19 Feb 2013

Starkist expansion plan worries American Samoa

1:20 pm on 19 February 2013

The American Samoa governor says there are some impediments to the multi-national tuna cannery, Starkist, expanding its production in the territory.

Starkist has revealed plans to close its tuna pouch plant in Ecuador and possibly relocate it to American Samoa.

But Lolo Matalasi Moliga says the problems include the availability of land, hikes in the federally mandated minimum wage and the end of federal tax incentive programmes later this year.

Lolo says microstates like American Samoa need these sorts of tax incentives to maintain investment by companies such as Starkist.

He is calling on the government to keep the tax incentives and drop the increases in the minimum wage.