The May issue of Island Business included a Readers' Poll and survey discussing ocean shipping reform and modification (or abolition) of the archaic and monopolistic Jones Act. Mail and FAX responses were encouraged. In July, the magazine reported 165 respondents gave thumbs down to deregulation of the ocean industry and specifically to changing the Jones Act. Coincidentally, Matson Navigation, had a full page ad on page 13 of the issue. The question, "allowing foreign competition would not be good for Hawaii," got a response of 62% who "strongly agree." Do the names Sony, Lexus, and Benihana mean anything?The provincial, anti-free market sentiments were not surprising. As long as political and economic special interests foster these views - and back them up with their financial and political clout - Hawaii will continue to languish as an economic backwater.

The 1998 Governor's race has begun. For the first time, a sitting Democratic Governor may be challenged in the Primary. The anti-Cayetano forces are growing daily and the rallying point is Democrat Mayor Jeremy Harris. Harris, the Fasi pupil who outfoxed his "mentor," adroitly hired every out of work or defeated Democrat and opponent to work for him as a "special" assistant, and wants to run for Governor. Meanwhile, Cayetano's support among old-line Demos, liberals, unions and special interests, continues to wane and more public criticism is evident. Waihee to support Harris? Interestingly, much of Cayetano's support comes from the (big) business community. In politics, everything can change.

Look for more local small businesses - especially retailers - to quit doing business during the next few months because of the refusal of the major shopping centers to renew their leases at reasonable rates. You will recognize most of the names and will be shocked and saddened as the business veterans stop supporting the state, the insurance companies and the off-shore owners of major commercial properties, instead of their families and themselves. Sorry to see the closure of Dave's Ice Cream in Hawaii Kai, after the hard work and dedication of Phyllis & Joel Nishimoto.

Meanwhile, local media and bank economists continue to lull you into thinking the "solid rebound" has begun here. Where? (Except in "thumbs up" boardrooms). Tax revenues are up, as retailer Wayne Fukuda notes, because business continues running sales, cutting prices and benefitting the state tax department , but not the business' bottom line.

While the "payroll lag" law passed by the 1996 State Legislature, which allowed the State to reap a one-time $47 million windfall by delaying public employee paychecks got a lot of publicity, actions by the State Tax Department were less publicized. Taxpayers who paid their taxes prior to the April 20 deadline, and were entitled to a refund, received them - dated in mid-June - on or after July 1, the start of the 1997 fiscal tax year.

Budget Director Earl Anzai is more than glum these days. He is worried about the recent Hawaii court verdict awarding $170 million to OHA from the State. The long range implications include higher bond interest rates, a lower state bond rating and future lands and development in jeopardy. Who has been in charge here for all these years?

Congressional Republicans did a lousy job (especially the 27 Senators) with the minimum wage increase debate which will have a negative impact on small businesses nationwide. Politicians, always are politicians and put their reelection first. There will be pressure by unions and special interests in '97 to hike Hawaii's $5.25 minimum (which does not include the nation's highest cost and most burdensome mandated employee benefit charges.

Congressman Neil Abercrombie's fiction book - about a right-wing plot to take over the government (There are no "left wing" plots, because they already control most of the government) - is not selling well. If Neil loses his cushy House seat this November, he'll have to learn to do something else besides novels.

Neil's wife sought - and gained - Hawaii unemployment compensation benefits when her D.C. teaching contract was pau. Now, Big Island Council Chair, Keiko Bonk, who hired her boyfriend at $49,000, said when allegations of ethics violations surfaced, she was going to lay him off anyway - so he could collect UI. "What's love got to do with it?"

Mediator retired judge Patrick Yim graciously charges $75 an hour for arbitration but charged $175/hr for the taxpayers' tab in the Councilman DeSoto /Mirikitani dispute.

Member Jack Schneider of ESP wrote the State Tax Dept. It took 4 years to get a non-response. His story was chronicled completely in Pacific Business News. Read it!

SBH Director/ attorney Mike Marsh, partner in Case Myrdahl called our attention to the fact that as of July 3 the State is adding a $25 surcharge to selected state lawsuits in order to provide even more legal access by the "poor."

New UH Football Coach Fred vonAppen is top notch. His "zero tolerance, high discipline" coaching style is a winner no matter what the Rainbows record is this year. He took it upon himself to personally intervene in a bureaucratic ticket policy "snafu." (UH ticket sales are falling so the athletic office was turning down prospective buyers because a "deadline" had passed). UH opens its '96 season against the Boston College Eagles on August 31. Support UH, GO BOWS!

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