RE “PLANT will shut after $58m in state aid:
In the mid-1970s, during the Dukakis administration, the Massachusetts Technology Development Corp. was established to provide venture funding to start-ups. Each investment by the MTDC had to include in the syndicate the participation of an experienced venture capitalist. This rule helped ensure that due diligence was conducted. The result was successful performance from both an investment and job creation standpoint. Would that such a rule had been followed by the current administration.
Now the governor has announced a junket that will bring business to Massachusetts. I am sure that the incentive to come to the state will include generous subsidies — the Evergreen Solar model. Unfortunately, when the subsidies run out, the companies will run out as well.
We have many assets that appeal to a knowledge-based company. If the governor can sell these advantages, fine, but if he is off to burnish his image as an alternative-energy governor, using subsidies as an incentive, permanent jobs will not be created, and the taxpayer will be the poorer.
The writer is chairman of Advent International, a private-equity firm.