- all over the country first time ever considering all online gambling because state -- trends -- trouble now. Well the good businessmen on when I get to politicians are. They sent me boy the court is so important to New Orleans and saving New Orleans in -- ever. So you put together a proposal that says if we do this and help me here I gotta make it simple if we do this we make more money. And and what possible reason could they be against them. Well he's going to -- briefly very briefly would -- we're talking about. There's been in the last ten years box full of studies costing millions of dollars but dumb of the state Louisiana primarily. On the impact. International trade on Louisiana. International trade is defined not as ports instead find those ports plus value added manufacturing and secretary more eluded to. Plus white collar or corporate type jobs that benefit greatly -- urban centers like Baton Rouge and -- North Shore and so forth. -- those three elements unfortunately we tend to focus on ports in this tax credit we're talking about. If -- short term fix to help our six international ports. Can become competitive with their company you know the competition in other parts of the country that's important in a short term in the long term. We have lost focus on international trade as they as -- economic engine for the state of Louisiana. As a result most of those corporate jobs manufacturing jobs to became to places like Houston. In Miami and and so forth and so on. What we're gonna say is we still have to -- that we have the river we have the location we have the six main line railroads had no one else as. Because of the midwest United States. We have the reputation as being literally probably one of the world's largest may be the world's largest port complex depending on how you measure it. And yet as a state we expand the -- Zero -- can be a little facetious there we spend something but it's very very nominal. Promoting international trade in those integrated elements that I described to you. And that's the problem what would try to accomplish what we do their study was. Come up with in action plan not just studies the recent sympathizers others studies. He came up for specific steps that we can take yes it's gonna cost some money. But things that we can do specifically to get back in the game and create jobs for people. There are gonna work and digital media that don't have Ph.D. in physics and and a computer sciences so what they wanna work on -- riverfront wanna work in offices and wanna work in the manufacturing plant. That's the goal and that was what this. And we can't international trade initiative was all about. The three things that actually you know Washington Mutual maroon Stephen Moret said that they wanted to do sound very similar to what you -- saying you're doing them are wrong there. -- there those elements of our study. Of our action plan we totally agreed. And this is no not when -- but my only question is of the state of Louisiana but I represented. Why haven't we done as little as 3040 years well we've watched our entire industry's -- itself way to of the community. Mobiblu blue and one final question for my edification. Export import -- their program to Arkansas Iowa Illinois Missouri and Mississippi Tennessee. And then make a big profit off of that. This state make a big problem I think I think today and I'm sure there's some profit to just. But I mean to bring in drugs is -- battle it won't and that's where. And I'm missing there a connection here somewhere if from a politician moment -- elected. A morning bringing money homeowners have more in the budget. If you wanted to prove -- 678 states. Already do it. And we're doing something very similar to what they do proposing. Something very similar to what they wanted to do run. Absolutely the goal every ninety containers. And if you visualize the container truck on the road every ninety containers generates one job. So every additional -- of tiny containers coming through a port would generate an additional drop. Not any containers and that my chicken. You know there are ways to go out and significantly and substantially grow this business we have a great opportunity here to do so and gone we Conrad both extremely perplexed over the thirty years I'll watch it from my own industry dealerships we cargo lead jobs leave. In our industry. -- over towards your series there's such a lack of appreciation and understanding before global trade debt and our ports we got -- -- we've got to change that part organizational and let me emphasize also Greg did. And not only the ports. But also the manufacturing jobs distribution jobs that support industry jobs and so forth and so absolutely. -- doom and here if I can towards shore and loved to have -- -- later they burn Tara our. I still don't get it to using public money maker because. Always look at -- the players who were were teaching some work virtually everywhere but here. I'd love to get your background and try to understand this better just to me you don't make an incumbent since super -- ready evidence. That if we do this they'll bring in jobs and benefits the community you've been princes say. And and we're not doing -- I do some good but I love to have you back on and our show. It as soon to Morariu Greg Bruce good should I mean that's gonna turn into a deficit even if you listen I just reduce and retreated from a I hope that's a compliment but a -- --