Posted on: Wednesday, September 19, 2001

Boosting economy priority for state

Advertiser Staff

Gov. Ben Cayetano will meet with county mayors and business leaders this morning to discuss how to boost the ailing state economy following the terrorist attacks in New York and Washington, D.C.

"It's basically to talk about the potential impact this tragedy will have on the state economy and to develop a strategy to cope with it," said Kim Murakawa, Cayetano's press secretary.

The governor opted for a closed-door meeting in his office because he wants a free-flowing discussion, Murakawa said.

The meeting will include leading House and Senate Republicans, but some Hawai'i Republicans have already weighed in with advice for the governor on how to cope with the sudden drop in visitor arrivals.

State Republican Linda Lingle issued a statement suggesting the Legislature meet in an emergency special session to pass a resolution calling on the Congress to support the airline industry.

She also said Cayetano should go to Washington, D.C., to lobby for federal airline support, to explain how airline failures would devastate Hawai'i, and to ensure Hawaiian Airlines and Aloha Airlines are included in any federal bailout effort.

State Sen. Sam Slom, R-8th (Wai'alae Iki, Hawai'i Kai), offered several proposals to help small businesses, including allowing businesses to pay reduced general excise taxes, or to defer tax payments.

He also said the state needs to reduce regulations to make it easier to do business in Hawai'i and to help business owners obtain health insurance.

Senate Minority Floor Leader Fred Hemmings, R-25th (Kailua-Waimanalo), said the state should consider waiving airline landing fees as well as the 4 percent excise tax on airlines.