Local economy will suffer “irreparable harm” says Purse Seine Samoa president

Purse Seine Samoa president Greg Stewart has described the closure of US EEZ and high seas to the US purse seine fishing fleet as “more of a political agenda rather then being based on science or conservation” and says the closure will be costly to the purse seine fleet which is currently based in American Samoa.

 

Meanwhile, local businessman and American Samoa Fishery Task Force chairman Solip Hong says that, should the locally based purse seine fleet leave American Samoa due to the closure of these fishing grounds, his business and others that cater to these vessels will suffer.

 

Both Stewart and Hong submitted letters of support for Tri Marine International’s petition to the U.S. National Oceanic and Atmospheric Administration (NOAA) for an emergency exemption to allow US purse seiners — which unload at least 50% of their catch at the local canneries to fish in the USEEZ and high seas— both fishing grounds now closed until the end of 2015 as a result of reaching their limit of 1,828 fishing days for the year.

 

STEWART COMMENTS

 

In his letter, Stewart urged NOAA to grant the exemption sought by Tri Marine, saying that without the exemption, the fleet currently fishing out of American Samoa will have to move their fishing areas much farther away from the territory.

 

“This means they will be finding other locations to unload or transship their fish,” he said, adding this move will result in two negative effects. “The first and foremost, the economy of American Samoa will be devastated.”

 

He explained that the territory is pretty much a one-industry economy, being everything related to the tuna fleet. If the fleet starts unloading in other locations, the local canneries will eventually slow down and eventually lay off large amounts of American Samoa employees, he said.

 

Additionally, all of the many local businesses and companies — tuna canneries, hotels, food service, general ship suppliers, fuel, travel, maintenance, etc. — will suffer greatly if the tuna fleet is no longer based in the territory.

 

“There will be a lot of businesses which have collectively invested millions of dollars in American Samoa, either going out of business by choice or by bankruptcy,” he explained.

 

“Secondly, the U.S. fleet which has been based in and has supported American Samoa for so many years, will suffer irreparable economic damage,” he said and noted that the “U.S. fleet is not subsidized by... the government and they have to bear much higher crew and insurance costs than the foreign fleets.”

 

According to Stewart, the net price the US fleet can expect to receive for tuna will be substantially less if they are only able to transship their fish on distant islands instead of unloading at one of the local canneries.

 

Additionally, the costs of support of their vessels’ operations will drastically increase for the US fleet if they are forced to operate out of those isolated islands.

 

“It seems that the closure of these high seas and US territorial water areas to US vessels is serving more of a political agenda rather than being based on science or conservation,” he contends. “International fleets are going to be able to continue fishing in these areas whether it be legally or illegally.”

 

Stewart reminded NOAA that the US fleet has long followed all applicable rules and regulations for conservation and will continue to do so. Further, their presence in the area would only assure that other international fleets do the same.

 

“If the US fleet is forced to go to distant fishing grounds, they along with the American Samoa economy will suffer irreparable damage, while at the same time International Fleets will be free to do as they please in these areas which are closed to the US Fleet,” he said.

 

According to Stewart’s letter, his company has operated in the territory since 1984 as a vendor to support the purse seine tuna fleet. The company has eight full time employees and employs up to 50 additional people on a part time basis.

 

HONG COMMENTS

 

In his written comments posted on the federal portal (www.regulations.gov), Hong explained that the petition was a joint effort between Tri Marine and ASG. He also noted that the American Samoa Fisheries Task Force is a locally based organization created Jan. 8, 2015 by the governor and the task force is made up of ten key members both from the government and the private sector.

 

Each cannery has a member in the task force and since its establishment “we have been instrumental in identifying means to remedy or resolve current issues affecting our Tuna Industry. This petition was a pivotal item on our agenda,” he said.

 

“We ask that you consider and issue approval for this petition in lieu of potential economic hardship our island will face should we lose our locally based purse seine vessels,” he noted.

 

A separate two-page letter he wrote on behalf of his family owned business, K.S. Inc./K.S. Shipping — for which he is the president — was also submitted yesterday in support of Tri Marine’s petition.

 

“I ask that you provide us with the same consideration you have shown our island through its acknowledgement of its SIDs status (Small Island Development) and therefore granting us exemption from the 2015 Bigeye Tuna Quota,” he wrote.

 

He pointed out that his family’s company has “been serving the fishing business for over 25 years and our success is credited to this industry… _Should these... vessels leave our islands as a result of this petition not being approved, the future of my business and other small businesses alike will suffer because we all rely on these vessels as a steady source of revenue.”

 

Hong noted that he is also a member of the American Samoa Power Authority board and he anticipates the impact on the utility provider should these vessels depart the territory. He explained that ASPA is 98% reliant on diesel fuel generation and fuel makes up at least 65% of the utility costs ASPA passes on to its consumers.

 

“Should the marine sales of fuel — approximately 18 million gallons, purse seine vessels representing 2/3 — be affected, this will directly impact the cost of fuel,” he explained. “This will translate to higher utility costs for everyone utilizing our services, especially the two canneries.”

 

According to Hong, utility expenses make up a relevant portion to the cost equation of converting raw tuna into finished product. And this cost decreases the financial advantages the local canneries have against their international competitors.

 

“Should we further exacerbate the stress our canneries are facing through possible loss of their current suppliers, cost cutting measures will be eminent,” he said. Downsizing of work force will be eminent. The canneries make up 65% of the current workforce in American Samoa. Economic hardship is inevitable.”

 

“I implore your office to consider the negative impact this isolated economy and its people will endure if these purse seine vessels were to depart our territory,” he said. “our island is not equipped or ready for any other industry and neither are our businesses.”

 

See Aug. 4 edition of Samoa News for ASPA’s letter of support on the petition.