STATE lawmakers, Governor Cayetano and consumers share the same frustration about the high cost of gasoline in Hawaii. However well-meaning the legislative effort is in pushing for a price cap on gasoline, the controls must be carefully balanced so as not to drive oil companies from the market. Careful taps needed in
capping gas pricesThe issue: The governor and legislators
are moving toward regulation of gasoline prices.At the same time, state leaders should consider channeling funds from the settlement of its price-fixing lawsuit against oil companies into research and development of alternate fuels to reduce dependence on gasoline to power vehicles.
It is evident that oil companies are taking advantage of the state's geographic isolation, charging as much as they can for a product no one can do without. Details emerging from the settlement show that at least one, Chevron Corp., was reaping big profits here. Court documents revealed that in 1991, Chevron's gains from the sale of consumer oil products in Hawaii were $9.5 million. Around the rest of the country, the company reported a marginal loss of $148 million during the same Gulf War period.
In its lawsuit, the state accused the oil companies of conspiring to fix prices at artificially high levels, but conspiracy is difficult to prove. When the court indicated that it believed the state would not prevail, the state settled. Thwarted, lawmakers and the governor are now focused on capping prices.
Cayetano is supporting legislation that would require the state economic development department to set quarterly maximum wholesale gasoline prices based on the average price of New York, Texas, Alaskan North Slope and Indonesian Minas crude oil. It would prohibit companies from charging retailers more than the maximum and penalize them if they do.
Price caps can backfire if a company decides to pull out of the market. As unlikely as that may seem because of the profit history in Hawaii, oil companies are well versed in manipulating supply and can easily divert products if they can make more money elsewhere.
There's another way to fight high gasoline prices. The state could use the settlement money to provide financial and tax incentives to companies interested in developing vehicles that run on fuels other than gasoline. Already up and running is the Hawaii Fuel Cell Test Facility in Kakaako, which is experimenting with hydrogen technology to run cars and buses. Already in state ranks are people with the expertise needed to guide experimental and research efforts. These endeavors may not have the immediate effect lawmakers and leaders are seeking. However, in the long run, the money spent to lessen Hawaii's dependence on fossil fuels could release consumers from the oil companies that have them over a barrel of oil.
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Science should rule in
quarantine debateThe issue: Legislators seem to have
rejected a proposal to allow most incoming
pets to avoid quarantine, but still
may consider alternatives.HEAVY reliance on vaccinations, blood tests and identifying microchips for incoming pets have greatly reduced the chance of a rabies outbreak in Hawaii. Legislation to end the quarantine altogether for compliant animals appears to have died, but the state can adopt rules to achieve the same result. Such a policy would be consistent with the "pet passport" system adopted in Britain two years ago.
James J. Nakatani, chairman of the state Board of Agriculture, remains adamant that the quarantine is needed for all incoming animals to keep Hawaii free from rabies. He understandably defends the quarantine, to which he credits Hawaii's rabies-free record in the 89 years of its operation. He should be open, however, to evidence that the risk could be reduced even more, with less imposition on pets and their owners.
In 1997, the length of quarantine was reduced from four months to one month for incoming animals that had been subjected to rabies shots at least 30 days before their arrival, blood tests and placement of a microchip ID. The Community Quarantine Reform Coalition favors elimination of the one-month quarantine for compliant animals. About 4,000 animals are brought to the islands yearly; three-fourths are compliant and held for one month.
In a recent letter to the editor of the Star-Bulletin, Nakatani argued that rabies vaccinations are not foolproof. However, the coalition says scientific findings place the risk of the release of a rabies-infected pet in Hawaii at one-third of 1 percent under the current system, and -- in a worst-case scenario -- at one-fourth of 1 percent if compliant pets were not subjected to the quarantine.
The coalition figures that the increase in compliance and the reduction in the number of animals being smuggled into Hawaii -- now as many as 200 a year -- would lessen the risk. Freeing compliant pets and reducing the number of noncompliant incoming pets undoubtedly would lessen the need for a quarantine as large as the existing facility in Halawa.
A small quarantine would require less manpower and would be easier to protect from feral cats and mongooses that now roam the quarantine area. Placing noncompliant animals in private veterinary facilities, at the owners' expense, might be more efficient.
The coalition has provided new scientific evidence to Nakatani and is sending it to veterinarians in the state. The evidence deserves an objective review.
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Published by Oahu Publications Inc., a subsidiary of Black Press.Don Kendall, Publisher
Frank Bridgewater, managing editor 529-4791; fbridgewater@starbulletin.com
Michael Rovner, assistant managing editor 529-4768; mrovner@starbulletin.com
Lucy Young-Oda, assistant managing editor 529-4762; lyoungoda@starbulletin.comJohn Flanagan, contributing editor 294-3533; jflanagan@starbulletin.com
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