Cayetano declares
economic emergency

He made it official shortly before
leaving on a trip to promote tourism

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By Richard Borreca
rborreca@starbulletin.com

Hawaii is now in an official economic emergency, declared Gov. Ben Cayetano.

Before leaving for a tourist-promotion trip to New York City on Sunday, Gov. Ben Cayetano signed into law a bill that authorizes him to declare an economic emergency and use limited emergency powers to deal with it.

After signing the legislation, Cayetano declared an emergency. He did not as of yet exercise any emergency powers, said Jackie Kido, communications director.

Under the new state law, Cayetano is allowed to declare an economic emergency when there has been a 200 percent statewide increase in initial claims for unemployment benefits, compared with initial claims filed in the corresponding week of the preceding calendar year.

Cayetano cited the claims filed for unemployment for the week of Sept. 16 to 29 as ground for declaring an economic emergency exists in Hawaii.

Linda Lingle, state Republican Party chairwoman, criticized the new law, calling it "poorly written" and "a very bad law that goes against the concepts of fair play and equal treatment."

Lingle, who testified against the measure during the special legislative session that approved the bill, said the bill allows Cayetano to pick and choose which companies and individuals the state will help by waiving or suspending lease rents and fees.

"It legalizes favoritism and cronyism by failing to adopt any uniform stands," Lingle said.

"It does not require that all businesses and individuals be treated equally," she added.

House Speaker Calvin Say, however, said Cayetano needs the flexibility to adjust the conditions to each business.

"I would like to see different financing plans for each company," he said.

"It should be based on a business' financial condition and size," he said.

Under the new bill, Cayetano can only use the emergency powers from Sept. 11, 2001 to April 30, 2002.

Cayetano is also required to convene an advisory committee of the speaker of the House, president of the Senate and the GOP leaders of both legislative chambers to inform the Legislature and public about actions taken during the emergency.