Posted on: Monday, March 10, 2003

Businesses leaders warn of war impact

By Karen Blakeman
Advertiser Staff Writer

Small-business representatives and union leaders told the The House Select Committee on War Preparedness that talk of war has already started to affect the livelihoods of many in Hawai'i, and a lengthy war could prove disastrous.

Unions represented at Saturday's meeting included the Painters and Allied Trades, the International Brotherhood of Electrical Workers and the International Longshore and Warehouse Union, said Rep. Kirk Caldwell, D-24th (Manoa), a committee member.

Businesses were represented by the Hawai'i District Office of the Small Business Administration, the Hawai'i Small Business Council of the Chamber of Commerce, and the Hawai'i Island Economic Development Board.

"They all said they were already beginning to see an impact," Caldwell said. "They said that a war could be disastrous."

Workers and businesses might be able to hold on by shortening work shifts or work weeks during a brief war, Caldwell said, but the speakers were afraid a long-term conflict would result in layoffs and loss of benefits.

The War Preparedness committee has held hearings to gather information from various segments of the community for the past several weekends in an attempt to help the state brace for a possible war against Iraq.

Based on their recommendations, the state has begun assembling a delegation to send to Japan as a means of encouraging Japanese tourism to continue.

Next weekend the committee will break from hearings to write a report and begin drafting legislation and resolutions, Caldwell said.

Among the legislation is likely to be a bill that will allow breaks on rents or fees for airlines that fly in with at least 90 percent of the passenger capacity they had before war, he said.

Another piece of legislation would allow the Hawai'i Tourism Authority to spend an additional $5 million to promote the state in marketing campaigns.

The legislators also hope to find a way to ensure that federal contracts for military construction and improvement projects include local workers.

"We want to take the time now to put this all together," Caldwell said. "The way the president is talking, we're expecting a war in the next week or two."