Simpson Column: No competition

Prince William County needs to stop competing with private enterprise. It is time that golf courses, as well as other forms of entertainment, are taken out of the government arena.

In a News & Messenger article from June 9, 2008, citizens were provided some disappointing information on government owned golf courses: “Forest Greens reportedly collected $1.07 million in fiscal 2008
revenues so far. Of that, $900,000 is set for expenses and $168,000 for operating costs. Another $435,000 will go toward servicing debt— leaving the course $267,000 in the red for net, according to a
summary from Ellington. After figuring for expenses, revenues and debt services, the county’s other golf courses, General Ridge and Prince William, are also in the red, by $504,000 and $20,000,
respectively.”

These numbers were updated on March 19, 2009 by another article stating: “The Park Authority oversees Forest Greens, General’s Ridge and Prince William golf courses, as well as SplashDown and
Waterworks water parks. Before figuring for debt service, operations recorded a gain of $631,000. But add in debt service of $721,000 and the fund balance for the five facilities drops into the red by $90,000, according to the latest park numbers.”

I would like to thank Ray Williams for forming the core of my position regarding golf courses. In my column on Sept. 25, titled “Tackling business and Smoketown Road,” I pointed out that incubator type

office space was hard to come by, and if available these small office spaces would be helpful in getting growing companies out of garages and basements and into a more professional environment. In
response to my call for what I believe to be an unsatisfied business opportunity, Mr. Williams posted an online comment on Sept. 28, stating: “If you feel the business model is profitable — that another 10
or 20 of “you” exist out there looking for space on Old Bridge Road as you describe — then put a business plan together, form a partnership or investment group and make it happen. If not, either the plan
is not viable or you’re not willing to take the risk …”

The same holds true for golf courses and other areas that the government should not be involved in: If there isn’t enough interest for private enterprises to risk start these businesses, then there is no
reason for the government to use taxpayer money to create such entities.

As Mr. Williams pointed out, if I am unable to find suitable small office space in Prince William County, I could “… move to Tyson’s Corner.” The same could be said of people interested in playing golf: If the discontinuation of taxpayer subsidies means that we are left with only one privately-owned golf course and golfers want more, simply go to where there are more.

Golf courses don’t only compete with other golf courses. When someone spends money on golf equipment or services, there are other businesses that do not get patronized. I am not ignoring the fact that tournaments held at Prince William Government golf courses have the potential to bring in tax revenue for other industries. The growth of smaller businesses with space to move from home offices to larger commercial space would likewise mean an increase in tax revenues, but this fact does not change the principle that government has no legitimate right competing with private industry.

Many problems exist with the government getting into competition with independent businesses. It has several advantages that the private sector doesn’t. To begin with, when a private company can’t make enough money to survive, it goes out of business. If the government can’t make enough to survive it simply takes more from its citizens. This is at the local level of course — at the federal level government just prints its own money, which simply weakens the buying power of everyone’s money; but I digress.

Additionally, if increasing taxes doesn’t give the government enough of an advantage over private competitors, it can simply change laws to tilt the advantage in its favor. I’m not saying this is what is happening in Prince William, but it can happen, just as it has happened in other cases.

So here is the core of the issue. If there is enough interest in golf courses to generate a profit, why is the government stepping in to compete with private industry? And if there isn’t enough interest, and golf courses are losing money (as they have been), why is the government subsidizing them with taxpayer funds?

James Simpson lives in Lake Ridge.