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O1/OJ/07 R'ED 15:21 FAR 808 968 8522 R'H SAIPMA'.V Idj 001 z9uZ JflN 3 F'(~ 3 ;?9 Councilmember Pete Hofimarm, Chair and Presiding Member County of Hawaii, County Council ~ Hilo, I-Iawai'i g6y2o ~;C7~Ji~;r ~ ~ ` Subject: Resolution to prohibit/inhibit Big Box Grocery Retailers Dear Council Chair Hoffman; My name is Bill Walter. I live in Kea`au, Puna District, Island of Hawaii. As I understand it, Mr. Higa has proposed that the County adopt a resolution to prohibit the construction of retail establishments such as Wal-Mart "Soper Centers." The apparent (and stated) reason for tlae resolution is to protect certain types of 'focal" businesses. Concerns: I count among my personal friends community members w17o own and operate the type of businesses targeted for the protection Mr. Higa's resolution offers. Nonetheless it is difficult for me to accept the idea of local government stepping in to chose who will and who will not compete in the marketplace. Although the intentions may be good, the greater good is Ln allow the American marketplace to function as it historically has. Tluough invention and originality we have created the most dynamic and successful marketplace in the world History shows that when governments begin to shield some competitors from their potential competition the results are not good: • Those who are protected grow weak. They are not prodded by the market to meet and beat the competition. They are led to believe that they will always be protected. Because competitors are continuously original in their approach, eventuaIly the salient factors (in this case superior inventory control, logistical efficiencies, etc.) that made some strong arc taken to new levels and barriers to market entry are worked azound. Those who were protected aze now several generations of operation behind and am simply not now able to meet the competition. • Those who would most benefit from new markef entrants are also most hurt by their exclusion. In this case we need to take into account that the proposed "Super Centels" typically provide groceries at most attractive prices. In our economy where wages are often low and grocery prices are high - groceries provided at lower prices can make a very significant difference in the giuility of food available to many in our community. Community members who work in low paying service and other jobs may benefit very greatly from groceries that are value priced. They are likely to be very willing to forego better service and greater variety of offerings simply to be able to feed their families more nutritiously. (Does government really wish to step in to prevent this?) There are often unintended consequences. Who can really predict or project all that will come from such legislation) Might we find that others will Comm. ~o• 3 2', Ref. To: 2flp7 Rsf. Date ~R~