HomeMy WebLinkAboutCOM 0200.016 2006-2008 106 ICamehameLa Avenue
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Phone: (808) 935-7178
~1~ ~ Fax: (808) 961-4435
$mail: exec@htec.biz
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April 3, 2007
County Council Chairman and Council Members
Hawaii County Council
Hilo, Hawaii 96720
RE: Testimony on Bill Number 156
Dear Chairman Hoffman and fellow Council Members,
My name is Robert Williams and I am the President-elect of the Hawaii Island Chamber
of Commerce. I have come here representing our approximately 650 members.
Today you aze discussing a proposal to levy a tax on new or expanding businesses that
employ, or will employ over 100 Big Island residents. While the goal of providing
affordable housing is admirable, the question remains will this Bill increase affordable
housing or will it reduce job opportunities for our Big Island residents?
Do you remember ten to fifteen years ago when the County of Hawaii was in an
economic downturn? The talk of the day was "brain drain". Our best youth were being
recruited to leave Hawaii for opportunities on the Mainland. Unemployment was high
and the County was struggling to provide services. With agriculture in the decline from
the demise of sugaz, the idea of expanding our economy beyond tourism, real estate
development and construction was a government priority. Then, just when the economy
was showing a little life in 2001, 9/11 happened, and there was real fear that our economy
was a sinking ship.
As providence had it, those were the dark days before the boom of 2003 to 2006. With a
strong tourism, real estate, and construction industry, unemployment became a distant
memory and government coffers have since been overflowing. One of the outcomes of
the boom has been the escalating cost of housing. Some residents have been priced out of
the market in certain areas of the Big Island. The good news regazding the housing
problem is it is reversing do to normal business cycles. The availability of housing is
increasing every day as homes are no longer selling quickly after being listed. Price
reductions are now the norm on the MLS daily hot sheet. Thus, through a natural
correction, the affordable housing problem is being improved upon.
The question remains however, how do we reduce the wild swings of boom and bust that
have characterized our economy over the last 40 years? The answer is to diversify our
economic base. Tourism, real estate, and construction are all industries known for their
extreme fluctuations. Hawaii needs to encourage industries that will expand our
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Ref. Uate APR 0 4 2007
Affiliated with the Chember of Commerce of the United States
economic base while not degrading our environment. That is precisely what the Governor
and the Legislature envisioned when they passed legislation offering tax breaks to hi-tech
industries locating here. Unfortunately, Bill 156 heavily taxes those same new potential
industries that may be considering a location or expansion on the Big Island and that is
specifically why it should not be enacted.
Thank you.
~C~~~ W L~~t-a~r~O
Robert G. Williams
President-elect
Hawaii Island Chamber of Commerce