American Samoa sell-off

Press, 6 July 1983, Page 13

American Samoa sell-off

NZPA Pago Pago American Samoa, faced with a JUSI3.B million ($2l million) deficit, is ready to begin selling off parts of its own Government. First to go is Marine Railway and the American Samoa Power Authority, according to Frank Solomon. Mr Solomon is a United States Department of Interior financial officer sent to Pago Pago to recommend areas the Government can be cut back.

In order to ease the impact of lay-offs of Government employees expected to take place next year, he has recommended that the two Government agencies be sold or offered to private business on a long-term lease. Marine Railway has 112 employees and a SUS 3.2 million budget. It is expected to make $U5254,000 in profits this year from its ship repair work. The power auttjrority, which supplies electricity for all of American

Samoa, has 161 employees and a SUSI 3 million budget. It is expected to lose SUSBI6,OOO. Expansion of the railway, at SUS2.S million, has exceeded its original budget by more than SUS2.O million and is now about four months past its expected completion date. The Government has lent the power authority about SUS2.S million to keep it operating. It sells electricity to the public for less than it costs to produce.