Disclose incentives after the fact

Published 11:20 pm Tuesday, March 7, 2006

One of the problems with the high-stakes game of industrial recruitment is a lack of transparency where the public’s interest is at stake.

Some confidentiality is necessary, of course, as local and state governments and utility providers negotiate with prospective employers on incentives such as tax breaks, utility rates and infrastructure improvements. As a result, deals are often struck with no opportunity for public input.

If some confidentiality is necessary during the negotiating stage, however, officials should commit to full disclosure after the fact. A lawsuit pending before the Mississippi Supreme Court would force Entergy Mississippi to disclose the discounted rate it charges Nissan for electricity at the automaker’s Canton plant.

The Clarion-Ledger newspaper filed the suit, contending that other Entergy customers’ rates are affected by the Nissan deal and that the information should be public. Entergy wants Nissan’s rate to remain a secret. The fact that the Mississippi Public Service Commission had to approve the Entergy-Nissan contract strengthens the newspaper’s case that the rate is public information.

We hope the court errs on the side of consumers and requires disclosure of the rate information. Only when citizens have all the facts can they decide whether a deal the scope of Mississippi’s pursuit of Nissan was worth it.

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