Every Sunday, “Back in the Day” looks at an article that ran on this date in the Honolulu Star-Bulletin. The items are verbatim, so don’t blame us today for yesteryear’s bad grammar.
The Senate Economic Development Committee yesterday recommended that the Senate approve legislation setting up a State-run, low-fare inter-island ferry. The bill would allow the borrowing of $7.9 million and the payment of an unlimited operating subsidy.
The committee report, which looks toward the possibility of constructing two ferry ships here on Sand Island with Japanese steel, comes up for Senate action tomorrow. Ferry backers were cautiously optimistic yesterday of its passage. House passage is considered certain.
Economic Development Chairman?Thomas S.?Ogata broke a committee blockade of the bill yesterday afternoon by convincing Democratic members the bill could have a double-barreled impact on the State’s economy.
Beside arguing that the ferry itself would boost Neighbor Island econo-mies, backers say its construction could be the start of a new Hawaii ship construction activity. None of the three Republicans on the eight-member committee signed the report.
Ogata said it is believed the $7.9 million in revenue bonds authorized by the bill would be enough for two ships if they are built here, or one if construction is done on the Mainland.
It has been proposed that private interests take over and remodel the remains of a World War II shipyard on what is now State land on Sand Island. Under the proposal, steel provided by a Japanese firm would be prefabricated into sections of the ship, then assembled at Sand Island.
A representative of the Japanese firm, Nippon Kokan Kabushiki Kaisha, says two ocean-going ferries can be built for about $6 million using this method. That is the estimated cost for a single ship built on the Mainland.
Local construction, proponents say, could mean a new boost and the start of a new industry for Hawaii’s economy.
… To allay fears of some senators that operation of the ferry would place an unlimited drain on State finances, the bill also allows retirement of the bonds and ending the ferry system after five years, if the Department of Transportation feels it is necessary.
