Pac Notes
Right or Left?
Samoa Considers Making Drivers Switch Sides
Samoan's Prime Minister Tuilaepa Sailele Malielegaoi is determined to make a fundamental change to how Samoans travel, and is testing his partys unity and the patience of local businesses in the process. The change would see Samoans drive on the left hand side of the road rather than the right, and is creating the first significant challenge to the government's authority for some time.
Why make the change?
The Prime Minister says cheaper cars will be available for purchase from Australia and New Zealand, and that it will make it easier for Samoans who move between New Zealand and Samoa for work and family obligations.
Who opposes it?
The proposal spawned Samoa's biggest protest march in years with an estimated 15,000 people attending, some wearing
t-shirts saying, "Safety Samoa" and "Why wasn't I asked?" A petition was signed by some 33,000 people. Chamber of Commerce executive member Daryl Clarke says the government's intended policy has already caused substantial hardship and uncertainty. Small and medium business people say it will be disastrous for them. Former Ministers Hans-Joachim Keil and Palusalue Fa'apo II have also spoken in opposition.
How much will it cost?
There are an estimated 17,000 vehicles on Samoa's roads. The Chamber of Commerce says the switch will cost ST$700 (US$296) million but the government says it will only be ST$5 (US$1.9) million.
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The Prime Minister, Tuilaepa Sailele Malielegaoi, says there are three stages in the change; importing of right hand drive vehicles, a ban on left hand drive vehicles when the legislation is passed, and finally, the switch to driving on the left side of the road. But opponents will fight it in the courts.
Emptying The Rice Bowl
Red rice, curry and rice, rice and Spam—the starchy white grain is a staple food for most Pacific Islanders. However food security experts are predicting unrest in the Asia Pacific region as the price of rice neared record levels in late March. Rice producers India and Vietnam have cut back on exports as spot prices hit over $700 dollars a ton—a 20 year high.
In Fiji, the interim government is urging a resumption of rice farming as a result of the shortage, saying the country spends around F$21 (US$14) million each year on rice imports. In the country's northern division, supermarkets had run out of stock in March and supplies were being rationed in other parts of the country. The interim government's last budget reduced the import duty on rice from 27 to 15 percent.
Death of an Industry
Saipan has seen a flurry of garment factory closures in early 2008, contributing to an already dire economic situation. Just five garment factories remained operational as of March 31: Rifu, Onwell Manufacturing, United International Corp., Marianas Garment Manufacturing, and Uno Moda.
At its peak, the industry had 34 garment factories, generating $60 million in direct taxes for the local government.
The export value of garments has dropped from a high of $826 million in 2004 to $307.57 million last year. On a per quarter basis the value is also steadily declining, with a 20 percent drop in garment export value for 4Q 2007 as compared to the previous quarter. Five garments factories shut down in 2007, and six in the first quarter of this year.
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