Rush to aid tire makers followed by little action

In September, the legislature convened a special session for an urgent purpose: to help tire makers.

Lawmakers approved a measure that would split as much as $60 million between Goodyear Tire & Rubber Co. and Bridgestone Firestone. The move was necessary, supporters said, to protect almost 5,000 jobs in the state.

Nine months later, nothing has happened, and some critics question why there was such a rush to get the legislation approved in the first place.

"I'm not sure what the urgency was," said Jeanette Doran, senior staff attorney with the N.C. Institute for Constitutional Law. "I did not at the time understand the urgency, and I still don't."

The Raleigh-based group has fought several incentives awards in North Carolina and has sued to block the assistance earmarked for the tire manufacturers.

Lawmakers acted out of concern that two large employers in two poor counties -- Goodyear in Cumberland County, Bridgestone Firestone in Wilson County -- would leave. By approving tax breaks, they aimed to offset costs of upgrading factories with new technology so the companies would stay in North Carolina.

In two days during the special session, legislators boosted the potential value of the incentives by $20 million. They also included provisions that allowed the companies to cut their payrolls and still get assistance.

Slow to apply

Technically, the tire manufacturers must apply to receive the assistance. A committee at the N.C. Department of Commerce determines eligibility and makes the awards. It is scheduled to meet today on the matter, but action is not likely.

Bridgestone Firestone submitted its application about two weeks ago, said Jim Pridgen, who manages the Wilson plant where 2,179 people work. He expects to hear from the Commerce Department by next week on where the application stands.

"It's moving forward, and it sounds like it's getting very, very close," he said.

Dan MacDonald, a company spokesman, added: "Though the process may grind slowly, it doesn't necessarily mean that it's not an important and critical component of our global competitiveness."

Deborah Barnes, a spokeswoman for the Commerce Department, declined to comment on the process.

Ed Markey, a spokesman for Goodyear, did not return telephone calls seeking comment.

But Senate Majority Leader Tony Rand, a Fayetteville Democrat who helped shepherd the legislation, said Goodyear has also been working with the Commerce Department and is "making sure all the i's are dotted and the t's crossed."

Ports reduce fees

While the companies await assistance, one of their main suppliers already has gotten help from the state.

As lawmakers considered legislation for the manufacturers, PACC Lines, which ships rubber from Malaysia through Morehead City for use by both Goodyear and Bridgestone Firestone, pressured the N.C. State Ports Authority for a break on fees.

Without concessions, it threatened to start shipping through New Orleans instead.

So in March, ports officials cut fees by 20 percent.

"We did what we thought we had to do," said Glenn Carlson, vice president of business and economic development for the ports authority.

But the ports authority has to figure out a way to make up the lost revenue.

It's trying to persuade Bridgestone Firestone to direct some of its ships from Liberia, where it also gets rubber, to Morehead City.

Carlson said he thinks the state has a strong business case. It's a shorter distance, for instance, from Morehead City to Wilson than from other East Coast ports in Norfolk, Va., and Baltimore. That could reduce Bridgestone Firestone's transportation costs.

MacDonald said the company has no plans to change ports. But Carlson said he hopes that the incentives the legislature approved will prove an impetus.

"That would be kind of, 'Hey, North Carolina, we appreciate what you're doing. Here's some additional business we could route to you,' " he said.