Economy task force
under fire

Critics say small business
is not represented

By Rick Daysog
Star-Bulletin

It just started meeting this week, but the 21-member economic revitalization task force appointed by Gov. Ben Cayetano and state lawmakers is already being criticized for not representing small businesses.

"There's absolutely nobody on that list that represents me," said Cliff Slater, chairman of Maui Divers of Hawaii Ltd.

"Obviously, we are not going to come up with anything radical here. It's kind of like the same old thumbs-up group."

The panel, which held its first meeting behind closed doors on Monday, plans to meet over the next weeks. They hope to unveil a preliminary economic plan in late October.

Members of the panel -- who were selected by Gov. Ben Cayetano, House Speaker Joe Souki and Senate President Norman Mizuguchi -- include C. Brewer & Co. Chairman J.W.A. "Doc" Buyers, First Hawaiian Inc. Chairman Walter Dods, Honolulu Advertiser Publisher Lawrence Fuller, Bank of Hawaii Chief Executive Officer Lawrence Johnson, Eusebio Lapenia, president of the International Longshore and Warehouse union, and Gary Rodrigues, state director of the United Public Workers union.

Both Bank of Hawaii and First Hawaiian Bank were prime movers in the largely ineffective "Thumbs Up" campaign in 1995 to boost consumer confidence in Hawaii.

State Sen. Sam Slom said panel members largely reflect the interests of big business and organized labor, who have benefited from the current political and economic structure.

Slom (R, Aina Haina) said that while the task force is made up of very capable individuals, as a whole, they don't reflect the concerns of small business owners who make up a large segment of Hawaii's economy.

And many small businesses are struggling with Hawaii's high taxes and tough regulatory environment, he added.

"The governor's economic task force dubbed the Hawaii economic dream team ... is nothing more than the same faces trying once again to convince us that they have the answers for what troubles our economy," said Sen. Whitney Anderson (R, Waimanalo).

Kathleen Racuya-Markrich, Cayetano's spokeswoman, said small businesses as well as the general public will have an opportunity to offer their input. She noted small business men and women serve on the task force, including Cove Marketing president Roy Tokujo; Patricia Loui, president of Omnitrak Group; and Charles Kawakami of Big Save grocery stores.

Over the next few weeks, the panel will examine issues such as state's tax structure, the education level of Hawaii's work force and the economic implications of recent controversial court decisions.

While Cayetano declined to speculate on what tax changes might result, small business advocates say that reforms of Hawaii's tax system are long needed.