COMMENTARY
Cayetano's facts were wrong in commentary
| • | Attacks on ChevronTexaco unwarranted |
By Albert Chee
Hawai'i public and government affairs manager at Chevron
In his Nov. 30 commentary, former Gov. Ben Cayetano tries to rewrite the story of his lawsuit against the oil companies.
When the suit was dismissed two years ago, we at ChevronTexaco believed then that it was time to move on and address the issues in a collaborative, constructive way. But for those who want to focus on the past, we ask only that they get their facts straight.
The former governor now blames his decision to drop the lawsuit on "court-appointed mediators" who supposedly told him the federal judge was going to throw out the case "regardless of how strong the state's circumstantial proof."
The problem was not the judge; it was that the claims of price-fixing and fraud were phony and unsupportable.
In fact, when federal Judge Susan Mollway struck down the dealer rent-control statute as unconstitutional, she cited the admission by the state's economist that Hawai'i's "adverse political climate, including rent controls, government proposals to take over petroleum terminals, and restrictions on the location and types of stations that may be built" had caused higher gasoline prices.
This point — that the policies favored by the former governor contributed to higher gasoline prices— is perhaps the most valuable lesson from the lawsuit.
If the state wants oil companies to invest their resources in Hawai'i, it makes little sense to adopt policies that discourage them from doing so.
Price controls would be even more counterproductive. Experts at the Federal Trade Commission warned the Legislature earlier this year that price controls likely would create shortages and reduce quality. Consultants Stillwater Associates said price controls would drive up costs and could push Hawai'i's refineries out of business.
Having sought their guidance, we think the former governor and his colleagues should accept it. Like other states, Hawai'i should let the market work without government interference.
