“The Airport Authority cannot perform the services delivered by Airways Corporation in Samoa’s Upper Airspace hence the money not being paid to or used in totality by the SAA. Under the approval of the Ministry of Finance and Ministry of Works, Transport and Infrastructure, part of the Upper Airspace money is being used to pay the Authority’s four (4) million loan with the NPF since 2004”
The government has capitalised the Samoa Airport Authority’s $30,750,788 debt so it can operate debt-free.
In its response to the Report of the Works, Transport and Environment Committee’s Report on the S.A.A’s Annual Reports for the Financial Years ending June 2009 and 2010, the government said it approved this in April 2012. A copy of the response by the government has been obtained by the Samoa Observer.
In the W.T.E.’s report, published in full by the Samoa Observer last month, it is recommended that government “provides financial assistance to the Authority in payment of loans due to the impact of its revenues.”
The government’s subsequent response is: “Cabinet had approved in April 2012 the capitalization of the Authority’s $30,750,788 debt.”
Another recommendation made to government by the Committee was that it considered the function of collecting Airspace fee whether it is equitable if given to the Authority due to their responsibility of controlling aircraft movement as a requirement of this specific operation.
“The Upper Airspace, in which fees are paid by airlines for its aircraft usage, is a State asset,” the Government responded.
“The Government through the Ministry of Works, Transport and Infrastructure has delegated the operations of Samoa’s Upper Airspace to the NZ Airways Corporation."
“The Airport Authority cannot perform the services delivered by Airways Corporation in Samoa’s Upper Airspace hence the money not being paid to or used in totality by the SAA."
“Under the approval of the Ministry of Finance and Ministry of Works, Transport and Infrastructure, part of the Upper Airspace money is being used to pay the Authority’s four million loan with the NPF since 2004.”
The response reads in full below:
P.P. 2011/2012 No. 65 (2009) and P.P. 2011/2012 No. 90 (2010)
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At the conclusion of its Findings, the Committee recommends the Government:-
1. Provides financial assistance to the Authority in payment of loans due to the impact of its revenues.
Government’s Response:
Cabinet had approved in April 2012 the capitalization of the Authority’s $30,750,788 debt.
2. Considers the function of collecting Airspace fee whether it is equitable if given to the Authority due to their responsibility of controlling aircraft movement as a requirement of this specific operation.
Government’s Response:
The Upper Airspace, in which fees are paid by airlines for its aircraft usage, is a State asset. The Government through the Ministry of Works, Transport and Infrastructure has delegated the operations of Samoa’s Upper Airspace to the NZ Airways Corporation.
The Airport Authority cannot perform the services delivered by Airways Corporation in Samoa’s Upper Airspace hence the money not being paid to or used in totality by the SAA. Under the approval of the Ministry of Finance and Ministry of Works, Transport and Infrastructure, part of the Upper Airspace money is being used to pay the Authority’s four (4) million loan with the NPF since 2004.
3. The Board should control its travel expenses and budget allocations for staff overseas trainings and workshops. If it is costly to fund these travels, consider /if its economical to send a Specialist from overseas to conduct these programmes and workshops in Samoa.
Government’s Response:
This recommendation has now been implemented by the Airport Authority
4. Supports the Authority’s renovations work plan which include:
- Part of the Runway damages.
- Departure and Arrival Terminals
- The VIP Room
Government’s Response:
- Repair of the runway is now in the 55 million regional World Bank Project to improve airport safety and security infrastructures in Samoa.
- The Departure and Arrival buildings have mostly been refurbished.
- A new VIP was recently opened in May 2014 with the old VIP being refurbished also.
5. Recommend the Authority to comply with the Act in submitting of its Annual Report to Parliament.
Government’s Response:
The Airport Authority is now prioritizing the implementation of this recommendation.
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