NEWSLETTER
SEPTEMBER and OCTOBER 2007

There are many things to report for the past two months.  The Chamber continues to make progress on many fronts and new objectives are slated for the coming year.  Below are brief comments on the major items.  We welcome your input and you can reach us by clicking here.

PEACAS
Sometime ago the Chamber decided to establish a corporate entity to handle new investment and development projects and to assist government with strengthening the economy through a Private/Public Working Group. The Private Economic Advisory Council of American Samoa – PEACAS – has now been incorporated and it held it’s first meeting on 23 October, an interim Board has been appointed and we are now waiting for the IRS to confirm a non profit status. When this is received we shall apply for funding through DOI and draw up a profile for the person we would appoint as the manager, and when once this person is in place PEACAS would work to a plan now being developed by Directors.

Minimum Wage Bill
Following the passing of the Minimum Wage Bill by Congress effective July this year, the Department of Labor was tasked with preparing a study into the effects on our economy resulting from the first 50 cents per hour raise. The Chamber made contact with the DOL team responsible for the study in order to try and ensure that it provided input to the study that would reflect the general concern that the escalator clause in the Bill pushing hourly wages up annually until the maximum of $7.25 per hour is reached would have a serious and unsustainable detrimental effect on our economy. A tele conference was arranged and input to the DOL team was provided.  Further conferences will be arranged prior to the first draft of the report scheduled for mid-December.

Economic Census
The Chamber met with members of the US Census Bureau Economic Census Branch to find out details of the proposed 2007 Economic Census and to offer assistance if required in order to make the Census a success. More details will be sent to the Chamber in due course.

Cannery Impact
The consultants carrying out the DOI funded study into the impact of the canneries leaving gave the general membership a briefing and update as far as their progress with the study is concerned. The Chamber looks forward to the completed study which should be available early in 2008.

Tax Reform
The Tax Reform committee held a meeting with the manager of the Tax Office to brief him on the proposals that had been sent to the Governor to reform areas of the current tax code that are considered detrimental to efforts to encourage non-US companies to establish a new business here. The committee received a very positive response from the Manager and a draft of a Bill prepared by the office of the Governor incorporating the Chamber’s recommendations to be presented to the Fono for approval at the next session is now awaited for review by the Tax Committee.

General Meeting
The Chamber’s Annual General Meeting was held on 03 October and it was disappointing to see such a poor attendance of only 18 members out of our total of 52 members. The out-going Board made a substantial progress last year and the Chamber’s schedule of Objectives and Achievements was presented to the meeting and subsequently posted on our web site for the reference of our membership. After a vote by members, a new Board was elected for the 2007-08 year.

New Board
The first meeting of the new Board was held in October and a new executive voted in. Details have been posted on our web site. Three new committees have been established, the Canneries, the Environment and the Young Professionals, and these together with the four committees continued on from last year are all designed to support the general membership, to assist government and to ensure an on-going input and contribution to economic and social development by the Chamber.

Economy
The general economic conditions in the Territory continue to be weak, inflation continues to grow and it was pegged at 4.4% for the last quarter under review with sharp increases in gasoline and motor vehicle parts, building and construction materials and electricity bills all contributing to the increase. Banks continue to adopt a cautious lending policy, but a bright spot during the month was the number of new vehicles sold with all major distributors reporting stronger than average sales.

Trade Fair
November sees the Trade Fair organized by the Samoa Exporters Association with assistance from the Department of Commerce and the Chamber scheduled to be held at the Tradewinds Hotel, November 22-24. All members who have goods or products to display are urged to contact the Chamber’s Secretary to obtain a Registration Form, entrance fees are $200 and 60 booths will be available for displays.

David Robinson
President