United Technologies Corp., with extensive interests in Puerto Rico, jumped into the fray this summer over how the U.S. territory will restructure $70 billion in debt.
The Farmington-based conglomerate backed federal legislation, formally known as the Puerto Rico Oversight, Management and Economic Stability Act, which established a financial control board and allowed restructuring of some of Puerto Rico's debt.
"UTC supports a business environment in Puerto Rico that enables our businesses to be sustainable and grow," the company said in a statement Tuesday.
UTC Aerospace Systems operates a manufacturing plant in Puerto Rico for electro-mechanical and electronic parts assemblies for commercial and military aircraft. It employs about 1,100 workers.
Otis Elevator Company and Carrier heating and ventilating have a sales and service presence in Puerto Rico and UTC's jet engine manufacturer, Pratt & Whitney, operates a joint venture in Puerto Rico employing 670 workers who design, evaluate and support engines, airframe systems and other aerospace products.
Supporters said federal intervention was necessary to avoid a fiscal disaster. But many Puerto Ricans voiced concern about the oversight board. Critics said it could take power that legitimately belongs to Puerto Rico and favor investors over island residents. President Obama signed it into law June 30.
Rep. John Larson, D-Conn., who backed the bill, said he saw advocacy groups playing a bigger role in lobbying on the bill than businesses.
"The main concern was the loss of population, instability and what that means for here," said Larson, whose district includes Pratt & Whitney in East Hartford and a sizable Hispanic community.
The Latino and Puerto Rican Affairs Commission of Connecticut urged Congress in April to "respond expeditiously and effectively" to help Puerto Rico. It steered clear of specific suggestions.
Puerto Rico's debt followed a decade of recession and a loophole allowing it to issue bonds tax-free. Lobbying in Congress pitted those who called efforts to relieve the island of its debt burden a bailout and others who opposed the financial control board as overly restrictive.
UTC is in an unusual position because it's headquartered in a state with a large Hispanic population while also operating extensively overseas.
Despite its global reach, United Technologies typically lobbies on legislation affecting U.S. policy close to home. For the April-through-June period, it reported to Congress that it spent $2.2 million lobbying the House, Senate and executive agencies on a range of issues affecting its military and commercial aerospace and heating and cooling businesses. Legislation it cited included funding the Federal Aviation Administration and the Pentagon, tariffs on imported products, tax reform, energy efficiency, appliance standards and similar measures.
Stephen SingerUnited Technologies Backs Puerto Rico Debt Restructuring
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