Category: Business

  • Growth-management laws still aren’t safe

    Washington’s so-called property-rights initiative, I-933, is receiving only lukewarm support from business groups that generally want to roll back land-use laws, according to a report today. Supporters of a similar measures a decade ago reportedly are taking a pass this year because they see it as a lost cause.

    Farmland threatened by initiativeDon’t be so sure. While there may be differences over this specific initiative, momentum is behind the “government causes our problems” mindset, especially in exurbs and rural parts of the state.

    Over breakfast in Concrete, Skagit County, today I noticed that the latest Sedro-Woolley Times-Courier carried an opinion piece by the Building Industry Association of Washington, laying blame for the state’s affordable housing cruch on restrictive growth-management laws. Technically the group isn’t working to pass I-933 but its efforts to undermine land-use laws will help the measure. Similar screeds are appearing around that state and could easily put I-933 over the top.

    Unfortunately the campaign against I-933 hasn’t caught fire. They talks about abstractions, like how much traffic the repealing land-use laws would supposedly cause. But it’s far from clear that those those abstractions will persuade enough voters to support the status quo in November.

  • Expect more cross-border timber mergers

    More deals between U.S. and Canadian forestry companies are likely as the industry continues to struggle with excess capacity in North America and low prices, according to PricewaterhouseCoopers.

    This week’s combination of paper units of Weyerhaeuser and Domtar, a big Montreal-based firm, brought more attention to the trend. Weyerhaeuser, with annual sales of $23 billion, is trying to boost its profitability by jettisoning one of its paper businesses and hopes the move helps fend off hostile takeover attempts by private equity firms.

    The industry has been cutting costs for years by closing mills and consolidating. In fact, Weyerhaeuser became a major Canadian operator in 1999 when it bought MacMillan Bloedel. But an acceleration of the trend could further undermine employment in rural parts of Cascadia and continue development away from the industry that largely built this region.

  • Alaska voters okay tax on cruises

    Cruise ship passengers who sail to Alaska from Seattle or Vancouver will each pay a $50 tax under a new law approved by Alaska voters this week. New taxes also will cover gambling and profits from cruise-related excursions in the state.

    The cruise industry spent heavily to counter the measure and is already threatening cutbacks. Carnival says the measure will cost it $24 million in 2007.

    It’s the latest attempt in Cascadia to get the booming cruise business to shoulder more of the costs of cruise-related traffic, pollution and tourism services. The bet is that the Alaska business is unique enough and most travelers wealthy enough to pay the extra fee.

  • Vancouver wooing Seattle passengers

    A newly appointed Seattle representative of Vancouver airport is launching a campaign to encourage more travelers from the region to use the Canadian airport for international flights, getting them to go north instead of through SFO or LAX.

    The number of passengers from Seattle connecting through Vancouver to Asia soared 40 percent from 2004 to 2005, according to the report in the Puget Sound Business Journal. Seattle passengers account for about 5 percent of all YVR traffic to Asia.

    And no wonder. Vancouver has 117 weekly flights to 8 Asian cities and 75 weekly flights to 11 European cities, according to the report. Seattle has 36 flights a week to three Asian cities and 24 flights to three European ones. Some of that is because Vancouver is Canada’s West coast metropolis.

    The development manager at Sea-Tac is quoted as hoping that near-capacity flights from SEA will attract more carriers. But the airport has lost fllights to Tokyo, Osaka and China in recent years.

  • How state law can respond to the housing crunch

    The Seattle area continues to defy the national trend of a sharply slumping housing market. The result is fewer people can afford homes, especially anywhere near their work. So what to do about it?

    Seattle homes by housingconsortium.orgA thoughtful commentary by a realtor ran in the Seattle Times Wednesday, making the case that the affordable housing cruch was caused by the state’s Growth Management Act. That law required counties to figure out how to focus development in order to curb sprawl. It also upset a lot of rural landowners, and spurred a rollback measure this fall called I-933.

    Though he doesn’t take a stand on I-933 — which many business groups support — he suggests five sensible policy steps:

    • Require that growth-management plans under the GMA result in no net loss of housing opportunities;

    • Require that growth-management plans balance projected job growth with growth in the housing supply, to ensure employees can live in communities where they work;

    • Ask communities to increase affordable-housing opportunities. Some strategies include flexibility in lot sizes and allowing detached “accessory dwelling units,” such as those proposed by Mayor Greg Nickels;

    • Establish performance measures for growth-management plans, to measure whether they actually accommodate growth and to verify that municipalities are adjusting plans to accommodate growth, as they are required to by law;

    • Make the funding of critical infrastructure projects — such as roads, sewers and water — a priority in state and local budgeting.

    Voiding current growth laws is a big mistake. But there are critical missing links. The Seattle area should follow examples of its Cascadia neighbors Vancouver and Portland in fixing them. Encourage more dense in-fill development and build the infrastructure necessary to make living in built-up areas attractive.

  • Vancouver airport workers strike averted

    A strike by 250 security workers at Vancouver airport was averted Tuesday morning when their union agreed to mediation. A work stoppage could have disrupted travel because other airport staff unions reportedly were planning to honor picket lines.

  • More trouble at Alaska Airlines

    Alaska Airlines continues to struggle with its core business: getting passengers to their destination safely and on time. The airline claims it’s making progress fixing maintenance and delay problems, but anecdotal evidence and recent statistics suggest otherwise.

    Yesterday, passengers used an emergency slide to evacuate a flight in Long Beach after smoke filled the jet’s cabin. A separate flight arrived in Chicago three hours and 15 minutes late after a delay in Seattle due to maintenance problems. And a Vancouver-to-San Francisco flight on Friday made an emergency landing in Seattle after the cabin failed to pressurize. Several passengers were treated for ear pain.

    Maintenance issues are particularly sensitive for Alaska Airlines since a faulty tail screw caused a deadly crash near Los Angeles a few years ago. One of its planes took off from Seattle earlier this year with a dent in its fuselage and another filled with smoke after arriving in San Francisco.

    Also important for regular fliers, the airline’s on-time performance has worsened, according to federal statistics. Less than 73 percent of flights were on time in June and about 50 percent earlier this month, when the airline had baggage-sorting problems at Sea-Tac airport. Those numbers don’t tell the whole story since they count any flight arriving at the gate 15 minutes behind schedule as late. Twenty-six percent of Alaska’s flights in June were delayed, by an average of 38 minutes, according to the Department of Transportation.

    Alaska Airlines didn’t return a call for comment on Monday.

    Seattle-based Alaska has the most extensive route network throughout Cascadia so the region would benefit if it operated efficiently. But if the recent performance continues Cascadia travelers will increasingly avoid it, despite the convenience of its timetable. “I really want to like the airline,” a man told the Anchorage Daily News last month. “But they really, really need to reorganize and get their act together or they’re going to do permanent damage to their image.”

  • Widening gap in urban-rural income

    The wealth gap between rural and urban areas is the subject of a New York Times story today that focuses on the waning fortune of Oakridge, Oregon, a depressed logging town near Eugene.

    As elsewhere in rural Cascadia, high-paying blue-collar jobs that supported families disappeared when the local mill closed:

    Expressed in 2005 dollars, the average pay for a full-time worker in rural Oregon fell to $27,600 in 2005 from $34,200 in 1976. Over the same period, average pay in urban counties in Oregon climbed to $37,800, putting the rural-urban gap at $10,200 and rising, according to the Oregon Employment Department.

    In Oregon the rural poverty rate was 13.8 percent in 2003, 2.4 points higher than in urban areas, according to statistics from the U.S.D.A. Rural poverty in Washington rose to 13.4 percent, 2.7 points more than in urban areas.

  • Fixing globalization will take more than this

    “I always vote but it doesn’t seem to make a difference. What else can I do?” That was the question of a gray-haired lady who took time on a sunny Saturday afternoon to hear a senator from North Dakota talk about making globalization more fair.
    unloading containers

    Unfortunately Senator Byron Dorgan didn’t give answers. In Seattle to promote his new book Take This Job and Ship It, he told a few dozen people sad tales of workers who had lost their jobs when companies shifted production abroad. An example: he said he’s outraged that Huffy bicycles are now made in China by workers who are paid 33 cents an hour while American taxpayers are stuck paying the pensions of former American workers.

    Dorgan wrote the book because he’s frustrated that Republicans in Congress control trade policy. He rightly blamed the U.S. Chamber of Commerce and its corporate backers for laws that ignore the concerns of workers. But will populist anger without solutions win Democrats votes?

    Obviously there are lots of losers in the current form of globalization. Yet in Cascadia, the most trade-dependent region on the continent, people want to hear how to make the system work better. Leaders need to explain concrete steps that can help more people benefit, things like better educating Americans (and Canadians!) while improving environmental and worker standards overseas.

    In a nod to Seattle’s reason for being, several times Dorgan said “I support trade. I’m not against trade. But it has to be fair trade.” But that’s a classic canard of protectionists. In fact, Dorgan voted for the 2002 Farm Bill, which unfairly doles out billions of taxpayer dollars to support prices of U.S. crops so farmers in poorer countries can’t compete. Their only choice is to shift to cut-rate manufacturing — an opportunity corporations eagerly provide.

    Dorgan’s book actually includes some solid ideas (tax policy that discourages exporting jobs and pollution, for example). If the book reaches readers who are brainwashed by pro-globalization cheerleaders like Tom Friedman it may add to the policy debate. But Dorgan wasted his opportunity in Seattle, leaving yet another old lady and many like her worried about globalization with no idea what to do about it.

  • Restraining Cascadia’s nanny side

    Restraining Cascadia’s nanny tendencies seems about as easy as eliminating salal from one of the region’s fields.

    vancouver fireworksJust as Seattle seems to grow up and enjoy itself, opposition fights to keep it quiet. The number of licenses to sell liquor, for example, has risen almost 60 percent since 1997 as new clubs and bars have opened.

    But Seattle Mayor Greg Nickels is harassing bar and club owners into signing agreements with a long list of operating limitations designed to make them “good neighbors” by keeping the area around their businesses quiet after hours. The city has obsessed for years over how to handle benign strip clubs and police regularly crack down with excessive force on club-going crowds downtown.

    Now this week city police handed out a record number of tickets for “boating while intoxicated” during the annual Seafair hydroplane races. Editorialists applauded the crackdown.

    There are similarities in Vancouver, where at least some residents have been trying to shake the city’s “no-fun” image with a campaign and a web site, funcouver.com. Why become just another picturesque town filled with restaurants and shopping but scant nightlife?

    The city is considering if it could loosen its drinking laws. Drinking at the summer fireworks show should lead to less enforcement in general, according to the argument.

    Clearly the rules are local land-use issues that need to take into account the wishes of all the residents. But they should consider that having places to party, let off steam and celebrate is part of what makes Cascadia’s unique quality of life.