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Tuesday, August 15, 2000



City & County of Honolulu

Hannemann
attacks Harris
on economy

The mayor counters, saying
his administration has helped
to boost tourism and has
cut unemployment


By Gordon Y.K. Pang
Star-Bulletin

Mayoral challenger Mufi Hannemann is taking aim at Mayor Jeremy Harris' record on economic development, accusing him of doing little to lift Oahu out of the financial doldrums.

Harris, however, said his administration has worked on initiatives that have helped reduce unemployment and boost tourism figures.

Hannemann, at an East Honolulu Rotary Club luncheon yesterday, said voters need to expect more from their mayor than the hands-on, "doing-more-with-less" reputation that Harris has embraced proudly.

Double-digit job growth and economic miracles are happening in cities such as San Diego, Phoenix and Seattle, Hannemann said, while Honolulu's economy has remained stagnant. "Mayors have taken charge of their (city's) destinies and are out there promulgating and advocating important economic revitalization," he said.

The city's approach to economic revitalization has consisted of: "One, we wait for the state to do it for us; two, we wait for California or Japan to do it for us; or thirdly, we wait for the next big box retailer to announce that they are coming to Honolulu," Hannemann said.

Harris, however, said a series of improvement projects in Waikiki initiated by his administration have helped to make it more attractive and to boost hotel occupancy rates.

Meanwhile, a tax-incentive program for businesses making building improvements or creating plant sites was introduced by his administration and approved by the Council, Harris said. Also, a soccer complex and Central Oahu regional park are designed to bring international sporting events to the island, he said.

"I think it's ironic that Mr. Hannemann would be critical of our very successful efforts to turn around the economy in Honolulu as evidenced by the low unemployment rate, the increase in visitors and the creation of new jobs," Harris said.

Statewide unemployment increased when Hannemann was director of the state Department of Business and Economic Development, the mayor said.

Hannemann also called for the establishment of an independent city auditor's office to keep tabs on projects such as Ewa Villages.

Hannemann said that when an independent auditor was contracted to look into the project, the company complained of stall tactics and questionable information coming from city offices. "What I'm calling for is establishment of a city auditor that is independent and will be allowed to do its job with very little or no political interference from the administration or the City Council," Hannemann said.

Harris denied there was a concerted effort to stonewall the audit by KPMG Peat Marwick. The administration, he said, also commissioned its own independent investigation. That report, however, has yet to be made public.

Harris said the City Charter already allows the Council to conduct both financial management and performance audits. He questioned why Hannemann did not establish an independent auditor's office while chairman of the Council.

In 1998, Councilman Jon Yoshimura spearheaded legislation to establish an independent city auditor's office. Hannemann, as Council chairman, backed the plan.

That idea was then referred to the city Charter Commission, which declined to put it on the ballot.

Hannemann said yesterday that the matter was later dropped because the Council and administration were in a period of cooperation and the Ewa Villages scandal had not yet blown up.



City & County of Honolulu



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