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Car Rental Industry Not Sitting Still |
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Written by Press Release
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Wednesday, 14 November 2007 |
PRESS RELEASE : The Rental Car Association of Samoa is finalizing its submission to government, highlighting the adverse impacts of the RHD switch upon their industry. Members of the Rental Car Association are saddened by the PM’s response to a suggestion that LHD cars will immediately drop in resale value when the decision goes through. In an interview with the Savali Newspaper on the issue, the PM said “That assumption, raised mostly by car rental companies, is misleading.” The Prime Minister then goes on to discuss the business of the rental car industry in detail, making assumptions such as “By the time these vehicles are sold, the rental companies have already recovered their costs.” The Prime Minister goes on further to state, “Business is all about taking risks, being flexible and adapting to change. If you’re in business expecting a smooth ride, then maybe you shouldn’t be in business at all.” The Prime Minister was responding to a written submission put forward by members of Non Government Organisations. The submission, referred to in the newspapers as a Chamber of Commerce submission, was in fact a joint submission, signed by Presidents of other non-government organisations such as SHA (Samoa Hotel Association), Women in Business, SAME (Samoa Association of Manufacturers and Exporters), Samoa Taxi and Samoa Rental Car Associations. The President of the Samoa’s Rental Car Association, Samoa Roy Lee, says that it is wrong to suggest that this joint submission by non government organisations was driven only by his members. “The Rental Car Association has had several meetings over this issue, and are finalising a detailed submission on the adverse effects that this government decision will have on the rental car industry. The joint submission, brushed off by the Prime Minister as driven by rental car operators, was signed by Presidents of very active and well respected Non Government Associations in Samoa. To say that we were behind it is wrong. We have our own issues, which we are finalizing and hope to put to government by the end of the week.” The Samoa Rental Car Association do not deny that as an industry, the change to RHD vehicles puts their industry in danger of surviving. Their submission to government will also highlight the impact on the tourism sector. The concern is that as a tourist destination, Samoa will expect tourists to drive a LHD vehicle, on the Left Hand Side of the road. “It is not only illegal, it is unsafe.” Says Samoa Roy Lee. The Association confirms that their respective insurance companies will be increasing premiums by at least 50% for any LHD vehicle being driven on the Left Hand Side of the road. The increased premiums are confirmed to be directly related to increased risks of accidents, according to their insurance companies. The President of the Rental Car Association says that their industry is very aware of the inherent risks involved in running a rental car business in Samoa. “These are calculated risks, and we pay very high insurance premiums to safeguard ourselves against some of these risks. This drastic, immediate change to Government Policy is not a risk that could be calculated nor anticipated by our members.” adds the President. “Five years ago, a rental car in Samoa meant a 10 year old second hand vehicle. Today, our industry members are proud to say that Samoa has arguably the best rental car fleet in the Pacific. We have responded to quality controls and all of us expanded our fleets before the SP Games, again, in response to government’s cries of, “Are Your Businesses Ready?”” The Rental Car industry is saddened by government’s sudden change in policy – both the non-consultative approach as well as public statements which shows no remorse for these drastic, sudden changes.
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What do you want Mr PM, money or second hand cars with noisy exhaust and lots of smoke from it?
Someone should seriously look at a wrecker’s yards and steel-recycling business now../
Good luck Samoa