Tag Archives: Pat Moulton

Lie down with dogs, get up with fleas — UPDATED with more fleas

Hey, you know about the Mylan controversy? Yeah, the company that bought the rights to the EpiPen and then jacked up the price by several gazillion percent? It now charges nearly $500 for a gizmo that probably cost them about three bucks to make.

Well, I’d managed to forget, or suppress, its Vermont connection until I was reminded by recent accounts in VTDigger and the Burlington Free Press. To wit, the Shumlin administration arranged a peculiar land swap in St. Albans to facilitate an expansion of Mylan’s operations here.

A land swap that costs the General Fund about a half million dollars a year.

(That’s about the price tag we “couldn’t afford” to spend on an Ethics Commission. Just sayin’.)

UPDATE: As Auditor Doug Hoffer points out, Mylan is also a beneficiary of the Vermont Employment Growth Initiative (VEGI) program to the tune of $5.7 million. More on this below.

I won’t rehash all the details here; you can check out VTDigger’s 2013 story, which lays it all out in excruciating detail.  I will note one thing before moving on: this turd blossom featured the guy I’m beginning to think of as the Joe Btfsplk of the Shumlin administration.

The idea… was largely the brainchild of Lawrence Miller, the Commerce Secretary.

Mmmyeah, EB-5, the endless Vermont Health Connect reboot, and now Mylan. Quite the resume you’re building, Mr. Miller.

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Logrolling In Our Time, Bespoke Contracts Edition

Here’s me doing something I never thought I’d do: recommending a story on the right-wing website Vermont Watchdog that I believe is an actual scoop of some importance.

Vermont Watchdog, for those just joining us, is the Montpelier outpost of a conservative journalistic enterprise that gets its money from the Usual Suspects, i.e. the Kochs et al. The site’s usual content is vastly overblown at best, completely off the mark at worst. But this time, VTW’s Bruce Parker got hold of something.

Business development groups in Vermont are demanding to know how a $100,000 appropriation for fostering business with Quebec was awarded exclusively to Lake Champlain Regional Chamber of Commerce, according to emails obtained by Vermont Watchdog.

The appropriation in question was included in S.138, an economic development bill that passed the Legislature this year. The bill’s language does not mention LCRCC; it simply says the $100,000 will go to the state Agency of Commerce and Community Development “to implement a targeted marketing and business expansion initiative for Quebec-based businesses…”

One could reasonably infer that once the bill was signed into law, ACCD would fashion a means of using the money for the intended purpose. But apparently there was a backdoor deal to simply hand the 100 G’s over to the LCRCC, whose Executive Director, Tom Torti, held high positions in the Dean and Douglas administrations, and was recently referred to by Seven Days’ Paul Heintz as one of “the state’s traditional power brokers,” whose counsel, sez Heintz, would be invaluable to potential candidates for governor.

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This was predictable, and should not be mistaken for good news

In a classic late-Friday newsdump, “sources” have slipped word to Bloomberg News that an impasse has been reached in IBM’s negotiations to sell its chip manufacturing arm to Globalfoundries Inc. “Globalfoundries… made an offer that was rejected by IBM as too low,” says Bloomberg, which called the failure of the talks “a setback for IBM Chief Executive Officer Ginni Rometty.”

She’s been in a race to meet 2015 earnings goals at all costs — most notably, by cutting the workforce and shedding any units that can’t generate profits. The strategery being, I guess, “if we keep shrinking and shrinking, we’ll grow.”

Like diving into a black hole and coming out the other side, eh?

I can believe Globalfoundries was lowballing IBM, since the word all along was that GF was not interested in IBM’s physical plants (including Essex Junction), just its engineers and intellectual property. If GF didn’t want the big costly plants, of course it would undervalue the package.

And besides, if GF wants the engineers and the brains, it sure doesn’t need to buy ’em from IBM. It can just go ahead and recruit, which is exactly what it’s been doing. Paul “The Huntsman” Heintz:

Globalfoundries… has announced in recent weeks that it has hired several top employees from IBM’s Essex Junction and East Fishkill, N.Y., plants. The company has also placed employment ads in papers serving those regions — including the Burlington Free Press.

Any IBMers who want to continue their careers must realize that GF is a better bet than IBM. It means moving, which isn’t for everyone; but GF should be able to entice quite a few people. After all, IBM has become a spectacularly awful place to work — with the constant threat of layoffs and the ever-tightening pressure to produce, produce, produce.

Now, I’m sure there’s some “intellectual property” under IBM’s control that GF would like to have. But naturally it wouldn’t offer anywhere near the amount of money IBM wants. It doesn’t need to buy the IBM assets; it just needs to pilfer the brainpower. Which it should be able to do easily, since its “competition” is the doom chamber of IBM employment.

And as usual, IBM is leaving state and local officials completely in the dark. Get a load of this convoluted statement from Commerce Secretary Pat Moulton about the Bloomberg report:

“I don’t know what that means — whether that’s good news or bad news, but I have not heard anything officially or unofficially,” she said. “Obviously having a company remain here and remain viable is important, so it was hard to know what a Globalfoundries deal — if there was one on the table — would have meant.”

I call that a cotton-candy statement: a teaspoon of substance whipped into a furious froth of nothing. It’s also a measure of the value IBM places on its relationships in Vermont: zero. IBM’s been keeping us completely in the dark for years.

If Globalfoundries was truly uninterested in IBM’s physical plant, a purchase agreement would have been bad news for Vermont. But the collapse of the deal shouldn’t be taken as a good sign. IBM will be even more desperate to spin off the unit. Or simply wind it down. And would any other potential purchaser be interested in an Essex plant that GF “had placed little or no value on… because [it is] too old”?

Two and a half years ago on Green Mountain Daily, I wrote that we should be prepared for IBM’s exit from Vermont within three years. And that it wouldn’t be Governor Shumlin’s fault, at all; it’s a result of IBM’s short-sighted, profit-chasing binge of outsourcing, downsizing, and stock repurchasing. IBM’s domestic workforce has shrunk dramatically in the past decade, and is continuing to do so. Essex is a rubber ducky in the IBM bathtub, the plug has been pulled, and we’re all spinning the drain.

My three-year prophecy is likely to miss, but my larger point remains: don’t expect IBM to stick around much longer. And don’t blame Governor Shumlin when it leaves.