Econ task force calls on ASG to stabilize costs for canneries

A government task force has called for American Samoa to help “stabilize the competitive cost for tuna canneries” in the territory, according to the Economic Development Implementation Plan, which is to help boost economic growth in the territory.

 

Among the 16-members of the task force are three from the private sector. They include StarKist Samoa general manager Brett Butler; G.H.C. Reid general manager Olivia Reid-Gillet; and Saveatama Sepp Steffany — owner of Steffany Group of Companies.

 

According to the EDIP, the territory has limited land available for expansion and they note that StarKist has expressed an opportunity for expansion, but with limited land area, it has been difficult.

 

To address this issue, the EDIP recommends the creation of a task force to locate areas near the canneries that are available for expansion. Additionally, this group should define and make available suitable ASG land to accommodate Starkist’s planned production and workforce expansion of 500-1,000 jobs by 2015, including a venue for a new StarKist freezer.

 

The EDIP also calls for support in expanding tuna industry employment of close to 2,000 jobs by fiscal year 2015, which begins Oct. 1, 2014. “Facilitate and support Tri Marine International and StarKist Samoa's timely completion and achievement of tuna operations rebuilding and equipment program,” the task force recommends.

 

It also recommends that American Samoa assist in the recruitment and training requirements for hiring 1,000 to 2,000 new cannery workers, beginning in the first quarter of FY 2015. Federal funding is being suggested to help subsidy the hiring and training of workers.

 

Samoa News has previously reported on StarKist's requests to ASG for land to expand their local operations, including their request for a new freezer facility location— which is expected to be on a parcel of land in Satala. Such expansion will result in hiring more local workers.

 

Additionally, Tri Marine has already announced plans to open by the end of the year, its canned tuna plant at the Samoa Tuna Processors Inc. facility in Atu’u that will provide more than 1,000 jobs.

 

There is no mention in the EDIP of San Diego based Bumble Bee opening up a cannery in Samoa soon. This is probably because the Bumble Bee issue hadn't surfaced until May,  while the EDIP final draft was released in the early part of June.

 

OTHER RECOMMENDATIONS

 

The task force said imported fuel in American Samoa that supplies the generation of power for the island creates a disadvantage for businesses due to the high cost of power in the territory. It recommends that American Samoa identify new sources of energy that are significantly cost competitive versus fuel. (e.g. geothermal energy, wind, solar, anaerobic digester, etc.) or an energy subsidy to look into long term fuel displacement. 

 

Samoa News should point out that the American Samoa Power Authority along with the Territorial Energy Office are working jointly toward renewable energy projects. StarKist and Tri Marine officials have both pointed out that energy costs are very high in American Samoa.