In it’s final draft of the territory’s Economic Development Implementation Plan (EDIP) released last week, the government’s 16-member task force outlines several recommendations which would help boost the territory's economy, thereby creating jobs; while noting that there are certain federal constraints affecting economic development for American Samoa.

The task force then suggests the possibility of having Pago Pago become a port of entry for the U.S. as one way to boost economic prosperity for the territory.

The task force recommends that Congressman Faleomavaega Eni establish a Congressional Inquiry and Study to determine the benefits of establishing American Samoa as a U.S. Port of Entry. The group, however, pointed out that the Fono is likely to oppose such a move, but quickly noted that the study should be done and the benefits determined for American Samoa’s next generation.

American Samoa currently controls its own borders — both Immigration and Customs. And the task force, in a footnote in the report, acknowledged the ‘downside’ of the territory becoming a port of entry, after which American Samoa would lose “immigration and customs jurisdiction”. But the upside is it creates more federal jobs, and would transfer the cost of immigration and customs to the U.S. Department of Homeland Security.

The report went on to claim that federal restrictions on sanctuaries impact local fishing — commercial, recreational and indigenous ocean activities. According to the task force, the restrictions, management and regulatory authority granted to the U.S. National Oceanic and Atmospheric Administration (NOAA) over the sanctuaries “creates more layers of federal jurisdiction that are not necessary, because these areas covered by the new sanctuaries are not under any stress or threat.”

“Scientific studies can be ongoing in these sanctuary areas and if there is stress or threat to the coral, fish or the environment, then proper and actionable remedies can be implemented and it will have the full support of government and the public,” the report states.

One action recommended by the task force calls for Faleomavaega to establish a Congressional Inquiry and Study to determine a review, and limit the sanctuaries established to scientific study “and NOT allow supervision, management and regulation of restrictions and permit entry.”

Another federal constraint cited in the report is the federal minimum wage law, with the task force saying that application of this law in the territory is "inappropriate and counter-productive to sustainable economic development in American Samoa.”

It recommends replacing the current annual congressional review of the US minimum federal mandate with federal agency authority. The report suggests that the secretaries of the federal departments of Interior and Labor — in collaboration with ASG — determine an appropriate minimum “living wage” for American Samoa.

“Then review on a regular basis if an increase is warranted,” it says and notes that the estimated funding for this project is $100,000.

BACKGROUND

During his address to the Fono in January this year, Gov. Lolo Matalasi Moliga revealed that the centerpiece of ASG's minimum wage justification package to halt federally mandated wage hikes is the presentation of a locally developed ‘Living Wage’ based on prevailing economic conditions.

Additionally, determining the “Living Wage” will “allay Congress’s fear that our minimum wage does not afford our people the ability to cover basic living needs.” 

The Commerce Department is tasked with coming up with a living wage package for submission to Congress.

DOC director Keniseli Lafaele has told Samoa News that a living wage is one that meets the basic needs to maintain a decent standard of living within a community, thus is generally higher than the minimum wage.

Samoa News understands that the package is not yet completed. (See Jan. 24, 2014 edition for more details).