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home : news : local news September 02, 2010


8/2/2007 11:35:00 AM
Barbour says Toyota won't hurt Nissan
By ANDREW UJIFUSA
Assistant Managing Editor

PHILADELPHIA - The new Toyota plant near Tupelo and its associated suppliers should not have a big impact on the Nissan plant in Canton, according to Gov. Haley R. Barbour.

The two automotive plants should be able to operate without coming into conflict because their labor markets do not overlap, said Barbour.

Barbour gave this analysis during a press conference at the Neshoba County Fair last Thursday, the same day that he announced that Toyota Auto Body has agreed to build a $180 million facility near the future Toyota plant. This supply facility is expected to create 260 jobs.

Barbour noted that the Nissan plant continues to draw most of its workforce from central Mississippi and the Interstate 55 corridor, while the Toyota plant will draw heavily on northern and eastern parts of the state.

"They're far enough apart," he said.

Barbour did say that the new Toyota plant would have one positive impact on Nissan: more competition.

With the Tupelo facility, more suppliers would be tempted to build their own facilities in Mississippi and fight for the business of the two automotive giants.

"Having more suppliers to sell to Nissan is an advantage to Nissan," he said.

Barbour touched on a variety of topics during his Thursday press conference, both regional and national.

Barbour said Flora, as one of the finalists for the $500 million National Bio and Agro-Defense research facility, enjoys a variety of advantages.

He said that in addition to providing a rural environment for the facility, Flora can draw upon a wide variety of state and regional resources, from local hospitals and veterinary facilities to universities like Jackson State and Tulane.

Flora is competing for the facility, which will conduct research into biological threats to national security such as anthrax and avian flu, as part of the Gulf States Coalition.

Barbour also noted that one of the leading managers of secure and sensitive facilities in the country, Batelle, has agreed to sign on and be a part of the coalition's package that is presented to the federal government.

The Department of Homeland Security will choose the location for the facility.

Barbour noted that Mississippi enjoys another advantage: the fact that U.S. Rep. Bennie Thompson (R-MS) is the chairman of the House Committee on Homeland Security, and U.S. Sen. Thad Cochran (R-MS) is the ranking member on the Senate Appropriations Committee.

He also said that he would utilize whatever friends and relationships he has in Washington, D.C. to help Mississippi's case for the project (Barbour previously served as a lobbyist in Washington, as well as chairman of the Republican National Committee).

Repeating a theme from his stump speech earlier in the day, Barbour said that he was determined to prevent fraud in economic development by making sure that private investors assumed the vast majority of the risk.

He said that he wanted to avoid another collapse like the Mississippi Beef Processors plant in Oakland by capping public money invested in any such project at 10 percent of the initial investment.

This would put the vast majority of the burden on private investors and create fewer opportunities for fraud and business failure.

"They have to have a whole lot more to lose than taxpayers," he said.

He cited the SeverCorr steel mill in Columbus as a prime example. Of an $885 million investment, Barbour said, Mississippi taxpayers are only responsible for about $35 million.

On recovery from Hurricane Katrina, Barbour said, "We've made some real progress, but we've still got a way to go."

From a high of 43,000 FEMA trailers housing families, he said, the number has been reduced to about 14,000 on the Gulf Coast.

"Affordable housing is still the biggest issue on the coast," he said.

Most of the infrastructure has been replaced, he said, except for pockets along the beach and in western areas of the Gulf Coast. Extension to the existing infrastructure is also underway.

Major commerce and industry is also coming back, he said, despite a labor shortage, although small business is coming back more slowly because of issues surrounding insurance, the other big issue on the coast according to Barbour.

"Anything that runs insurance off is hurting the economy," he said.

Both candidates for lieutenant governor, State Auditor Phil Bryant and former legislator Charlie Ross, drew praise from Barbour for their ideas and their track records.

But he stopped well short of endorsing either one of them.

"They're both good men. Both of them have very good records in their respective offices. Both of them would make good lieutenant governors," he said.

Bryant and Ross have both said that they support Barbour and would work closely with him if elected.

Barbour did note that he considered it important for at least one house in the state Legislature to cooperate with the governor on lawmaking issues and ideas.

Barbour said that any candidate for lieutenant governor saying had to be "independent" from the governor was using a "code word" for simply blocking the governor's initiatives.

As for his own campaign, Barbour said that the Neshoba County Fair was the start of some light campaigning leading up to the GOP primary election on Aug. 7.

"I do want to encourage people to vote in the Republican primary," he said, "even though I don't have a significant opponent."

He then plans to focus on his gubernatorial duties throughout August, and then step up his campaigning during September and October prior to the Nov. 6 general election.

"I think my job is to be governor. People expect me to be governor," he said.

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