THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, December 15, 1994 TAG: 9412150412
SECTION: LOCAL PAGE: B8 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium: 56 lines
Gov. George F. Allen and his transportation secretary announced a long-range transportation plan Wednesday that calls for deregulating auto dealers and privatizing road construction.
The Virginia Connections plan, the brainchild of Secretary of Transportation Robert Martinez, reflects Allen's wish to turn over many public services to the private sector. Allen wants to cut regulation of trucking, rail service and auto dealerships.
Consumer advocates say the deregulation measures are bad for Virginians, but Allen was unapologetic for putting business interests first.
The plan is ``pro-economic development, pro-enterprise, pro-deregulation, and pro-privatization,'' Allen said at a meeting of the Commonwealth Transportation Board.
The plan calls for no increase to the state budget and no added workers. Allen also said the state has $86 million it will channel into new highway construction from higher-than-projected revenue from used- and new-car sales and gasoline sales.
One of the highlights of the plan is promoting the Virginia Public-Private Transportation Act of 1995, which would allow the state to attract private money for transportation facilities.
Del. George Grayson, D-Williamsburg and a member of the House Roads Committee, said legislators should consider some privatization as an important alternative when the state becomes strapped for funds.
``This is a prime area where the private sector can play a vital role,'' he said. ``I have yet to hear of the drawbacks.''
The plan also calls for supporting legislation in the upcoming General Assembly session that would transfer some regulation of car dealerships from the Department of Motor Vehicles to a professional board, made mostly of dealers.
Martinez said the plan would attack cumbersome regulations - such as how big showrooms are, and whether the hours of operation are posted - but would not affect the state's lemon laws or odometer-tampering laws.
``This has nothing to do with deregulating safety,'' he said.
Consumer activists, however, say the measures are dangerous for consumers.
``We're really concerned about the appropriateness of allowing the licensees to regulate themselves,'' said Jean Ann Fox, president of the Virginia Citizens Consumer Council. ``It is not that there are too many, it's that there are not enough.''
Martinez said the plan was developed after eight public forums were held around the state. by CNB