Next governor to oust 'tech czar'

By John Duchemin
Advertiser Staff Writer

A tax credit for technology businesses should stay, but the governor's tech adviser should go, both major gubernatorial candidates said yesterday evening.

In a debate dealing exclusively with issues facing the Hawai'i technology industry, Democratic candidate Mazie Hirono and Republican candidate Linda Lingle both said the don't want to amend Act 221, a controversial incentive that gives tax breaks to investors in high-tech businesses.

The statements represented a significant shift by both candidates in support of the act, which some legislative opponents have criticized as being too liberally worded and open for improper exploitation.

Lingle had earlier fueled a debate over the legislation by saying it needed an overhaul. Hirono had also said she was open to examining the law.

But yesterday, Lingle said Act 221 "should be allowed to run its course."

Hirono agreed, saying investors would be put off by a sudden change in the law.

Their statements drew applause from many of the approximately 200 attendees of the debate, which was held at the Dave & Buster's restaurant and sponsored by the Hawaii Technology Trade Association and the Hawaii Venture Capital Association.

Many technology backers fear that amending Act 221 would scare away investors who have begun to pump millions of dollars into Hawai'i companies since the incentives became law.

"It's a positive sign that both support the act — that's what we want to hear," said Tareq Hoque, president of the Hawaii Technology Trade Association.

In other comments, Lingle and Hirono both said the "tech czar" position created in 1999 by Gov. Ben Cayetano should be eliminated.

The technology adviser position, now held by Cayetano appointee Joseph Blanco, is intended to shore up government efforts to develop the technology industry.

But that task is too important for just one person, Hirono said, and a tech czar is the first position she would eliminate as governor. Instead, Hirono proposes a technology action group of several people who would target the development of the high-tech industry. Lingle also said the tech czar position is a waste of government resources. She said Blanco, who has no technology industry experience, is not qualified for his position.

"Mainland investors are fully aware of this, and local people realize he is not the right person for the job," she said.

Blanco, a former real estate developer and former chairman of the University of Hawai'i board of regents, responded yesterday evening that he was appointed for his business experience and his government and university connections.

He said his tenure has been marked by successes such as strengthening the counties' economic development boards and increasing ties between UH and the business community.

"The governor is very proud of his record in technology, and we all (in Cayetano's staff), including myself, had an integral part in a lot of it," Blanco said.