Governor Lolo Moliga says the decision of the federal court to fine Starkist $100 million is unsettling for him given the potential adverse impact on the cannery’s proposed production capacity expansion for its plant at Satala.
US Federal District Court Judge Edward Chen yesterday ruled that the fine StarKist must pay for its role in a conspiracy to fix prices of canned tuna is $100 million.
“With the uncertain status of the 30(A) Tax Credit incentive scheme, the rise in the minimum wage, the insensitive enforcement practices by the U.S. Coast Guard, the rising dominance over the fishing industry by China, the additional environmental cost to compel compliance with US EPA standards, the rising cost of fish, and the constant worker force challenges, this court decision adds financial burden on Starkist which could very well derail its development plans for American Samoa or worse yet closure of the plant,” said Governor Lolo.
He stated that American Samoa has struggled endlessly to diversify its economy to avert threatening financial and economic catastrophe attributed to our continued dependence on one industry.
“The tourism development option is continuously restrained by the existence of the Cabotage Federal Policy. Attracting manufacturing and processing investments is stymied by the methodical elimination of federal incentives like the 30(A) Tax Credit, IRC Section 936, the grossly diluted Headnote(3a) scheme, costly environmental compliance requirements, and China’s pervasive and aggressive investment schemes in the Pacific have effectively limited our options for economic diversification,” said the governor.
Governor Lolo summed up, “Starkist is the only economic development option, which has sustained our economy since 1954. It is for this very reason why I am very concerned with the recent court decision fining Starkist $100 million dollars. This money could have been invested in American Samoa. Instead it will go to the Federal Government, and I hope some of this money will come here to help bolster American Samoa’s frail and ailing economy.”
