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CONTACT SCBJ John Wolcott, Editor jwolcott@scbj.com Dave Clark, Assistant Editor dclark@scbj.com

Legislators disappointed in Boeing’s 787 decision

Oct. 28, 2009 statement from House Republican Caucus Chairman Rep. Dan Kristiansen, R-Snohomish.

It’s extremely disappointing that Boeing has chosen South Carolina over Washington, but not surprising at all. Boeing has been very critical of our state’s difficult regulatory atmosphere. At the end of the day, it has to be able to compete successfully on an international scale, especially against Airbus.

Instead of providing a level playing field, Washington has consistently put up barriers that make it difficult not only for Boeing to compete, but also for other employers throughout our state.

It’s been no secret that other states have been courting Boeing for years. Boeing has tried to make it work here. However, it has gotten to a point with unemployment insurance issues, regulatory burdens, business and occupation taxes, and recently, the governor being willing to consider tax increases, that Washington is no longer a place where Boeing can be competitive.

In South Carolina, it took only days for Boeing to get the permits it needs to move forward with the second 787 plant. In Washington, it would take years. That’s one of many examples in which our state has not been helpful and has stood in the way of the ability for Boeing to successfully compete here.

When Boeing decided several years ago to move its headquarters from Seattle to Chicago, many of my House Republican colleagues and I warned that unless the Legislature was willing to make reforms to improve the state’s business climate, we may see further departures. The governor and the majority party have been in denial about concerns of job providers and now our predictions are unfortunately coming true.

We must also remember this is not just about Boeing. Many other employers rely on Boeing and its workforce to support their companies. Hundreds of thousands of jobs in Washington are indirectly related to Boeing and are affected. I’ve been very critical not only about how our state has treated Boeing, but all employers in Washington.

Even when the Legislature made concessions to Boeing in 2003 to secure the Dreamliner in our state, I also said we should extend those tax relief benefits to all businesses. Unfortunately, very little has been done in the Legislature to make Washington attractive for business.

Oct. 28, 2009 statement from Rep. Norma Smith, 10th District; lead Republican on the House Community and Economic Development and Trade Committee:

I am very disappointed to hear about Boeing’s 787 decision ... (the) announcement is a vital reminder that Washington state simply does not have a business climate that is fair to its employers. Employers continually face uncompetitive and high costs from the state’s workers’ compensation, unemployment insurance, regulatory, and health insurance systems. These problems have not been addressed by the Legislature and were significant factors in Boeing’s recent decision.

These employer concerns have also contributed to Washington state losing the last five location decisions made by aerospace companies. This means thousands of jobs lost in our region. This also has far-reaching effects on other business sectors in our state and sends a negative message to employers who might be considering relocating here.

Our state must learn a hard lesson from Boeing. No more touting business magazine ratings and pretending like serious problems do not exist. We must take a critical look at the Boeing decision, in the broader context of other aerospace company decisions, and take an objective approach to improving our business climate.

We need decisive action this legislative session to reassert our commitment to all employers and their employees, and to ensure that Washington state can be a home for the best aerospace companies in the world.