By Staff Writer
Samoa is not spared the global economic blow from the coronavirus pandemic as it is .. “anticipated that the economy will contract by -3.3% in the current 2019/20 fiscal year.”
The Minister of Finance, Sili Epa, said so in his budget address in Parliament on Tuesday 26 May 2020.
“Phase II of the Government’s Stimulus Package is prepared and released to those most affected,” explained the Minister, looking back at the 3 months since ..”our side of the globe had been affected.”
“It is without a doubt that at this point, we do not know how long it will take for a cure to be developed by those nations with the resources to do so.
“Millions of people have been left without work, many companies and industries worldwide that drove economic development have been forced to shut down further worsening global economic projections which at current is expected to contract by no less than 5% in the current fiscal year”
Stimulus Package II for Samoa is organized with these key features :
NPF Dividend payout
The National Provident fund will be implementing a dividend payout for all its contributors to the total value of $35million tala in July;
Additional One-Off Pension ($100 tala per pensioner in July)
A one-off $100 top-up will be added to the July pension. In addition, the monthly pension will also be raised from $145 to $160 beginning July.
$50 per citizen during the 2020 Census and National ID Registration Roll Out
The Government intends to merge the 2020 Census with the registration for the National ID project and each citizen to come in for registration will be given $50 tala;
Agriculture Stimulus
This programme will be done in collaboration between the Ministry of Agriculture and its key stakeholders to revitalize the coconut, cocoa, taro and vegetable industry which will make use of those who have been made unemployed by the COVID19 to ensure food security within the country.
Unemployment Subsidy
The Ministry of Finance will work in collaboration with the Samoa Chamber of Commerce to distribute monetary compensation for all workers who have been laid off, been put on leave without pay or have had their working hours reduced due to the COVID19.
3month extension on free rent for all vendors at Samoa Land Corporation and Accident Compensation Corporation Markets
Vendors who are operating in the markets owned by the Samoa Land Corporation and the Accident Compensation Corporation will have their free rent periods extended by another 3months to the end of August.
Short Term Paid Training for the Hospitality Sector
The Government will work in close collaboration through the Samoa Tourism Authority with the Australian Pacific Training Coalition (APTC) to provide a 4 week training program on soft and minor skills for the service sector targeting workers in the hospitality sector who have been laid off due to the COVID19. To compensate for travel, food and other expenses each participant will be paid $100 per week of attendance.
Assistance to Talofa Airways;
Government’s assistance to Talofa Airways will be in the way of debt forgiveness relating to 3months of operations at Fagali’i Airport since December 2019.
Partial insurance compensation for Samoa Primary Exporters
Government will compensate 5% of the value of primary agricultural exports and 1% of value of fishing exports lost between the month of February and May 2020. The compensation will be based on invoices provided by each exporter.
Licensing fees for all domestic fishing vessels waived for 2020 (beginning May 2020)
All fishing vessels in Class A (≤ 11m), Class B (11–12.5m) and Class C (12.5-15m) will have licensing fees for 2020 starting from May 2020 waived.
2% Interest Relief for all Business Loans with Commercial Banks for 3 months
The Government of Samoa will carry 2% of all interest charged on loan repayments for all business loans with Commercial Banks.
Mr. Speaker, this assistance by the Government is put forth on the condition that all 4 Commercial Banks operating within the country would match Government’s assistance as their contribution to the country’s recovery.
Credit Facility at the DBS for Specific Sectors focused primarily on COVID19 recovery
Capital Injection from the Government to DBS to extend to specific sectors who were impacted from COVID19.
Assistance to Vulnerable Groups
Assistance for our social welfare NGOs who are currently caring for our most vulnerable citizens. This includes;
a. Mapuifagalele – Home for the Elderly
b. Samoa Victim Support Group
c. Goshen Trust
d. Faataua le Ola
e. Nuanua o le Alofa
f. Loto Taumafai
g. Senese
h. Divine Mercy Moamoa and others
It is the Government’s belief that there are also other organisations providing social welfare services to our citizens and therefore have set aside sufficient funds should these organisations come forward seeking assistance.
Interest Relief for Clients with loans under the South Pacific Business Development (SPBD);
Government to provide interest relief to all the clients under SPBD.
Community Outreach;
This assistance is targeted at raising the roles of committees within the villages to take charge of ensuring improved sanitation practices and healthy living as well as education at the grassroots. To kick start the revitalization of these committees the Government will distribute $3,600 per village committee as verified by the Ministry for Women into established bank accounts to assist with their initial activities.
Shelter Improvement Financing;
To promote hygience and security, the Government will partner with ADRA who has an existing framework of this type to provide concessional financing to vulnerable families who are in need of secured shelter or shelter maintainance.
Samoa Housing Corporation
Assistance to cover operating cost of the Corportaion throughout the duration of the assistance extended to the public in the Phase 1 Stimulus Package.
Electricity Rate Reduction extended until December
This assistance from Phase I which is meant to last until August 2020 will now be extended until December and entails a 10sene reduction in electricity unit rates and a 50% reduction in the daily fixed rates extended to hotels.
Water Rate reduction extended until December and to include commercial clients
This is also an assistance from Phase I meant to expire in August 2020 but will be extended until December and will now include commercial users.
Free Trade Concessions for Specific Food items under Phase I extended to August
This is also a Phase I initiative meant to last until the end of June 2020 but has now been extended until the end of September.
Increase provision for the Ie Samoa Show (Faalelegapepe)
The Government continues to acknowledge the role of the women and in particular mothers as providers of families and will therefore raise the annual provision for the Ie Samoa showcase to $1million so that more monies are distributed to women’s committees of each village to assist their families.
One Government Grant provision increased
Government’s annual assistance to schools has also been increased up to $18million to assist schools in continuing to provide remote education services to the children of Samoa.
Monthly Pension increased by $15;
As previously mentioned, the monthly pension for the country’s senior citizens will now be increased by $15 from $145 a month to $160.
Frontline Workers’ Risk Benefits
All frontline workers’ of Government will have access to this benefit should they become infected with the COVID19 in the line of duty. This benefit will provide a year’s worth of salaries to the family of the frontline worker should they be affected;
Construction and upgrade of Rural Hospitals including Physican Quarters.
In line with the Government’s assistance to revive the relocation of medical personnel to district hospitals, the Government will endeavor to refurbish clinics and staff quarters