Federal government issues — including federal tax credits — were discussed last week during a meeting between Congressman Faleomavaega Eni and StartKist Co., president and chief executive Sam Hwi Lee, who requested the meeting regarding the company’s operations in American Samoa.

Meanwhile, the Lolo Administration is awaiting the final report on the economic development plan which outlines tax incentive recommendations meant to stimulate the economy, and  thereby provide more jobs.

The local tuna canning industry is facing stiff competition from canneries in foreign countries and now the move by San Diego based Bumble Bee Foods to set up operations in Samoa, which has raised a lot of concern from local leaders, the canneries, Faleomavaega and the private sector.

There have been calls by the Fono and the private sector for the government and the Congressman to do all possible to assist StarKist as well as Tri Marine International in the face of global competition.

In a brief statement last Friday morning, the Congressman says Lee sought the discussion on federal issues regarding StarKist operations in American Samoa. And those issues include the extension of 30A federal tax credit and minimum wage increases. (The 30A credit replaced IRS section 936 credit)

“With competition from Thailand, where workers are paid about 75 cents per hour, and with the prospect of other companies like Bumble Bee opening operations in Apia, we must continue to work together to ensure that our canneries can remain competitive,” he said.

Faleomavaega says he has assured Lee of his commitment to the success of the canneries in the territory and he knows that this is the same commitment Dongwon industries chairman Jae-chul Kim made "to our workers when he personally purchased StarKist from Del Monte” six years ago.

The Congressman also encouraged Lee to work directly with Gov. Lolo Matalasi Moliga and the Fono regarding local tax incentives that ASG may be able to offer to encourage StarKist to stay in the Territory.

Faleomavaega said he promised to work closely with the Dongwon chairman, StarKist, the governor and the Fono “to do everything we can for the benefit of our cannery workers”.

Responding to Samoa News questions, StarKist corporate spokesperson Michelle Faist confirmed that Faleomavaega and Lee met at the Congressman’s office in Washington D.C. and that Lee thanked the Congressman “for all the work he is doing to help renew the 30A tax credit for companies like StarKist operating in American Samoa.”

Faist said the meeting lasted for close to an hour and Lee was very appreciative of the time in the Congressman's busy schedule at the end of the legislative session.

“Both remain optimistic about the chances for 30A renewal, although it is certainly a challenging time to pass legislation in the Congress,” she said from the StarKist corporate office in Pittsburgh, Pa. “American Samoa is fortunate to have such a respected and experienced leader guiding these efforts.”

Asked about any new local tax incentive the Lolo Administration is proposing or reviewing for the canneries, the governor’s executive assistant Iulogologo Joseph Pereira first pointed out that StarKist is currently under tax exemption pursuant to ASG tax exemption law. Additionally, Congress has extended tax credits of some $60 million to the canneries over the years.

Iulogologo said there has been discussion with the Coalition of Major Companies operating in American Samoa to pursue the establishment of a Tax Incentive Scheme similar to the federal Section 936 tax credit to encourage investment in American Samoa. (The Coalition includes StarKist and Tri Marine International).

Furthermore, the “Governor is awaiting the final Economic Development Implementation Plan (EDIP) which contains recommendations pertaining to reducing the current corporate and business tax rates to stimulate business development, thus bolstering our economy through job creation,” he said.

Among the many tax related recommendations outlined in the EDIP is for ASG to provide a “level playing field” for businesses by utilizing tax exemption tools appropriately "to encourage economic development and fair competition, hence fostering economic efficiencies.”

The EDIP also calls for greater support for the canneries and for the creation of a task force to locate areas near the canneries that are available for expansion.  It notes that StarKist has expressed interest in expanding but limited local lands make it difficult.

Commerce Department director Keniseli Lafaele told lawmakers late last month that the(EDIP) is now being compiled — to included private sector comments — for submission to the governor before it's sent to the Fono. He added that the EDIP will be American Samoa’s guide to economic development and employment covering the years 2014 to 2017.