NEWSLETTER
March and April, 2007
The past two months have been busy for the Chamber with a wide range of issues and initiatives being discussed and progressed. The minimum wage issue continues to be high on the agenda and in the minds of government and the private sector with opinions divided as to whether an increase would be a good thing or have a significant adverse effect on companies and the govenment. In order to formulate a position the Chamber conducted a survey amongst members and the results will be condensed into a draft position paper for all members to comment and provide their input by the end of May.
The Tax Reform committee prepared a further letter with recommendations for the Governor to align the present code with the US thereby removing the present 30% withholding tax penalty for non-US companies who operate here now and for those that maybe thinking of an investment. No reply has been received so far but the Chamber was assured by the Governor during an April meeting that the matter is receiving attention.
The outgoing New Zealand High Commissioner for Samoa and his Deputy held discussions with the Chamber during their March visit. Several interesting potential investment opportunities were discussed and these will be followed up with the NZ regional Trade Commissioner during a planned visit for mid May.
The Tourism committee has prepared an up dated response to a draft Executive Order prepared by the Governor's office regarding the restructuring of the Office of Tourism and this will be sent to the Governor for comment.
There is continuing interest in the proposed undersea fibre optic cable project. This project if developed will have significant economic advantages for our communications, telephone, IT, television, radio and planned call center and it will offer new opportunities for investment and provide increased employment. At present there is not much available detail during this initial development period.
Gas prices continue to rise above the $3/gallon level causing motorists who deem it necessary to drive vehicles with gas guzzling engines of more than two litres in capacity to pay hundreds of dollars a week for the privilege. Auto dealers are still having a tough time with sales of new vehicles remaining sluggish.
Some new building work is evident but not much in the way of new construction so building contractors continue to experience lean times. There should be some industry stimulus when once funds flow from government following the approval of a $20 million loan to be applied to various capital works programs.
The Chamber has been invited to assist the Education Department in evaluating and tailoring curricula for trade courses at the ASCC and the Polytech with a view to trying to ensure that when the students qualify they will be able to find appropriate jobs in the commercial sector.
Plans for the South Pacific Arts Festival scheduled for 2008 are well underway and the Chamber has offered to assist the organising committee in anyway it can with the planning process.
Yet another economic study is being funded by the Department of the Interior this time to analyse the Impacts and Remedial Actions for the potential Cannery Industry cutbacks. Our economy must be the most studied in the Pacific region! We all know what effects would result from the canneries scaling down or leaving, surely DOI funds could be put to better use.
Flag Week celebrations in April were a great success and the theme of planning for the future of our youth was a message that was embraced by both the public and the private sectors.
David Robinson President |
