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FARMINGTON – Bureaucratic red tape, fees upon fees and inconsistent regulation were among the earful of complaints local legislators received from the business community at a forum held this morning on the problems of doing business in Maine.
Wood product managers, manufacturers and farmers told of permitting and licensing procedures critical to their businesses of either taking “forever” or, after much waiting, finding out more paperwork needed to be filed. Some told of ever-changing guidelines and serious inspection delays amounting to several weeks and months that resulted in revenue loss. Some said, in general, state employees were not sensitive nor supportive to the business owners’ needs as compared to other states.
The Legislative Listening Forum was held this morning at the University of Maine at Farmington to bring legislators and the business community together to discuss the issues affecting them in Maine. The forum was sponsored by the Greater Franklin Development Corporation, Western Mountains Alliance and the Franklin County Chamber of Commerce.
The state’s Land Use Regulation Commission and the Department of Environmental Protection was cited by some as among the culprits that are hindering business. Eric Dumond, procurement supervisor for Boralex, Inc., which runs biomass plants in Maine, told of waiting eight months for paperwork to be approved by DEP for expansion of the plants’ yards.
“We lost revenue,” Dumond said, “while we waited for a friggin’ piece of paper.”
Marc Connor, a mill manger at Verso Paper, said it’s cheaper and easier to do business at the company’s mills in Minnesota and Michigan than the two mills in Maine, at Jay and Bucksport.
“We can expand a mill for less in Minnesota,” Connor said. Two people work at the DEP in Minnesota and “the whole time they’re there to support us, asking ‘what can we do to help?'”
Conversely, in Maine, he said, that doesn’t happen here. ” Special interest groups are called into every permitting decision. An attorney has to be hired in Maine to represent the mill’s interest which costs more time and money. There’s more restriction in Maine, he said, for example in the mill’s case, with permitting for waste water discharge. And those waste water discharge limits are open to changes each year, which means the mill goes through the permitting process annually.
Municipalities discharge waste water but aren’t subject to the yearly process as the mill, someone added.
Steve Veilleux of Jarden Plastic Solutions in East Wilton, told of his battles with the state’s paperwork requirements that tend to take up too much of his time as he “gets bogged down with filling out forms,” he said. Jarden employs 200 people and manufactures 4.5 billion pieces of plastic cutlery. Seventy-five percent of his business goes to Wal-Mart.
He said labor issues include the job being a tough one and having to balance that with wages that try to compete with China.
“I can’t keep good people there,” Veilleux said. On the positive side, he is starting to see an upswing in business because their prices are more competitive with China. But, he said, he is continually fighting Maine’s restrictions and policies that are too strict.
Others cited competition from public assistance as being too competitive. One business owner said if 100 jobs opened up at the current entry level of $12 an hour plus a benefits package “we would have trouble filling those positions. Public assistance is our top competitor. They don’t want to work because they don’t have to.”
Petr Smetanka, vice president at Fontaine Group, Stratton Lumber, said entry level work at the mill starts at $40,000 a year. Even with a livable wage, it’s difficult to fill the positions needed. He related when a congressional delegation was touring the lumber mill and asked what they were looking for in a worker, a supervisor replied, “a pulse.”
One of the difficulties farmers are facing, said Fred Hardy, a Franklin County commissioner, dairy farmer and on the board of the Maine Dairy Association, is tax exemption uncertainty. Exemptions can vary from auditor to auditor.
“Why can’t there be a list of things that are tax exempt and those that aren’t?” Hardy said. “It’s a hell of a mess.”
Bob Neal, operator of The Turkey Farm, told of nitpicky things state inspectors have done that make running his business more difficult. One of his workers was cited for not wearing a hair restraint when working at the farm’s booth at the Fryeburg Fair.
“He’s bald,” Neal said. Another inspector told him a gas fitting he was using was illegal. They spent a day trying to find another fitting for the aging tank and a lot of worry they would be shut down only to be told later “well, maybe the fitting’s OK after all.” License fees are too high and paperwork has been messed up. Overall, Neal suggested reducing the size of the state’s workforce, noting that New Hampshire has thousands fewer state workers than Maine. “Too many are making judgments,” he said and that causes inconsistency.
Some business owners told of being very discouraged by all that’s required to run their business and feeling punished for trying.
Complicated state tax forms that require accountants and more expense, delays in response from the state were among the problems listed. Workers Compensation laws will only be more difficult as the population ages and the need to replace workers comes up with a state that keeps changing the rules.
“Companies base their budgets on the rules and regulations in place,” said Mike Luciano, the human resource manager at Verso Paper in Jay. “The state has to look at being friendlier to business.”
Thank God we’ve got people in Augusta now who might actually do something about it.
I would have LOVED to have been at this meeting !! I would LOVE to comment on our recent audit but haven’t had the final “assessment” yet…
The duties of citizens are (1) to follow the laws that apply to them, and (2) be well informed with what their employees (they work for us) are generating for other statutes and rules with the force of law generated by the bureaucrats. The legislature must , yes must, conduct their business in such a way that every citizen has a practical chance of knowing them. The bureaucratic rule makers must do the same. Transparency is a principle feature of the conduct of any legislature in a democracy. Severe thrift in legislation is also required in a democracy. We don’t get those.
The violations of these principles are reflected a bit in the text of the meeting. “Some told of ever-changing guidelines,” “those waste water discharge limits are open to changes each year,” “Complicated state tax forms that require accountants and more expense,” “Exemptions can vary from auditor to auditor.” “Why can’t there be a list of things that are tax exempt and those that aren’t?”
Go to the Maine State Law Library and have a gander at the MAINE REVISED STATUTES ANNOTATED, THE LAWS OF MAINE, THE CODE OF MAINE RULES, and the records of the decisions of the Maine Supreme Court. It will astound you! There are tens of thousands of pages of laws and rules that we, as citizens should know. This is impossible. One would have to be a cloistered monk to study them for year after year to both understand them and also keep up with them as they change so often. In the 122 legislature they passed about 700 statutes. How many of them do you know? How many apply directly to you? How many don’t?
Generally speaking, every new law or rule with the force of law is a restriction of someone’s or some institution’s or business’s freedoms. We are not in the land or the state of the free.
As another general rule, the more complex, changeable, or numerous the laws and rules with the force of law are, the lower the compliance and the deeper in the dark are the citizens. But we should not be in the dark for we are in a democracy.
The Laws of Maine should be in a booklet one could keep in one’s pocket.
I wonder which legislators were present?
Franklin County Chamber of Commerce to Host “Red Tape Workshop”
Local Business Leaders to Develop Reform Suggestions for Incoming Governor Paul LePage
Tuesday, December 14 – 7:30 a.m. at The Granary, Pleasant St., Farmington (street entrance)
Farmington, Maine – The Franklin County Chamber of Commerce will be hosting a Red Tape Workshop to develop reform suggestions as part of incoming Governor Paul LePage’s Red Tape Removal Audit. Leaders of businesses of all sizes and industries are encouraged to attend and contribute to the process.
Governor-Elect LePage has asked Maine’s job creators to take part in his Red Tape Removal Audit. It is an effort to identify regulations, statutes or compliance issues that need to be reformed to achieve a better balance between quality of life and the need for good jobs for Mainers.
The Franklin County Chamber of Commerce Red Tape Workshop will take place at 7:30 a.m., Tuesday – December 14 at The Granary, Pleasant Street, Farmington (street entrance).
Locally developed suggestions will be presented to the Governor-Elect and his transition team. Copies will also be shared with area Legislators.
All action taken on reform proposals will take place in the light of day as part of the legislative and rule making process once the new Administration takes office on January 5, 2011. Proponents and opponents of reform will have equal opportunity to be part of the process.
The Franklin County Chamber of Commerce has invited members of the local Legislative Delegation to attend and extended an invitation to the LePage transition team.
The event is free and open to the public. Light refreshments provided by The Granary. RSVP encouraged, but not necessary to the Franklin County Chamber of Commerce 778-4215.
Same question as Bill Reid, who was there from Augusta?
For the most part, regulations on business, farm, fishing, logging – whatever – are to protect the greater good. Those enterprises should not be allowed to operate in a reckless manner endangering employees, the community or customers. I agree that the simpler regulations are, the better.
For example, you shall not dump toxic waste wherever you please simply because it’s cheaper to do it that way.
The problem is people are always looking for loopholes. Large corporations have staffs of attorneys with no other task. Industry groups supporting smaller enterprises have the same. The government employs lawyers to plug those loopholes. Industry lawyers counter and pretty soon there is a 500 page looselife binder that says you may not dump toxic waste willy nilly.
Shakespeare’s character Dick in Henry VI had it right though he wasn’t talking about business regulation – rather he spoke of the steps toward an insurrection.
For those who assume that most business people will place the common good ahead of the 90 day net, I ask you to look back a few months to the greed on Wall St.
I would hope that what comes out of all the talk is simplification – not deregulation. I fear that will not be the thrust.
Editor’s note: Legislators attending the forum were: State Reps. Russell Black (R-Wilton), Lance Harvell (R-Farmington), Paul Gilbert (D-Jay), Gary Knight (R-Livermore Falls); state Sens. Tom Saviello (R-Wilton), Garrett Mason (R-Lisbon Falls) and communications director for Gov.-elect Paul LePage, Dan Demeritt.
We sell heavy construction equipment… We have been in business for over 35 years and have never ever had to prove that WE DELIVERED a unit out-of-state in previous audits in order that it would be considered EXEMPT from sales tax as long as we could prove it was an out-of-sale customer ( i.e. Sworn affidavit signed, copy of driver’s license, copy of out-of-state check/bank wire transfer, broker paperwork at the border, Canadian drafts, pictures of the equipment on an out-of-state truck leaving our yard, etc.)….
Well, we had all that we needed and more to prove we were dealing with out-of-staters but the Maine Revenue auditors just tend to make up laws as they go along… They decided that if we didn’t DELIVER THE EQUIPMENT OURSELVES or HIRE A 3rd party trucker and be able to PROVE THAT WE PAID FOR THE TRUCKNG, then it was taxable.. They demanded sales tax on $ 480,000 sales in this audit period… Total b.s………( We requested a copy of the law that showed that WE had to deliver the equipment and they sent us 730 pages of the law) .
The issue fast became a TRUCKING ISSUE instead of an out-of-state exemption issue. We were NEVER given any laws when we registered as an equipment dealer that stated we had to deliver the equipment out of the state of Maine ourselves. Nor have we ever had to prove in previous audits that we did. Our customers are contractors who own transport equipment and can move it at a cost much cheaper than we can hire it. However, the State ruled that they are not permitted to remove their own equipment from our yard after they purchase it if it is to be sales tax exempt.
Also we were never told we were using wrong exemption certificates when we submitted them monthly with our Sales tax report. If we proved we paid 50% of the trucking, it wasn’t allowed.. If we proved we sent a truck to the border to deliver it to another trucker from NH, it wasn’t allowed…. Canadian paperwork (border crossing), Canadian draft, Canadian license, sworn affidavit, pictures of the Canadian trucker leaving the yard with the equipment on it, etc etc …. NO GOOD…
This is just one of the issues we have had with the State of Maine lately!! I really don’t see how we were “operate in a reckless manner endangering employees, the community or customers in any way…”
We collect thousands of dollars in sales tax for the State of Maine. Now is not the time to start harassing businesses and consequently push them to close their doors. They will see fast how much less they could be getting, out-of-state sales or not !!
i say vote one individual in to office expose the corruption and moneys wasted in the maine state goverment, with the authority to eliminate stupid wasteful officals and programs, and as far as unemployment .it should layoff the goverment people first,,,, second state workers second,,, this should apply in every state, if they can run a state that creates jobs,hand them a pink slip, thats how its done in the private sector,, i dertainly could run a company the way there running the state,, what a bunch of dummies we got in office,and it s not just in maine its the same most every where,,,
The revenue agents make up the rules. They come in and claim to take representative samples, present a demand without any basis in fact or law (ie, guilty until proven innocent), and the taxpayer is left to expend enormous time and money to prove they made the correct taxing decision. You only see how they have manipulated the sample if you paid attention in statistics class 56 years ago in college. Even when you confront them that their sample cannot be statistically sound, they will not back off their demand. Then you have to hire “consultants” to pour through tens of thousands of transactions to find offsetting transactions in your own, stastically invalid sample to mitigate the assessment to the extent possible. They never leave without an assessment, regardless of how well you have complied with the law. A total sham and everyone at the revenue department should be fired en masse.
Also,some posts show a lack of understanding of our regulatory process and how it is unfair and not based on sound science. A simple example is phosphorus limits placed on paper mills. Phosphorus results in algae growth on our rivers. Evidence shows that the great majority of phosphorus in our waterways comes from agricultural activities. Paper mills put a very small minority of the phosphorus in the rivers. According to DEP’s own staff, if all paper mills completely eliminated all phosphorus emitted, it would not make a noticible impact on our rivers. Since farms are considered “non-point” sources, they are not regulated for phosphorus. What does Maine do? Continue to demand the paper mills put out less phosphorus, at great expense and threat to survival, rather than attempt to address the politically unpopular real problem. Agriculture. Where is the sanity in this?
It’s great to see that this discussion is even taking place. I wish it would have happened five years ago. Maybe I’d still be in Maine rather than a displaced mill worker who had to uproot everything and leave the state for work.