HomeMy WebLinkAboutCOM 0032.014 2006-2008
O1/OJ/07 R'ED 15:21 FAR 808 968 8522 R'H SAIPMA'.V Idj 001
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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
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01/00/07 WED 15:21 FAA 8(18 966 8522 WH SHIPMAV _ _ [dJ 002
2 - Janwry 3, 2007
voluntarily stay out of the market? What will the consequences of poorer
nutrition be? Who will be excluded from the market by legislation next? In this
case legislators may next exclude farmers markets because they, too, can provide
food at lower prices.
In any case, although the intentions of this legislation are certainly laudable, the results
will more than likely be less than laudable -favoring one group in our community (and
them only temporarily) and hurting another group. It is my belief that mazkct
intervention is best left - to the markets.
Sincerel~~~~~7V v'"'-
Bill Walter