TUNICA — Arkansas Gov. Mike Beebe and economic development officials from Tennessee and Mississippi said Friday that secrecy is a key part of negotiating with corporate prospects, but said there must be transparency once the deals are finalized.
Speaking to a room of editors and publishers, the officials defended their states’ efforts to keep details of pending deals confidential to remain competitive with other states and countries.
Beebe said media would be more likely to understand or forgive such confidentiality “if they believe you’re not just using that as an excuse or a shield to keep them from knowing something that the people have a rightto know.”
He was speaking to the Tri-State Convention of the Arkansas, Tennessee and Mississippi press associations.
“Once the deal is done,” Beebe said, “if they feel confident they got all the detailsand can publish all the details and advise the whole world about the details, they are more likely ... not necessarily to be happy but understand the competitive nature of keeping some of these details private.”
The governor joined Tennessee Economic Development Commissioner Matt Kisber and Mississippi Development Authority Executive Director Gray Swoope for a panel discussion on their states’ business efforts.
They said they try to keep details of pending deals confidential but try to balance that with transparency about government efforts to lure new businesses and retain existing ones.
“When we talk about a project, that project does not belong to the state of Tennessee. It belongs to that company,” Kisber said. “I personally have taken the position that it’s not our place to share the news about a company. It’s the company’s news.”
The three officials also downplayed the role that incentives play in luring companies to states, saying the money offered is worthless if the state doesn’t have other factors, such as a trained work force.
“I’m a big believer that incentives will never make a bad deal good. They can make a good deal better,” Swoope said. “It still comes down to the overall operating environment and location.”
Beebe said he has more flexibility with a $50 million incentive fund that he controls. The Quick Action Closing Fund is often used for making infrastructure improvements to draw new businesses or assist others with expansion plans.
Lawmakers created the fund in 2007 after Beebe was elected governor, and it was replenished with an additional $50 million in 2009. Beebe, a Democrat seeking re-election, said he hopes the fund will continue but doesn’t know whether it can be replenished with the same amount every two years.
“It’s a great tool,” Beebe said. “I hope every governor will utilize it, not just me.”
Arkansas, Pages 12 on 06/26/2010