22 Dec 2015

Starkist welcomes tax credit in American Samoa

11:47 am on 22 December 2015

The StarKist cannery says it is grateful that the US Congress has agreed to extend the American Samoa economic development credit.

Cannery, American Samoa

Cannery, American Samoa Photo: Supplied

The company says the tax incentive helps create a level the playing field as its competitors reap the financial benefits of cheap labour and subsidised costs in countries like China and Thailand.

It also says a permanent extension of the tax incentive is necessary to reduce uncertainty in the operation and to remain competitive.

Last month, Starkist Samoa, which is American Samoa's largest private sector employer, decided to stop hiring new staff, saying it was looking at shifting some of its production offshore.

It also said it had suffered financially due to the mandatory minimum wage increase of 40 cents an hour.

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