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. |