After receiving a combined $1.06 million in incentives from Concord and the state, Philip Morris has decided that it’s best to close the very plant that the incentives were used to create. A spokesman for the company unwittingly explained why incentives are a bad idea.
Incentives are given to a company to entice them to invest in an area. It is supposed that this investment ensures that jobs will be created and the industry will prosper. The Philip Morris spokesman “pointed out that it had made the investment as promised and had planned to stay. He blamed waning cigarette demand and other market forces for the decision to close the plant.” Incentives, clearly, cannot guarantee either.
Some may celebrate that at least the money will be given back. So far, only $750,000 will find its way back into the state-incentives money trough. The company promises that the rest will be given back. In the mean time, all the state and city have done is given a struggling business an interest-free loan.
