28 Sep 2005

Fears in American Samoa if the territory loses its two tuna canneries

1:27 pm on 28 September 2005

There is concern being voiced in American Samoa that the economy could collapse if the two big canneries leave the territory.

A senate study says economic chaos could result if the canneries, which are the territory's biggest employers of 5,000 people, pack up and leave over tax credits being discontinued.

Negotiations are currently underway in Washington to see if Congress will agree to an extension of the tax credits which are due to end in January 2006

Our correspondent, Monica Miller, says the senate has painted a bleak picture of what to expect if the canneries go.

"Basically it says that there will be a total collapse of the economy and American Samoans would have to revert back to a very basic standard of living, and we're talking about going back to kerosene lamps, that's exactly what's in there."

Monica Miller.