“The Samoan economy is in trouble,” Papali’i said in a statement.
“At the Stimulus Package Seminar…the Central Bank confirmed that Samoa is in recession. There is negative economic growth and very high inflation — and with this goes job losses.”
Questioned at the Stimulus Package Seminar held two weeks ago whether a delay to the road switch, or not proceeding with it at all, would help the economy, a government representative admitted that they had not prepared for that question.
“There is little doubt that the proposed road switch has caused a downturn in the economy and a sharp decline in business confidence,” Papali’i said.
“This has only made the effects of the economic crisis worse for Samoa. However, we are told by the government that part of the answer is to ask for more aid from Australia and New Zealand and our donor partners.
“The answer is not asking for more handouts from Australia and New Zealand or anyone else.
“The answer is that we need to look at our own policies and whether by changing these policies, we can reduce the effect of the economic crisis on Samoa — and the answer of course is ‘yes.’ ”
Last year, the Chamber of Commerce and the Institute of Professional Engineers in Samoa estimated that the road switch would cost the Samoan economy $1.5 billion.
“Rather than going ahead with the switch, the government should focus on saving that money and protecting jobs in Samoa,” Papali’i said. “These are what are important.”
Former chairman of PASS, Tole’afoa Solomona Toailoa, agreed.
“In a Chamber of Commerce survey conducted at the end of 2008, 52 percent of the business community surveyed said that they had little or no confidence in the government’s economic management,” he said.
