Here & Now

Walker And Gou Formally Sign Foxconn Contract

Frederica Freyberg:

Now tonight’s closer look segment and the latest on the Foxconn deal.

Scott Walker:

We are so excited to have Foxconn here with its $10 billion investment, leading to 13,000 good-paying, family-supporting jobs right here in the state of Wisconsin.

[cheers and applause]

Frederica Freyberg:

Governor Scott Walker and the flat screen company chairman Terry Gou signed the 29-page contract this afternoon in Racine. U.S. House Speaker Paul Ryan was also there. The contract includes language that in the next five years, the state could get 100% of the tax credits back if the company moves the plant or closes it. Thereafter, Foxconn's parent company and Terry Gou himself guarantee $500 million in the event the Wisconsin operation fails to meet jobs goals. The claw backs sunset after 15 years. The Wisconsin Economic Development Corporation worked to get the guarantee and once in hand, the WEDC board voted 8-2 to approve the contract.

Mark Hogan:

This is an exciting day for the state of Wisconsin. As I've said a few times, what our goal in this whole transaction, it started 28 weeks ago on Friday, has been to provide the company the kind of flexibility and latitude that they need to invest up to $10 billion, create 13,000 jobs here in the state of Wisconsin. And at the same time create certainty around the protection for the taxpayers.

Frederica Freyberg:

Two democrats on the board voted against the contract, including Representative Dana Wachs of Eau Claire.

Dana Wachs:

I voted no. My rationale is that $3 billion spent on one company within one industry is a, is a risk that I think is too much for our taxpayers.