“To the extent that results in higher prices for the raw fish, that will impact on the competitiveness of the product from the Samoa’s in the world markets.”
American Samoa Governor, Lolo Matalasi Moliga, believes that Bumble Bee Company’s plans to set up operations in Samoa threatens the “financial viability” of cannery operations in American Samoa.
He was referring to companies like StarKist Samoa and Tri Marine International’s Samoa Tuna Processors Inc.
The Governor mentioned Bumble Bee’s plans in Samoa in a recent letter to Lori Faeth, the acting Assistant Secretary for Insular Areas of the U.S. Department of Interior.
The letter covered issues pertaining to Capital Improvement Projects (CIP) for American Samoa in the current and next fiscal year.
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In his letter, the Governor says the recent execution of the Memorandum of Understanding between Bumble Bee and independent Samoa “threatens the financial viability of our two canneries”.
“The competitive advantage of these two assets (the canneries) will be compromised, not only because of the exemption of Bumble Bee from Federal minimum wage,” but also from U.S. Occupational Safety and Health Administration, Food and Drug Administration, U.S. Environmental Protection Agency, National Oceanic and Atmospheric Administration, and “many other Federal regulatory requirements.”
Tri Marine Vice President of production, Dan Sullivan told Samoa News that the “primary impact” from Bumble Bee when it opens “will be in the competition for raw material.”
“To the extent that results in higher prices for the raw fish, that will impact on the competitiveness of the product from the Samoas in the world markets.”
“We have no concerns about competing with anyone, but believe it should be on a ‘level playing field’. If grants, subsidies or aid are used to build a competing plant, the American Samoa tuna industry will be at a disadvantage,” he said.
StarKist corporate offices have not yet responded to Samoa News questions on what impact they believe Bumble Bee will have on their local operations.
San Diego based Bumble Bee is planning a processing plant for pre-cooked loins and frozen tuna products in Samoa and expects to break ground before the end of 2014, while operations are planned to begin in the fourth quarter of 2015, according to the company’s CEO and president, Chris Lischewski.
Meanwhile, Lolo told Faeth that with financial constraints causing challenges for the federal government, “it is imperative that we aggressively engage in the process of bolstering our economic base.”
“If people have income, the complaints associated with the high costs of government services, especially healthcare services will be subdued.”
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