Monday, January 26, 2004

Commentary

Ends justify means of Boeing 7E7 deal
Our View: Secrecy aside, incentives will help boost economy

Two issues became wrapped up in one furor last week after the Evergreen Freedom Foundation denounced the deal under which Boeing decided to build its 7E7 airliner in Washington state.

Calling it "the worst form of corporate welfare I've ever seen," Bob Williams, president of the Evergreen Freedom Foundation, declared that the incentives actually given to Boeing are even richer than the $3.2 billion in tax breaks approved at the end of last year's legislative session.

Citing docume
nts he obtained through public records requests, Williams said he found other sweeteners worth an additional $45 million.

The two intertwined issues, then, are the level of concessions made to Boeing on behalf of the state and the openness with which it was done. Let's untangle them.

Gov. Gary Locke contends the details were available to anyone who asked to see the 76-page contract. Nevertheless, as part of the deal, the state agreed to withhold information about it as much as possible within the law. It's not reassuring to learn that the state entered a pact with the aerospace manufacturer to keep its own citizens and taxpayers in the dark. At the same time, businesses often have legitimate reasons for keeping some information out of competitors' hands.

Open records laws are there to prescribe just how far parties to a public agreement can go in the name of confidentiality.

The louder accusation -- that the state shouldn't have been so accommodating in trying to win a nationwide contest for the 7E7 project -- doesn't take a state agency or a court to answer.

Washington's unemployment numbers look a little less dismal than they did a few months ago. We no longer lead the nation, but we're not far from the top. At 6.8 percent statewide and 6.3 percent in Spokane County, joblessness is a serious concern.

The 7E7 deal means as many as 1,200 jobs at Boeing, but it also could mean jobs for various Boeing suppliers, such as the Triumph Composite plant at Airway Heights. And for all the non-aerospace businesses where Boeing's and Triumph's employees spend their earnings.

According to state Labor Analyst William Dillingham, about 7.1 percent of the jobs in Washington are in Spokane County, but only 5.6 percent of the wages and salaries. A state initiative that supports better-paying jobs in Spokane County helps this region.

What's been described as a rebound in the American economy over the past year has not been accompanied by job creation. Putting people to work requires extra initiatives, such as the deal by which Washington persuaded Boeing to build its new airliner in Everett.

If we get good jobs, a stronger tax base and an overall bump in the economy, we won't begrudge Boeing for getting a good deal too.

• "Our View" represents the editorial voice of The Spokesman-Review. It is written by members of the editorial board, who are listed on this page.


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