A move to delay the start of the excise tax increase to pay for a proposed public transit system for Honolulu won initial approval yesterday from the City Council after 5 1/2 hours of testimony and debate.

But it was clear from the long debate that the measure's chances of longer-term survival are slim and that the approval had more to do with the council flexing its political authority than actually philosophically supporting a postponement of the tax.

Council budget chairwoman Ann Kobayashi spoke strongly and repeatedly to keep the measure alive for discussion. Before a bill can become law, the council must approve it three times, so Kobayashi said the first reading consideration is generally routine.

"First reading is a courtesy," Kobayashi said. "It deserves to pass first reading, but it may never be heard from again."

Councilman Charles Djou proposed the bill to delay, from January to July, the scheduled half-percentage-point increase in the general excise tax on O'ahu if the city picks a new transit system by Jan. 1. If the council chooses a transit alternative between Jan. 1 and June 30, the tax hike would not take effect until Jan. 1, 2008.

The council has said it intends to select a transit system by Dec. 31, so that decision would be known when the higher tax kicks in Jan. 1.

Djou said he is proposing the delay because he believes the city should ensure a selection is made before people have to pay more. "We shouldn't increase taxes on the people without having a plan first," he said. But he acknowledged that he expects the decision to be made by year's end.

Djou and Councilwoman Barbara Marshall were the only two council members to vote against the tax increase to support transit; a majority of the council still appears supportive of the idea.

More than 80 people testified on the bill yesterday, with most opposing the bill, including many representatives of unions, businesses and various members of the city administration. Horn-honking truckers who support rail circled Honolulu Hale before and during the meeting.

City Managing Director Wayne Hashiro summed up the city position that any postponement of the tax increase or other key approvals could jeopardize the federal funds needed to build the rail transit project. "To delay now would be foolhardy," Hashiro said.

William "Buzz" Hong, of the Hawai'i Building and Construction Trades Council, said he and his members see building transit as a good move for their industry and for slowing the traffic congestion on the island. "It's a quality-of-life issue," Hong said. "Unions and members support transit and want to see it go forward."

One of those supporting the move to slow down on charging the higher tax was former Gov. Ben Cayetano, who weighed in by e-mail.

"The City Council members should be asking themselves what sense does it make to collect the (general excise tax) so far in advance of federal approval of the system and take $200 million to $300 million out of the economy — and the pockets of small business and taxpayers — while the monies sit in the city's coffers?" Cayetano asked.

Reach Robbie Dingeman at rdingeman@honoluluadvertiser.com.