Hawaii’s World

By A.A. Smyser

Thursday, October 30, 1997


Cayetano’s package
deserves support

THOSE of us who believe Hawaii's economy is stagnant because of basic structural problems owe it to ourselves to support Governor Cayetano's economic revitalization package.

The governor, a straight shooter, has done his bit to lead and answer those who say he's no good at what President Bush called "the vision thing." He has got 26 movers and shakers in the community to agree on a single package of change.

Too bad he can't lay the package as a whole before the 1998 Legislature for a simple "yes" or "no" vote as U.S. presidents have been able to do with "fast track" authority to negotiate international trade packages.

This package is in danger of being weakened by attacks on its fringes that will take us back to 1984, when somewhat similar ideas were forwarded to then-Governor Ariyoshi by a committee to improve Hawaii's business climate, but mostly never implemented.

This package at a minimum is our "last best chance" for progress until things get immensely worse and many more people get hurt -- as could happen.

The governor's key allies -- Senate President Norman Mizuguchi and House Speaker Joe Souki -- think they have the votes to pass it next year, but the Senate in particular is by no means a sure thing.

Mizuguchi this year got 16 of the Senate's 23 Democrats to join in an idealistic "partnering" compact to rise above narrow interests for the common good. They got mixed reviews after the 1997 session but feel they started a process that can grow in a positive way.

If the 16 buy into the revitalization package, that's three more than a majority of the Senate, so there is hope. The House can be counted on, Souki has told the governor.

The 26 leaders were brought to agreement by an intense process facilitated by Peter Adler, perhaps the state's No. 1 mediator-arbitrator, and Thomas Leppert, a Bank of Hawaii executive who is somewhat "between jobs" waiting to become a James Campbell Estate trustee Jan. 1.

By rating proposals on a scale of five, from 1 meaning "absolutely necessary," to 5 meaning "totally unacceptable," they winnowed 60 packages of task force suggestions down to seven subject areas that had the highest ratings.

Next, over two intense days, they bargained and traded until they had a final package all pledged to support unequivocally. Thus even Hawaii Visitors & Convention Bureau leaders endorsed a higher room tax and union leaders signed onto a general excise tax increase and more management latitude for the governor, the university and the school system.

The dynamics of the process the 26 went through had started with a trust-building exercise in which each person told his personal background and aspirations for Hawaii. After that, all 26 signed a compact to rise above selfish interest. Tampering with such a package obviously creates the danger of taking us back to 1984, when a lot of good ideas went nowhere.

Counties are going to be handed the package, like it or not, if it passes. The four county mayors weren't in on the creation, possibly because two of the four have aspirations to be governor. It will give them more land use power but also may nudge them to increase our lowest-in-the-nation real property taxes.

THE loudest small-business and environmental voices also weren't on the task force. But the package isn't the end of the line. There can be add-ons in 1998 and later. Subtracting from it, however, is different. It could destroy the trade-offs that achieved an agreement they unanimously support as a package even though self interest had to be sacrificed on particular points.

Passing the package in 1998 will not come with any gilt-edged guarantee of reversing the negativism that makes us unattractive for investment to outsiders and even to our own visitor industry leaders, top banks and big landed estates. There is -- and will be -- no other act in town with a better chance of stimulating the rising economic tide that can raise all boats.



Full text of the Governor's
Economic Task Force recommendations.


A.A. Smyser is the contributing editor
and former editor of the the Star-Bulletin
His column runs Tuesday and Thursday.




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