Saturday, August 25, 2012

PEU Governors Slime Red Snapper

Texas Governor Rick Perry and Florida Governor Rick Scott held a Fishing Derby "to promote competition between states as a means of strengthening economic development and job creation across the nation."  Rick Perry may feel stress from the possible closure ot the Vought Aircraft Industries plant in Dallas/Fort Worth.  Dallas Business Journal reported:

The downsizing or closure of Triumph Aerostructures-Vought Aircraft Division in far west Dallas would slice employment and economic activity associated with one of the region’s legacy industries. 
At risk are 2,400 jobs of Vought's roughly 3,000 Texas positions.

Flash back to February 2004, when Perry gave Carlyle Group affiliate Vought $35 million for a promised 3,000 additional jobs.  The company employed 3,300 in Texas at the time. Carlyle steered Boeing 787 Dreamliner fuselage assembly production to South Carolina, causing Vought's Texas job promise to evaporate in the Texas heat.

In 2009 I wrote my Texas Representative who responded 
Since Vought was awarded the TEF grant in 2004, the Legislature has made changes to the program to bring additional financial accountability and penalties for noncompliance. In 2006, the program began disbursing funds on new TEF awards as specific goals are met or upon the closing of a successful agreement which decreases the liability to the State.
The Legislature's changes did not prevent Perry from renegotiating Vought's TEF promise, immediately prior to Carlyle's monetization (sale) of Vought to Triumph.  Perry made changes more favorable to Vought with full knowledge the jobs weren't coming.

A Perry Presidential run didn't surface Rick's fish tale story of adding over 29,000 Vought jobs, when 35 real jobs were lost.  I can see how reporters couldn't fathom how the state gave $1 million per job lost.  It's disturbing.  Carlyle's co-founders enriched themselves at Texas taxpayer expense.

I hope the Red Snapper got to an aquarium in time to be de-toxified.  PEU poisons run deep.  (PEU is my pet name for private equity mavens and their government lackeys).

Update 3-10-13:  Governor Rick Scott will attend a ceremony for Carlyle affiliate TurboCombuster Technology.   Carlyle got nearly $5 million from Scott and local officials for plant expansion in Stuart, Florida. 

Update 12-7-22:  Carlyle announced it is offloading TurboCombuster dba Paradigm Precision to CDR and Greenbriar.  The deal is expected to close in early 2023.