Each week Editorial and Opinion Editor Jeanne Mariani-Belding hosts The Hot Seat, our opinion-page blog that brings in elected leaders and people in the news and lets you ask the questions during a live online chat.

On The Hot Seat last week was Sam Slom, a state senator and the executive director of Small Business Hawai'i.

Here is an excerpt from that Hot Seat session. To see the full conversation, go to The Hot Seat blog at www.honoluluadvertiser.com/opinion and click on "The Hot Seat." (Names of questioners are screen names given during our online chat.)

Becky: Which small business do you anticipate will be hardest hit by the tourism downturn, and how might those businesses prepare and protect their livelihood?

Sen. Sam Slom: There are several answers to your question: First, businesses tied to tourism, directly or indirectly, will feel the loss of customers and vendors they supply; next, the restaurant industry will be hit by reductions from both tourists and locals; and finally, those small businesses engaged in retail will feel the impact.

Other businesses, too, can expect an impact depending on the length of the downturn.

Businesses that are successful can mitigate the effect by reinventing themselves to the extent possible, be prudent in their own operations and expenditures and continue to offer maximum customer benefits, enhanced value — possibly new or diversified services or products— and expanded service.

Shawn: Coming fresh out of the legislative session, what if anything has been done this year to help the small businesses in Hawai'i?

Slom: In a word, "nothing." There was nothing done to improve and enhance Hawai'i's business and investment climate. However, there were bills passed that added more business (and ultimately consumer) taxes and costs, fees unrelated to cost, employer mandates (such as more burdensome workers' comp provisions) and even more regulations. Small Business Hawaii rated this Session an "F". Most of the public agreed it was, at best, a "do nothing" session. Lawmakers talk about small-business support but don't deliver what small business asks for (such as tort reform and tax reduction). We spend most of our time defeating really bad bills, such as this year's union card check measure.

Comma'aina: Senator, grade-separated transit guarantees a time of arrival for the commuter, something no other mode of transportation can do because they're all subject to traffic congestion at some point, including HOT lanes. Are you so wed to gas-guzzling private automobile interests that you won't acknowledge this simple fact?

Slom: I'm not wed to "gas-guzzling," (especially since it costs me $100 to fill up) nor to the city's $6 billion train to nowhere. I support realistic transit alternatives that will reduce congestion — the train will not — and incentives for people who need alternatives rather than government force or more taxation. I opposed the Legislature raiding more than $160 million from the highway fund, greater fuel taxes and the phony ethanol "alternative," supporting road pricing, repairs of our roads, managed lanes and traffic synchronization among other things.

Comma'aina: You said you support "road pricing" and "managed lanes" among other things. In other words, you support reducing congestion by increasing the cost of commuting — pushing up the cost to drive in a managed lane so (low-income) drivers can't afford it and get off the highway, leaving the driving to well-heeled commuters. How is that a progressive strategy to reduce congestion (which the transit will, by the way)?

Slom: Road pricing is not for everyone, but it offers a choice. Smart commuters and taxpayers know that time is money and sometimes paying a charge to eliminate the wait and reduce gas waste — a big problem here — is worth it. But it is a free choice and a real alternative.

Chloe: With gas prices soaring and our economy on the decline, how can you oppose rail transit, which will be good for business? Seems rail would be a win- win to help alleviate the pain at the pump and (help) business.

Slom: If I thought a fixed-rail, $6 billion blunder would be good for business, and the taxpayers and families, I would of course support it. It won't help most business, except for those large businesses and developers near a transit station. For the rest of business, it will mean higher taxes and costs for them and less choices for their customers.

George: Small businesses here in Hawai'i are really hurting from the high gas prices ,which is felt all the way down to the consumer. Can the Legislature help out by doing something like lowering the gas taxes?

Slom: The Legislature could do that, but they won't. Everyone is suffering from the high fuel prices. We see it in our electric bills, food costs and starting July 1, even a fuel charge for water use. Government increases taxes and always tries to find more ways to "enhance revenue." Hawai'i now has the 2nd highest combined federal/state/local gasoline taxes, plus the 4.5 percent (on O'ahu) tax. Besides, many in government want to tax and legislate you out of your car and choice of transportation.

Donna: With the high lease costs, land costs and labor costs, not to mention the quality of the labor pool, I see little value to trying to maintain my small business here. Please tell me, what's the benefit here? Is there a formula others have used that successfully insulates them from all of the rising costs?

Slom: Those of us who start and maintain our own business do so because of the freedom and independence it affords us. It is relatively easy to start a business here; more difficult to enjoy success without a struggle.

True, it is easier in most other states — Hawai'i usually ranks 49th or 50th in a "hostile" business climate — but most of us would rather be here than in South Dakota (one of the best business climates).

There is no formula that insulates a business owner from high costs, burdensome regulations, land availability, new taxes and regulations or dumb things that government does (after all, most in government never have met their own payroll).

But we in small business should go into business with our eyes wide open and choose the challenges over simply working for someone else. Small business is tough and not for everyone. At least we have the flexibility, creativity and innovation to make changes ourselves and our work reflects our effort and ingenuity. That makes it worth it when considering the other choices.

Truthfully, however, Hawai'i continues to lose the most creative as they seek lesser business burdens elsewhere. The flip side is with a new emphasis on technology, we are also attracting new entrepreneurs and small businesses here. It would all be so much easier if we had a government that genuinely appreciated and understood the efforts of the 25,000-plus business owners here.

Tina: How did you get started in politics and what's your background? How did you get involved with Small Business Hawaii?

Slom: I told my friend and mentor, Lex Brodie, in 1983 I would help him "temporarily" with Small Business Hawaii (which I had renamed from "Small Business Association of Hawaii). Guess I am still a temp.

As for politics, I swore I would "never" run for office — a good lesson never to say never to anything — until 1996, when you may remember there was a high level of corruption in Hawai'i politics, an even worse business climate and other problems. I ran for the first time then and was fortunate enough to win the support of the good people from Hawai'i Kai to Diamond Head. This is not a career and every year I introduce bills for term limits, initiative, referendum and recall. Most business people don't like politics, the uncertainty and the fact that little seems to get changed but I'm still in there battling. I do believe you have to do more than just sit on the sidelines and complain. I'd like to see more business-experienced people run for office and require all legislators to spend at least six months with a small business to find out what it's really like.

Lisa: Could you please explain to me why we need to collect signatures to put the rail issue on the ballot? It's the biggest public works project that Hawai'i has seen. It only makes sense to have the public vote on it. What's the problem?

Slom: The problem is that many government officials here don't want the people to really be too involved in the process (it's OK to vote and give money). That's why we never voted on the Akaka bill or the proposed OHA ceded lands payout or rail. You're right, this is both the largest tax increase and most costly public project. Because we don't have easier initiative or referendum, the only way for the people to vote is through this petition drive.

Kiana: Please assess the Legislature's performance this year as it related to diversifying Hawai'i's economy, something I keep hearing about every year but never see happening. That's why we're over a barrel here with tourism drops isn't it?

Slom: You're right: We talk about many things but don't seem to act (another frustration with business people). We didn't do anything meaningful, in my opinion, to really diversify our economy. If you have a good business climate and a true level playing field, we would attract both local and outside investment. Right now, too much overflies Hawai'i for better locations.