The Hindu Business Line : Boston Chamber of Commerce seeks `Rainy Day Fund'

THERE may be a cue in this for our apex chambers on how to tackle the negative fallout of recessionary trends faced by the Indian industry on a permanent basis, provided of course the corporates are willing to put in a little bit of extra cash upfront.

The Greater Boston Chamber of Commerce (GBCC), a pre-eminent business organisation in Greater Boston, representing around 1,700 businesses of all sizes, covering mostly Fortune 500 companies, is now working to create a constitutionally mandated `Rainy Day Fund' as a permanent part of the State's (Massachussets) fiscal toolbox.

Talking to a nine-member Indian delegation of corporate lawyers and senior executives led by the Indian Chamber of Commerce here recently at an interactive session, Mr James E. Boyle, Assistant Director of Economic Development of GBCC, said such a fund, set up by State Government leaders in 1990 with a fiscal reserve of more than $3 billion, was invaluable during the recent recession, helping to replace declining State tax revenues and prevent deeper cuts in government programmes. Post 9/11, the fund now has a corpus of $2 billion.

He said in 2004, GBCC had issued a report calling for a mandated rainy day fund, and the chamber and other business groups since then have been working with legislators to secure initial approval for necessary amendments in the law.

According to Mr Boyle, the chamber is now continuing its advocacy (towards public policy initiatives) for these approvals going forward.

The unique feature of the robust fund, according to Mr Boyle, is that it is funded through an employer tax and the State budget. One per cent of the budget will automatically go into the Rainy Day Fund to supplement the employers' contribution. It is administered by the State department, as per a State-run programme, and allocations are made from the fund to take care of workers rendered jobless by recession.

Stressing on GBCC's aggressive 2005 Public Policy agenda on behalf of the members for adding value to the community at large, by working with legislators on changes that are critical to the region's economic growth, he said two of the major projects taken up are South Boston Waterfront development and Silverline (the transportation system), which involve hotel and housing development with transit connections to Logan (airport) and Boston neighbourhoods.

Another project receiving the chamber's wholehearted attention, according to Mr Boyle, is on "workforce development and talent retention." This involves continuation of the chamber-created community college training programme, retaining a highly educated workforce by linking college students with job opportunities, and supporting the education reform process.

The GBCC members, which also include Fortune 1000 companies with a presence in Massachusetts, find their voice through the chamber's public committees on development, government affairs, life sciences alliance, housing task-force, transportation and workforce development.

GBCC member firms include global names such as AIG, AT&T, Cisco Systems, Pfizer, Marriot, Hilton, Bristol-Myers Squibb, Boston Scientific, The Boston Globe, Raytheon, IBM, Accenture, John Hancock Financial Services and Fidelity Investments.

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