Posted on: Tuesday, May 27, 2003
ISLAND VOICES
Legislators took care of business
By David Kimo Frankel
Volcano resident and former chairman of the Sierra Club Hawai'i Chapter
In 2002, the Legislature distinguished itself by passing pro-consumer, pro-environment and good-government legislation. This year, however, the Legislature championed the cause of big business.
Legislators gave $75 million in tax credits to Ko Olina Resort in exchange for vague promises of job training. Legislators have forgotten that Ko Olina has a track record of breaking promises. In 1986, the Ko Olina developers promised the public they would provide public access to its four lagoons. Instead, resort officials prevented the public from using two of the lagoons for years — until members of the public protested loudly. They prohibit the use of hibachis despite clear language in their permits allowing the public to have picnics. But Ko Olina needs some help. So we'll forgive them $75 million in taxes.
Legislators gave millions more to other resort developers as well. The hotel construction tax credit primarily benefits firms such as Outrigger Hotels. The city already gave Outrigger enormous tax and infrastructure breaks. These tax credits will only increase corporate profits — at our expense.
Nor will these tax credits create jobs. It is unfortunate that right-wing economists get most of the media and legislative attention in this state. Less ideologically oriented economists have demonstrated that such tax credits play an insignificant role in job creation or economic stimulus.
Our tax money is spent marketing Hawai'i so that the hotels do not have to spend quite so much money advertising by themselves. Hotel owners have seen state spending on tourism marketing mushroom from $15 million a year to over $55 million.
This year, legislators appropriated an additional $8 million — on top of the more than $55 million — for tourism marketing. Tourism is not hurting.
The Legislature curried the favor of big business in other arenas as well. The state Senate confirmed yet another big-business representative to the already-stacked Water Commission. Sen. Cal Kawamoto and Rep. Joe Souki blocked efforts to regulate the cruise ship industry despite its track record of pollution and broken promises. Sens. Robert Bunda and Kawamoto blocked environmental legislation on behalf of developers and corporate interests. And Sen. Kawamoto blocked efforts to curb corporate campaign spending abuse.
This year, the Legislature took care of business.
