Congressman Ryan: GE not telling full story about planned Waukesha plant closure

KENOSHA -- U.S. Rep. Paul Ryan says he doesn't believe General Electric officials are telling the whole story behind their plans to lay off 350 people in Waukesha.

GE Power & Water Waukesha

GE announced last week it will shift gas engine production from its Power and Water plant in Waukesha to a new facility in Canada.

Company representatives blamed the move on the Republican-controlled Congress, which this summer failed to reauthorize the U.S. Export-Import Bank. The program provided U.S.-backed loans to foreign businesses wanting to buy products from GE and other companies.

"I think it's horrible that these workers are being laid off at GE, and I can't help but think there have got to be other reasons," Ryan said. "I can't imagine the company the size of GE, which has tens of billions of dollars in revenue, can't finance some of its own purchases."

Ryan has referred to the Export-Import Bank as "corporate welfare," saying the majority of the program's loans help 10 large corporations.

Monday, Ryan told a group of constituents at a town hall-style meeting in Kenosha that he was working on another proposal to provide more effective help to U.S. businesses.

Ryan said he and U.S. Sen. Chuck Schumer, D-New York, were negotiating a bill that would give U.S. businesses a discount on taxes they pay on foreign sales.

"You bring it back home and we'll give you a 5% discount if you do it right now," Ryan told the audience.

Ryan said the potential windfall would plug holes in the federal Highway Trust Fund, which funds infrastructure projects across the country. Congress has kept the fund afloat with a series of short-term extensions, but it is scheduled to run out of money in late October.

GE Power & Water Waukesha

"If we can't make this (highway bill) deadline, we're going to keep talking," Ryan said. "Our tax laws are so messed up, it's pushing American jobs overseas, and we've got to fix that."

GE officials have not announced a timeline for closing the Waukesha plant. About 200 other workers would remain at the plant even if gas engine production shifts to Canada, company representatives have said.

Wisconsin Democrats called on Ryan and other Republicans to reauthorize the Export-Import Bank, blaming them for GE's decision.

Gov. Scott Walker has said he too supports eliminating the federal program.

General Electric Waukesha