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New task force to use some of the many economic development plans from the past

Governor Lolo Matalasi Moliga has established a new task force to develop a Territorial Economic Development Implementation Plan (TEDIP) through an executive order issued last week.

 

This task force comprises six members from the private sector, five members from the Executive Branch of government, two members designated by the Senate and House of Representatives and one member designated by Congressman Eni Faleomavaega’s office with the primary mission to prepare the plan.

 

PURPOSE

 

According to the document, the new administration has placed economic development as its number one priority. Given the numerous studies and economic development plans that have been prepared over the years, it should be acknowledged there have not been meaningful and sustained efforts taken toward implementation of the plans and recommendations.

 

The studies and plans refer to viable undertakings and projects that can be identified and developed for implementation based on available resources, inherent product marketability, available technology, and available human resources.   

 

According to the executive order, an initiative based on canvassing existing and reasonably current studies and economic development plans, from which individually identified undertakings and projects can be lifted, can form the basis of the TEDIP.

 

MEMBERS

 

Private Sector; Bret Butler, Sepp Steffany, Olivia Reid, Roy JD Hall Jr, Papali’i Lauli’I Alofa, Alfonso Pete Galea’i.

 

Public Sector: Keniseli Lafaele- DOC Director, Claire Tuia Poumele- Port Director, Jason Betham- Acting DBAS President, Lealao Mel Purcell- DOA Director, Utu Abe Malae- ASPA CEO, Moefa’auo William Emmesley- ASCTA CEO.

 

From the Legislature, the Senate and House will each have its own designee and Fa’aivae Alex Godinet has been designated from the Congressman’s office.  

 

DOC will provide staff support for this initiative with responsibilities that include basic research, compilation of statistical data and economic information, maintaining minutes of all meetings and final version of the TEDIP.

 

A budget of $100,000 financed by a technical assistance grant from DOI will provide funding for expenses associated with the development of the final TEDIP.

 

The task force is expected to produce a final document suitable for submission to the Territorial Planning Commission for its review and approval and for review by Legislature and its expected that the work of the task force will be completed within 120 days of its first meeting.

 

DOC Director Lafaele has forwarded letters to each of the Task Members that a meeting is scheduled on Thursday, July 18 at the Department of Human Resources Conference room at 9am (next to DOC conference room).

 

BACKGROUND

 

Over the years the federal government has sponsored a number of incentives intended to assist the development of its island territories, such as Made in USA labeling, Essential Air Service, certain corporate tax credits and other incentives to provide the territory with economic development advantages and to create a desirable venue to encourage foreign investment.

 

As a result of the successes of some of the efforts the territory’s economy has been able depend on fish canning industry for over 50 years and continues to do so today amidst mounting competition from Asia and other regions around the world.

 

“Unfortunately, the effectiveness of the federal incentives has been eroded by US foreign policy initiatives in the area of free trade, along with the federally-mandated imposition of an increased minimum wage in American Samoa and the phasing out of the section 936 tax credit and failure to replace it with a tax incentive scheme that provides long-term certainty to potential investors.” This along with the escalating prices of fossil fuels has “eroded the purchasing power of our local disposable incomes.”

 

In September 2009 Samoa Packing closed down with a loss of approximately 2,000 permanent jobs. The impact on the economy was mitigated in short term by the federal dollars injected into our economy to aid recovery from September 29, 2009 tsunami.

 

“Our economy further benefited from funding through the American Recovery and Reinvestment Act. Unfortunately, however these critically important funding sources are now coming to an end.”