THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, October 29, 1995 TAG: 9510280299
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MIKE HUDSON, LANDMARK NEWS SERVICE
LENGTH: Long : 115 lines
When Gov. George F. Allen started looking for car dealers to appoint to the state's new Motor Vehicle Dealer Board, he had a long list at hand. They were among the big contributors to his 1993 election campaign.
The board will license car dealers and investigate complaints against them. It is taking over that power from the Department of Motor Vehicles as part of Allen's push to transform state government.
When the board met in Richmond a couple of weeks ago, the seats around the conference table were filled with representatives of at least seven car dealers who gave money to the governor's campaign or inaugural fund through their companies or out of their own pockets.
At one bend of the table sat Arthur Casey, who has four Hampton Roads car franchises. He gave Allen $4,000.
Next to him sat Frank Cowles, a Woodbridge car dealer who is a longtime Allen supporter. He gave Allen $3,450.
A few chairs over sat Tom Barton, a Virginia Beach Ford dealer who is the board's vice chairman. He gave $2,550.
Missing on this day was board member Richard L. Sharp. He is chief executive of Circuit City Stores Inc., which has begun a highly touted chain of CarMax used-car ``superstores.'' Circuit City and its executives gave Allen $57,500.
In all, the governor reaped $71,800 through companies that now have a seat at the table when the Motor Vehicle Dealer Board meets.
Allen says the appointments are a matter of picking the best people and that money had nothing to do with it. He says the creation of the car-dealer board shows how he's taking power from bureaucrats and letting the private sector breathe businesslike efficiency into the regulatory process.
``I think he was looking for people who had the experience and had reputations they've built over the years,'' says board member Richard Kern, a Winchester car dealer who gave Allen $2,300.
For some critics, the board and Allen's appointments are an example of how the governor has turned state agencies over to special interests who want to control the programs that are supposed to serve as watchdogs of their industries. They say Allen has weakened agencies responsible for protecting the environment and consumers, making it easier for polluters and unscrupulous merchants to operate.
``Virginia is being sold to the highest bidder,'' says Gary Kendall, a Charlottesville lawyer who works with labor, consumer and environmental groups. ``We're telling businesses: `Come to Virginia, we'll let you have your way.' The theory is: If we have cheap taxes, cheap labor and no government interference, employers will come. We're becoming the Mexico of the U.S.''
Allen says he pushed to give power to the car dealers so they could govern themselves and chuck ``arcane, idiotic'' rules, such as one that says they must post the names of the sales people on duty. He appointed respected business leaders to the board, he says.
``In fact, every one of these people who I appointed were recommended by the Virginia Automobile Dealers Association,'' Allen says.
Consumer activists say that's the problem: The board was picked by an industry group, with no say from average car buyers. VADA, which represents franchise dealers, gave Allen $23,600.
When it came time to appoint, Allen recognized many of the names on the industry's list.
Allen detractors claim the administration has locked average citizens out of the governing process by turning over regulatory seats to business interests, campaign contributors and Republican loyalists. As an example, they cite the car-dealer board and that 16 of its 19 members represent the car industry. At least 10 are Allen contributors or GOP activists.
``I want to put people on there who share my philosophy of government, whom I can trust and who are competent to do the job,'' Allen says. He paints critics as opponents of economic growth.
``We certainly are very much for clean air, clean land and clean water.'' But government has to look at the impact on ``not just rats, but on people and their property and their jobs.'' Virginia, Allen says, is not for sale.
When he ran for governor, Allen said Virginians were sick of bureaucrats telling them what to do. He promised to ``put the people back in charge.''
But Allen didn't turn down ``special interest'' money.
Like his Democratic predecessors, Allen is running state agencies that oversee industries that gave generously to his campaign and inauguration.
For example, Allen received at least $164,000 from coal companies and other mining businesses, $171,000 from oil companies and other energy interests, and $311,000 from manufacturers.
For his campaign, Allen took in $3.9 million from contributors who gave $500 or more. At least $1.6 million of that came from business interests. Eighty-five percent of the $429,000 Allen collected for his inaugural came from businesses or corporate law firms.
Allen says campaign gifts have ``no impact on what I believe.'' He says he made it clear from the start of his campaign that the ``No. 1 claim on my time would be jobs.'' He says ``a pro-business, pro-economic growth environment'' is needed to compete.
Critics say Allen has eased enforcement of laws aimed at protecting people's pocketbooks and keeping the land, water and air clean. Here's how:
By cutting state agencies, such as the Department of Environmental Quality, responsible for protecting the state's air, soil, lakes and rivers, parks and animals. The DEQ has lost 20 percent of its staff.
By cutting the staff of the state's consumer affairs program by nearly half over three years.
By placing the responsibility for licensing car dealers and investigating complaints against them in the hands of a board that is dominated by car dealers. The board plans to cut the number of state employees regulating car dealers by nearly half.
State officials defend the cuts, saying they foster efficiency. Car dealers, for example, say their new oversight will save taxpayers as much as $1.5 million a year.
``The board wants to see that the customer is treated fairly,'' said Art Heberer, a board member who runs an auto-parts recycling business in Salem. ``The incentive to do this is to make sure that your customer is happy - so they'll come back and buy another car from you later.'' ILLUSTRATION: Color photo
Gov. George F. Allen
by CNB