Rep. Don Rone (R – Portageville) gave several impassioned speeches, begging his colleagues to pass his House Bill 1 in this year’s first Extraordinary Session of the legislature.
He spoke from the heart of the need for jobs in the poorest section of the state, the Bootheel, where Median Household Income runs about 40% of St. Charles County income. [ https://www.census.gov/quickfacts/fact/table/MO/PST045216 ] Obviously told that there remained a chance to re-open the old Noranda Aluminum smelter and maybe even bring a new steel plant – hundreds of good paying jobs – to his area he got Governor Eric Greitens to drag the legislature back to Jefferson City. As demanded, they passed a bill with special incentives to lower electric rates to attract business not just to the Bootheel, but, to anywhere in Missouri.
Rep. Rone believed what he said. Governor SEAL knew better.
First, look at what has happened since the special session. The legislature quickly passed the bill in May: the governor didn’t sign it until June 14th. [ http://www.house.mo.gov/Bill.aspx?bill=HB1&year=2017&code=S1 ] Since he inked that new law, that emergency measure, there has been no press report of even a rumor of southeast Missouri getting a reopened smelter or a steel plant.
Second, while a state representative probably doesn’t have the resources to evaluate international industry trends, the state’s Department of Economic Development, which reports to the governor, does. DED ought to have known what the New York Times explained in today’s edition, namely that aluminum smelting isn’t coming back to the United States.
No, those jobs haven’t gone to China. They’ve gone to Iceland!
This year, tiny Iceland is on pace to make more aluminum than the United States. So are its fellow hydropower superpowers, Canada and Norway…
[ https://www.nytimes.com/2017/07/01/us/politics/american-companies-still-make-aluminum-in-iceland.html ]
Third, well, that new steel mill probably has a better chance of opening up in Brigadoon.
Look at the insider websites for the steel industry, such as www.steelbb.com: the only mention of a new steel mill in Missouri comes from the press releases sent out around that special session. Existing American steel mills struggle to sell product. While a few plants are getting upgrades or expansions, no one is talking about entirely new facilities. [ https://www.steel-technology.com/projects ] Yes, the Missouri Bootheel has hard working people and, now, super discounted electricity, but it is not close to high quality coal fields or iron ore or other basic steel ingredients, nor is it located near big steel users such as car plants. It is not where an Indian steel company or any fabricator is likely to build.
It’s not the despair, Laura, I can take the despair. It’s the hope.
Clockwise, 1986 http://www.goodreads.com/quotes/246147-it-s-not-the-despair-laura-i-can-take-the-despair
Governor SEAL sold false hope the legislature and an eager, perhaps desperate, state representative wanted to believe. Together they perpetrated a noble lie. Which is still a lie.
Submitted by Glenn Koenen, WCD Member