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The Honolulu Advertiser
Posted on: Wednesday, January 8, 2003

Hawai'i economic options discussed

By Sean Hao
Advertiser Staff Writer

Hawai'i can continue to lessen its dependence on tourism, but it needs to focus more attention on education, work-force training and buy-local efforts, state economic development officials said yesterday.

Leaders of the state Senate committees on economic development and science, art and technology heard from key business leaders who voiced concerns about Hawai'i's lingering economic challenges, including its lack of high-wage jobs and the decline in local tax revenues.

There wasn't much talk of specific legislation, but economic development officials from Honolulu and the Neighbor Islands agreed on several points. One is a need for more coordination between business, government and educational institutions in areas such as work-force development.

In many instances, companies are unable to find skilled workers to fill openings, even though they are available, said Mike Fitzgerald, president and chief executive of Enterprise Honolulu, a nonprofit economic development organization.

Fitzgerald said a system is needed to match up employers and workers.

Officials also have to try harder to secure federal money for programs that help companies pay for on-the-job training, he said.

Hawai'i can better leverage its advantages, including its strong name recognition, business tax incentives such as Act 221, cultural diversity and its unique geographic location between the West Coast and Asia, Fitzgerald said.

Some business concerns were specific to individual counties.

Paula Helfrich, president of the Hawai'i Island Economic Development Board Inc., said the Big Island needs upgrades for ports to help grow cruise-ship tourism and increased support for "buy Hawai'i" campaigns, particularly for staples such as eggs, milk, meat and poultry.

If hotels, schools and other institutions buy local products, "we're looking at $200 million a year in import substitutes," said Helfrich. She proposed lawmakers pass incentives to encourage the buy-local effort.

Business representatives also called on legislators to increase the quality of education at all levels.

Jeanne Skog, president of the Maui Economic Development Board, said the highly paid, well-educated employees sought by the state demand excellent education for their children.

"In terms of business attraction, it's usually the second or third question asked," she said.

State Sen. Carol Fukunaga, who chairs the Senate's economic development committee, said the briefing by the business leaders will likely provide fodder for future discussions and possible legislation.

"It's useful to get a sense from some of these economic development officials about what they see as pressing issues," she said.

Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.