Top-level economic
task force formed

Business and labor leaders
are teaming up to revitalize the economy

By Mike Yuen
Star-Bulletin

The state's tax structure, government regulations, the educational level of Hawaii's work force and the economic implications of controversial court decisions will be examined by a newly formed economic revitalization task force.

The inaugural meeting yesterday of the panel of business and labor leaders, held behind closed doors, was convened by Gov. Ben Cayetano, Senate President Norman Mizuguchi and House Speaker Joe Souki.

The task force's mission is to come up with recommendations to boost the isles' economy, which has been mired in a seven-year slump.

The panel's 51/2-month-long project will include public hearings and town meetings on the panel's proposals. It will conclude with the submission of a plan to lawmakers for action during next year's legislative session.

"I'm going to do everything to make this work because I don't want this task force to end with a report that's going to gather cobwebs on some shelf," Cayetano said.

A task force facilitator, bank executive Thomas Leppert, said the panel will set up "working groups" on specific issues that will report back to the full task force Aug. 19.

"What we also want to do is bring in not only representation of the community but some experts in these various areas of the working groups we can visit with and understand," he said.

"We want to make sure it's not only a local perspective, but its a worldwide perspective. We understand it's a global economy, so we need to bring those perspectives in and look at other states that have had the same challenges and in some ways much greater challenges and they have been very successful," Leppert said.

The task force will unveil its preliminary economic plan in late October.

In the summit phase of the process, the plan will then be subject to public hearings and town meetings. The group's initiatives will be polished, and then in December and January the task force will seek legislative and public support for its plan.

In September, the state House is holding its own bipartisan economic summit, a three-day gathering that Souki sees as an adjunct to the work of the task force.

The Senate's Democratic majority also has tentative plans for its own economic parley, said Senate co-majority leader Les Ihara Jr.

The 21 task force members include the heads of the state's leading industries and labor unions."This is the group that is capable of making things happen," said business consultant David Ramsour, former Bank of Hawaii chief economist.

"The difficulty is that much more than ever before, the majority of what goes on in this state is now focused on small businesses.

"These small firms, unfortunately, do not have the resources or the time to dedicate their leadership to this committee.

"Unfortunately, that's where the change in ideas probably has to come from," he said.