We would be deluding ourselves if we did not acknowledge that our state has the reputation of being anti-business, anti-economic growth and anti-prosperity. Unfortunately, the recent departure of the Hawai'i Superferry will only further tarnish our business image. After a 12-month political game, the losers are the people of Hawai'i, because this decision will undermine our efforts to recover from the current recession.

First, in its short time of operation, the Superferry became a vehicle for economic growth. Many businesses made the decision to use Superferry as a cheaper means of transporting goods and services interisland, and thus lowered their prices. Without the Superferry, these ventures are no longer possible.

For example, the Superferry provided Love's Bakery the means to serve Maui at lower costs, a savings which Love's was able to pass on to its Maui customers. Love's reduced prior distribution expenses to Maui by more than 40 percent. Now, Love's must increase its costs if it is to provide Maui with high-quality and fresh products. Love's has decided to absorb the increased costs because passing these costs to Maui consumers is not conscionable in these dire economic times. However, other businesses that used the Superferry may not come to the same conclusion, which will mean higher costs for Maui consumers.

Second, this decision sends a clear anti-business signal to the rest of the world. Make no mistake, years of trying to convince the world that Hawai'i is "open for business" have been flushed down the toilet. For decades our governors, Republican and Democratic alike, have tried to improve Hawai'i's business reputation. But news of the Superferry decision spread to national media outlets like CNN, MSNBC, and FOX News, carrying the message that we are indeed "closed."

The full price we will pay for sinking the Superferry is not yet known, but the damage to our reputation will inflict a high price. Businesses need predictability. Businesses are reluctant to risk their capital if they can't receive assurances that the rules won't change in mid-stream. The Superferry teaches the rest of the world that they can't trust us when it comes to doing business.

Third, an activist judiciary robbed us of the opportunity to give the Superferry a chance. The Superferry produced a preliminary EIS that was positive and progressive against invasive species, even outperforming our other carriers in Hawai'i's waters and air. It navigated with advanced science and technology of whale protection.

But the judiciary decided to usurp the role of the Legislature and make environmental policy from the bench. Saying the legislation was too specific to one business denies the reality of the Hawai'i's legislative process, and the Supreme Court knows this.

The Legislature passed Act 2 as a general law — in contrast to the rail bill, which raises the excise tax on O'ahu residents to build a mass transit system. The Legislature often passes such laws — whether for those in Kahana Valley to maintain their leases or creating a specific job in an executive department.

Finally, and certainly not in the least, more than 225 employees of the Superferry were laid off as a result of the court decision. They will tell you that this decision will just exacerbate the recession in our state, further strain already overburdened government services and will not help our families weather this economic storm.

The bottom line is that the Supreme Court's decision sentenced the Superferry to death, possibly hampering our economic growth and prosperity for years to come. Capital goes where it is welcome and stays where it is appreciated. The Superferry gave us the hope of interisland transportation that could lead our economy into the 21st century and beyond.

But the Superferry also brought out our worst. So we join Hawai'i in bidding aloha to the Superferry, but let's hope we're not bidding aloha to an opportunity we'll long live to regret.

Gene Ward is co-chair of the Hawai'i State Legislature's Small Business Caucus. Mike Walters is the CEO of Love's Bakery. They wrote this commentary for The Advertiser.