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Release Date: 03/07/06 00:00:00
For Immediate Release
Office of the Press Secretary
Contact: 202-282-8010
Washington, D.C.
March 7, 2006
Christine Gunderson: Thank you very much. Thank you all for joining us today. Very briefly, Secretary Gutierrez and Chairman Powell will both make some brief comments and then we’ll open that for questions. Also, just so you all know, Secretary Powell and Secretary Gutierrez are doing this from two separate locations. So when you guys ask your questions, please direct them to one or to the other. They’re not physically in the same room for this call. I think that’s about it. At this point we’ll turn it over to Secretary Carlos Gutierrez.
Carlos Gutierrez: Thank you and good afternoon to everyone and thank you for your interest in what we’re doing. As part of President Bush’s commitment to the recovery of the Gulf Coast in early May, Chairman Don Powell and I will be leading a delegation of business leaders to Louisiana and Mississippi.
We believe that you can find some of the best investment opportunity in the country in the Gulf Coast Region. And as you well know, many companies are seeking to invest in so-called emerging markets around the world. We probably have the most attractive emerging market in the world today here in the Gulf Coast.
So, the reconstruction needs of these communities run the gamut from real estate, financing, to retail and the Gulf Opportunity Zone Act provides additional incentives for investments and tax relief for businesses locating or expanding in Louisiana, Mississippi and Alabama.
Our delegation will be meeting with key federal state and local officials to discuss the overall business climate and identify investment opportunities and ask any questions that they want from the local business leaders.
We are now accepting applications from companies that already have a significant investment in the region or those with the capacity and the intent to make one, we want to make sure that delegation is made up of businesses who are thinking about investing in the region and who are serious about investing in the region.
And we expect to bring companies from the broad range of industry sectors. We’re organizing this trip as part of the administration’s on-going efforts to help the private sector identify outstanding opportunities from the Gulf Region.
On Monday, you may know, I signed the U.S.-Mexico Agreement on cement which will help ensure that Gulf Coast community devastated by last summer’s hurricane, have the necessary resources to rebuild.
So, if the business community, we believe, is going to lead the way to rebuilding the Gulf Coast economy and create new jobs and new opportunity to the private sect then it’s going to play a very important role in the rebuilding effort.
And this activity that we’re doing, this initiative is a very important part of not only getting investors to the Gulf Coast but also shining a spotlight on this area of the country as an excellent investment opportunity.
So, now, I’m going to turn over to my colleague, Chairman Don Powell and I’ll let him take it from here.
Donald Powell: Thank you Mr. Secretary. I would just have a couple of things and echoing some of the remarks that you said.
As you indicated this is a unique opportunity for American businesses to go to the Gulf Coast and look at ways that they can expand not only their workforce but their businesses and at the same time assist in a part of America that has been devastated by this terrible hurricane. The Gulf Coast has unique economic characteristics, the port is a very viable and important economic vehicle for most of America.
Tourism is very alive and well in the New Orleans area, and at the same time the petrochemical business is important to Americans as there are many opportunities there.
I would also say that agriculture will also be an area that there is opportunity. So we look forward to this event and look forward to the people who will be coming down there to expand their business operations and take advantage of this unique opportunity. Thank you.
Carlos Gutierrez: Thank you, Mr. Chairman. We’ll go ahead and open up for any questions that you may have.
Coordinator: Thank you. At this time, we are ready to begin the question and answer session. If you like to ask a question, please press star-1. Please unmute your phone and record your name at that time. Once again, if you’d like to ask a question, please press star-1. One moment for our first question. Our first question comes from Ned Randolph, of Baton Rouge Advocate.
Ned Randolph: Hi. Good morning. Is there any - do you have an idea of how large the delegation this will be and who - what sort of business as far as employment size will be welcome to attend?
Carlos Gutierrez: Well, a typical trade mission that we would do overseas, we typically do trade missions for markets overseas, would be anywhere from 10 to 20 companies. And at this point, we’re attracting businesses across all industries.
We’d like to see construction companies, we’d like to see petrochemical companies, we’d like to see real estate investment and financing, transportation, retail, obviously travel and tourism. So, it will be a broad base of businesses that are interested in the Gulf Coast.
We want to ensure that it is just a part of screening process that they have at least either $5 million invested in the Gulf Coast Region or have the capacity or the intent to invest at least $5 million or more. So, we would like have a certain scale of investment.
Aside from that, you know, that’s really the only criteria. They could be medium-sized, small companies, or very large companies.
Coordinator: Our next question comes from (Jane Berdeaux) of the Associated Press.
Jane Berdeaux: Just - do we have a date yet in May? You said early May, but is there…
Carlos Gutierrez: Yeah. Well, this will take place on May 4th and May 5th -- two days.
Coordinator: Our next questions comes from Brock Meeks of MSNBC.
Brock Meeks: Thanks, guys. You know, I’ve been down in Bay St. Louis and Waveland just right after the hurricane. And those folks there still only have one grocery store which is in the corner of a Wal-Mart that’s managed to open up and it doesn’t -- the mayors there say they haven’t gotten any kind of response from any other grocery stores, basically 4 or 5 chains down there. Are you guys doing anything to give incentive to the companies that go along with you to move back in there or is this simply kind of a fact-finding mission?
Carlos Gutierrez: Well, we are exposing the companies to the incentives that exist. We have a very attractive GO Zone Tax Credit that will be offered to companies that invest in the region.
Your point on retail stores is an excellent observation. That is one of many types of businesses that are needed in New Orleans.
So, there is a need for retail outlets and we’re hoping to attract retail companies on this mission so they can see locations, they can ask about benefits, the tax credits, they can inquire about availability of workforce.
So this is an opportunity to really go and get a first-hand view but to your point, retail store is just one of the many needs that this area has. Chairman Powell, I don’t know if you want to add something to that.
Donald Powell: Yeah. I was just in Waveland and Bay St. Louis and Gulfport and the Biloxi and Ocean Springs last Sunday. And in fact, when I was touring that area, I was thinking if I were a business person looking for opportunities to expand my customer base and to reward my shareholders there are, you know, unique opportunities in that area.
The people are coming back. There is lots of energy in the area…while there’s been a lot of devastation. There’s going to be economic opportunities and as the sector said the private sector will play a very important role in that.
I think the work force will be -- this is a win not only for the companies that will be investing there but the people that need jobs. The president has also created initiatives to train the work force, our office is coordinating with the business round table and some other people about enabling the workforce to be trained. So, I think there are a lot of opportunities along that Mississippi Gulf.
Coordinator: And once again, if you like to ask a question, please press star-1. Our next question comes from Mary Judice of Times-Picayune. You may ask your question.
Mary Judice: Also on the issue of work force, we know that housing is a very critical issue especially in the New Orleans area right now. How are you going to address this as you talk to potential employers about coming into this area?
Donald Powell: As you know, I’m sorry….
Carlos Gutierrez: No, go ahead, chairman.
Donald Powell: As you know, Mary, the president has laid a supplemental, and is asking for $4.2 billion and Louisiana has already been given approximately $6.2 billion and the governor today, in her testimony before the -- I believe -- the Senate Appropriation Committee, will be allocating $7-1/2 billion for housing.
So that money should begin to flow in the very near term to replenish the housing stock. Plus the private sector and part of - I would hope that some of the home builders will be invited and some home builders would come to the Gulf Coast and see unique opportunities to be part of the rebuilding. I know that one home builder has acquired 3,000 acres and is waiting to begin construction on some housing. So, part of the CDBG money will be allocated to housing.
Christine Gunderson: Our next question comes from Doug Palmer of Reuters. You may ask your question.
Doug Palmer: Hi. Yes, this is Doug with Reuters. I was just wondering, I mean is part of the reasons that you guys are taking this trip because you’ve been disappointed with the level of business, you know, investments coming back to the region that’s taken place so far?
Man: No.
Man: No.
Donald Powell: Go ahead, Mr. Senator.
Carlos Gutierrez: No please, Chairman Powell.
Donald Powell: I don’t think so at all. I think the business has and will be seeing unique opportunities as some businesses come back. I think this is the highlight and to expose the unique opportunities that the Gulf Coast presents.
The private sector has always and will continue to be a very important role in rebuilding any area that has been devastated such as the Gulf Coast.
So, this is an opportunity to highlight the president’s initiative as it relates to incentives and also the expose the uniqueness of the Gulf Coast.
Carlos Gutierrez: And just to add to that, we believe this is the right time to expose what great opportunities there are in these areas. So, the timing is right and there are opportunities for businesses of all types throughout the country who wants to do business in this area.
Christine Gunderson: Our next question comes from John Surratt of Mississippi Press.
John Surratt: Okay. Thank you very much. Actually, I have basically two questions.
First of all, you’ve mentioned that the two of you coming down on the 4th and the 5th, will that be - will there be one day each, one day in Louisiana, and one on the Coast or will that be spread out a little differently than that.
Carlos Gutierrez: We have it spread out today across four major cities, New Orleans, Baton Rogue, Houma, Louisiana and Biloxi. And we pick those four because we’d like to focus, want to make sure, that we have enough time in each.
We’ll most likely have to follow up with another mission later on in the year but at this point, we want to make sure that we focus on three or four, in this case four. And that we get it right. And we have enough time to do that over the two days.
Christine Gunderson: We got time for the two more questions. Our next question comes from Jane Berdeaux of the Associated Press.
Jane Berdeaux: Have any companies signed up at this point, or do we know of any companies that are definitely going to be joining us and any suggestions as to what they’re looking at, investing in or…
Carlos Gutierrez: We are making the announcement as we speak and today, we are opening up the process for applications. So we’re just getting started. This is actually the official announcement so you can help us get the word out.
Christine Gunderson: Thank you. And our final question comes from Ned Randolph of Baton Rouge Advocate.
Ned Randolph: Hi. Are there any safeguards you guys plan to do to protect businesses?
I mean, private sector thrives on competition however, you know, to help the Gulf Coast recovery. We also need to not necessarily subsidize local businesses, you know, and give them a crutch, but how do you sort of include them without bringing in larger players that overshadow them?
Carlos Gutierrez: I think, as you know, the governor has, and part of the CDBG money is some small business, loans that has been approved, I believe of LRA plus the SPA has been very active in the Gulf Coast area in assisting small business, medium-sized business with disaster type loans. And then the banking committee is engaged and we’ll be -- we’ll also be very active in assisting the small business.
Donald Powell: Yeah. I just add that we -- everyone gets the same tax credit package and our access to - so, yes, this will generate competition, but that eventually is what’s going to drive the growth of this area.
Christine Gunderson: I think that’s all we have time for today. Thank you all very much.
If you have any additional questions, feel free to give us a call and we’ll be happy to try and answer them. Thank you for your interest today.
Carlos Gutierrez: Thank you.
Donald Powell: Thank you.
Coordinator: That concludes today’s conference. You may disconnect at this time.
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This page was last reviewed/modified on 03/07/06 00:00:00.