Private sector will not control container policy, Treasurer vows
Chamber of Commerce president calls on Togiola to intervene

by Fili Sagapolutele/La Poasa
Samoa News Reporters

ASG treasurer Gaea Pelefoti Failautusi said implementation of the new policy to centralize inspection of containers at the dock started yesterday, a day before the trial run to test out the policy occurs.

Gaea, who is behind the policy, said he received on Monday a telephone call from Chamber of Commerce President David Robinson who told him that the trial run set for yesterday has been canceled because the vessel that was to be used for the practice didn't arrive on time.

Therefore the trial run will occur today and Customs, shippers, importers and the canneries have been informed about it, according to Robinson.

However, Gaea said centralizing of container inspection started yesterday and added that Robinson and the private sector are not going to control or dictate government policies.

Robinson contends that there was an agreement made during a meeting early this month with Lt. Gov. Ipulasi Aitofele Sunia that the new policy will proceed after a trial run, if all went well during the test.

He said he has heard that implementation of the policy began yesterday "but it should not occur until the trial run is completed."

Robinson wrote to Togiola on Monday requesting that he intervene.

"The governor responded saying to go through the trial run first and check out the issues involv[ed] in implementing this policy," said Robinson. "And if necessary the governor will step in and make a decision on whether to proceed with this policy."

Meanwhile, the House is seeking a delay of the policy until an audit involving government excise tax collections is conducted. The House will vote on the resolution today.

The audit, which is also requested in the resolution, would include "financial compliance, performance, economy and efficiency, and program results and to consider all other major factors that impact excise tax collection" and to report the findings to the governor and the Fono.

Once the findings are revealed, the resolution requests the governor to "adopt and cause implementation of a policy and procedure for Customs inspections of shipping containers arriving at the Fagatogo Port Facilities which is reasonable, cost-efficient, fair and effective and has rational, factually sound foundation."

The audit is to be conducted by the Territorial Auditor, according to the resolution.

(An audit can be conducted by the Territorial Audit Office but the findings will not be certified because the territory currently doesn't have a territorial auditor. The post has been vacant since the termination of George Webster.)

The resolution is a result of a hearing held last Friday before the Budget and Appropriations Committee, chaired by Rep. Laolagi F.S. Vaeao.

Representatives of the two canneries, stevedoring and shipping companies, and the Chamber of Commerce oppose the new inspection policy and cited that additional costs to merchants is estimated at more than half a million dollars per year if the new policy goes into affect.

Gaea said the goal is to collect excise taxes and prevent illegal drugs and weapons from entering our territory. He said the policy will work if government and businesses work together.

The resolution noted that testimony at last Friday's hearing reveal that excise tax collections have not decreased. It says tax collections for the period of October 2007 to February 2008 is $1 million more than tax collections of October 2006 to February 2007.

The resolution says the new container inspection policy "will result in additional, no-benefit added costs, which will be passed on to the consumer".

"[I]t appears the decision to implement the proposed procedure is not based on any analysis or review of the excise tax collection system, nor with consideration of any data regarding the number of containers, types of containers, quantity of goods, time studies or other statistical information," according to the resolution.

Reach Fili Sagapolutele at fili@samoanews.com.
Reach La Poasa at
la@samoanews.com.

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