Monday, May 21, 2012

Car Inspection Transfers

Here is an interesting no unfortunate policy in North Carolina.  In North Carolina, new auto owners are required to have their car inspected for safety and emission regulations, even though they rarely fail inspection.  A bill entered the North Carolina House Transportation Appropriations Subcommittee to eliminate this for the first three years, but was defeated in committee.  Why?  Because it might hurt the garages that service those vehicles.  Here is the statement from the article: 

"Sen. Jerry W. Tillman, a Randolph County Republican, protested that the measure would hurt garages, tire dealers and inspection stations – whose trade associations had lobbyists in attendance at the crowded meeting room.  “'I know a lot of people who do this, and they sell some gas on the side, but most of their profit comes from these inspections,” Tillman said. “We have 7,500 small businesses that do these inspections.'”

Yes, but what about the $28 per vehicle that you are taking away from consumers of new vehicles?  To me this is a transfer.  The North Carolina state government has decided to take $28 from new auto owners (who do not need the service) and give part to the auto inspection firms and keep part for themselves; think of it as welfare for auto garages.

Read more here: http://www.newsobserver.com/2012/05/17/2068164/car-inspection-industry-squelches.html#storylink=cpy

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