Rep. Tim Krieger (R-Delmont) today cited Ceratizit, USA Inc.’s recent announcement to lay off 69 additional employees, or two-thirds of its work force, and the relocation of its Latrobe production facilities, as yet another reason why the governor’s multi-million dollar, special interest discretionary funding should be eliminated from the 2010-11 state budget.

“This is the perfect example of what is wrong with Pennsylvania’s approach to job creation, where government picks winners and losers, based far too often on political rather than economic considerations,” said Krieger.   “Once again after the press conference and the cardboard check presentation are over, the promise of job creation has been completely forgotten.”  

Less than a year after being awarded $125,000 in Department of Community and Economic Development (DCED) grant funding—which was allocated by the Rendell administration—last week the metal working company announced the transfer of its production facilities and the associated jobs to its Warren, Michigan plant.  

“Since Ceratizit, USA has decided to relocate its production facilities and eliminate these local jobs, it should repay every penny of the grant money it has received from Pennsylvania taxpayers for reneging on its part of the bargain,” said Krieger.   “Perhaps more importantly, in light of the current $476 million and rising budget deficit, Pennsylvania needs to get out of the business of corporate welfare.”

According to the Tribune Review, two years ago, Ceratizit, USA was approved for $142,500 in state subsidies for its pledge to create 25 jobs by 2011 and to retain 130 existing positions. Of that dollar amount, the company received all but $17,500.   

Rep. Tim Krieger
57th District
Pennsylvania House of Representatives

(724) 834-6400

RepKrieger.com

Contact:  Ty McCauslin

(717) 772-9979