Editorials
Tuesday, March 4, 1997


Legislation is needed
to permit privatization

EFFORTS to contract out state or county services to private companies will require legislation because of a state Supreme Court decision. The high court ruled last week that Hawaii County violated the state Constitution's requirement for merit principles and laws covering civil service in signing a contract for a private company to perform landfill work. The scope of the ruling extends throughout state and county governments.

Big Island Mayor Stephen Yamashiro decided upon assuming office in 1992 that he would privatize the construction and operation of the Puuanahulu landfill. The 10 county employees at the landfill were given the option of working for the private company or transferring to other civil service positions. But their union, the United Public Workers, challenged county government's authority to contract out the landfill work.

Hawaii's Constitution requires that "employment of persons in the civil service . . . be governed by merit principles." The Constitution doesn't define "civil service," but a state law interprets it broadly as "all positions in the public service of each county." It exempts only persons hired by contact to perform "special or unique" services that can't be done by normally recruited civil servants.

In its unanimous decision, the Supreme Court ruled that state and county services "that have been customarily and historically provided by civil servants" cannot be contracted out to private companies. "Given the importance of these policy concerns (of privatization and the attributes of civil service) and the potential conflict between them," Justice Mario Ramil wrote in the court's decision, "clear guidance from the Legislature is indispensable."

The ruling provides public-employee unions a powerful tool in blocking virtually any attempt to privatize government services, including prisons and schools, which have been top items under consideration for privatization. If allowed to stand, the decision could be a huge obstacle to efforts to make the provision of public services more efficient.

The state Legislature should amend the laws at the earliest opportunity to allow the option of privatization where it promises to be beneficial.

Marcos' electric bill

WHEN the body of Ferdinand Marcos was lying in an air-conditioned crypt at the Valley of the Temples in Windward Oahu after his death in 1989, the cemetery had trouble collecting the electric bill, but eventually payment was made. In 1993 the remains of the former president were flown to the Philippines and have since been on display in a glass coffin at the Marcos family home in Batac in northern Luzon island, 400 miles from Manila.

There the problem has recurred - nonpayment of the electric bill. The Marcos estate has been assessed billions of dollars in damages for victims of human rights abuses, and even more for the alleged discoverer of a gold statue of Buddha. The fact that the Marcoses are dragging their feet on paying an electric bill - even one of this size - may be an indication of how difficult it will be to collect those much larger sums.

Fund-raising violations

THE Clinton White House's embarrassment over its fund-raising tactics has deepened with the acknowledgement of a former aide that the Democratic Party had telephone lines installed in government buildings for Vice President Al Gore and others to use in raising money for the 1996 campaign.

A casual disregard for the legal niceties appears to have permeated Clinton's fund-raising activities. This is the reason that the Democrats are now being forced to return millions of dollars in contributions that appear to have been illegal because they came from foreigners. But the amounts returned thus far may be only the tip of the iceberg, if it can be shown that the president, the vice president and other Democrats were illegally using government property in their fund-raising.




Published by Liberty Newspapers Limited Partnership

Rupert E. Phillips, CEO


John M. Flanagan, Editor & Publisher


David Shapiro, Managing Editor


Diane Yukihiro Chang, Senior Editor & Editorial Page Editor


Frank Bridgewater & Michael Rovner, Assistant Managing Editors


A.A. Smyser, Contributing Editor




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