Shell Cracker Deal Looking Worse and Worse

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Marc Levy reports that taxpayers will also be on the hook for refinery clean-up costs as part of the financial incentives package Tom Corbett’s offering Shell:

Lawmakers briefed on Gov. Tom Corbett’s package of financial incentives for a planned petrochemical refinery in western Pennsylvania said Friday that it could also include the cost to clean up pollution from the zinc smelter that has operated there for decades.

The revelation by two state senators is the latest about Corbett’s negotiations on the facility with Shell Oil Co., a subsidiary of Netherlands-based oil and gas giant Royal Dutch Shell PLC.

And Sharon Ward points out that many of the promised jobs will not actually be created by Shell, but hopefully other companies:

Ward wrote in an e-mail: “The question is who is creating the jobs in exchange for the tax credit? The public statements made by [Department of Community and Economic Development] Secretary [Alan] Walker and others suggest that the 15,000-20,000 jobs are not direct jobs promised by Shell, but jobs that might be developed sometime in the future by companies that will purchase the ethylene generated by the plant.

“So the question is simply: Is Shell creating 15,000 jobs? Or is Shell extracting a bonus for jobs that might be created sometime in the future by others?” …

Ward wrote that this deal: “…would seem to differ as well from prior economic development deals, which hold companies accountable for direct jobs. And finally, given the precedent, will new industrial plants come to the state hat in hand leading to an ever escalating bidding war among the states? Just askin’.”

This entry was posted in Budget.

One Response to Shell Cracker Deal Looking Worse and Worse

  1. Karel Minor says:

    15,000 jobs for $1.7 billion. That’s $113,000 per job. I think it’s something like a ten year credit so that’s $11,300 a year per job. Give my company that subsidy directly and I’ll hire a worker to match each and every “job credit”. And THAT money will stay right here in our community, not be shipped off to Holland or far flung shareholder accounts.