March 22, 2007 02:46 PM UTC

John Morse Defends Anti-Predatory HB-1208 Stance [edit]

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• by: Zappatero

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It’s called predatory pricing. It allows the WalMarts of the world to take a loss on gas and run gas-only businesses to the ground. They do the same thing with gardening shops, grocers, and auto repair. Next thing you know your town has lost 20 businesses and all the profits are going to Bentonville, AK.

Many Republicans think this is fair and legal. From Senator John Morse – in the Gazette who never met a WalMart that they didn’t like:

Morse defends stance on gas-gouging measure

There has been quite a bit written recently about HB-1208, the bill that would limit Colorado’s Fair Practices Act and permit grocery stores to sell gas to their customers below cost. I oppose granting permission to large companies to sell some of their products below cost because I do not think that is fair competition. Smaller companies cannot compete if they have to sell their product below cost to keep up with the large corporations. As this debate has unfolded, more and more people are realizing that HB-1208 will not result in lower gas prices as some have suggested.

Readers saw in a recent letter to the editor that the National Federation of Independent Businesses supported HB-1208 (“Bill allows retailers to lower prices to consumers,” Letters March 18). Not anymore. After this bill left the House and before it entered the Senate, the organization sent a letter to every senator saying, in part, “It is the belief of NFIB that HB-1208 is raising more unanswered questions and possibly could allow predatory pricing within an industry. . . . Pending further developments . . . NFIB can no longer support HB-1208.” I received this letter prior to debate on the Senate floor and was more than happy to defend small businesses in Colorado.

This issue is being sold as a benefit to consumers. That is false. Consumers do not benefit when smaller companies are run out of business. When only the large companies are left, we have less competition and with that we get higher prices.

California has already experienced price gouging. Gasoline should be far cheaper in California than it is in Colorado since they make their gasoline and don’t have to ship it as far. In addition, their gasoline taxes are cheaper than ours (18 cents per gallon compared to ours at 22 cents). Unfortunately, they have driven most of the independent gas sellers out of their market. So while our average price per gallon during the week of March 19, was $2.52, theirs was $3.08.

Supporters of HB-1208 are trying to tell you that a 10-cent-per-gallon discount is great and that I am an idiot. I am trying to fight to make sure they don’t work to raise the price by 60 cents per gallon and give you that same 10-cent discount, costing you another $8 or more every time you fill your tank.

Many of you voted for me because you knew I was not a standard politician. You know when the pressure is on I will stand up for the right thing, no matter the consequences. I am honored by your trust. The large retailers are currently working overtime to convince you that I am wrong and a small discount today is worth higher gas prices tomorrow. They tried to sell this snake oil to the wrong freshman senator. I won’t stand by idly while my constituents are duped into paying higher gas prices for an illegal discount today. The Colorado Fair Practices Act is just that and I won’t let it die without a fight.

Sen. John Morse
District 11
Colorado Springs

Sounds reasonable to me. We can’t all work – or shop – at WalMart. The Chinese will own us sooner than you can say chop suey.

edit: “From Senator John Morse in the Gazette – who never met a WalMart that he didn’t like.”

to:

From Senator John Morse – in the Gazette who never met a WalMart that they didn’t like