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Interview With Allan Zaremberg, President and CEO, California Chamber of Commerce
Aired August 13, 2003 - 15:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KING, CNN ANCHOR: It's important, of course, to remember the impetus behind the recall is California's massive budget problems. The state is billions of dollars in debt.
Earlier, I spoke with Allan Zaremberg. He's the president and CEO of the California Chamber of Commerce. I asked him if all this political uncertainty is making it even more difficult to get businesses to invest in California right now. Here's some of what he had to say.
(BEGIN VIDEOTAPE)
ALLAN ZAREMBERG, PRESIDENT AND CEO, CALIFORNIA CHAMBER OF COMMERCE: I have been worried about our legislature for a few years. They have been trying to set an agenda that isn't favorable to business in the economy. We have term limits here in California; we don't have competitive districts.
The legislature has been setting an agenda that's very liberal, that's out of step with California's voters. And you know I don't think that is going to change here. We need a governor no matter who the governor is on October 8th that makes business a priority, makes the economy a priority, makes job creation a priority in California. And no matter who that governor is on October 8th -- and it's really the legislature that has been setting an agenda that needs to be changed.
KING: Most recently, of course, turmoil in your state over the $38 billion budget shortfall and the plan ultimately that the governor and the legislature came up with to resolve that, at least for now. Governor Davis says that he understands that he is in charge, but that he is also, like many governors, the victim of a slow national economy.
Is that a fair statement on his part in your view? Or are there unique circumstances to California?
ZAREMBERG: Well, I think California has unique circumstances, but the country has lost a lot of manufacturing jobs. And California has lost 300,000 manufacturing jobs in the last 30 months. We need to turn that around.
The interesting thing about the budget that the legislature passed was that it projects a deficit for next year. It's clear they're relying on an improved economy. And as the national economy begins to turn around the question that I have -- because I have no question it's going to happen -- is the people who are creating jobs, are they going to choose California to create those jobs?
You know, are they going to pick a great place to live? Are they going to choose it because of our higher education system? Or are they going to go somewhere else because our cost of doing business, like workers' comp, is higher than the rest of the country?
And so we need to address those things. There are solutions. It just takes political will to do those things.
KING: But you will have an election on October 7th. Possibly days, if not weeks, to find out if there will be a new governor, who that governor will be, and then the whole question of how the legislature and the entire political universe in California might react to the recall. If you were a business thinking of moving to California or expanding in California, would you not be paralyzed by that uncertainty?
ZAREMBERG: Well, you know, I don't think there is any question that all the politicians in California have to send a message that we're receptive to job creation in California. We're going to reduce the cost to do business in California to coincide with our strong workforce, with our good educational system.
So the recall gives us a chance to call attention to all the positive things in California and it also gives me a chance to talk about the things that need to be changed, but that can be changed if people all get behind an agenda that is job creation in California. And so it's an opportunity. I think the recall presents an opportunity to highlight the good things, to focus on the things that need to be changed, and then to say, we need -- this is an opportunity to get some -- to get the legislature, which is really setting the anti-business agenda, to respond to California's job creation needs. And so that's -- I think the recall is giving us an opportunity to call attention to that.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
California Chamber of Commerce>
Aired August 13, 2003 - 15:16 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JOHN KING, CNN ANCHOR: It's important, of course, to remember the impetus behind the recall is California's massive budget problems. The state is billions of dollars in debt.
Earlier, I spoke with Allan Zaremberg. He's the president and CEO of the California Chamber of Commerce. I asked him if all this political uncertainty is making it even more difficult to get businesses to invest in California right now. Here's some of what he had to say.
(BEGIN VIDEOTAPE)
ALLAN ZAREMBERG, PRESIDENT AND CEO, CALIFORNIA CHAMBER OF COMMERCE: I have been worried about our legislature for a few years. They have been trying to set an agenda that isn't favorable to business in the economy. We have term limits here in California; we don't have competitive districts.
The legislature has been setting an agenda that's very liberal, that's out of step with California's voters. And you know I don't think that is going to change here. We need a governor no matter who the governor is on October 8th that makes business a priority, makes the economy a priority, makes job creation a priority in California. And no matter who that governor is on October 8th -- and it's really the legislature that has been setting an agenda that needs to be changed.
KING: Most recently, of course, turmoil in your state over the $38 billion budget shortfall and the plan ultimately that the governor and the legislature came up with to resolve that, at least for now. Governor Davis says that he understands that he is in charge, but that he is also, like many governors, the victim of a slow national economy.
Is that a fair statement on his part in your view? Or are there unique circumstances to California?
ZAREMBERG: Well, I think California has unique circumstances, but the country has lost a lot of manufacturing jobs. And California has lost 300,000 manufacturing jobs in the last 30 months. We need to turn that around.
The interesting thing about the budget that the legislature passed was that it projects a deficit for next year. It's clear they're relying on an improved economy. And as the national economy begins to turn around the question that I have -- because I have no question it's going to happen -- is the people who are creating jobs, are they going to choose California to create those jobs?
You know, are they going to pick a great place to live? Are they going to choose it because of our higher education system? Or are they going to go somewhere else because our cost of doing business, like workers' comp, is higher than the rest of the country?
And so we need to address those things. There are solutions. It just takes political will to do those things.
KING: But you will have an election on October 7th. Possibly days, if not weeks, to find out if there will be a new governor, who that governor will be, and then the whole question of how the legislature and the entire political universe in California might react to the recall. If you were a business thinking of moving to California or expanding in California, would you not be paralyzed by that uncertainty?
ZAREMBERG: Well, you know, I don't think there is any question that all the politicians in California have to send a message that we're receptive to job creation in California. We're going to reduce the cost to do business in California to coincide with our strong workforce, with our good educational system.
So the recall gives us a chance to call attention to all the positive things in California and it also gives me a chance to talk about the things that need to be changed, but that can be changed if people all get behind an agenda that is job creation in California. And so it's an opportunity. I think the recall presents an opportunity to highlight the good things, to focus on the things that need to be changed, and then to say, we need -- this is an opportunity to get some -- to get the legislature, which is really setting the anti-business agenda, to respond to California's job creation needs. And so that's -- I think the recall is giving us an opportunity to call attention to that.
(END VIDEOTAPE)
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
California Chamber of Commerce>
