De Ramel Blasts Pacheco on 38 Studios
Friday, May 31, 2013
While speculation surrounding the 2014 statewide election field had a heavy gubernatorial focus this week with Governor Lincoln Chafee making his move to the Democratic party, declared candidate for Rhode Island Secretary of State Guillaume de Ramel has upped the ante against his possible opposition.
Questioning his potential primary opponent Ed Pacheco's vote -- and rationale -- in favor of expanding the Job Creation Guarantee Program in 2010, which enabled the EDC to provide a $75 million guaranteed loan to the now-failed 38 Studios, de Ramel took issue with both the process, and lack of accountability.
"The responsibility of the legislature in this instance failed," said de Ramel. "Like anyone who's seeking a statewide position, you've got explain your position clearly on where you stood -- or stand -- on an issue for the voters for transparency."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"Regarding 38 Studios, if we keep having to ask these questions about who knew what and when, and how we allowed it to happen, well, that's an issue in itself," said de Ramel, who had run for Secretary of State in 2006, losing to current Secretary of State Ralph Mollis by less than 5000 votes.
Pacheco Defends Vote Leading Up to 38 Studios
Pacheco, who was in the Rhode Island House of Representatives from 2005 to 2011, explained his fateful vote in 2010 -- which he pointed out the majority of his colleagues supported as well.
"Along with the overwhelming majority of members of the General Assembly, I voted in favor of the [Carcieri] Administration and EDC's proposal as presented to us to expand the jobs program, as part of the budgetary process," said Pacheco. "There was nothing in it that indicated funds were marked for a large deal with 38 Studios. That was made by the EDC after the legislation was approved."
"Look, we were presented with a proposal by the Administration, and we trusted in what as put before us and ultimately the majority voted in favor of it," said Pacheco. "You can Monday morning quarterback it all you want, but we went with the information we had at the time."
Speaker of the House Gordon Fox's spokesperson Larry Berman reiterated that the proposal and subsequent vote was for the increase in the job creation program, with no specific earmark for a particular company. "Once approved, it was the EDC that authorized the $75 million to go towards 38 Studios," said Berman.
Last fall, speculation swirled that Fox and others did in fact know that 38 Studios was part of the ultimate plan prior to the vote, to which the Fox camp quickly responded.
In a statement issued by then-spokesperson Bill Fischer, he said," When Speaker Fox was addressing this issue at a neighborhood debate on [Wednesday evening], he indicated there was public knowledge of Curt Schilling's interest in coming to Rhode Island because it had been publicized.
"He did not mean to infer in any way that representatives were aware that the legislation included funding for 38 Studios, because it did not. Representatives did not have information because there was no earmark in the legislation for 38 Studios or for any other company."
De Ramel Not Satisfied with Status Quo
Speaking with GoLocal on Thursday, de Ramel took issue with his potential opponent's explanation of how both he and the General Assembly voted to expand the job creation program that enabled 38 Studios -- and its subsequent demise.
De Ramel explained, "You can't just say, 'Everyone else voted for it.' Where was the due diligence? Why did you think it was a good idea to expand a jobs creation program to that level?"
"I know that members have been saying they didn't know that 38 Studios would be the ultimate beneficiary of the vote to expand the jobs program, but if we keep having to ask these questions as to how we got to this point...that's part of the problem right there," said de Ramel.
He continued, "As a regular citizen, I saw that [the deal to 38 Studios] made no sense."
On the current debate as to whether the state needs to -- or should - pay the bonds on 38 Studios, to which the Governor has indicated he supports, de Ramel offered his views.
"I don't think that the state should have to pay the investors back on this, there were safeguards in place, including insurance," said de Ramel. "What it comes down to is that the Rhode Island is currently facing a sizable deficit, and to add the bond obligation to that, would be significant. My preference is to see us commit to funding our existing programs, which need the support."
Candidates Weigh in on Qualifications
Pacheco reiterated that he had yet to officially declare his candidacy for Secretary of State -- just his intent so far to run for the seat. "There will be plenty of time to debate differences among candidates moving forward," Pacheco told GoLocal.
The former State Rep and Chair of the Rhode Island Democratic Party said it was his experience in government that would allow him to succeed. "Having worked in the Secretary of State's office, I know how it operates, and what it takes to make it work," said Pacheco. "The Quick Start tool [for businesses] has been great. There's been a lot done...but there's definitely more to do."
"I've know the importance of hard work necessary to succeed," he continued. "Through public service, I've been able to give back, not just to my family, but to my community."
In contrast, de Ramel said it was his background in small business -- as well as fresh perspective -- that would enable him to prevail. "I can appreciate what small businesses have to go through, both through operations and dealing with regulations," said he attested.
De Ramel agreed with Pacheco's assessment that the Secretary of State's office was currently doing a good job -- but could do more.
"It's no secret that Rhode Island's been stuck economically for a while now," said de Ramel. "We need someone who can help change that."
"I've got statewide campaign experience from 2006 when I ran for Secretary of State. I learned a lot from that run," said de Ramel.
