Should Motorola have to give the money back? (Silicon Glen plant closure)

[Duck_Duck_Goose]

I say not. It was “regional assistance money”, meant to help develop an industry. So, they failed. I don’t see why that means they have to give it back. I think Tony Blair is just blowin’ smoke to keep the voters happy, but I don’t think they’ll ever see the money.

When my city government here in Central Illinois gives tax breaks and other kinds of assistance to small businesses over on the east side in what they call the “business incubator”, AFAIK they don’t demand the money back if the guy’s biodegradable laundry soap business doesn’t work out. It’s just the breaks–the city took a chance that this guy’s idea might fly. If it does, and he turns out to be the new Amway, then the city eventually gets a nice big factory, creating jobs, adding to the tax base.

And Motorola is in deep trouble, anyway. They had to close the Harvard plant last January, laid off several thousand people. People aren’t buying as many cell phones as they used to. It doesn’t seem fair to ask them to cough up 24 million dollars. Kicking them while they’re down?

Link:

http://www.cnn.com/2001/WORLD/europe/04/25/Motorola/index.html

Motorola closure angers Blair Government

Motorola closure “a bitter blow”

April 25, 2001
Web posted at: 7:38 AM EDT (1138 GMT)
By Robin Oakley, CNN European Political Editor

LONDON, England (CNN) – The decision by U.S. mobile phone giant Motorola to close its plant at Bathgate in Scotland with the loss of 3,000 jobs has angered the British Government.

British Prime Minister Tony Blair had pleaded with company chiefs not to close the plant – the largest manufacturing unit in Scotland – so had Foreign Secretary Robin Cook, whose parliamentary constituency is nearby.

But high level political intervention has come to nothing.

Cook accused Motorola of creating a “human tragedy” and Blair described the company’s action as a “bitter blow” for the community. Ministers are insisting that Motorola must repay £17 million ($24.4 m) of State aid which the company has received.