INDUSTRY NEWS
May 1998

 

Hertzke Takes Reins of Power at Winnebago

winnebago.gif (37809 bytes) During a recent Winnebago party the company celebrated three things: wishing Fred Dohrmann best wishes in his retirement, congratulating Bruce Hertzke on his new position as chairman and chief executive officer and celebrating Winnebago Industries, Inc.'s 40th anniversary. Shown above is Dohrmann (right) as he turns over the reins, as chairman and chief executive officer to Bruce Hertzke.

Dohrmann said, "We want to celebrate with our fine employees and the community during this very exciting time. I've been truly blessed to have worked in this fine organization since 1974. Now is an excellent time for me to turn over the reins of the organization to Bruce Hertzke and an experienced management team. Record revenues, a strong balance sheet, no long term debt and a very exciting motor home lineup make 1998 a very exhilarating and prosperous year for us. I will continue to be involved with Winnebago Industries as I serve on the board of directors and as I start my retirement travels in my new Winnebago Minnie motor home."

Washington KOA Owners Named 1997 "KOA Franchisee of the Year"

The Martin family -- Danny, Shirley, Marty and Eddie -- of Lynden KOA, in Washington was honored at the 1997 KOA International Conven-tion in Palm Springs, CA., with the presentation of the KOA system's highest honor, the KOA Franchisee of the Year award.

Also, in November of last year, the Martin family marked the l8th anniversary of signing their franchise agreement with KOA. During those years, the Martins have invested a significant amount of time and energy into their campground and, today, Lynden KOA is five times larger than when it first opened.

St. Louis RV Show Attendance Bolstered By Boomers

The St. Louis RV Camping & Travel Show joined other RV Shows around the nation in reporting an increase in attendance. It is estimated that 19,500 RV enthusiasts visited the four-day show in March. According to Glenn Thomas, show chairman, this represents nearly a six-percent increase from last year. He said, "A large number of families were reported showing first-time interest in the nearly 400 RVs at the show and the RV lifestyle. According to show manager Steve Lengyel, the 12 participating RV dealers and booth exhibitors were happy with the influx of new customers. A number of dealers reported record sales with much activity also occurring on the dealers' lots in the days following the show.

Thomas said, "There was a lot of good interest from first time buyers, especially among families. The Go RVing campaign is really stirring up business from first-time buyers that range from retirees to young families. Seeing the families gives us hope for the future."

The 1999 St. Louis RV Camping & Travel Show will be January 14-17 at the St. Louis Convention Center.

RV Rental Association Forecasts Another Strong Year

RV rental companies are optimistic about the outlook for motorhome and travel trailer rentals this year. According to a new survey of RV Rental Association (RVRA) members, RV rentals are expected to rise 24 percent in 1998.

To keep pace with the growing number of people renting RVs this summer, the average RV rental fleet size is forecast to jump an average of 11 percent. This is good news for RV rental customers who will have a larger selection of RVs to choose from this year.

Type C (mini-motorhomes) continue to be the most popular type of rental RV, followed by Type A motorhomes, and towables.

Bert Alanko, chairman of RVRA, said, "The results of the RVRA rental survey confirm that the RV rental business is one of the most vibrant sectors of the RV industry. The vast majority of rental companies are looking forward to a prosperous and profitable 1998."

What should prove to be a great year for RV rentals is also reflected in the number of miles traveled in a rented RV. Rental companies expect a 16 percent increase in total mileage. Total number of days spent in a rented RV is expected to climb 12 percent. Some other findings of note are that 84 percent of RV rental companies now rent for more than 10 months a year and RV rentals by foreign visitors are expected to make up 11 percent of all North America. (Also See Related Story on Page 16.)

Sherrard RV & KOA Provides Wish for Child Diagnosed with Leukemia

RV News has learned that Sherrard RV & KOA in Colbert, OK, helped make a Christmas dream come true for 11-year-old Ron Barry who was diagnosed with terminal leukemia. According to Dale Pugh, Sherrard president and general manager, Ron, whose family is a member of the Choctaw Nation of Oklahoma Indian Tribe, wanted to go to a Dallas Cowboys football game. His Christmas wish was granted.

Ron, his father, mother and sister, attended the Cowboys' final game of the season against the New York Giants at Texas Stadium in Irving, TX.

To make the day was even more memorable, Sherrard RV & KOA provided the family with a 1998 Monaco Windsor Diesel Motorhome, plus a chauffeur to take the family to the game. Sherrard even stocked the RV's refrigerator with sandwiches and soft drinks. Pugh and the Choctaw Nation of Oklahoma Indian Tribe paid for the tickets and Wal-Mart provided the family with Cowboys' clothing for the game.

"I guarantee you there wasn't a more appreciative fan at Texas Stadium that Sunday than young Ron Barry," Pugh said.

Coachmen RV Hosts Annual Dealer Council

Coachmen RV Co. hosted its annual Dealer Council at the company's Middlebury, IN, headquarters in March. Nine representatives from Coachmen dealers from around the country together with a team of Coachmen management officials analyzed just-completed dealer satisfaction surveys. The group also reviewed recent product improvements for the 1998 models that have been added since those models were introduced last summer. Proposed 1999 improvements as well as potential floor plan changes and new model plans were also discussed during the two-day meeting. The Dealer Council is made up of owners or general managers of 12 Coachmen dealers but due to inclement weather only nine dealers were able to attend.

Canopy Country RV Center Gets New Owner

V&R, Inc., became the new owners of Canopy Country RV Center, Yakima, WA. V&R president is former sales manager, Craig Carroll.

Carroll said that Canopy Country RV Center will continue to operate as before under the same name.

Coast Sets Dates For 1999 Buyer's Show

The Coast Distribution System's 1999 Dealer Advantage Buying Show will once again be at the MGM Grand in Las Vegas. Dates for the show are February 9-11, 1999.

According to Coast president Jeff Wanna-maker, one of the exciting highlights of Coast's 1999 Buying Show will be its move from the Grand Garden Arena to the MGM's new 300,000-square-foot conference center. Wannamaker said, "This state-of-the-art complex contains the latest technology in meeting facilities and is designed to provide both indoor and outdoor environments. With a beautiful exhibit hall of over 62,000 square-foot and the Premier Ballroom of close to 50,000 square-foot, the new MGM Grand Conference Center will allow Coast to expand its Buying Show and offer even more exciting opportunities to its customers."

Dometic Computers Ready For Year 2000

Moving closer to the new millennium makes many business people nervous. They may be ready for the transition to the year 2000, but their computers are not.

The Dometic Corporation is one company ahead of the game. Speaking of the company's efforts to amend computer programs, making them 2000 compatible, Sandra Smith, Dometic's director of information technology, said, "It is a large undertaking, but it needs to be done. We had three people devoted to it for six months."

Smith explained that the problem exists for programs that process dates and make date comparisons. Computer systems have historically identified a year by the last two digits only, assuming the first two digits to be 19. Therefore, when the year 2000 arrives and the last two digits roll over to 00, computers will think it is the year 1900.

Without correction, some programs will malfunction while others will process wrong information. Entire computer systems could crash.

To prevent this possibility, Dometic started early to remedy the situation. The company's entire enterprise-wide system (distribution, financial and manufacturing systems) is 2000 compatible, as well as its Dometic Partners in Communication Strategies (DPICS) system for customers and vendors.

Smith said, "The Year 2000 issue is no longer a threat to The Dometic Corporation."

Transamerica Launches Joint Inventory/Retail Finance Program For RV Industry

Transamerica Distribution Finance Corpora-tion (TDF) has introduced the "Power Up! Cash" program that allows RV dealers to earn a cash bonus on RV's that are inventory financed through TDF and retail financed through the "Power Up! Cash" program.

According to Dale Hill, vice president of TDF's Home and Recreational Vehicles Group, there are no wholesale or retail volume minimums required to receive the bonus, and no sign-up fees to qualify. The program pays dealers' accumulated bonuses monthly. It also offers competitive retail financing rates and contract funding within 24 hours.

"With the 'Power Up! Cash' program," Hill said, "dealers always receive the highest possible cash bonus because there are no minimum volume requirements. We want to provide our dealers with opportunities to increase their margins and close more sales. 'Power Up! Cash' not only gives dealers additional income, it also provides a competitive retail program to help dealers close more sales."

Deutsche Forms Consumer Finance Group To Serve RV Industry

Deutsche Financial Services (DFS) has established a new Consumer Finance Group (CFG) to serve the specialized needs of its RV customers. The new group will be based in Newport Beach, CA.

The CFG, which is under the direction of newly named group president, Roger Kirwan, will be working closely with DFS' Inventory Finance Group (IFG) to offer a complimentary product to RV manufacturers and dealers. The combination of the IFG's inventory programs and the CFG's retail programs provides DFS' customers with a "one-stop" financing alternative. In addition, DFS will continue offering value-added products such as extended warranty and service agreement programs.  

Kirwan said, "We're confident that our recreational vehicle customers will benefit greatly by consolidating their inventory and retail financing with one financial provider. Our goal is to provide our clients with a seamless and practical way of doing business."

1998 PRVCA Show Dates Announced

The Pennsylvania RV & Camping Association has announced the dates for it's annual Penn-sylvania RV & Camping Show. Trade only days will be September 8-9,1998, and the public days run from September 10 to 13. As always, the show will be at the State Farm Show Complex in Harrisburg, PA. The Life On Wheels RV Confer-ence which is being held in conjunction with the show will be September 7-10, at the Harrisburg Area Community College in Harrisburg. For more information, call 800-732-2226.

Winnebago Industries Declares Cash Dividend

The board of directors of Winnebago Indus-tries, Inc., (NYSE-:WGO) have declared a cash dividend of ten cents per share, payable on July 6, 1998 to shareholders of record as of June 5, 1998. The dividend and recent stock repurchase are indicators of the board's confidence in the company and its continued strength of the RV industry.

Bruce Hertzke, Winnebago's president and CEO, said, "Our 1998 products have been well received by our dealers and retail customers. Order backlog for motorhome production is currently running approximately 80 percent ahead of last year's orders at this time."

Transamerica Offers New On-Line Service to Streamline Financing Process

Transamerica Distribution Finance Corpora-tion (TDF) has introduced Dealer On-Line (DOL), a service designed to improve the convenience and accuracy of tracking and paying for financing services.

Dealer On-Line offers RV dealers on-line access to their TDF accounts, permitting them to make payments electronically or by check. The service allows dealers to view open invoices and pending approval amounts, as well as to check available credit lines and contact their TDF representative via e-mail with the click of a button.

KOA Honors Two Franchisees for 30 Years of Service

Art Peterson, Kampgrounds of America (KOA) Inc. president and CEO, speaking about the two KOA franchisee's honored recently for 30 years of service, said, "It takes a special type of person to successfully own and operate a campground, and a special dedication to do so over an extended period of time. This award represents three decades of commitment to their campgrounds and their camping guests, and their successful resolution of the many challenges encountered over those years."

The honorees were Missoula (MT) KOA franchisees Elmer and Marge Frame and their family, and the Gibbel family-James, John and Henry-of Lancaster/Reading KOA, PA. The awards were presented at the 1997 KOA International Con-vention in Palm Springs, CA.

SilverLeaf Introduces VMSII™ MultiCenter™ -- A Driver's Tool for RVers

SilverLeaf Electronics, Inc., a new company founded by Martin Perlot, formerly national marketing director for SMC Corporation, recently introduced VMSII™ MultiCenter™, an electronic monitoring system for motorhome engines and systems with a digital dash display.

In making the announcement Perlot said, "Electronics haven't fulfilled their promise to the RV industry. Electronic engines are now the standard in new motorhomes, but we're not getting everything we can from them. If an RV buyer is going to spend over a $100,000.00 for a new diesel pusher, he ought to be able to get every bit of value from that engine.

"These new engines can do a lot more than just push the coach down the road. With the VMSII™, we can tap into the engine ECM (Electronic Control Module) and get at the hidden features of these engines."

In addition to the sophisticated data from the engine, the VMSII™ can also estimate arrival time and track performance over a series of trips. It even has an alarm clock and calendar.

"It's a driver's assistant," Perlot explained. " It's just plain handy.

"Imagine having sixteen gauges in your dash, all digitally accurate, and including never- before-available features such as horsepower and torque output. The VMSII™ maintains constant communication with the engine, and analyzes the data to provide these advanced functions. Internally. The VMSII™ is a complete computer in its own right, allowing it to perform some advanced calculations while you're travelling. It shows the results graphically on a large vacuum-fluorescent display.

"You can actually watch your fuel economy change as you change speed or enter the hills. You can watch the horsepower output adjust as you shift. This is real information you can use to drive better."

The VMSII™ is available for the Caterpillar 3126 and C-12 engines. Development for other engines, including the Cummins series of electronic engines, is underway.

For more information call Martin Perlot, SilverLeaf Electronics, 888-741-0259, or visit the SilverLeaf web site at www.simply-smarter.com.

WDA Announces Program For Annual Summer Education Conference

WDA - The RV Aftermarket Association will hold it's 7th Annual Summer Education Confer-ence on June 14 - 16, 1998 in Boulder CO. According to Jim Stanley, WDA executive director, the Education Conference offers members an opportunity to attend two days of informative panel discussions and seminars. The conference continues in the series of superb educational opportunities WDA has afforded its' membership.

Stanley said, "The conference starts with Distribution Technology and Supplier partnering panel discussions featuring Karl Edmonds and Bradley Smith, both experts in this field with an impressive list of industry credentials.

"Following the panel discussions are seminars conducted by Skill Path. These seminars cover a wide range of topics including; Customer Service, Project Management, and Communi-cation. Unlike other type of educational programming, the most important feature of these seminars is the fact that members of all levels can gain valuable information from these seminars."

The Education Conference will finish with a tour of the Carefree of Colorado facility.

Alexander & Alexander Announces Name Change

Effective in April, 32-year-old Alexander & Alexander (A&A), a company offering RV insurance changed its name to RV Alliance America after a recent merger with Aon Corporation.

The RV Alliance America (RVAA) program was unveiled as the result of two of the world's most successful insurance brokers combining forces. Brock Benn, senior vice president of A&A stated, "We hated to lose the name since it was so well recognized within the RV industry, but with the merger we had no choice. The Alexander & Alexander RV program now becomes a division of Affinity Insurance Services of Washington, Inc., and will be marketed under the RV Alliance America name." As the new RVAA name is rolled out, a new company logo well be revealed as well.

Benn also noted, "For our RV insurance customers, the merger will result in a number of positive changes. These include an increase in our sales and service staff as well as improved telephone and systems technology - all aimed at improving the level of service to our customers. I want to assure our RV customers that this is a name change only, and will not result in changes of insurance companies. Under the new organization, we will also continue our close working relationship with RV clubs, manufacturers and dealers."

As of January 1998, the RVAA sales and service center, formerly located in Detroit, was relocated to Bellevue, WA. The new sales and service center can be reached at 800-521-2942.

SMC Corporation Announces Preliminary First Quarter Results

SMC Corporation (Nasdaq: SMCC) reports that while it continues to be profitable, it expects revenues and earnings for the first quarter to be below analyst estimates.

The shortfall was due to lower attendance at the company's winter shows due to inclement weather and the continued shortage of Allison medium-duty transmissions.

Mat Perlot, president and chief executive officer of SMC Corporation, said, "We believe that the slowdown in first quarter sales reflects weather-related attendance problems at our winter shows in California, Florida and New Mexico. Histori-cally, these shows are well attended but this year cooler temperatures and rain significantly reduced participation. In addition, we are still receiving the Allison medium-duty transmissions on an allocation basis.''

Cummins Natural Gas Engines Sales Continue To Grow

Cummins Engine Co. Inc. says that the 1997 sales of its natural gas engines increased by 32 percent. With higher horsepower ratings and ultra-low emissions-certified products now available, the 1998 sales forecast is even stronger. Cummins three natural gas engines offer a total of eight ratings from 150 -300 horsepower.

The natural gas engine penetration of the North America urban bus market (school/shu  ttle/transit) is continuing at a steady growth. Interest in alternative fuels is also increasing for the North American urban truck, and international truck and bus applications.

In late 1997 Cummins released the industry's first dedicated heavy-duty propane gas (lpg) engine. The first low emissions certified B5.9LPG engines are powering shuttle buses and propane delivery trucks. Including the one quarter of 1997 B5.9LPG production, Cummins alternative fuel engines sales increased by 38 percent.

Rexhall Industries Reports Fourth Quarter and Year-End Results

Rexhall Industries Inc. (Nasdaq:REXL) announ-ced that for the fiscal year ended Dec. 31, 1997, the company lost 67 cents a share on revenues of $63 million, compared with a return of 45 cents a share on revenues of $65 million for the same period in 1996.

The net loss before tax benefit for the year ended Dec. 31, 1997, was $2.9 million, as compared with net income before taxes of $2.1 million in 1996. This loss is due principally to the aforementioned nonrecurring charges reflected in the restructuring operations and the settlement of the class-action lawsuit.

Revenues at the California facility increased from $45,524,000 to $52,320,000, an increase of 14.9 percent, from 1996 to 1997. The closure of the Elkhart production was done in conjunction with an expansion at the Lancaster facility to accommodate the anticipated production in-crease at the California plant.

Winnebago Reports Record Revenues for the Second Quarter and First Six Months

Winnebago Industries, Inc., reported record revenues for the second quarter and first six months of fiscal 1998. Revenues for the quarter ended February 28, 1998, were $118.7 million, compared to revenues of $105.7 million for the second quarter last year. Net income for the quarter was $4.4 million, or 18 cents a share, a dramatic increase compared with a net loss of $3.7 million, or 15 cents a share, for the same period last year.

For the first six months of fiscal 1998, the company reported revenues of $244.6 million with net income of $9.7 million, or 39 cents a share. In comparison, the company had revenues of $219.6 million with net income of $15.5 million, or 61 cents a share for the first six months last year. This included a gain of $16.5 million, or 65 cents a share from the sale of the company's Cycle-Sat, Inc. subsidiary. Continuing operations for the first six months of fiscal 1997 resulted in a net loss of $968,000, or four cents a share.

Holiday RV Superstores Promotes Students in Free Enterprise

Students in Free Enterprise, or SIFE, is a Springfield, Missouri based non-profit association committed to promoting an inter-collegiate level free-enterprise competition.

Holiday RV Superstores president, Newton C. Kindlund, was chosen as one of this year's judges at the SIFE regional contest in Clearwater Beach, FL, in April.

Kindlund said, "This competition is all about students getting other people to really understand how free enterprise works. Quite frankly, I was amazed at the quality and depth of this year's collegiate level field of contestants. Our company is proud to be able to play a role in the success of this year's event."

New Hampshire Campground/RV Park Association Executive Director Honored

Ronald Brown, executive director the New Hampshire Campground Owners 'Association's was the recipient of the Northeast Campground Owners Association's most prestigious award, the Curtis Fuller Award for Service, named after the founder and publisher of Woodall's.

The award was presented at the annual meeting of the Northeast Campground Association held in Sturbridge, MA.

In making the presentation Bruce Potter, president of the New Hampshire Association, and Paul Peterson, president of the Northeast Association commended Brown for his outstanding contributions not only to furthering camping in New Hampshire, but throughout the Northeast.

RVIA Chairman Kelly Rose Says Association Programs Help Industry Prosper

RVIA Chairman of the Board Kelly Rose termed 1997 a remarkable year for the industry and the association. He described substantial progress in several areas that will propel market growth into the next millennium.

In remarks at the association's Annual Meeting on March 7 at the Ritz Carlton Rancho Mirage in Palm Springs, Calif., Rose said that all the programs RVIA conducts on the members' behalf have the common goal of creating an environment in which the RV industry can prosper.

He also stressed that RVIA members play a key role in the association's efforts. "We can all take pride in what we've accomplished in the past year," Rose said. "Without your active support and participation, we could not have achieved such a high level of success."

Industry Relations

Rose stated that the relationship between RV manufacturers and dealers remains the association's top priority.

"Lines of communication with RVDA and state dealer organizations are open and strong," he said. "Our efforts with these groups have resulted in a healthy dialogue that has helped identify potential disagreements as well as areas where compromises can be reached."

He pointed to the proposed manufacturer/dealer dispute resolution program jointly developed by RVIA and RVDA as an initiative with great potential.

"This is an initiative that will greatly improve the manufacturer/dealer business relationship," he said. "It will resolve disputes quickly, inexpensively and amicably."

Standards and Education

Saying that the standards operation is one of the most important functions the association performs, Rose detailed several advancements in this area.

This included Montana becoming the latest state to drop their RV standards program and the association's work to develop, review and propose changes to the ANSI and National Electrical Code standards.

"Through the inspection process and educational standards seminars, RVIA is helping members understand and comply with various requirements that will ultimately lead to higher quality vehicles for our customers," Rose said.

Rose also discussed the great strides made last year in the industry education arena. "Our industry is well on track toward increasing RV owner satisfaction by ensuring that their vehicles are serviced by professional well trained service technicians," he said.

In support of this claim, Rose cited the certification of the 500th tech through the certification program and modifications to the effort that will allow qualified techs to become certified more quickly. He also discussed the impact of the Labor Department's designation of a Standard Occupational Code for the RV tech career and creation of the NRVTI scholarship program by RVIA and RVDA.

Government Relations

Government relations remains an intense area of activity. Rose said the association is hopeful that during this session, the U.S. Congress will consider important measures that address the proper funding of the nation's highway systems and public lands.

There is also focus at the state level with 42 state legislatures in session this year.

"Legislation that unfairly regulates our market or the way RVers use our products can be introduced at any time," Rose said. "As an association, we monitor legislative activity so that we can act quickly when laws are proposed that could impact our business environment."

"USA Today" Founder Urges Members to be Risk-Takers in Next Century

Al Neuharth, founder of USA Today and now head of the Freedom Forum Foundation, told members that he had a special affinity for RV travel during his keynote address at RVIA's Annual Membership Meeting, held March 7 in Palm Springs. Calif.

Neuharth recalled a six-month, cross-country trip he took in the early 1990s in a bus conversion, writing about his travels for USA Today. The most frequently asked question from people that he met was, "What is it like to travel in an RV for six months?"

"It is great and the best way to see the USA," was his reply then. "Now you know why RV sales grew so much in the 90s," he added jokingly.

Neuharth stressed that the world today is indeed a global village. This presents tremendous opportunities for businesses in the information and travel and tourism industries, which he forecasts will grow greatly in the next century.

"The more people read and learn -- the more that they know, they more they want to go," he said.

Neuharth also predicted that over the next few decades, there will be significant social changes that will result in even more global free trade. There will be three major trading blocks: Europe, including Russia; the Pacific, including China; and the Americas. This will open more markets for businesses, including those in the RV industry, with the vision and desire to capitalize on these opportunities.

"Bold risk-takers have been and always will be the people that shape our world," he said. "It will be business entrepreneurs that will impact the next century, not politicians."

Neuharth related two major entrepreneurial risks that he took during his life that shaped his achievements. 

In 1952, he raised $50,000 to begin a weekly sports tabloid, and within two years was broke. After that, he stayed involved in the newspaper business, but would often think about why he had failed. "I had an idea, but not a plan," he said.

Finally, he launched USA Today. As expected, it struggled for a few years before becoming the most widely-read newspaper in the world with revenues of $1 billion per year.

There has been much speculation as to why USA Today has succeeded, including the use of color and the focus on short articles. However, Neuharth said the most critical factor was a very simple marketing tool -- the blue-and-white USA Today newspaper box, which was designed to look like a television set.

"We put 2,000 of them across the nation so people could read the top half of the paper and be encouraged to buy it," he said.

With those two examples in mind, Neuharth urged members to not fear failure in their businesses. "No-risk management runs no-fun and no-win businesses," he said.

RVDA Board Revises Strategic Plan

RVDA's board of directors met in Florida and revised the association's strategic plan. The elements that make up the plan -- the association's vision, mission, guiding principles, and goals -- will guide RVDA into the year 2000 and beyond.

The strategic plan focuses on achieving total customer satisfaction with the RV travel experience through cooperative industry efforts, market expansion, and encouraging RV dealer professionalism. RVDA remains committed to professional development and education for RV retailers, equitable member participation, and industry teamwork.

RVDA Chairman Rick Horsey said, "RVDA's strategic planning builds on our association's progress and charts an exciting course for the future of the RV business. The board of directors worked hard to develop a strategic plan for the national association that will enhance RVDA's position as a driving force for quality and professionalism within the RV industry."

 

 

Key Senator Supports Expansion of The Land And Water Conservation Fund

U. S. Senator Frank Mur-kowski (R - AK), chairman of the Senate Energy and Natural Resources Committee, pledged his personal commitment to revitalization of "state-side" funding -- matching grants to the states -- for the Land and Water Con-servation Fund (LWCF) before top recreation community leaders. In recent years, the LWCF, which once supported land acquisition at both the federal and state level and the development of local and state recreation facilities, has been limited to federal land acquisition.

"We need to address social needs associated with inner- city areas," the Senator told the audience at the American Rec-reation Coalition's Recreation Exchange as he explained the reasons for his strong support for the program. He added, "We need to help people reach a comfort zone with the outdoors." He also emphasized that the in-volvement of local interests in the program -- which he characterized as "people setting their own priorities" -- in addition to the public need for and appeal of the program, all worked to its advantage.

The Senator announced that legislation would be introduced very soon to restore program funding. Noting that "money doesn't grow on trees," he described a plan to fund the program with new revenues from already authorized off-shore oil and gas sales in areas that can support such activity, like the Gulf of Mexico. The revenues would be used to fund a Rec-reation Trust with the interest earned earmarked for state-side grants. He also explained that the trust would be administered by a new commission that would report directly to the Secretary of the Interior. Currently, the program is administered by the National Park Service.

He stressed that the use of advanced technologies will further reduce any adverse environmental impact associated with offshore drilling. In addition, he emphasized that an increase in domestic oil production would help reduce the country's dependence on imported oil.

Senator Murkowski acknowledged that previous efforts to restore state-side funding in both the 104th and the 105th Congress had not been successful. However, he emphasized that those efforts had laid the groundwork for his new legislation. He pointed out that last year's full committee hearing on the issue had been very successful in making members of the Senate aware of the program's value, and resulted in inclusion of state-side funding in the Senate appropriations measure -- funding eventually deleted in conference. He stressed the need to capitalize on that success while encouraging pressure for legislative action from the program's grass- roots supporters. "We will work vigorously to ensure its passage," he concluded.

RVN

 

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