New international trade office has no budget

Pacific Business News (Honolulu)
July 7, 2006

by Eric Phillips
Pacific Business News

Legislators gave Ted Liu, director of the state Department of Business, Economic Development and Tourism, what he wanted: an agency within DBEDT solely devoted to international affairs. But they didn't give him any money to run it.

In theory, the Office of International Affairs will be a mini-state department that sends trade missions abroad, hosts dignitaries, and educates Hawaii businesses on how to get access to foreign markets.

But without a budget, the office may exist in name only. Liu and some legislators, including the bill's main author, Rep. Helene Hale, D-Kalapana-Pahoa, asked for $250,000 per year to pay for an executive director's salary, and programs.

But no money was approved.

Sen. J. Kalani English, D-E. Maui-Molokai-Lanai, who also helped author the bill, is fine with that. He said the office won't need a budget to be effective.

"Ted Liu told us he's already doing everything at DBEDT that the new [Office of International Affairs] will do," said English, who is chairman of the Energy, Environment and International Affairs Committee. "This law just makes it official. Now foreign governments will have an official point man when they visit us, which is extremely important to countries, especially in Asia."

Liu concedes that DBEDT already does a lot of the things the Office of International Affairs will do. But more needs to be done if Hawaii is ever going to play a major role in international trade, he said.

"They are requiring us to set up an office but without any money to do it," Liu said. "There are programs Hawaii needs, but won't be able to have."

Had the Office of International Affairs been given a budget, Liu said he would have appointed a director who would have focused on strengthening sister-city exchanges and helping Hawaii companies do business abroad through seminars -- what he called "Exporting 101." But as it is, Liu said he doesn't know exactly how the office will function.

"We're going to keep doing what we do at an international level at DBEDT, but under an official name now," he said. "Hopefully, if we show success, we'll get the funding later."

That's exactly what scares Sen. Sam Slom, R-Diamond Head-Hawaii Kai. He and Sen. Gordon Trimble, R-Waikiki-Downtown, were the only two senators to vote against creating the office.

"It's just another office, staff and expense that the state doesn't need," Slom said. "We already have the university, the East-West Center, DBEDT, the governor's office, the Legislature, that handle these kind of things. There is no clear mission and no clear need."

Liu was surprised that the senators, especially Slom, who is president of Small Business Hawaii, were so adamantly opposed to creating the office.

"Tell Slom that most of the people who would benefit from a funded [Office of International Affairs] would be small businesses," Liu said. "They could use us as free consultants initially to enter foreign markets."

But Trimble said the establishment of the office is more about politics than strengthening Hawaii's economy.

"It's an example of legislators passing bills to improve their portfolio in an election year," Trimble said. "They're hoping nobody will figure out if it works or doesn't work. That's why they didn't give it a budget."

Hale, author of the trade office bill, said she envisions the office helping Hawaii become the "Geneva of the Pacific,"

"Right now, DBEDT's main focus for this office is trade," she said. "I'd like to see it become a separate department that focuses more on international peace. Hawaii can show the world how different cultures, races and religions can get along without killing each other."

ephillips@bizjournals.com | 955-8001

© American City Business Journals Inc.

Original article URL: http://www.bizjournals.com/pacific/stories/2006/07/10/story8.html?t=printable

Return to Sen. English Home Page - KalaniEnglish.com

Home Bills and Resolutions About Senator English Committees Community Profiles Newsletter Archive News Archive Capitol Web Site Media Photos

Connect with Senator English

OUR DISTRICT