Chamber Calls on Government To Release RHD Costings

Written by media release
Thursday, 29 November 2007
Samoa’s Chamber of Commerce calls again on Government to release the Ministry of Finance’s financial report on the cost of the proposed switch to right hand drive (RHD). Since Government’s announcement of the proposed RHD change, the Chamber of Commerce has called on Government no less than 3 times to release its supporting financial documents. So far, the Government has not released any details of the cost of the proposed policy change. President of the Chamber of Commerce, Klaus Stunzner Jr, said: “The failure by Government to release or comment on its financial and economic assessment of the proposed change to RHD in any meaningful way means one of two likely things. Either the reports and assessments by government officials do not support the change to RHD, or Government has not prepared an analysis of the economic effects of the switch to RHD. Both of these reasons are of serious concern.” Government has suggested that the decision to switch to RHD is to facilitate agricultural sector development. No report has been released to show how the agriculture sector will benefit and what the value to the economy will be of that benefit (if any). Most on-road vehicles in New Zealand and Australia are sedans and wagons and not pick up trucks or utilities that would be used on a plantation. The release of Government’s financial reports are of significant public importance. The Chamber of Commerce has undertaken a preliminary cost assessment of the policy switch to RHD to cost the Samoan economy at least $790 million Samoan tala in both direct and indirect costs. The failure by Government to release the cost benefit analysis of the policy change is therefore very important to understand the economic benefit that Government believes the policy will generate. The cost of the policy change will not only affect the business community but the entire Samoan community because (amongst other reasons): Government revenue will drop substantially and VAGST will likely increase to 20% to supplement the Government budget affecting all Samoan consumers; businesses will fail and jobs will be lost affecting not only the people out of work but their families who rely on that income; all left hand drive car owners will lose the market value of their cars – this will affect approximately 17,000 car owners which are not only businesses but private car owners alike; if a person wants to buy a car after the policy is implemented, you will pay much more for a car from New Zealand and Australia than from the USA; for the second hand car market, Samoa’s current second hand fleet will and continue to be much more affordable and of much higher quality than the second hand fleet now available in New Zealand and Australia; the replacement cost of cars to RHD will divert money away from business development and job creation to car replacement; financial institutions will be unlikely to lend money secured over a left hand drive car; foreign investors will be concerned by such a major policy change without public consultation; and increasing difficulty over time to obtain spare parts for left hand drive cars. The Chamber of Commerce has serious concerns at the lack of economic transparency in this instance and the failure by Government to consult. The release of Government’s economic analysis will bring transparency to this process. Where those reports find that the benefits outweigh the costs and are appropriately supported and verifiable, the Chamber of Commerce will review its position in light of those reports. Comments (0) Subscribe to this comment's feed Write comment Name Email Title Comment
Last Updated ( Thursday, 29 November 2007 )

< Prev		Next >

[ Back ]

Polls

--ADVERTISEMENTS--

Google Satellite Map of Eveni Carruthers

--ADVERTISEMENTS--

"Where the natives buy and sell"

--ADVERTISEMENTS--

Latest Comments

US State Dept.Not Obligated To Free Joe Petition
Indians had laws. The whities just didn't obey them. They encroached and encroached and...

Education Bill Target Street Kids
Feed the teachers??? You've got to be kidding me? The teachers, administrators, and staff need to p...

Education Bill Target Street Kids
I was born in Western Samoa but I finished high school in Mapusaga High in Am. Samoa. I supprort the...

Bad Milk Imports Still A Worry
The U S has already set up testing site in Your Friendly China to check foods that is exported to ot...

Andrew Ah Liki, more than an archer

remember the Shak-kahkahun lols.... alo i ou faiva...see you soon little man... lols

Social Network

Join the Newsline Team on Bebo

www.bebo.com/newslineS

Become part of the Newsline Bebo Network

Get News via your Email

Subscribe to Samoa Live News Headlines by Email

Get the Latest News on your Blackberry or PDA

Subscribe in a reader

Sounds from Samoa

Listen to broadcasts from LiveSamoa.com
Courtesy of Plantation Feet, SBC(540am) and
Radio Polynesia(99.9 FM)

http://www.samoalive.com/sliveradio.asx

Live on Weekdays from 8am to 9am

Have your Say

We want your Opinion

LETTERS TO THE EDITOR
If you would like to submit a letter for possible
publication in the print edition of the Newsline,
please send an email to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

We want your News

Submit News from your Area
If you would like to submit News for possible
publication in both the online and print version
of Newsline please feel free to email us
at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Become a News Blogger
Have a passion for writing? Interested in
writing articles for Newsline? Email us
at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .
We are looking for Bloggers from
around the world to contribute to our site.