1 - American Memory

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The county's vital sugar industry which exports its total produc-
tion to tlie west coast was beset with problems. The dock tieup forced
at least one company to fly in equipment at tremendously higher
prices. Availability of storage space was a serious problem as raw
sugar was literally dumped on makeshift storage areas on the docks.
The inability of Hawaii's sugar companies to get their product to
their mainland markets seriously hampered their competitive strength
with other producing areas. The local sugar industry suffered large
financial losses during the prolonged maritime dispute and this in-
dustry is in no position to afford it.
Even under normal circumstances, sugar experiences subpar rates
of return. With added cost from new environmental protection regu-
lations, rising operating costs, and increasing competition, set-backs
created by dock tieup can no longer be absorbed. Gentlemen, I can-
not overstress the importance of this industry to our county. There
are about 4,000 workers directly employed in this industry out of a
total employment of 29,000. Related jobs to this industry would ac-
count for another 4,000.
Both small and the large firms need and depend upon surface
vessels for its very survival. Businesses are forced to pass on these
additional costs at a time when consumers can least afford it. During
the west coast tieup of 1971, consumer food prices in Hawaii rose 4.5
percent compared to a decline of 0.3 percent by the Nation as a whole.
It must also be remembered that the major citj' of the State, Honolulu,
already has one of the highest costs of living in the Nation—in some
cases more than 20 percent above the U.S. average. Coupled with price
increases are the layoffs which occurred as a direct result of the dock
tieup. In November 1971, the County of Hawaii's unemployment rate
rose to a high of 7 percent, the highest since the year 1950.
The County of Hawaii did everything possible to alleviate the
impact of the shipping tieup. We declared a limited state of emer-
gency so that county storage space could be utilized by private indus-
try. Our civil defense agency began monitoring food and medical sup-
Elies [Exhibit II (see p. 44)] while the Department of Research and
development conducted surveys of businesses [Exhibit III (see
p. 90)]. The county assisted in the State emergency loan program
for the hardest hit small businesses [Exhibit IV (see p. 114)]. We
coordinated the Big Island's allocation of supplies which were brought
in by a State chartered ship. This ship brought in emergency supplies
of food and animal feed. Because of the wage-price freeze in 1971,
private entrepreneurs were forced to absorb added costs of air freight,
alternative shipping lines, storage space, and additional finance
charges.
The consumer suffered by being forced to pay higher prices and was
forced to ration or stockpile some of his basic necessities. Entire con-
struction jobs were halted because one subcontractor could not get his
necessary supplies to complete his work. Despite employers' u*
extended vacations, make-work products and shorter ^'
day strike in 1971 resulted in over 300 layoffs in ou
ipated layoffs involved several hundred additional
these numbers do not represent a large figiire comp
problems, it is critical to a county of our size.
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