DBEDT chief ready for business

By Sean Hao
Advertiser Staff Writer

Faced with a need to do more with less, the new director of the state's Department of Business, Economic Development and Tourism said yesterday that he'll seek to streamline the agency and rely on more private-sector partnerships to accomplish its mission.

Ted Liu, a venture capitalist and corporate financial consultant, brings a decided outsider perspective to state government. He has been named director of DBEDT. Deborah Booker • The Honolulu Advertiser

In one of his first interviews since his appointment, Liu said he will establish a task force with industry representatives to explore privatizing portions of the department's public housing responsibilities — something he said the military has done in its operations.

During the governor's race, Lingle targeted DBEDT as needing to focus more sharply on its mission of economic development. She specifically suggested that the Housing and Community Development Corp. be spun off to another state department.

Liu, a venture capitalist, corporate financial consultant and government outsider, agreed that the public housing agency doesn't fit DBEDT's core mission.

"Our main job still is trying to do business and that doesn't fit," Liu said. "But that's not the extent of the problem. That non-fitting piece may need to be upgraded first," so it can be successfully managed by private industry.

Looking to the private sector is an approach that will likely be applied throughout the department as Liu seeks closer cooperation with the business community. Liu said DBEDT will also look to forge private partnerships to help market the state and possibly manage the agency's business incubators, capital loan program and venture capital operations.

Any other substantial departmental changes that have been discussed, such as shedding agencies like the Hawai'i Tourism Authority, will be announced by Lingle at a later date, Liu said.

"It's really, really early to get too specific," he said. "We don't know if tourism needs to be moved. But if it were, we'd still need to be involved. It's not an either or."

Liu said changes are needed not only to make DBEDT more effective, but more frugal. Liu said he expects the state money in the department's budget, approximately $107 million, to be cut as legislators wrestle with an estimated $162 million budget deficit going into the new fiscal year.

To offset the cuts, Liu said he'll pursue federal money previously not sought by DBEDT, particularly in the area of work force training programs for small and medium-sized businesses.

One initiative that won't necessarily cost money is a top-down change in attitude at DBEDT — one that is business-like and focused on market needs, Liu said. He said he's open to new ideas from the business community on solving the state's economic problems, not least of all its slow growth and over-dependence on tourism.

One idea Liu wants to implement is marketing Hawai'i's military, oceanographic and biotechnology know-how to businesses in Asia, including China.

Ted Liu, director of the Department of Business, Economic Development and Tourism, was part of a committee searching for the agency's new chief before he was asked to apply for the job himself. Deborah Booker • The Honolulu Advertiser

He came to his new state role after serving as a member of Lingle's search committee for the new DBEDT director. When many of the suggested candidates were unable or unwilling to serve, Liu accepted an offer to apply for the position.

That decision, and Lingle's selection, came with sacrifices, both financially and in the time he can spend with his wife and four children, Liu said. The appointment meant, for one, missing out on his kids' baseball tryout last Saturday.

"So no baseball this year," he said. "The advantage of being a venture capitalist is being able to work out of my living room or study."

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