From the Archives: Delegate Steve Landes is 'keeping an open mind' on Governor McDonnell's ABC privatization plan

Delegate Steve Landes is 'keeping an open mind' on Governor McDonnell's ABC privatization plan
August 29, 2010 12:08 PM MST

Governor Bob McDonnell’s proposal to privatize Virginia’s state-owned liquor stores “has some possibilities,” said Delegate Steve Landes (R-25) after a town-hall meeting on government reform in Harrisonburg on August 26.

Landes, whose district includes parts of Albemarle, Augusta, and Rockingham counties, as well as the city of Waynesboro, added that “at this point” he is “keeping an open mind.” He wants to talk to his constituents to find out what they like and don’t like about the plan.

Delegate Landes spoke to the Charlottesville Libertarian Examiner on the campus of James Madison University as the crowd dispersed from the governor's town hall. State Senator Mark Obenshain and Delegate Dickie Bell were also interviewed that night.

‘Public safety concerns’
The governor, he said, had “addressed a lot of the public safety concerns” but as a member of the House Appropriations Committee, one of his main concerns is “how is the revenue going to work, where would that go, how are we going to offset what could be a reduction” in the money the state takes in from liquor sales. Landes also expressed concern about what would happen to the portion of ABC profits that goes to local governments.

Asked if he has a sense of what his colleagues in the legislature are thinking about ABC privatization, Landes replied:

“Most of the people I’ve talked to are just like I am, trying to get information, trying to find out what the proposals are, [and] what the governor may be proposing.”

Once the government releases “his formal proposal,” Landes said, “we’ll all be looking at that.”

‘Devil’s in the details’
As a member of the General Assembly for the last 16 years, Landes explained, he has “found that the devil’s always in the details, so you need to see the bill, you need to see what it says, and where the dollars are going to go, how the franchise sales would be, who would be eligible, whether you’re talking about small business people or just larger corporations, chain stores, and the like. All those details would have to be looked at before I could say whether I’m in favor or against it.”

Regarding the question of whether privatization of the ABC system is a “matter of principle,” Landes pointed to his support of the private sector and free enterprise over the years, adding that “there is a good argument from the standpoint of, ‘we don’t control beer and wine [so] why is the state in the business of’” selling distilled spirits?

Noting the current economic climate, Landes went on, “If the economy was really good, it would be an easier decision for me, because we’re not looking at what the revenue picture is, where the dollars are coming from, where they’re going to go.”

The issue would be easier for him to decide, he said, because as a member of the Appropriations Committee, “I think you have to look at making sure that the dollars are going to match up and that projections would be there to offset what the state might lose from the standpoint of sales and what we might obtain from the standpoint of tax revenue.”

Publisher's note: This article was originally published on Examiner.com on August 29, 2010. The Examiner.com publishing platform was discontinued July 1, 2016, and its web site went dark on or about July 10, 2016.  I am republishing this piece in an effort to preserve it and all my other contributions to Examiner.com since April 6, 2010. It is reposted here without most of the internal links that were in the original.

From the Archives: State Senator Mark Obenshain on Virginia liquor privatization: 'I was for it before it was cool'

State Senator Mark Obenshain on Virginia liquor privatization: 'I was for it before it was cool'
August 27, 2010 10:37 AM MST

A member of Governor Bob McDonnell’s Commission on Government Reform and Restructuring, state Senator Mark Obenshain of Harrisonburg says “I was for it before it was cool” when asked what he thinks about the governor’s proposals to privatize the Commonwealth’s monopoly on the sale of distilled spirits.

ABC privatization was a central topic of discussion when Governor McDonnell held a town hall meeting on the campus of James Madison University on August 26, and Senator Obenshain took a few minutes with the Charlottesville Libertarian Examiner to explain his support for the proposals.

“I’ve been pushing ABC privatization for several years,” said Obenshain, “and I was delighted last year when the Governor announced that he was going to include that as part of his transportation agenda. I’ve been working very closely with the administration, I’m fully on board as a member of the team, and I look forward to seeing it pushed through to fruition.”

‘Government’s essential mission’
Obenshain became involved in this issue, he said, because “I’ve always been a free-market guy. I believe in reform. I believe in prioritizing and figuring out what government’s essential mission is, and what it’s not.”

Speaking “frankly,” Obenshain added, “running a monopoly [and] running a statewide retail operation is something that state government really has no business being in. They’ve got to get out. We’re now 76 years post-Prohibition. Notwithstanding the fact that Virginia is a tradition-bound state -- which I love about Virginia -- it is about time for us to enter the post-Prohibition era.”

Asked what his colleagues in the state Senate are thinking about ABC privatization, Obenshain replied:

“I think a lot of them are keeping their powder dry,” because they have two major concerns.

“Number one, can it be done in an economically responsible way, and number two, can it be done in a socially responsible way?”

‘Crafting his proposal’
Obenshain explained that “the governor is crafting his proposal in a way that both of those questions can be answered in the affirmative. We can do it without losing the revenue stream that’s generated through our public ABC store operation and we can do it in a way that doesn’t endanger the public health [or] public safety.”

Addressing the worries of many who question the ABC privatization idea, Obenshain offered these assurances:

“It doesn’t put a liquor store on every corner. It preserves the right of localities and local governments and community organizations to express their support or opposition to proposed locations for licensees.”

He added that privatization “can be done in a way that satisfies the concerns of those who are on the fence.”

Obenshain conceded that there will be “people who are going to stake out a position in opposition to it,” including some “motivated by social reasons.”

‘Good idea for Virginia’
Identifying another set of opponents, the Harrisonburg senator suggested that some “are going to be opposed to it because it represents an infusion of capital into the transportation system. Their vision for solving the transportation problem is to raise taxes. As a consequence, anything that gets in the way of their effort to raise taxes is going to be something that they’re going to oppose.”

Obenshain summed up his views on ABC privatization by saying the governor’s proposals will “make good sense for Virginians.

“I would not support it if it was going to result in increased incidence of alcohol abuse,” he said, “or liquor stores on every corner or [become] a drain on the resources of the Commonwealth. I believe it can be done without any of that and I believe it’s a good idea for Virginia.”


Publisher's note: This article was originally published on Examiner.com on August 27, 2010. The Examiner.com publishing platform was discontinued July 1, 2016, and its web site went dark on or about July 10, 2016.  I am republishing this piece in an effort to preserve it and all my other contributions to Examiner.com since April 6, 2010. It is reposted here without most of the internal links that were in the original.