Cayetano approves
tobacco settlement

But a Hawaii public health
coalition had urged rejection
of the package

By Mike Yuen
Star-Bulletin

Gov. Ben Cayetano says he has given his approval for the state to join in the $206 billion package the tobacco industry is offering to settle lawsuits filed by 38 states, including Hawaii.

Cayetano said yesterday that he wants the $1.1 billion that the state could be receiving over 25 years to fund anti-smoking programs and to establish a "rainy day" fund that would be used for emergencies. Funding anti-drug programs, as outgoing state Health Director Lawrence Miike is recommending, is another possibility, Cayetano added.

Cayetano said he envisions about 50 percent of the state's settlement going into the rainy day fund.

The possible financial windfall won't mean a tax rebate for isle residents, Cayetano said. "Just because we (might) have this additional money doesn't mean we should just go out and spend it," he said.

The Executive Committee of the Coalition for a Tobacco Free Hawaii, a statewide association of public health agencies, and the American Lung Association of Hawaii had urged rejection of the settlement.

Dr. John McDonnell, coalition member representing the Hawaii Medical Association, said, "The tobacco industry is buying 25 years of peace from litigation. They are buying the right to continue addicting and poisoning our children."

The coalition and the lung association pointed to many loopholes. Said the association: "It is not a settlement. It is a partnership agreement between the tobacco companies and the attorneys general that allows Big Tobacco to continue its nefarious business as usual."

The major tobacco companies have reserved the right to withdraw the settlement offer if not enough states accept it. The deadline for acceptance is tomorrow.

Cayetano said yesterday that Maj. Gen. Edward Richardson, adjutant general and Civil Defense director, will be in the Cabinet when the administration starts its new term but probably won't stay the full term "because he has a health problem."