Celgard gets more than $52 million from the federal and local governments. by Brian Irving
(libertarian)
Wednesday, April 21, 2010
Celgard, LLC is going green, in more ways than one. The Charlotte-based company has received more than $52 million in taxpayer money from the federal and local governments.
The company, a wholly-owned subsidiary of Polypore International, Inc., builds components of lithium-ion batteries used in electric cars. The grants were intended to help the company expand and build a battery separator research and manufacturing facility in the Cabarrus County business park.
Cabarrus County commissioners just gave the company three four-year grants of 85 percent of the ad valorem taxes and an upfront payment of $350,000 to offset land prices.
"Free enterprise should succeed or fail based on it's own merits. Extending governmental privileges to certain companies at the expense of others reeks of corporate fascism," said Thomas Hill, Cabarrus LP chair.
"Government should protect free enterprise from force and fraud instead of distorting the market with corporate welfare schemes. Reducing regulations and property tax rates will encourage businesses to invest in the county."
Hill, the Libertarian candidate for U.S. Congress in District 8, was one of several people who spoke against the county grants at a public hearing.
"I'm for free markets," Hill told commissioners. "If there's a role for government to play in the economy it's to provide a level playing field." He called taxpayer funded grants to selected companies immoral and unethical.
Lloyd Morris, Cabarrus Campaign For Liberty coordinator, believes the tax incentives should be taken off the table. "Celgard has already decided to locate here," he said. "The county already has the assets and quality of life that attracts business investment."
Morris also worries about treating all county businesses equally. "We should not offer Celgard anything we are not willing to share with every other business in this county. We should all be equal before the law."
While both organizations support and applaud the efforts of pro business advocates in the county, the oppose using tax money and tax incentives to benefit certain corporations.
Celgard has already received a $49 million grant from the federal government and a $1.2 million grant from the city of Concord. The federal grant from the Department of Energy was awarded last year. The city grant came earlier this month.
The only commissioner to vote against the grant, Coy Privette, said that if it was profitable to build in the county, Celgard will build here regardless of incentives.
Celgard is expected to create more than 223 jobs that pay an average $28 an hour. Under the terms of the city grant, the company is supposed to make at least $57.1 million in taxable improvements to their plant. How or if that supposedly taxable money will be collected by local government is questionable, since the county grant gives Celgard a tax exemption.
Ironically, when President Obama visited the company's Charlotte facility last week, he touted how government stimulus money like that received by the company has put people to work. But the Charlotte Observer reported that Celgard has not spent any of the $49 million grant it received last year.
Did you like this article? If you did, Thumb It! 1
thumb so far
The views expressed
in this article are those of Brian Irving only and
do not represent the views of Nolan Chart, LLC or its affiliates.
Brian Irving is solely responsible for the contents
of this article and is not an employee or otherwise affiliated
with Nolan Chart, LLC in his/her role as a columnist.
oh yes, and if we can just eliminate the subsidy to firms that build electric car batteries, we will then have a completely pure and free market when it comes to energy use and transportation!!!
transportation is probably the most heavily subsidized industry in the world, from bridges, roads, airports, oil developement, auto firms, infrastructure, etc. singling out a battery builder than recieves a minute fraction of the total subsidy is like cutting a blade of grass and claiming you mowed the lawn.
in fact, singling out the "green" firm when the bulk of the subsidies go to "brown" industries might be refered to as a "neo con" argument rather than a "lib" argument. As we speak, energy resource companies are receiving billions from taxpayers to "search" for oil and gas, something that would be considered a cost of doing business in a truly free market.
eliminating socialism will not be done by "selecting" who recieves the subsidies, it can only be done by eliminating all of them.
What goes you the idea that the Cabarrus LP and CFL support any corporate welfare? They oppose all such largees. Since this was an article about a specific, local issue I just wrote about Celgard.
fair enough, what other examples of corporate welfare are they fighting at the moment? How about the corporate giveaway of public lands, are they doing anything at the moment about that? Get a fair price for public oil and battery producers wouldn't need a penny.
What about raising the gas tax to cover ALL costs of the auto transportation system, are they working on that? that would be a justified user fee and if it occurred there would be no need to subsidize bus and light rail.
How about taking the HUGE subsidies off coal? are they working on that? do that, and investors would go crazy with wind with no public money.
