State purchasing policies

Legislators spend most of their time debating where to spend state tax dollars and how much to spend. A bill recently supported 7-6 by the State and Local Government Committee could also have them consider how well. LD 2461 raises the reasonable issue of what sort of businesses should receive the state’s considerable revenues. Just like the standards lawmakers have approved for certain tax benefits, this bill asks that Maine consider spending its money with companies that act responsibly.

The legislation properly goes slowly in pressing for these changes, requesting merely that a commission be established to study purchasing policies and consider making recommendations that might take into account worker health and safety and layoffs made solely for economic gain. Though plenty of Maine businesses have been hurt by overseas sweatshop labor, the proposal is relatively new and lawmakers need to hear from anyone who may be affected by the bill.

Maine cities such as Biddeford and Bangor recently have adopted ethical standards for purchases, and while it is too soon to know what effect the standards are having, they are more likely to favor products made in Maine. That’s because manufacturers here have better working conditions than many other places worldwide. Rewarding local firms for good business practices, it needs barely be said, is in the state’s interest.

It remains to be seen, however, whether the Supreme Court will be as enthusiastic. The court is expected to rule on two related cases that test a state’s ability to set policies that could affect foreign trade. Maine has a particular interest in a case that involves the state of Washington, which set environmental and safety standards for ships entering its harbor, with a particular concern for oil tankers. Maine is considering similar rules. The tanker lobby and a two dozen nations argue that ship owners cannot be expected to follow a different set of rules for every state in which they do business and that the federal government should be the sole authority in this issue.

Similarly, Massachusetts, unhappy with the repressive government in Burma, wanted to deny state business to companies that operate there. The court will decide whether Massachusetts can set this level of foreign policy. Because it merely establishes a commission, LD 2461 isn’t directly affected by these cases, but anything such a commission would propose might be.

Nevertheless, lawmakers should support the measure to at least have the state review its purchasing policies to see where its money is going. It can decide later what to do with the information.