OFFICE OF THE GOVERNOR
PRESS RELEASE
(for immediate release – May 8, 2007)
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Governor Togiola Announces New Economic Program Focusing on the Canneries and Long Term Economic Development Policy

(UTULEI) - Governor Togiola Tulafono today announced the initiation of a three-phase cannery impact project that will determine possible adverse developments of cannery operations in the future.

According to the Governor Togiola, the project has three major components. The first is to determine how serious reductions in cannery operations could affect American Samoa. The second is to determine immediate response programs for the short-term transition or recovery. The third is to determine alternative private sector development directions for the longer term to compensate for such losses.

“In the next few years, American Samoa’s canneries could seriously reduce operations or shut down completely as a result of more competitive foreign locations, international trade and investment trends, the loss of federal tax incentives or substantial increases in the minimum wage,” said Governor Togiola. “Of immediate importance is the continuation of federal corporate tax incentives in American Samoa which will expire at the end of this year unless Congress acts to extend them.”

Governor Togiola said, furthermore, this work will serve US Congressional interests in establishing a comprehensive, long term development policy for American Samoa.

A team of analysts, which have considerable experience in economic analysis and development in American Samoa and other US Territories, is undertaking the work. The team will work closely with ASG officials and the private sector to make well focused determinations.

They will determine what economic impacts might be expected should there be a precipitous decline in cannery operations. This would include impacts on population and migration, employment, unemployment, income, business operations, and government revenues. This is essential to make the case to the federal government for immediate and longer-term recovery needs.

Analysts will also determine immediate or short term recovery needs including temporary income maintenance, severance assistance, relocation assistance, worker training and assistance, business assistance and other needs arising from the population affected by any serious cannery dislocation.

And, the project will also determine intermediate and longer term recovery needs. The core of these recovery needs will be in economic development directions which best-fit American Samoa. This will take into account American Samoa’s comparative advantage in world and regional markets and not just assumed or random development directions. The project team will then specify what needs to be done to exploit those comparative advantages in terms of legal, technical, public services, labor, capital and other development resources or infrastructure.

“This information is essential to prepare for possible adverse developments in the future. It is essential to make our case in Congress regarding recovery needs, development incentives and long term development policies for American Samoa,” said Governor Togiola. “We cannot go to the federal government and simply state that things are going downhill fast. We have to quantify the effects of any future downturn and provide some program and policy guidance. Furthermore, this process, involving greater participation of the private sector, will give us better information on development priorities, programs and policies.”