Before leaving the territory last Thursday night, Governor Togiola Tulafono met earlier in the day with the co-chairs of his Economic Advisory Council (EAC) to receive the final report on economic development for the territory.
The final report, smaller than the two lengthy draft reports submitted last year to the governor for his review and consideration, was presented by EAC co-chairs David Robinson, president of the Chamber of Commerce and Dr. Oreta Togafau, a senior policy advisor to the governor.
The first draft report, which consists of 29-pages is called “Focused Collaborative Approach to Economic Development” and recommends projects the EAC considers doable in the short term to produce long term results. The second draft report of 12-pages focuses on ASG “Policy Reforms.”
“The final report was well received by the governor, who thought it was excellent. He will use it as a blue print or frame work for short term and medium plans to address the economic development for the territory at a time when we are faced with the closure of one cannery putting the tuna industry in uncertain terms,” Robinson told Samoa News yesterday.
A copy of the final report was not available, Robinson said the governor took it with him.
“The governor will probably provide comments after reviewing the report that will... be shared with all local stakeholders,” said Robinson in a telephone interview.
The final report includes in the front section a list of concerns American Samoa expects to face with the pending closure of COS Samoa Packing at the end of September, and the ripple effect it will have on a wide-range of businesses and the government, said Robinson.
According to Robinson, noted concerns are: the banks will tighten their credit lending; container shipping services will be reduced due to the lack of freight leading to freight costs rising; electric rates and other utility services costs will rise; and in the community an increase of social problems — such as stealing and other problems associated with law and order.
“One of major recommendations cited in the report is the use of economic stimulus money to develop capital work projects and re-train the workforce that will face layoffs, not only from Samoa Packing but businesses that will be forced to reduce services or shut down completely because of the cannery closure,” said Robinson.
He said capital work projects are the fastest way to get people employed and there are many such projects, which include building roads, sewerage, drainage, new health care centers, new school buildings, and other facilities that are “shovel ready” to begin.
Robinson suggested the Department of Public Works take the lead role “in moving these projects forward on the shortest possible time” especially for the fact that if “we don’t use the funding, we’ll lose it.”
“Stimulus funding can also fast track other projects such as the call centers, tourism development and similar projects that are ready but just waiting for the right funding source,” said Robinson. “There will be a lot of people out of the work at the end of September and the EAC estimates that about 50% of the entire current workforce of 15,000 workers will be out of work.”
The EAC is also recommending to the governor to move forward on its original draft recommendations such as development in agriculture, fisheries, manufacturing and tourism, said Robinson.
