Govt. urged to turn to donors for stimulus package

By Matai'a Lanuola Tusani T - Ah Tong 06 April 2020, 11:00PM

The Tautua Samoa Party has called on the Government to turn to its donor partners for assistance to fund a stimulus package plan to aid the country, especially businesses and the private sector, during the coronavirus pandemic lockdown.

The President of Tautua Samoa, Luagalau Dr. Wood Salele, made the comments ahead of Tuesday's Parliament session where the Minister of Finance, Sili Epa Tuioti, is expected to announce a COVID19 recovery package.

In reference to the tourism sector and export being disrupted by the pandemic, Luagalau said the Government will find it difficult to find spare cash to rejuvenate the economy. 

 “I don’t expect the Government to give out 1/3 of the G.D.P. [Gross Domestic Profit] which is about $300 million for the package,” he said. 

The former M.P. said before the COVID-19 pandemic arrived, the hoteliers were already facing default payment since the measles epidemic. He reminded that the tourism industry has been hit hard and the impact has also affected businesses across the country.   

“A sacrificial approach from the Government during these hard times would be slashing all its budget in all areas but would have to convince the public of these measures,” he said. 

“We can ask our donor friends in these times of hardship for help knowing that Samoa has been the recipient of goodwill of our donors and that has always been the case for many years.”

Furthermore, the President said if anything happens to remittance, the Government's budget will fail.

“Because that is real money in the economy and our exchange rates,” he said. 

He said although Samoans in New Zealand and Australia might still be sending money back to their families, it is forecast that the digits will drop over the coming months. 

 Luagalau said while he does not expect a significant subsidy from the Government, he calls for understanding from everyone during these hard times. 

With the international borders closure in effect, the former M.P. said the chances of the tourism sector getting back on its feet is likely to be for a whole year or more than that. 

He said unless the Government offers a strategic plan to assist the companies by injecting hard cash into the sectors the damage will last longer than expected. 

Another political party, the Samoa National Democratic Party (S.N.D.P.) does not see the need of Government giving stimulus package to businesses. 

S.N.D.P. Spokesperson, Vui Seinafolava Masinamua, said businesses are meant to plan for the worse case scenarios such as the pandemic that is affecting everyone globally. 

“Some will just use coronavirus to earn extra cash for their businesses when they should have prepared for this,” said Vui. 

“When you run a business you plan for the rainy days and you set aside those profits to turn to during these hard times. I would say the assistance should be directed to health workers who have been camping at the quarantine areas…”

Lastly, Vui said if any package is to be announced by Government, it should be given directly to workers who are doing all the work instead of giving it to employers to help maintain their business. 

“That is what they should do is to fork out money to maintain their businesses.” 

By Matai'a Lanuola Tusani T - Ah Tong 06 April 2020, 11:00PM
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