Denise Provost says local businesses can spur economic growth if they're locally focused. ~Photo by Andrew Firestone

By Andrew Firestone

Bringing business closer to local communities may be a way to get out of the current economic slump, according to local officials and activists.

On Monday, March 28, state Rep. Denise Provost hosted a free screening of the documentary “The Economics of Happiness,” together with Professor Julie Matthaei of Wellesley College and Joe Grafton of Somerville Local First.

The film presented the growing power of multinational corporations in causing job losses and their role in the recent economic crisis. “The film makes connections between things that are going on in our world that we don’t necessarily see as being connected to our daily lives,” Provost said, adding the importance of promoting local business.

The next day, Provost heard the testimony of Ron O’Hanley and Michael El-Hillow, executives of Fidelity Investments and Evergreen Solar respectively. Together, the two corporations have pulled thousands of jobs out of Massachusetts, despite receiving millions of dollars worth of tax breaks and direct grants from the state.

Evergreen Solar in particular received $21 million from the state to build their plant, which manufactures solar panels. The plant is now owned totally by Evergreen Solar, who may sell it to whomever they wish after relocating to Chi

“Business used to be more tied to their communities, and this is not so much the case anymore,” said Provost. “You have big corporations that are located worldwide, and they don’t have any particular loyalty to communities and they’re happy to pit communities or countries or states against each other.”

Provost relayed a grim correspondence. When asked why the relocation occurred, El-Hillow spoke candidly. The cost of producing a single unit was $400, which were then sold for $800. The price of the panels used in the unit was around $25 for a U.S. manufactured one, and $15 for a Chinese manufactured one.

However, when U.S. officials discovered that the Chinese government was illegally subsidizing the solar panel industry, they imposed a $200 surcharge to each panel, moving the price up to $215. After receiving an offer for a five-year loan for two thirds the cost of building the factory, with no principle or interest, Solar Evergreen decided to relocate

“It is economic warfare,” said Provost. “It’s certainly true of China.”

El-Hillow also said that it wasn’t just the monetary incentives, but also the business climate. “For instance,” Provost said, “their engineers make a third of what U.S. engineers make, and are a lto of them. It’s not just the cost, it’s the avilibility of the intellect.”

Provost said that she plans to participate in the debate surrounding a bill submitted in part by fellow Somerville Rep. Carl Sciortino to ensure the return of tax breaks for corporations who do not keep up their end of the bargain, called “clawbacks.” Debate for the bill begins Tuesday, April 5 and a hearing is scheduled for Thursday, April 7.

“I think it’s useful for people to understand why we’re losing jobs and where their energies should be focused,” Provost said, “if they’re angry where their anger should be focused, if they want to take political action because clearly the collapse of Evergreen Solar in Massachusetts… doesn’t have to do with greedy public sector unions, or in fact, any unions at all, or with an unfriendly business climate in Massachusetts.”