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March 09, 2008

Democrats argue for corruption and against insourceing

Recently, Speaker Pelosi spoke out against Senator McCain

Nancy Pelosi, the Democratic House speaker, said Boeing had been on course to supply the US Air Force with tankers until Mr McCain "intervened".

"My understanding is that it was on course for Boeing before. I mean, the thought was that it would be a domestic supplier for it," Ms Pelosi told reporters.

"Senator McCain intervened, and now we have a situation where the contract may be - this work may be outsourced."

And the man who lead the Democrats to their successful takeover of Congress in 2006 echoed these sentiments

Rep. Rahm Emanuel, D-Ill., one of the top Democratic leaders in the House, also blamed McCain.

"The person that stopped (the tanker) from going to a U.S. company was Senator McCain," said Emanuel, "and now we are going to send major high-paying jobs overseas."

The problem with these statements is twofold: First, an American Company (along with Europe's Airbus) won the contract and 60% of the work, including the construction of the aircraft, will take place in America.

Second: Senator McCain uncovered government corruption that sent two people, including Boeing CFO Mike Sears, to jail.

Is that the kind of "intervening" of which Democrats are being critical? McCain did not intervene on behalf of the Northrup/Airbus bid, he just intervened when it became clear there was a corruption in the Boeing bid. And back in 2004, there was hardly a mention of McCain in connection with the scandal

Boeing fired Sears, one of the Chicago-based company's top four executives, in November 2003 for discussing potential employment with Darleen Druyun, 56, a top Air Force procurement official, while she was negotiating a proposed tanker contract between Boeing and the Air Force.

Druyun, 56, then left the Air Force to work for Boeing, which fired her along with Sears after an internal investigation. In October, she received nine months in prison for the illegal job talks.

But now Democrats want to highlight McCains role and mischaracterize it.

Meanwhile, Democrats should ask the residents of Alabama if they are upset about "outsourcing" the tanker

- In this Gulf Coast city, everyone's talking about airplanes.

In churches and in grocery stores, Mobilians -- as they're known -- say they are looking forward to 2011, the earliest that new military tankers could begin flying from here.

Alabama is perhaps one of the biggest winners after the Air Force awarded a tanker contract worth $35 billion to a team of Northrop Grumman and the European Aeronautic Defence and Space Co., the parent company of Airbus.

The site where Northrop Grumman and EADS plan to set up shop is a breezy field near Mobile Bay, on the Gulf of Mexico. In addition to KC-45A assembly, EADS also has promised to build commercial A330 freighters here -- making Mobile a player in the commercial jet market.

Despite political outrage over the Pentagon's decision, Mobile is moving ahead with its aerospace plans. Thousands of workers need to be trained, roads need to be paved, rail lines need to be extended and buildings need to be built....

Mobile Mayor Sam Jones said Alabama is benefiting from "in-sourcing," the decision of many foreign companies -- including ThyssenKrupp, Degussa GmbH and Mercedes-Benz -- to put workers in the area.

"We compete with the world," he said. "Mobile is very much in the U.S. and it's full of Americans. "

Jones, a Democrat, jokingly pardoned presidential candidate Barack Obama for questioning the deal.

"I can't blame him for that," he said. "That's not a surprise to us that someone who lives in Chicago wants a Chicago company to get the contract."

The initial refueling tankers will have various amounts of work done in France and Florida; Northrop expects the sixth tanker to be fully assembled in Mobile, said spokesman Randy Belote.

And you know what? They need American workers

One of the region's biggest obstacles is that it needs workers.

Mobile will need to attract or train about 1,200 aerospace engineers, assembly workers and designers. It has set up programs with community colleges and plans to open a technology center.

Before the tanker announcement, the region was already scrambling to fill positions for Germany-based ThyssenKrupp AG, which is putting a $3.7 billion stainless-steel production plant in North Mobile County. It needs to hire 2,700 people by 2010.

"Unequivocally, I know they will get thousands and thousands of applications for these positions," said Bill Sisson, chamber vice president of economic development.

And it's not just new companies that need workers. A sign posted on the fence of Mobile Aerospace Engineering Inc., an Alabama plant owned by a Singapore company, declares in red letters, "We're hiring!"

The region is also focusing on attracting suppliers. Northrop estimates that 230 U.S. suppliers will support the tanker program.

Officials hope that the warm weather and low cost of living will attract people to the area.

And you know what else? Alabama wanted the business

The tanker development site will have two plants -- one for EADS to build airplanes, and another for Northrop Grumman to turn them into military tankers.

"In three years, you won't recognize this place," said Marc Pelham on Monday, driving through the complex that will house the plants. He is director of the complex.

The Mobile Airport Authority owns the site and will provide space rent-free. The state and local governments have thrown in about $120 million worth of incentives to the companies, and have been lobbying for the contract for months.

I'm sorry, but I don't see how the Democrats have a case.

Unless they lie....

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