Posted on Thu, Dec. 30, 2004
EDITORIAL

Changes at Commerce Paying Off
Improved economy, streamlined agency boost success in gaining industry


Whether it's a result of an improving economy, the reorganization of an out-of-control state agency or Gov. Mark Sanford's focus on economic development, the announcement this week that South Carolina gained $2.5 million in new industry during 2004 is welcome news indeed.

The state's new businesses will result in 12,694 new jobs. The economic development numbers, the state's highest in years, were buoyed by such large development as $560 million for Vought Aircraft Industries Inc.'s parts plant in North Charleston, $175 million for a Walgreens distribution center in Anderson County, and a $200 million expansion of a Kimberly-Clark tissue products plant in Aiken.

Myrtle Beach also got a share of new industry this year, with AvCraft Aviation moving into new quarters at the former Air Force base in the spring. The company has about 40 employees working on outfitting and painting jets assembled by the company elsewhere and expects to employ almost 300 within five years.

The reason for the state's economic development success for the year? Commerce Secretary Bob Faith attributes it to an improving economy, and that certainly is a large factor.

But it seems more likely that changes made in the Commerce Department in the past few years have made the department more efficient and thus able to respond more quickly when industry expresses an interest in the state.

A spokesman for Sanford said the department has cut staff by 25 percent and replaced its 14 divisions with four. That streamlining has made the once unwieldy bureaucracy a bit easier to maneuver.

Another plus is that less of the agency's business is being done in the dark, although details of economic development deals still aren't revealed until after the deal is sealed.

A bill Sanford signed into law in 2003 was a huge improvement over previous law, which allowed the Commerce Department to hide for years the publicly financed incentives that were being offered to prospective companies.

The secrecy surrounding the Commerce Department under the old law led to serious abuses. For example, former Commerce Secretary Charlie Way asked businesses to contribute money to supplement the salary of his chief of staff; money from a business-recruiting fund was being used to pay for maid service for Way's apartment; and state funds were used for golf tournaments for personal friends of department officials.

When Sanford campaigned for governor, he vowed to bring some of the department's excesses under control, and he and Faith have made positive steps toward doing so.

Yes, an improved economy certainly makes success more likely for those charged with bringing about economic development, but the agency these days also seems to be more intent on serving the people of the state.

Faith says the department's goal for 2005 is $1.7 billion in investments and 11,000 jobs. We hope that goal is met and perhaps even exceeded. A new mind-set at the agency is benefiting all of us in the Palmetto State.





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