(Raleigh, NC) – Thursday, August 30, Republican Gubernatorial candidate Justice Robert F. Orr announced his opposition to Governor Easley’s proposed “American Productivity and Competitiveness Act of North Carolina” and urged members of the General Assembly to repudiate the legislation.

 Justice Orr made the following comments:

 “The Governor’s proposal yesterday for the so-called “American Productivity and Competitiveness Act of North Carolina” legislation is simply an unacceptable extension of the selective corporate subsidies that our state and local governments have been engaging in over the past number of years. This legislative proposal is fundamentally flawed for several reasons. First, it is a governmental intrusion into the market place in an effort to subsidize businesses that are losing their competitiveness. Our free market system has historically relied on competition in the market place, hard work, innovative thinking and the investment of the private sector to determine the success or failure of particular industries – not government subsidies.”

 “While I am sympathetic with industries that are facing increased competitive pressures from newer technologies and overseas markets, it is not the government’s role to selectively pick and choose which businesses or industries to be propped up by governmental tax breaks and grants.”

 “Secondly, this proposal once again puts the government in the role of helping a select few businesses and leaving thousands of other N.C. businesses without any relief or assistance. To qualify for this proposal a business has to be a manufacturing facility, thus leaving out all other types of businesses that might need to be modernized to be more competitive. In addition, to qualify a business must employ at least 1500 employees. The vast majority of N.C. businesses would not qualify for this assistance. For example the Dicey Fabrics plant in Shelby in Cleveland County that I toured several weeks ago employs only 75 people. But that plant is facing a declining American furniture market and overseas competition and needs to modernize. This plan does nothing for Dicey Fabrics, a N.C. company with roots in our state going back to the Civil War.”

 “Thirdly, this proposed legislation only serves so-called Tier 1 counties thus leaving out a large portion of N.C. businesses that might qualify but aren’t located in counties determined to be within Tier 1. While it is important to look for ways to help our communities that are struggling it doesn’t mean that other companies located elsewhere, many perhaps for years, don’t also need to modernize and who would benefit from tax relief.”

 “The bottom line is this. If we are going to provide governmental assistance to businesses located in North Carolina then we should not just help a select few large businesses. We must instead help all our businesses particularly the small business owners in our state who are the backbone of our economy. These small and middle sized businesses pay their taxes, contribute in many ways to their communities, and provide jobs for our citizens. If the Goodyear’s and Michelin’s of the world are going to get subsidized to modernize their businesses in order to be more competitive, then this state owes it to all the other businesses in our state to provide them with comparable tax relief.”

 “I urge the General Assembly to repudiate this unfair and unwise special interest proposal if it is ultimately introduced. I also urge the General Assembly to sustain the veto of the Goodyear legislation.”

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