Amata rebuts Eni's latest Section 936 arguments
December 01, 2005

Reprinted from Samoa News

PAGO PAGO, AMERICAN SAMOA. Aumua Amata on Wednesday answered
Faleomavaega's statement that Section 936's one year extension
includes plans for long term development policy for American Samoa.

The 9-year veteran House Majority Leadership staffer said, "With all
due respect, the statement by the Delegate reveals a fundamentally
flawed strategic approach."

Amata stated, "At this point, since we have not proposed an America
Samoa only alternative that meets our needs, a 1 year extension of
Section 936 is the best our Delegate has been able to salvage. But the
Delegate's statement to the effect that this is part of a coherent
long term economic policy strategy is misleading. It is like an
illusion created with smoke and mirrors."

Aumua continued, "Let's look at the political reality of it. First,
the GAO study and the tax policy review by the Joint Committee on
Taxation he touts as a policy review for American Samoa is actually
focused on Puerto Rico. Does our Delegate really believe the economic
conditions of the small territories is driving the policy process in
the United States Congress?"

Amata added, "In one sense the extension of Section 936 for American
Samoa is really more about Puerto Rico than it is American Samoa. In
that sense, is it a good thing for American Samoa that the Governor of
Puerto Rico is supporting the one year extension of Section 936 for
our territory?"

"Doesn't he realize that there is a risk in his strategy that American
Samoa will be used as a pawn in the game between Puerto Rico and
Congress? What he is not telling our people in a candid way is what
everyone in Washington knows. The Governor of Puerto Rico has one
reason and only one reason to support the extension of Section 936 for
American Samoa. It is so Section 936 will stay in the federal tax code
and make it easier for Puerto Rico to try to get Section 936 back next
year for... Puerto Rico." "What that means is that if Congress does
not restore Section 936 to Puerto Rico next year, we will be right
where we are now, but without an extension, without any federal
studies by GAO, and without any help from the Governor of Puerto Rico.
After getting studies and reports on Puerto Rico, Congress may decide
that Puerto Rico's economy is strong enough to grow, and might even
grow more without federal intervention based on the Section 936
model."

"Maybe there will be an alternative to Section 936 that is acceptable
to Congress. Maybe not."

"Maybe any alternative developed for Puerto Rico will work for
American Samoa too. Maybe not."

"So linking our fate to Puerto Rico's may work," Amata added, "or it
may backfire. There is a better way, which is to propose an American
Samoa only alternative to Section 936."

Continued Aumua, "We do not need to wait until next year to develop an
alternative that works for American Samoa. We do not need to wait and
see if Puerto Rico and Congress agree on an alternative to Section 936
next year. We do not need to accept whatever Congress does or does not
do for Puerto Rico as the best result for American Samoa."

"That is not leadership, that is not controlling our own destiny, that
is tying our fate to the fate of Puerto Rico," said the 20-year
seasoned GOP national committeewoman.

Amata explained, "We can and should have developed an alternative to
Section 936 that meets our needs in our economy, so that we are taking
control of our own destiny."

"Let's look at the facts. Section 936 has cost the federal government
less than 10 million a year in the case of American Samoa, and that
has been the level of support derived for our tuna industry operations
under Section 936 to keep our private economy alive."

Amata said that In contrast, in the case of Puerto Rico, Section 936
costs the federal government billions of dollars every year, and the
Puerto Rican economy is so large that its private sector will continue
to grow even without Section 936.

"Indeed, the populations and economies of American Samoa and the other
territories combined are a tiny fraction of Puerto Rico's. Having
American Samoa's fate linked to what Congress decides to do about
Puerto Rico is not something the Delegate should be boasting about."

Amata added, "That is how our economy and the private sector in
American Samoa became dependent upon Section 936 in the first place.
Instead of being linked to studies and recommendations about Puerto
Rico, and then applying whatever is decided about Puerto Rico to the
rest of the territories, we need a policy and plan for American
Samoa."

She continued, "That may include local government action on
territorial economic policy proposals that have been made, but we need
Congress to see and understand American Samoa as a unique territory
separate and part from Puerto Rico or the other territories. That is
why I proposed a wage based employment credit just for American Samoa,
which is what the tuna canneries reportedly have favored in the past."

According to Amata, the tuna companies may or may not stay here even
with the lower minimum wage and federal tax credits of any kind, but a
wage-based employment credit is the best way to separate American
Samoa from the other territories and enable us to chart our own
course. It is one idea that needs to be considered to keep our
existing companies and attract new ones, and to make sure the benefits
are to the territory as well as the companies.

"We need federal economic development policies that create jobs and
keep more of the tax saving dollars stay in our economy than the
Section 936 model allowed," she said.

Aumua believes the Delegate seems to have no alternatives to propose
to Section 936, and instead of really fighting for American Samoa, his
strategy is to wait and see what happens to Puerto Rico, and hope it
will benefit American Samoa.

Amata indicated that she believes American Samoa and other territories
are not window dressing for whatever policy Puerto Rico wants. Also,
only American Samoa is in the position of having a real blow to our
economy if Section 936 ends without any other alternative policy to
provide the canneries some adequate incentives.

Aumua said the temporary alliance our Delegate has formed with Puerto
Rico may or may not backfire, but we would not have to be taking that
gamble if we had proposed an American Samoa only alternative. My
proposal for an employment credit based on wages paid in Americans
Samoa is just one option.

Amata opined, "Our Delegate should have a list of options for us to be
discussing with Congress, rather than waiting to see if whatever is or
is not done for Puerto Rico benefits American Samoa. It only means we
can get caught up in Puerto Rico policy again in the future."

Aumua Amata concluded by saying, "Let's chart our course, not wait for
someone else to decide our destination."

Osini Faleatasi, Inc. dba Samoa News reserves all rights.