Small Business News

Special to Hawai`i's H4 | Volume 22, No. 6 | June 1997

The World Wide Web Edition

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H4 logo

Calendar

Small Business Week
June 2 - 8, 1997
Celebrate!

Page 1

Session Rates a "D"

Small Business Expo

Tatibouets Win Award

"YES" Field Trip

EduCenter A Success

Exclusive!

1997 Legislature Ratings

Our famous 1 to 5 ratings!

Small Business News - Page 2

Sam Slom's
Small Business Views

Small Business News - Page 3

Guest Commentaries
By SBH Members

To Privatize or Not
By Ken Schoolland

State Funded
Tourism Marketing

By Murray Towill

10 Point Plan To Jump Start Oahu's Economy
By Councilman
Mufi Hannemann

Also in SB News

Highlights of our printed edition listed here and available to SBH members:

SBH Member Medical Plans Updated

More Guest Commentaries

More News

Names in the News

Photos

Cartoons

and more!

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This issue updated
June 5, 1997.

© 1997 Small Business Hawaii

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SBH / LAC Rates Session "D" -
Biz Coalition Fail Lawmakers

The 1997 State Legislature didn't finish on time (April 29) and extended until May 1 to pass auto insurance "reform." Passed handily in the House, the Senate barely approved the no-fault compromise 13 - 12. Business Senators Whitney Anderson (R), Norman Sakamoto (D) and Sam Slom (R) voted no and warned premium reductions and other claims of reform are illusory.

The Session, which began January 15, was to address serious job, tax and economic issues. Instead, lawmakers wrestled over three-year old issues: same sex marriage, the "High 3" legislative retirement perks, and auto insurance. The House aggressively addressed these issues early but the Senate stalled. Ultimately, no major business, tax or economic relief was forthcoming. Lawmakers also failed to address the impact of the February, 1997 State Supreme Court attack on privatization which is devastating Neighbor Island counties.

A Special Session may convene this summer to solve the resulting chaos. Honolulu Mayor Jeremy Harris, heavily supported by UPW's Gary Rodrigues, and eyeing a race for Governor next year, broke with the other NI Mayors and said there was no serious problem; a position the Governor shares.

Because of economic and business inaction,Bob Sigall, SBH Legislative Chair, announced a "D" rating for the Session. However, the Small Business CoalitionÑled by Sigall, Bette Tatum of NFIB, Jim Proctor of the Chamber of Commerce and Tim Moore of the Hawaii Small Business Congress Ñ flunked the '97 Session with an "F" for specific failures in not addressing privatization, workers' compensation, government reduction and tort reform.

While many Democratic Legislators are patting themselves on the back declaring they should get an "A" for their work, taxpayers and business owners would do better to keep both hands on their wallet or purse, because budget-busting expenditures, looting of special funds to the General Fund, and collective bargaining agreements will raise the call anew for more taxes in '98.

Three House Republicans, Quentin Kawananakoa, Bob McDermott and Gene Ward, and Senator Sam Slom, voted against the $11.6 billion budget.

The $1 billion capital appropriation, designed to "jump start" the economy, merely adds another layer of debt to residents of Hawaii. Economic incentives come from infusion of new capital, not debt.

The $350 million State Convention Center, set to open in mid-1998 and planned to operate at a loss, will add even bigger debt payments. A proposal to sell or privatize the Center was studied.

While the Hawaii Visitors and Convention Bureau did get a $10 million emergency marketing appropriation, the hotel industry received a limited tax credit for major rennovations, Continental Airlines receives taxpayer subsidy for a Honolulu Airport maintenance facility, some aspects of the General Excise Tax pyramiding on commercial subleases will be mitigated beginning October, 1998, and employers have an 18-month Employee Payroll Training Tax moratorium, no meaningful, lasting, across the board relief passed for Hawaii's 30,000 businesses and struggling families.

During 1997, 4,287 bills were introduced; less than 250 will become law. An increase in Hawaii's minimum wage was stalled. It will reappear. Measures were beaten back proposing to tax annuities, pensions, increase the GE Tax, add County sales taxes, raise "sin," transient accomodations, and fuel taxes.

They will be back next year. How many businesses will be back?

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Record Attendance at Successful
"Small Business on the Move" Expo

More than 200 exhibitors, including Small Business Hawaii, participated in "Small Business on the Move '97," a day-long trade show at the Blaisdell Center Exhibition Hall May 7. Attendance was at an all time record.

"Business helping businesses" was the theme of the Expo sponsored by the Chamber of Commerce of Hawaii, and presented by Bank of America, Kaiser Permanente and PrimeCo Hawaii.

George Mason publisher emeritus of Pacific Business News, delivered a hard-hitting luncheon speech calling on business to strike for a better economy. Bette Tatum, president of the National Federation of Independent Businesses, blistered local lawmakers for business inaction at a morning presentation.

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Andre and Jane Tatibouet
Receive "1997 Hope Award"

Andre and Jane Tatibouet have been selected 1997 recipients of the Hope Award, the highest honor bestowed by the National Multiple Sclerosis Society in recognition of outstanding community service and humanitarian efforts.

The Tatibouets were presented the award at the Dinner of Champions held Wednesday, May 14, at the Sheraton Waikiki Hotel. The Dinner of Champions benefits the National Multiple Sclerosis Society-Hawaii Chapter, providing vital programs, services and the hope for a cure to individuals and families affected by MS.

Andre is Chairman and Chief Executive Officer of Aston Hotels and Resorts, the largest condominium and hotel operator in Hawaii, with 28 owned and managed properties. Born and raised in Waikiki, Tatibouet is a home-grown success story who has worked tirelessly to promote tourism in Hawaii all his life.

He is a founding member of the Waikiki/Oahu Visitors Association; is past Chairman of the Hawaii Hotel Association and the Waikiki Improvement Association, board member of the Hawaii Visitors and Convention Bureau, and numerous other organizations. Tatibouet has supported the community, as evidenced by his active involvement in a number of philanthropic, civic and social organizations.

Jane is Senior Vice-President at Aston Hotels & Resorts. She is actively involved in governmental affairs in Hawaii, and is the former Chairman of the Republican Party of Hawaii. She was elected to the Hawaii State House of Representatives in 1990 and presently is the Hawaii State Chair of the American Legislative Exchange Council, a national organization for state legislators.

She is a past trustee of Cornell University and currently serves on the Cornell University Council. In addition, she has devoted countless time and energy to various community organizations, including Chairmanship of the Board of the American Red Cross, Hawaii Chapter; the ASSETS School; the Girl Scout Council of Hawaii, Small Business Hawaii and numerous other civic and social organizations.

This is only the fifth time the Hope Award has been presented locally, and the first time a woman, and a couple, have been chosen. Previous recipients of the Hope Award include: Governor John Waihee; Edwin Hulihee: Dwane Brenneman; and Dr. Richard R. Kelley.

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"YES" Field Trip to
Hawaiian Grocery Stores

The Young Entrepreneurs ("YES") of SBH extend a warm Aloha to Richard Loeffler, owner of Hawaiian Grocery Stores, and VPs and managers Raul Espinoza, Clifton Dahl, and Jose Fuentes. YES members learned Hawaiian Grocery Stores is the second largest grocery wholesaler in Hawaii. It's main warehouse sits on 2 1/2 acres in Mapunapuna.

There is no business too big or too small for them. The mom and pop stores and the larger discount stores are all treated the same. Their computer system tracks more than 14,000 items for three years, which helps in ordering and forecasting. In the warehouse, sanitation is a must. The Food Protection Agency comes in weekly. Pallets of cases of various food are moved daily in order to clean under and around them. The floor is cleaned 2-3 times daily.

Hawaiian Grocery Stores, Ltd. was established in 1949 as a co-op. Loeffler purchased the company from Certified Grocers a year ago. The organization was thought to be mismanaged. Loeffler believes that when you take over any organization the first thing you must do is observe. He often times will take a chair and simply watch people. Observing the employees, managers, and supervisors will explain much more about a company than just the financial statements. Loeffler comes into a company with a vision that he shares with the people of the organization and helps them to understand the vision. He establishes defined responsibilities. People are encouraged to make decisions and take responsibility. Structure the company, Loeffler says, so that it can run without you. He believes that every organization is really just people. Keep the people happy and treat them well and the organization will prosper.

Mr. Loeffler's advice to the YES members was to think "outside the box." He encourages wild, crazy, off the wall ideas. One of those ideas will work, or can be modified to work. He also said we should help people whenever possible and seek help whenever needed. Experience is a wonderful teacher so don't be afraid to ask advice of others.

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Edu-Center for Nurses a Success

Edu-Center for Nurses, a non profit corporation, founded in 1982 with much support and advice from Small Business Hawaii, recently celebrated their 15th anniversary with a luncheon, a keynote address on "The Impact of Wall Street on Health Care." and recognition of Dr. Ann Clark, one of the founders and president since its inception.

Small Business Hawaii had a significant role in the early days of this fledgling corporation. Lex Brodie who was Executive Director of SBH in 1982, helped obtain a not too costly attorney, a CPA and complete other documents.

In the intervening years SBH has been a valued consultant and supporter of the corporation as it has developed into the major provider of continuing nursing education in Hawaii.

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