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HSBC Power and the Border
HSBC, Power and the Border
Today HSBC, one of the largest banking and financial services organizations in the world and a local employer of more than 5,000 people, announced its plans to invest $166 million to expand its North American Data Center operations in Buffalo Niagara. The project, which includes a total company investment of $1.77 billion over the next 15 years, demonstrates a commitment to our region by a significant local employer that should be applauded.
Significant mention was made at today's announcement about the 11 megawatts of Expansion Power HSBC received to support its power intensive data center operation. And that is significant. Low cost hydropower can and should be used to lure and retain good employers to our region, especially because companies have a plethora of options when in comes to locations to move to (or expand in) that are more business-friendly than New York State. And while it was nice that the Partnership was thanked today for our significant effort to help secure that power, it sure would be nicer if it didn't require such exertion.
Industries that would make a significant investment in our region should be enticed to stay and grow in Buffalo Niagara because of our regional asset: low cost power. The system must evolve to ensure that investment, not jobs alone, is valued, and must provide a clear process through which allocation decisions are made. The process must deal in "real time" and understand the realities of the business decision-making cycle.
Similarly, the global competitiveness of applicants, and how investments in a company will lead to that company's long-term longevity in our region, must be also be valued. Allocations should facilitate Buffalo Niagara companies' ability to be productive and competitive - after all, supporting stable employers and taxpayers is good state policy. And that means companies of 5,000 like HSBC, and smaller employers with a workforce of 15.
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More positive steps toward effectively dealing with the "passport issue" were taken the last few weeks, when both houses in Washington passed amendments that would delay implementation of the Western Hemisphere Travel Initiative until June 2009. (WHTI is the measure that would require a passport or new ID to be shown when crossing the Canadian border, and could have devastating implications on our regional economy.)
But, it got a little dicey at times…
Everything seemed on track, until it was announced that the House leadership was considering removing the WHTI extender at the request of House Judiciary Chairman James Sensenbrenner of Wisconsin (the sponsor of the original bill that required implementation of WHTI in January of 2008). Rep. Sensenbrenner argued, behind the scenes, that a terrorist incident could be blamed on Congress if they passed the delay. Southern border members, whose constituents have very different border concerns than us, also didn't help matters.
The Partnership, along with a coalition of business organizations from along northern border we helped bring together, advocated strongly to stress the negative economic implications of removing the extender, and further, of WHTI more generally.
Finally, Rep. Tom Reynolds, because of his influential leadership position in Congress, was able to lead the effort to persuade House Speaker Dennis Hastert that rushing a thoughtless implementation of WHTI would make a disaster out of the economies of northern border communities. After a series of parliamentary moves the amendments passed overwhelmingly.
Achieving a delay is critical to ensure that commerce can continue, and that there is time to pursue an effective ID alternative to the passport. The Partnership is pushing for the Departments of Homeland Security and State to accept a new state driver's license (which would include citizenship) instead of a passport, or another ID that is inexpensive, easily attainable and has more than one use as appropriate identification. We'll continue to keep you apprised of our progress.
Andrew J. Rudnick
President & CEO
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HSBC Power and the Border
