22 Mar 2010

Losses flow on from cannery closure in American Samoa

10:11 am on 22 March 2010

There's more evidence of how American Samoa Government is feeling the impact of the closure of the Samoa Packing cannery.

The closure last September put more than 2000 people out of jobs.

Governor Togiola Tulafono says local revenues have nose dived because of the closure and this is why he has instructed departments to prepare for cutbacks.

He says individual taxes and excise taxes have taken a hit.

"Our cannery closed and we lost nearly US$200,000 every two weeks from that cannery in terms of the tax money that comes into the operation. Because the cannery closed several other businesses have closed and we continue to lose those streams of revenue."

The taxes we collected on the wharf have now been reduced by almost eight per cent because of the loses of businesses."