FOR IMMEDIATE RELEASE                  

July 17, 2008

Contact:        Mark Bergman

                202-225-5206

Congressman Hodes urges Economic Development Administration to provide assistance for Coos County

Washington, DC--- Congressman Paul Hodes wrote to the Assistant Secretary of Commerce for Economic Development today to urge him to approve the full application that North Country Council submitted for Coos County economic development assistance. Congressman Hodes wrote to Secretary Baruah asking him to expedite the full application that the EDA invited the North Country Council to submit this week.  The application requests $1.07 million for an economic adjustment plan responding to the severe job loss due to the mill closing in Groveton.

Late last year, Groveton lost over 300 jobs when the Wausau mill closed its doors.  When the facility closed, over 46% of the town of Groveton was unemployed. In the last two years, 50% of private jobs in Groveton were lost according to the New Hampshire Department of Employer Security. Because of the mill closure, an additional 321 secondary jobs may be lost in Groveton this year.

The New Hampshire Department of Employment Security issued a publication detailing the economic impact of these sudden and severe job losses.  The study found that the two Groveton Mill shutdowns represent a loss of 3.7 percent of county employment; the Wausau closure will create a $72.36 million reduction in the county’s gross regional product; Groveton’s per capita income was less than 65 percent of US PCI; and the economic impact of Wausau’s closure will not be limited to Northumberland/Groveton.

The pre-application submitted by North County Council focuses on attracting businesses to and marketing Coos County in order to provide economic opportunities for the region.  The funds will help the region prepare for long-term competitiveness by laying the foundations for better county coordination, providing better and greater assistance to new and expanding businesses, moving forward with needed training for the region’s workforce, and redeveloping the Wausau and Groveton Paperboard complex.  The central purpose of the proposal is to create sustainable industries which will contribute the most to the economy and best utilize the available workforce.

“The job loss in Groveton has devastated that community and hurt working families throughout the region,” Congressman Hodes said. “We must first care for those families in need, and then help them with resources to create new economic opportunities.”

“This investment in Coos County will provide much needed assistance to a struggling economy and community in need. I urge the EDA to approve this application so the North Country can begin the process of economically retooling and rebuilding their communities.”

 The Wausau mill closure created a $72 million reduction in Coos County’s gross regional product and the per capita income of county residents is nearly 65% below the average per capita income for the US.