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Dec 05th
FrontPage arrow The News arrow Politics arrow PM Deny Any RHD Hidden Agenda
PM Deny Any RHD Hidden Agenda PDF Print E-mail
Written by Pio Sioa   
Thursday, 29 November 2007


PM while meeting with the local media on
Tuesday 27/11/07 in his office


The Prime Minister, Tuilaepa Sailele Malielegaoi has denied any hidden agenda behind the Government’s controversial Right Hand Drive policy, that has created a major uproar in public opinion.
The denial comes ahead of an open forum scheduled this Friday, where the response to the RHD policy will be tested out in public opinions.
Responding directly to Newsline enquiries, after a media conference at his office yesterday, he said the policy is in line with world changes and it will benefit Samoa in the long term.
He also argued that RHD is supported by Samoans living overseas in New Zealand, and it has nothing to do with any reported plans by Yazaki to downsize its workforce at the end of the year.
“This is all part of co-ordinated policies by countries around the world in response to rising fuel prices, escalation of world prices and climate change,” he says.
PM Tuilaepa also brought out his favourite argument about the longterm benefits for Samoa.
“ We are not talking about what happens two years after we made the switch, we are talking about beyond that into a thousand years from now, when it will be progressively easier for people to afford RHD cars,” he says.
According to the Prime Minister, Samoans in New Zealand are in favour of the policy.
“ They have radio talk backs in New Zealand and I talk with them everyday so I hear what they have to say.”
He brushed aside online opinion surveys on Samoalivenews.com, where an overwhelming majority of voters, of more than 80% out of close to 600 people who have responded so far, rejects RHD.
“Only a few people privileged enough to have access to computers play with things like that.”
The question about any links between the policy and reported plans by Yazaki to downsize by 30% its workforce by the end of the year, was strongly rejected as well.
“We cannot stop that from happening, if Yazaki wants to do that it’s up to them. We have to remember that the cheapest labour force in the world is in China, but Yazaki works closely with Australia which is nearer to us.”
The Prime Minister however believes that labour intensive ventures are on the way out, and that the incoming global trend of the future is with Information Communications Technology, ICT.
“This is an area where Samoa is now ahead of the region and we are pushing forward with that because it holds tremendous benefits through tele-medicine, tele-education and a range of other opportunities that will generate employment in the future,”
He pointed to the changes and the benefits already reaped by the country with the establishment by Government of the SamoaTEL and with Digicel coming into the picture as well.
The Prime Minister went on to run down public criticisms that, the Government position on the issue lacked conviction without a cost benefit analysis to back up the talk.
‘The Minister will present a cost benefit analysis when the bill comes out, but as one politician worked out on the assumption that in 5 years there is no inflation, and depreciation is on a flat rate, how then can a LHD car no longer be useful?
“ As far as cost benefit analysis are concerned, one wrong assumption makes it all irrevelant.
“How about the big profits these businesses will be making after the policy is in place, is that in their cost benefit analysis?”
PM Tuilaepa however retracted his stance on the poor versus the rich argument fronted by the Government in support of the policy, by saying that it will benefit everyone.
He felt that what the Government has been saying all along about the new policy is a quality analysis of how it will benefit the whole country in the long run.
“People will continue to use their LHD cars even after the legislation is passed, the concern about people trying to adjust to driving on the left hand of the road is a concern, but the way to go about ensuring safety is to drive slowly.
“The transition should flow smoothly after at least three days of getting used to driving on the left side of the road.”
 
 







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Comments (1)Add Comment
Choosing Japan as a source for RHD vehicles.
written by Colin Shea, January 05, 2008

Japan is a RHD country.
I have lived here in Tokyo as a UK expatriate for over 10 years and export vehicles worldwide.
I would like to share with you the people and businessmen and women of Samoa, the benefits of changing to RHD and choosing RHD vehicles from Japan.

Cultural and economic differences create business opportunities...


Japanese cars intended for domestic use are always designed to higher specifications than export versions, and while in Japan suffered less abuse. Nevertheless, due to particular social & economic constraints, used vehicles in superb condition can be obtained at good prices.

Scarce land, crowded cities & short vacations...

Superb and cheap automobiles, beautiful countryside and perfectly maintained roads should make Japan a motorist paradise.

Unfortunately, congested urban areas, costly toll roads and tight holiday schedules take most of the fun out of long distance car travel.

Toll highways traffic jams longer than 100 kms are common on major holidays such as on the Golden Week, Obon and New Year. Portable toilet (used in the car) is a common accessory.

The efficient rail and subway transportation system is always favored for daily commuting, and the SHINKANSEN (bullet train) takes care of more serious traveling needs.

Consequently, having been through less use & abuse, the overall condition for cars of similar age will be considerably better in Japan than in most other countries.

Most cars, even tuned-up performance units or fully loaded SUV, are never used to their potential and spend their entire life in extended neighborhood use and/or proudly displayed on courtyards.

Brand new is good, but used is not...
In Japan, there is a serious stigma attached to using or acquiring anything "used". Originating from ancient beliefs, it still affects all commodities, such as home appliances, automobiles, even houses.

For instance, purchasing a new home in Japan will invariably results in its value shrinking by about 30% within the first 5 years. Value will be considered equivalent to zero within 15 to 20 years.

Even with the recent economic slow down and a newly acquired Japanese taste for bargains, the large majority of vehicles is still acquired new from a dealer, by trading in the current one (usually at shaken test renewal time, after 3, 5, 7 or 9 years).

Private car sales are non existent in Japan, because it is technically impossible. From one owner to the next, the vehicle MUST pass through the hands of an authorised dealer for ownership transfer. NOTE: Genuine Service Books are almost never available with Japanese imports as practically no one in Japan bothers writing in them nor have use for them. This is because maintenance is always done by the dealer and private sales do not exist. Often the owner will dispose of anything that can trace the car back to him or her so he/she is not bombarded with more junk mail or telesales.

In addition to the above, strictly enforced speed limits of 40km/h in urban areas (100km/h on toll roads), produce low mileage, immaculate vehicles which have mainly been shown around by their proud owners.

Washing and waxing, is done with quasi religious fervor, even in modest income districts one can hardly find any neglected vehicle.

Car theft being virtually unknown in Japan, alarm systems are extremely rare on Japanese cars. On the other hand, features such as power steering/windows & mirrors, climate control and car stereo are considered standard.

Produce, consume & pay taxes...
Fierce competition and introduction of new models every four years, results in strong incentives to new car buyers.

Japanese economic vitality depends on maintaining consumer appetite for its new products. Anyone with an ID, a job and a guarantor can drive any car out of a showroom with zero down payment (6 to 7% interest on full loan is the norm).

In other words, purchasing a new car in Japan is relatively cheap, while owning it, is not.

For instance:-

Annual road tax ranges from JP Yen 40,000 (US$380) for ordinary cars, up to JP Yen 70,000 (US$700) or more for luxury units.

Shaken renewal costs at least JP Yen 120,000( US$1100) not inclusive of necessary repairs/replacements (every 2 years, after the first original 3 years)

Parking monthly fee amount to JP Yen 10,000(US$110) to 50,000 (US$550)depending on area (parking space within a few hundred meter from residence, is mandatory to purchase a car, police will come to verify the size and location).

Insurance premiums (other than basic comprised in shaken) amount to at least JP Yen 10,000(US$110) per month.

General maintenance/repairs are traditionally never undertaken by the owner himself, but by the dealer at high price (services, labour, rent & advertising are very costly in Japan)

But the main factor behind fast shrinking car values and early replacement, is the Shaken, a combination of taxes and mandatory roadworthy requirements, added to the price of all cars (new & used) allowed "on the road".

Besides providing huge income for the government, it insures every motor vehicle on Japanese road is safe and sound. Shaken basic price is identical at each renewal and will eventually amount to more than the value of the car itself. This explains why only an eccentric person would consider keeping a car longer than seven or nine years, regardless of its condition. When coming to Japan to purchase a brand new car, you will have to buy the shaken (and provide evidence of parking space, etc.,) even though intended for immediate deregistration and export. Note that going through the above procedure still allow for large savings.

The large majority of these artificially depreciated vehicles is sold at auctions and exported to the rest of the world at a current pace of over 30,000 units/month.

We at Tokyo Auto Trading hope that the above information has helped you to understand the Japanese car market as it stands today.

We welcome the dealers and people of Samoa to buy their cars from us in Japan.

Email me on This e-mail address is being protected from spam bots, you need JavaScript enabled to view it


Kind Regards,

Colin Shea.
Tokyo Auto Trading.



81 90 8773 0907 Direct
813 5487 1079 Fax
http://www.tokyoautotrading.com



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