Business Community Not Backing Down on RHD in Samoa
Written by Media Statement
Thursday, 22 November 2007
CLARIFYING CHAMBERS POSITION ON THE PROPOSED RIGHT HAND DRIVE CHANGE IN SAMOA
The joint private sector submission to Cabinet on the proposed right hand drive change was presented to the Honourable Prime Minister on November 01. The submission was coordinated by the Chamber of Commerce with support from the Samoa Association of Manufacturers and Exporters; Samoa Umbrella of Non Government Organizations; Samoa Hotel Association; Women In Business; Samoa Rental Car Association; Samoa Engineering Association and the Taxi Drivers Association of Samoa. The Prime Minister through the Savali newspaper, has commented on some of the issues presented in the submission.
President of the Samoa Chamber of Commerce, Klaus Stunzner (Jr) in commenting further on the submission and the objection to the proposed right hand drive change said “it is important in our view that the following issue is clarified”.
Our understanding based on the information made available to us is that
1. the policy goal for the proposed change by Government is :
To make cars more affordable for all our citizens. Government wants every Samoan to afford and have better access to owning a vehicle.
2. Government proposes to achieve this policy goal through the following process. That in 7 months time, July 01 2008 :
1. the importation of left hand drive vehicles will be banned
2. the importation of right hand drive vehicles will be allowed
3. we will change from driving on the right hand side of the road to driving on the left hand side of the road
4. cheaper second hand right hand drive vehicles can be sourced from New Zealand and Australia with assistance from families living there.
Chambers position is as follows:
The Chamber supports Governments desire to make vehicles more affordable for our people.
“We support this goal. In fact the joint submission presented to Cabinet, states that “we applaud Government’s decision to make cars more affordable for all Samoans.”
Where we differ in opinion is how this goal can be achieved.
“We believe that there are alternative options available that will achieve this policy goal without the drastic consequences and significant costs which we can confidently predict will eventuate if this policy change happens.”
The submission to Cabinet requested that Government :
1. withdraw the decision to change to right hand drive
2. release or identify reports and analyses that support a change to right hand drive
3. initiate a consultation process with the public and stakeholders to consider the merits of a change to right hand drive.
4. consider other means of achieving the policy goal
Withdraw the decision to change to right hand drive
The notice from the Transport Control Board (TCB) in the Observer on September 21 2007 has created uncertainty for the automotive market and it has had an immediate impact on businesses involved in the Automotive Trade Industry.
“As a result of the TCB notice, one of our members immediately lost $600,000 in cancelled sales from vehicles in stock and a further $320,000 in pre-sold sales that were arriving in October. A total loss in sales of $920,000 before any legislation has been passed. $920,000 is not a small amount and this situation is unjust. Another issue faced by the automotive dealers should the change to right drive eventuate, is the daunting task of what to do with the unsold left hand drive vehicles that they have in stock and cannot sell. Loses will be borne by the automotive dealers and this will have a flow on effect on government revenue collections.”
These are some examples of evidence that support the request for the proposal and TCB notice to be withdrawn until a thorough consultative process, cost analyses and impact assessment has been carried out.”
Release or identify reports and analyses
Analysis and research carried out by Chamber and presented in the joint submission does not support the change to right hand drive. The analyses strongly shows that the social, environmental and financial costs involved in making the switch, greatly outweigh the benefits. Research on the costs of second hand cars indicates that second hand cars from New Zealand will not be cheaper when compared to the costs of second hand cars from the United States and second hand cars available locally.
The President of Chamber goes on to say that “Our Leaders are strong advocates for the principals of good governance, transparency and accountability. We are asking that the pillars of these principals be upheld and thus the request for reports, analyses and impact assessments that support the proposed change to right hand drive, be made public. We need to clearly understand Governments thinking, rationale and justifications for the change. The information that Chamber has gathered strongly supports the position we have taken which is not to support the proposed switch to right hand drive.”
“On the same note, if reports from Government show that the benefits outweigh the costs, these reports are supported and verifiable, and the concerns of our members are addressed, then Chamber will review its position in light of these reports.”
Initiate a consultation process
The request for public consultations was accepted by the Prime Minister during the meeting on November 01. “We appreciate this positive development and it is now our responsibility to make full use of this opportunity.”
Representatives from associations that support the joint submission presented to Cabinet met on Thursday last week to discuss options for the consultation process.
The Purpose of Chamber
The President makes reference to the purpose of Chamber which “is to promote the interests, well-being and growth of the private sector as the engine of development of the economy of Samoa” and he states that “cost analysis based on the information collected from our members in particular those directly affected by this proposed change, indicates that there will be a significant adverse impact on the well-being and growth of our members which will also impact adversely on the development of our economy.”
“The gravity and importance of this issue and its impact to our members and the community is huge. We have a responsibility to our members, to the community and to our leaders to make these issues and concerns known. Our members expect this of us. Our community expects this of us. I believe our leaders also expect this of us.”
“As responsible corporate citizens we have supported Government in its reform efforts where Government has engaged in consultation and presented the facts that support their belief that the reforms will result in growth and prosperity for all our citizens. These reforms are now widely applauded both domestically and internationally. As responsible corporate citizens, we also have an obligation to advise Government on reforms that we believe will have grave consequences for our members and our society. This is what we have done with this proposed reform. We have brought the issues and concerns of our members to the attention of our leaders. The process involved consultation with our members; gathering of relevant and reliable information through research; and the preparation of cost analysis. The results of this exercise as stated in our submission, supports our stance not to support the proposed switch to right hand drive and we respectfully ask our leaders to reconsider their decision.”
Government is Thick, thick and more thick.... written by Mauala,
November 22, 2007
Not only they must consult local stakeholders, business communities and the public but us here in New Zealand who will fund the majority of this change in policy. It is sad that they all follow their leader, and no one is brave enough to tell the PM they are heading the wrong direction which will have adverse consequences... What I find hard to comprehend is that some car dealers here in NZ are ordering LHD to be exported to Samoa at reasonable prices, so has the government look at that? God please help our decision makers....
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