Secretary's Speech

Commerce Secretary Carlos Gutierrez Briefing for Business: Gulf Coast Investment Opportunities
Washington, D.C.

SECRETARY GUTIERREZ: Good morning, and welcome to the U.S. Commerce Department. Thank you for that kind introduction.

I've enjoyed working with Chairman Powell from the very first day--his tremendous amount of leadership, his steady hand and very committed to rebuilding the Gulf Coast. And, as you know, that's the kind of task that requires sticking with it. And it requires having the kind of vision, the kind of determination, the kind of will that Chairman Powell has brought back. And so much has happened, is happening, and will continue to happen under his leadership.

I also want to thank Joe Perez-Jones for that very inspiring report on his business. That shows that business is coming back, and it's very, very inspiring to hear.

Governor Blanco will join us by phone. I understand she had some travel delays and she's somewhere in an airport in the South, but she's going to be joining us by phone and we appreciate that. Gray Swoope from Mississippi's Economic Development Agency is here, and I want to thank the others as well.

And I want to thank everyone else who is here who's committed to the Gulf Coast--not just from the business standpoint, but because it's the right thing to do for the Gulf Coast; it's the right thing to do for our country. And we're not just helping our economy, not only helping your own business--we're helping a lot of people who need our help. So I want to thank you for your interest.

President Bush and this Administration are dedicated--and he said so when he spoke from New Orleans--dedicated to ensuring that the Gulf Coast recovers, and becomes even stronger than before. Since the time the President gave that speech I believe he's been there, I'm going to say, I think close to ten times. I think that's on the low side. He is committed, he said he was committed, he's following through. We are here following through on the President's direction.

Numerous government agencies and individuals have already worked tirelessly in the effort and we're going to continue. We've had great support from Congress. And, as Chairman Powell said, the President and the Congress have committed $105 billion to the Gulf Coast. And that is just the beginning, that is to restore and have a foundation. We know, though, that in order to restore and rebuild the Gulf Coast, it is going to take more than the taxpayers' money. And for any economy, for any community to grow, it's going to need business, it's going to need the private sector, it's going to need investment, entrepreneurs, people willing to put their capital down, to create jobs, follow a dream and recognize that there is huge opportunity in the Gulf Coast. The President understands this, and that's why a central part of the strategy includes federal tax incentives for investing in the region. And you'll hear more later from a Treasury Department representative about the Gulf area Opportunity Zone legislation which includes significant tax incentives. So, it's not just a great environment, it's not just that business is needed, but we're actually incentivizing businesses that invest in the region. And many businesses have already announced plans to do so.

As Joe Perez-Jones and Chairman Powell mentioned, our first domestic trade mission was made in May. We visited Baton Rouge and New Orleans, and Gulfport and Biloxi. Thirty-two business leaders made the trip--representing sectors including chemicals, energy, homebuilding, real estate, manufacturing, telecommunications, and travel and tourism. We received a lot more applications than that. We thought we'd have 15 companies, we had 32 companies with us on that trade mission.

We saw firsthand the damage that that region has suffered. But these business leaders also saw the opportunities to create and rebuild. But we also saw the opportunities there are to rebuild. Everywhere you look there is a need for a business, there is an opportunity to rebuild. And as companies--especially large companies--are looking around the world everywhere for places to invest, countries to invest in, whether it be Brazil, India or China--countries that are very much in the scope of businesses today--I would suggest that, if you look at the tax incentives, the fact that the Gulf Coast is here at home, there may not be a better opportunity in the world in which to invest. So, you can look anywhere you'd like, any continent in the world, and the best investment opportunity anywhere is right here in our home, in the Gulf Coast. And I would encourage all of you to look at it from that perspective.

Many businesses on our trip agreed, and I'm grateful for the commitment they've made. And I'll just mention a few here that have been announced since we went down to the Gulf Coast for the trade mission.

Joe Perez-Jones's company, Seaboard Marine, has added two freighters to the Port of New Orleans-transporting goods between the Gulf Coast and Central America. He just mentioned what his business has been doing--he mentioned three, actually--and how much business he's doing in that area, out of that very important port.

The Home Depot has committed $57 million to the region in refurbished and new stores, as well as contributions to the community.

Shell decided to do more than just "come home" to its New Orleans headquarters. Last week it announced an additional $150 million investment in Louisiana--spurred in large part by the GO Zone tax incentives.

The Pritzker Group has said it will reopen its New Orleans Hyatt Hotel, and unveiled plans for a New Orleans Jazz Park.

KB Homes, in conjunction with the Shaw Group, has started work on 56 new homes in the Garden District of New Orleans. They ultimately plan to build 5,000 homes in the region. You know, that sounds like a lot of homes--and it is--but you have to remember there were over 200,000 homes that were impacted by the hurricanes. So we're just beginning to scratch the surface on the opportunity.

Shan Industries--CEO Sheri Orlowitz is with us today? Sheri was with us on the trade mission…if she's not here, I'm sure she's in some airport in the country. Sheri has committed to build a thermodynamic manufacturing facility in Mississippi that should create up to 100 jobs.

Several other companies have announced or are working on plans as well, including a real estate company that has received $27 million in Mississippi GO Zone bonds to buy and rebuild a shopping center.

So, it's happening. It's happening as we speak. And, as we mentioned before, and as we continue to mention, it really is about who gets in at the right time, who gets in early, who can understand and have the foresight to see that there is great opportunity in the Gulf Coast. And we're going to be looking back in two years, in five years, in ten years, and saying "We should have been there." And those who invest will be very glad they did so.

So, the rebuilding process will not be easy. And no one is suggesting that it is going to be easy. But, when you take a risk, there is a reward. And there are great benefits in getting into the Gulf Coast and investing. It will take a lot of hard work, a lot of commitment, a lot of determination. But I believe the people of the Gulf Coast have demonstrated a lot of will, a lot of determination, to get through the devastation. Not just for business' sake, but they can use and need our help.

Our goal today is to help you start looking at investments in the Gulf Coast region. You'll hear from government officials who are engaged in the rebuilding--people who know the landscape, and the GO Zone legislation. So this is the time to ask questions, to make sure you get all the information you need regarding what it will take and what incentives you will have for making an investment in the Gulf Coast.

And I trust that a lot more businesses will choose to invest in the region--because, again, this is the place, this is the time, this is the opportunity.

Chairman Powell and I--and our staffs--are committed. We are in this for the long-term. As the President mentioned when he spoke in New Orleans, we are not going to stop until the Gulf Coast is rebuilt stronger and better than it was before. And I can tell you, we in this Administration, we are going to work on the Gulf Coast until the last day of the Administration. That has been the President's direction, that has been our commitment. So please know that we are on this. Anything we can do to help.

Thank you for being here. We thank you for your vision, for your commitment, for your determination to make a future out of the Gulf Coast . And together, there's no question in my mind that we are going to restore the Gulf Coast and its communities back stronger than ever before. So thank you for your leadership. God bless you. Thank you very much.

Press Availability with Secretary Gutierrez and Coordinator Powell