nothin DeLauro Floats A Barge-Friendly “MRA” | New Haven Independent

DeLauro Floats A Barge-Friendly MRA

Allan Appel Photo

If the president of New Haven’s Buchanan Marine had the cash, he could expand to produce more barges like this one, which takes takes 50 to 60 tractor trailer trucks off the road. Big banks aren’t lending — but his U.S. congresswoman and senator might have a new homegrown alternative for him.

U.S. Rep. Rosa DeLauro and Sen. Richard Blumenthal came to Buchanan, at 80 Ferry St., Tuesday to describe it to company president Rick Jurczak. The alternative has an acronym: MRA, or Manufacturing Reinvestment Account.

That’s a takeoff on IRA.” The MRA would work a similar way for small businesses. The idea came from the New Haven Manufacturers Association, specifically Hugh McCann, president of Identification Products Corp. in Bridgeport, and Jamison Scott of Air Handling Systems in Woodbridge.

Scott introduced the idea to DeLauro, who worked with Blumenthal after his election. The idea is now contained in House Resolution 110 and in Senate Bill 1237. Read the full text of the bill here.

Scott was on hand with the politicians on a tour of Buchanan’s barge building yard Tuesday morning to explain:

With an MRA manufactuers can make annual contributions up to $500,000 over a period of seven years. If a manufacturer contributes $500,000 annually and the account earns interest at 5 percent, with a 15 percent tax rate on amounts distributed [that is, withdrawn] from the MRA, after seven years the manufacturer would have approximately $3.6 million to reinvest in his or her business,” Scott said in prepared remarks as he stood in front of Buchanan’s 350-ton under-construction barge.

DeLauro and Blumenthal with Buchanan’s Rick Jurczak.

Local economic development officials said about 1,500 area small businesses could avail themselves of the new MRAs to buy equipment, hire new employees and train them, and create new jobs, should the legislation pass.

This is about protecting industry that’s here and growing it,” said Kelly Murphy, head of the city’s Economic Development Administration.

Scott said that at his own eight-employee business in Woodbridge, which manufactures industrial ducts, he would use an MRA to invest in a seam welder to make joints more efficient.

After speakers repeated the mantra that small business creates 70 percent of Connecticut’s jobs, Scott added, We only hear of benefits to G.E. As a small business we don’t qualify for large tax breaks. We look to MRAs to level the playing field.”

The bill would require the MRA money to be deposited in community banks; then that money would be available for re-lending to local businesses.

Big business has tons of cash in their pockets, while small business struggles. This is about small business not having to rely on Wall Street,” said Blumenthal.

Calling the bill a declaration of independence for American manufacturing,” Blumenthal added, We have been borrowing too much in this country to buy rather than build. The MRA is key to reversing that.”

DeLauro reminded her listeners that Connecticut once was known as the arsenal of the United States” for all its manufacturers. We need to return to this.”

Jurczak said for want of capital to expand, his company is building one fewer barge this year than last and has 26 employees in the shipyard as opposed to 56 five years ago.

The politicians touted the proposal as much as a jobs creation and jobs training bill as a spur to innovation and expansion.

I can always buy a lot of steel. People is what we need,” said Jurczak.

Sign up for our morning newsletter

Don't want to miss a single Independent article? Sign up for our daily email newsletter! Click here for more info.


Post a Comment

Commenting has closed for this entry

Comments

Avatar for wolverine

Avatar for The Coun

Avatar for David S Baker

Avatar for trbelv@yahoo.com

Avatar for Bruce