Small manufacturers back gas-tax hike; big ones quiet on solutions

Small manufacturers want South Carolina roads repaired and improved, even if it means additional taxes, but major industry leaders who are equally concerned offered no specific solutions Wednesday.

“I’m probably the last person to say we need to raise taxes on something, but the point of government is to provide a service to the citizens, and we’ve got to have infrastructure for the roads – that’s one of the things government does for us,” said Paul Norris, a Charleston engineer and entrepreneur who attended the S.C. Manufacturing Conference and Expo.

Roads and the way the state calculates fuel taxes are antiquated, said Norris, who was in trucking, utilities, owned several businesses and now runs a social media website, Rubeyes. South Carolina must have a higher revenue stream to meet the demand.

As do others attending the two-day meeting in Greenville this week, Norris favors a higher fuel tax and/or fees on heavy trucks that use the state highway system.

State leaders have been contemplating for almost two years a projected $1.5 billion annual solution. But the answer remains knotted in a tussle between the Legislature and the governor as this session winds down.

On Wednesday, the House approved a bill that would generate more than $400 million more yearly for road and bridge improvements. A 67-vote margin of support might show there is sufficient backing to override a threatened veto by Gov. Nikki Haley.

If one thing was clear at the conference, nobody denies the problem stares their livelihoods squarely in the face.

The roads debate intensified last year when leading tiremaker Michelin’s CEO and president Pete Selleck called the state’s roads “a disgrace.” He hinted that failure to address the issue could affect the company’s future plans in the state.

Selleck was the final keynote speaker at the conference that ended Wednesday. He did not address the issue during his speech. Afterward, he said he remains hopeful about a solution. But he did not espouse any.

“Certainly nothing has changed since the (original) comments were made,” Selleck said. “It’s a great opportunity right now – these opportunities don’t come along very often.”

Alfred Haas, BMW material and transportation control, delivery assurance department manager at the Greer plant, said: “I feel the subject is being addressed. It just needs to be solved – in the near future.”

Working through the S.C Inland Port, about five miles from the BMW plant, Haas said his company puts trucks on trains for shipment south to the port of Charleston, which reduces wear and tear on the state’s roads.

Kenneth McGuire, a manufacturing consultant in South Yarmouth, Mass., who is preparing to move his business to Bluffton in the Lowcountry, noted how much cheaper gas is here.

“I cannot believe it,” McGuire said of the $2.04 price here. “I haven’t seen gas under $2.75 in Massachusetts in six months.” While Massachusetts has road problems, too, the 70-cent difference in price shows up on roadways.

“Yes, you ought to increase your taxes – sorry,” McGuire said. “I know that’s not something people want to talk about. But somebody’s got to do something for these roads.”

This story was originally published April 15, 2015 at 8:54 PM with the headline "Small manufacturers back gas-tax hike; big ones quiet on solutions."