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Published: Friday, May 15, 2009

Governor creates aerospace council to keep Boeing in state

Gregoire created the aerospace council to keep the production lines and related businesses in the state.

EVERETT -- The governor created an aerospace council Thursday through an executive order, charging its members with keeping the Boeing Co. and related firms in the state.

"Washington is the best place in the world to build airplanes, primarily due to the robust aerospace infrastructure we have in place and our highly skilled, productive work force," said Gov. Chris Gregoire. "But in today's challenging times and with our faltering economy, we need to do more to stay ahead."

Gregoire established the council to keep Washington competitive with other states, particularly in the South, that may be trying to woo Boeing. The Legislature considered but never passed a bill calling for the council. Likewise, lawmakers failed to give the OK for an aerospace institute, as outlined in legislation from Rep. Mike Sells, D-Everett.

The governor's executive order does not call for establishing an institute where the state's efforts at worker training and technology research could be coordinated. But Gregoire said Thursday that she'd have signed it if it had passed. She'll let the new council decide whether an institute is needed and, if so, how it should be created.

Several lawmakers have raised concerns that Boeing might be looking elsewhere to locate a second production line for its 787 Dreamliner. Last fall, Scott Carson, Boeing's president of commercial airplanes, told business leaders that "location is a choice" when outlining concerns the company has with Washington's business climate.

"We have no intention of losing the second line," Gregoire said Thursday. "This is not about losing Boeing. It is about whether the second line will be located in Washington state. I have no intention of losing it. We're fighters and we're going to fight for it."

A Deloite study, paid for by the state, echoed many of Boeing's points about how Washington can be more competitive with other states: lower business taxes and improved training and higher education programs. The Legislature took steps to reform unemployment insurance -- a top priority of Boeing. And the governor intends for the council to coordinate training and research efforts among the state's colleges and universities.

Boeing spokesman Bernard Choi said the company supported the governor's action.

"We've said all along that the aerospace industry is competitive," he said. "We have to take proactive steps to create a better environment not only for aerospace but for other industries as well."

Gregoire also created an aerospace subcabinet on Thursday to ensure that decisions made by the council are activated as effectively as possible. The council consists of lawmakers from both parties, representatives from the state's universities, Boeing and its labor unions.

Herald reporter Jerry Cornfield contributed to this report.

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