Q&A talks with Larry McHugh, president of the Middlesex Chamber of Commerce, about the state’s economy and issues facing chambers of commerce.
Q: What is the most pressing issue facing chambers of commerce like yours? Are the concerns different for larger organizations like yours vs. smaller chambers?
A: The most pressing issue facing a chamber like ours is to make sure that Connecticut is a pro-active state in support of all business. Ours is a regional chamber, so our concerns are different than a local chamber, which is smaller and more retail-driven. We have a larger constituent base so we’re interested in supporting all phases of development in our region. We must get the word out that Middlesex County and Connecticut is open for business.
Q. From your close interaction with business, where do you see growth coming from in the next year for your member businesses?
A. We are seeing some small growth in manufacturing. Also, anything to do with healthcare is up and coming. The I-91 corridor continues to be the main street of Connecticut in terms of activity.
Q: What business sector do you think is going to provide the most surprises, either good or bad, in the coming year? How is your chamber working with that sector?
A: The manufacturing sector will provide us with some good surprises in the coming year. Also, Governor Malloy’s recognition that tourism is a big factor and his strong support show that this sector has the potential to bring some very positive surprises. In the long run, we need to promote the idea of businesses relocating to our region because of our highly educated workforce. With that, we have to continue the strong support of education and higher education. This is one area where we have a leg up, but we have to do a better job in working with those who want to enter the workforce immediately after high school as well.
Q: Does your chamber have a legislative agenda it is hoping to advance at the State Capitol? If so, what are some items on it?
A: Among the items on the Middlesex Chamber Legislative Agenda:
The Middlesex Chamber opposes any legislative proposals that would force employers to provide paid sick leave to employees. This type of mandate would put an additional burden on Connecticut’s employers at the worst possible time.
The chamber opposes any “captive audience” type proposals that would limit an employer’s ability to talk to employees about issues of political consequences.
The chamber wants the General Assembly to avoid passing unfunded mandates and examine those currently in place for possible elimination.
The chamber also doesn’t want the elimination of sales tax exemption for both prescription and over-the-counter pharmaceuticals, auto sales, manufacturing, research and development equipment, fuels, vending machine sales, fishing and marine equipment, prosthetic devices, grocery items and others critical to economic development.
The chamber recommends the monetization of up to $1 billion and payment of stranded research and development investment tax credits for companies investing in qualified equipment and machinery on or before Dec. 31, 2012, and subsequent state payments for exchanged credits of up to $200 million per year from 2013 to 2018. This will result in additional tax bases and revenues in the immediate future and the creation of up to 40,000 new jobs by 2020.
The chamber opposes the state DEP’s proposed stream flow regulations that would lead to potential moratoriums on construction and economic development, would significantly increase water-related business costs, would contribute to increased property taxes, would result in public water supply deficits, would impose frequent and lengthy water use restrictions on customers, and would divert resources away from needed infrastructure projects.
The chamber will support and promote legislation that aims to increase the supply of affordable housing for the state’s workforce. Decreases in the population of Connecticut residents age 20 to 35 is a direct result of unaffordable housing in our state. This exodus of workers will have dire long-term economic consequences and must be addressed.
The chamber opposes any rise in the hotel occupancy tax that would negatively affect Connecticut’s hotels, motels, and bed and breakfast establishments that are critical to tourism and economic development.
Q: Chambers for year have enjoyed a profitable relationship with health insurance companies. What does Obamacare do to chambers? Will there still be an insurance market for chambers of commerce?
A: Our state and federal elected people have to recognize the fact that we continue to employ thousands in the health insurance area. Those companies supply millions of dollars and many jobs in subcontracting areas, which are both vital to the state’s success. If health insurance companies are negatively impacted because of Obamacare, all of Connecticut will be negatively affected.
The Middlesex Chamber supports the requested two-year extension from the National Governor’s Association of the provisions of the ARRA allowing for interest-free loans to the states for Unemployment Compensation payments, extending the interest-free period from Dec. 31, 2010 to Dec. 31, 2012.
