Dear Editor:

I refer to your Letter to the Editor dated 27th of December titled "Cultural change in local government on the horizon" by Talifaitasi Satele.

Reference was made in paragraph 8 to the acquition of the Ronald Reagan Shipyard "for which the Fono must now allocate a yearly budget of $1.42 million". In your Editor's note you clarified that the current budget is not a "subsidy" but was noted as "start up" funding.

Neither of these statements are quite correct.

The Shipyard Services Authority 2011-2012 fiscal year budget comprises a Revenue of $1.535 million and an expense of $1.425,500 providing a surplus of $109,500.

All the revenue funds are projected to be derived from the services that the shipyard provides and all the expenses are deducted from this revenue. The Shipyard Services Authority has not asked the Fono to approve even a single dollar of local funds from its budget to operate the shipyard.

The shipyard is a self-sufficient stand alone operation.


Carlos M. Sanchez


American Samoa Shipyard Services Authority


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