As I See It: Doing business in Hawaii

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Hawaii has a reputation as a notoriously difficult place to start a business. Kicking out astronomy won’t help. There are several impediments, some unavoidable, some hard to fix and some just plain stupid. Isolation is the unavoidable one. Some 2,600 miles of ocean makes obtaining supplies more difficult. The cost per ton mile is low but the cost and delay of removing cargo from the truck or train and securing it on a ship then transferring it to another truck can be significant. If the cargo is bound for a “bruddah” island, that is other than Oahu, repeat. Neighbor island sounds to me like we’re not part of the state. Same thing with deliveries between the “sistah” islands, and the Capitol, you can’t just drive over and drop something off.

This impacts other limitations too. A smaller pool of available workers, it’s expensive and inconvenient to commute island to island, you can’t just do it on impulse, or emergency. Service organizations, from the fire department to utilities like HECO must be self-sufficient. Our fire department can’t call the next county and say send over three fire trucks right away, or ask Kauai for a few megawatts today. Energy cuts both ways, while we are blessed with many kinds of renewable natural energy, it can only be distributed as electricity. Some things, like aircraft, are decades away from anything but oil.

Hawaii has been called the world’s smallest continent for good reasons. We have a huge range of natural features and can have all four seasons at the same time. Every natural disaster is possible here. We have a planet size range of objectionists, because we have a very cosmopolitan population. One group defends the past, what was good enough for grandpa. … Others say it’s fine to do what you propose but not in my back yard. Everything is sacred to someone.

Isolation makes high taxes unavoidable, but do they have to be regressive? GET and fuel tax hit hardest on those least able to absorb extra expense. We, like India have a “permit raj.” Everything that you don’t do every day or that not everyone does seems to require a permit. That would not be too bad if the permits were inexpensive and issued timely but that is not the case. To renew a driver’s license can take all day, maybe two! To license a vehicle new to Hawaii requires three trips, one to an inspection station, then to the DMV then the inspection station again, that is if you have all the right paperwork, if not, add another trip. Why? Are the safety inspections really worthwhile, most other states have abandoned them. The most important part of the safety inspection, the brake test is usually not done! We need to ask our government, of each permit or license: What does it serve? Whom does it benefit? Is it worth it? If not, do away with it or simplify the process. Some permits are just a way to collect revenue, a tax, so just take the money and let us run.

Building permits are a challenge everywhere, but doubly so; here because of inflexible one size fits all requirements written into the codes by the influential manufacturers on the code committees. Sometimes this is good. If all stairways have the same proper dimensions, they can be safer. Fire hazards can be eliminated. Standardized hardware can be manufactured better and less expensively. On the other hand, especially here in the tropics, codes require unnecessary expensive features like R19 ceiling insulation and dual pane e-glass windows in houses where the windows are seldom closed.

Lack of agricultural infrastructure hurts. We once had an agricultural economy that exported over a million tons of sugar a year. When the sugar plantations went away, so did the support structure that made other agricultural activities viable. Of course, each plantation was a self-contained community with most needs meant internally. As in the 19th century, if you could not make what you wanted, then you did without.

We need to knock down some of these barriers, especially the “permit raj” that protects those with permits from even the most remote competition. Like requiring a cosmetology license to braid hair.

Ken Obenski is a forensic engineer, now safety and freedom advocate in South Kona. He writes a biweekly column for West Hawaii Today. Send feedback to obenskik@gmail.com