Suffolk IDA needs to take a tougher stand on Canon

For weeks, Canon U.S.A., Inc. has played games with the taxpayers of Suffolk County, refusing to answer two simple questions:

How many employees did the company cut? How many is it hiring? 

Instead, Canon officials have been evasive, providing Newsday with a lengthy statement that didn't answer either question and telling the Suffolk County Industrial Development Agency that they're not in default of a tax-break deal without providing specifics. How can the IDA allow the Melville-based company to refuse to answer basic, yet critical, questions just months after the agency promised the company $7 million in additional breaks? 

Canon's unacceptable behavior — and the IDA's insufficient response — are an affront to taxpayers who foot the bill for the breaks companies like Canon demand, under the guise that the firms would leave the area without them.

It must be restated that the IDA never should have given Canon the latest tax incentive package in the first place. When the agency learned about Canon's layoffs from a Newsday report, Suffolk IDA officials wrote to the company demanding answers. They held a meeting with Canon, demanding more answers. They sent another letter. Then Canon officials came before the IDA at the agency's public meeting last month — and still didn't provide answers.

"We have a legal commitment to the IDA that we are in compliance with now," Canon attorney Daniel P. Deegan said. "We'll continue to keep you guys appraised."

That's not good enough. 

Suffolk IDA officials told the editorial board they're seeking additional details from Canon, including employment information covering the third quarter. IDA officials said they hope to release that information to the public by the agency's November meeting and use it to determine next steps. "They won't be getting any of the benefits if they don't live up to the responsibilities," IDA executive director Kelly Murphy said.

But the damage has been done. Canon has shown it doesn't care about its employees, Suffolk taxpayers, or the IDA. And the IDA has shown it can be pushed around — that after two letters and two meetings, it's still willing to give Canon the benefit of the doubt, wait for it to finally do the right thing, and assume it still deserves millions of taxpayer dollars.

That sends an unfortunate message to other companies seeking tax breaks — that the agency is soft and willing to give away millions when threatened by companies, even if those companies don't deserve or need the funds at all. The Canon debacle again illustrates the need for tougher standards in IDA decision-making, for provisions that require detailed layoff notifications, and for far stricter stances with companies that aren't open and honest.

The Suffolk IDA has one more chance to hold Canon accountable, to claw back funds and require greater openness as this process goes forward. Then, it must handle future deals with the scrutiny and strength Suffolk taxpayers deserve.