Falklands : Report from the Select Committee: No Surprises
Submitted by Falkland Islands News Network (Juanita Brock) 27.05.2005 (Article Archived on 10.06.2005)
Most of the proposals went through exactly as stated.
REPORT OF THE SELECT COMMITTEE ON THE 2005/06 ESTIMATES
MR SPEAKER, HONOURABLE MEMBERS
THIS REPORT COVERS BOTH THE APPROPRIATION BILL AND THE FINANCE BILL REFERRED TO THE SELECT COMMITTEE ON THE ESTIMATES YESTERDAY MORNING.
FOLLOWING THE DETAILED AND LENGTHY CONSIDERATIONS AT THE SPECIAL BUDGET MEETINGS OF THE STANDING FINANCE COMMITTEE THE PROCEEDINGS OF THE SELECT COMMITTEE WERE COMPLETED YESTERDAY AFTERNOON. IN ANY BUDGET SESSION THERE ARE ALWAYS CHOICES TO BE MADE AND PRIORITIES TO DETERMINE. AS WAS THE CASE LAST YEAR THE CHOICES WERE NOT EASY ONES DUE TO THE IMPACT OF A MUCH LOWER LEVEL OF FISHERIES LICENCE FEE INCOME.
ONLY ONE ADJUSTMENT WAS MADE TO OPERATING REVENUE RESULTING IN A SMALL DECREASE OF £1,750. TWO ADJUSTMENTS WERE MADE TO OPERATING EXPENDITURE AMOUNTING TO A NET DECREASE OF £43,000. DESPITE ANOTHER TIGHT BUDGET ROUND ALL ESSENTIAL SERVICES ARE MAINTAINED BROADLY AT EXISTING LEVELS. FOR EXAMPLE, IN TERMS OF EXPENDITURE, AS WOULD BE EXPECTED AND HAVING REGARD TO ITS WIDE RANGE OF RESPONSIBILITY, THE PUBLIC WORKS DEPARTMENT IS ALLOCATED THE LARGEST SLICE OF THE CAKE AT £8 MILLION. NEXT IS THE FISHERIES DEPARTMENT WHICH IS ALLOCATED £6.6 MILLION. THIS LEVEL OF EXPENDITURE IS NECESSARY FOR CONSERVATION AND MANAGEMENT PURPOSES AND REPRESENTS 36% OF THE ESTIMATED DIRECT INCOME TO GOVERNMENT FROM THE FISHERY. HEALTH AND SOCIAL SERVICES ARE ALLOCATED £5.3 MILLION AND EDUCATION AND TRAINING £5 MILLION. THIS WILL ENABLE THE ESSENTIAL SERVICES UNDER THESE AREAS TO CONTINUE TO BE DELIVERED TO A HIGH STANDARD FOR THE BENEFIT OF ALL OF OUR CITIZENS. £3.3 MILLION IS ALLOCATED TO CENTRAL ADMINISTRATION. THIS INCLUDES THE SERVICES PROVIDED BY SECRETARIAT, TREASURY, PRINTING, BROADCASTING, THE COMPUTER SECTION, AND THE TAXATION OFFICE. ALSO INCLUDED IS A PROVISION OF £200,000 AS A CENTRAL RESERVE FOR THE COST OF LIVING PAY AWARD OF 1.5% FOR THE PUBLIC SERVICE WHICH THE COMMITTEE APPROVED. AVIATION WHICH COVERS BOTH CIVIL AVIATION AND FIGAS IS ALLOCATED £2 MILLION AND THE DEPARTMENT OF AGRICULTURE IS ALLOCATED £1.1 MILLION. THESE EXAMPLES ARE JUST THOSE HEADS OF SERVICE WHERE EXPENDITURE EXCEEDS £1 MILLION. DETAILS OF THE APPROVED REVENUE AND EXPENDITURE FOR ALL DEPARTMENTS WILL BE SHOWN IN THE APPROVED ESTIMATES DOCUMENT AND THIS WILL BE AVAILABLE SHORTLY FROM THE SECRETARIAT FOR MEMBERS OF THE PUBLIC (AT £20 PER COPY).
4. THE COMMITTEE ALSO AGREED THAT COUNCILLORS’ ALLOWANCES FOR THE NEW COUNCIL SHOULD BE INCREASED BY 7%. THIS REPRESENTS THE TOTAL INCREASE IN THE GOVERNMENT SALARY SCALES OVER THE 4 YEAR LIFE OF THIS COUNCIL AND REFLECTS THE PRINCIPLE ADOPTED SEVERAL YEARS AGO THAT COUNCILLORS DO NOT APPROVE ADJUSTMENTS TO THEIR OWN ALLOWANCES.
THE BUDGET FOR TRANSFER PAYMENTS WAS INCREASED BY £52,400 AS A RESULT OF 4 ADJUSTMENTS. THE TRANSFER PAYMENTS BUDGET OF £3.9 MILLION INCLUDES THE FOLLOWING ALLOCATIONS IN THE FORM OF ASSISTANCE TO NON-GOVERNMENT ORGANISATIONS, SOCIAL PAYMENTS AND PROGRAMMES FOR THE PURPOSE OF HELPING THE ECONOMY TO DEVELOP AND GROW:
£150,000 FOR BUILDING A FURTHER TWO HOUSES AT MOUNT PLEASANT.
£156,000 FOR AIR TERMINAL, LIVE TV AND MET SERVICES SUPPLIED BY THE MINISTRY OF DEFENCE.
£450,000 FOR THE HOLIDAY CREDIT SCHEME TO ALLOW ACCRUALS TO CONTINUE AT 50P PER DAY.
£419,000 GRANT IN AID TO FIDC IN ORDER TO SUPPORT ITS BUDGET OF £950,000. AS THIS GRANT HAS BEEN REDUCED BY £50,000, FIDC MAY NEED TO REVIEW ITS BUDGET OR REVERT TO EXECUTIVE COUNCIL WITH FURTHER JUSTIFICATION.
£220,000 GRANT IN AID TO FALKLAND ISLANDS TOURISM TO SUPPORT ITS BUDGET OF £387,000. THIS GRANT IS £50,000 MORE THAN WHAT WAS PROVIDED LAST YEAR. AS TOURISM IS RECOGNISED AS A GROWTH INDUSTRY, MEMBERS ARE KEEN TO INVEST IN IT. AS A CONSEQUENCE, THE TOURIST BOARD IS TO BE INVITED TO PRESENT A FULLER CASE TO EXECUTIVE COUNCIL FOR ADDITIONAL SUPPORT FOR THE FORTHCOMING YEAR AND FOR PROJECTED INVESTMENT FOR FUTURE YEARS.
£152,000 AS AN OPERATING SUBSIDY FOR FALKLAND LANDHOLDINGS. THIS SUBSIDY IS NECESSARY TO HELP FINANCE THE RECOVERY PLAN OVER THE NEXT 3 TO 4 YEARS.
£252,000 TO SUPPORT OTHER AGENCIES AND TRUSTS.
£70,000 FOR DONATIONS AND SUBVENTIONS TO SUPPORT YOUTH, SPORTS AND OTHER CHARITABLE ORGANISATIONS.
£342,000 FOR FAMILY ALLOWANCES.
£1.5 MILLION FOR DIRECT AND INDIRECT SUPPORT TO THE CAMP COMMUNITY IN THE FORM OF ASSISTANCE WITH RETIREMENT PENSION CONTRIBUTIONS, COASTAL SHIPPING SERVICES, FALKLAND ISLANDS MEAT COMPANY SUBSIDY, ENERGY GRANTS, AGRICULTURAL BUSINESS DEVELOPMENT, LABOUR SCHEME AND LIVESTOCK IMPROVEMENT.
THE CAPITAL BUDGET WAS REDUCED BY £146,000 TO £4.6 MILLION AND AS A CONSEQUENCE THE TRANSFER FROM THE CONSOLIDATED FUND TO THE CAPITAL EQUALISATION FUND WAS REDUCED CORRESPONDINGLY. THE CAPITAL BUDGET INCLUDES ALLOCATIONS FOR THE FOLLOWING SCHEMES:
£880,000 FOR CONTINUING THE BUILDING OF CAMP ROADS BOTH ON EAST AND WEST FALKLANDS. THIS INCLUDES £150,000 FOR THE REPLACEMENT OF THE CHARTRES RIVER BRIDGE.
£327,000 TO CONTINUE THE PROGRAMME OF UPGRADING CAMP JETTIES AND RAMPS.
£950,000 FOR MAJOR REPAIRS TO ROADS IN AND AROUND STANLEY, INCLUDING A START ON THE BY-PASS ROAD AND THE RECONSTRUCTION OF THE SAPPER HILL ROAD.
£100,000 FOR CONTINUING THE BACKLOG OF PUBLIC BUILDING MAINTENANCE.
£350,000 FOR THE FIRST PHASE OF CONTINUING THE PUMPED SEWAGE DISPOSAL SYSTEM. A FURTHER £530,000 IS PROJECTED FOR 2006/07 TO COMPLETE THIS PROJECT.
£195,000 FOR A WASTE HEAT RECOVERY SYSTEM. THE PLAN IS THAT THIS WILL UTILISE WASTE HEAT FROM THE POWER STATION FOR HEATING THE COMMUNITY SCHOOL AND POSSIBLY OTHER BUILDINGS IN CLOSE PROXIMITY.
£50,000 FOR FURTHER IMPROVEMENTS TO FACILITIES AT FIGAS
£310,000 FOR IMPROVEMENTS TO STANLEY’S WATER SUPPLY
£75,000 FOR IMPROVEMENTS TO STANLEY’S POWER SUPPLY
£50,000 FOR IMPROVEMENTS IN WASTE MANAGEMENT AND DISPOSAL IN STANLEY
£125,000 FOR THE FIRST PHASE OF MAJOR REPAIRS TO STANLEY AIRPORT RUNWAY. A FURTHER £665,000 IS PROJECTED IN THE FOLLOWING TWO YEARS TO COMPLETE THE REPAIRS AND RESURFACING.
IT IS CONSIDERED THAT THIS MIX OF CAPITAL CONSTRUCTION SCHEMES TOGETHER WITH THE OTHER MORE MINOR WORKS WILL KEEP THE IN-HOUSE LABOUR TEAMS FULLY OCCUPIED AND TAKE UP ANY SLACK IN THE PRIVATE SECTOR CONTRACTING BUSINESS.
AS WELL AS CONSTRUCTION SCHEMES, THE CAPITAL BUDGET INCLUDES THE FOLLOWING INVESTMENTS:
£330,000 TO FINANCE HOUSING MORTGAGES PROVIDED UNDER THE JOINT GOVERNMENT/STANDARD CHARTERED BANK SCHEME.
£225,000 FOR THE PURCHASE OF PLANT FOR PWD AND £100,000 FOR THE PURCHASE OF VEHICLES.
£40,000 FOR A NEW NON-DIRECTIONAL BEACON AND STANDBY GENERATOR AT STANLEY AIRPORT; AND
£250,000 FOR NEW AND REPLACEMENT MEDICAL EQUIPMENT. HOWEVER, £170,000 OF THIS SUM WILL NEED TO BE USED TO COVER THE INCREASED COSTS OF THE CARE OF THE ELDERLY WARD PROJECT WHICH IS PLANNED TO BE COMPLETED NEXT YEAR.
TURNING NOW TO THE REVENUE PROPOSALS MADE IN MY PRESENTATION, THE SELECT COMMITTEE APPROVED THE FOLLOWING:
AN INCREASE IN CUSTOMS IMPORT DUTY ON CIGARETTES AND ALCOHOLIC BEVERAGES. A MOTION IS ON THE ORDER PAPER TO CONFIRM THIS.
AN INCREASE IN VEHICLE LICENCE FEES
SUBJECT TO A FURTHER REPORT ON IMPLEMENTATION THE COMMITTEE APPROVED IN PRINCIPLE A PROPOSAL FROM THE CHIEF POLICE OFFICER FOR AUTHORISING THE FITTING OF PRIVATE NUMBER PLATES AT A CHARGE TO BE DETERMINED.
THE INTRODUCTION OF A £25 FEE FOR THE POLICE VETTING OF NON-FALKLAND ISLANDS GOVERNMENT EMPLOYEES.
A GENERAL 3.5% INCREASE IN HOUSE RENT, AND FOR PROPERTIES BELOW THE POINTS-BASED RENT AN INCREASE TO THE FULL RENT.
AN INCREASE IN THE ELECTRICITY TARIFF FROM 13.5 PENCE TO 15PENCE PER UNIT.
THE INTRODUCTION OF A STANDARD £50 FEE FOR ELECTRICITY SUPPLY CONNCECTION, DISCONNECTION AND RECONNECTION.
AN INCREASE IN THE CHARGE FOR FUNERALS IN STANLEY TO £850.
AN INCREASE IN POSTAGE ON AIRMAIL LETTERS TO 55 PENCE AND ON POSTCARDS TO 45 PENCE.
THE INTRODUCTION OF A MAIL FORWARDING FEE OF £50 PER SURNAME FOR UP TO 6 MONTHS REDIRECTION.
AN INCREASE IN THE FIGAS ENGINEERING SERVICES CHARGE TO £30 PER HOUR.
TO REQUIRE ADULTS ACCOMPANYING CHILDREN ON FIGAS FLIGHTS TO PAY THE NORMAL ADULT FARE.
TO CEASE CONCESSIONARY PENSIONER RATES ON FIGAS FLIGHTS FOR OVERSEAS VISITORS.
TO APPLY THE EXCESS BAGGAGE CHARGES TO ALL SECTORS OF FIGAS FLIGHTS.
TO ALLOW THE SUBSIDISED RATE OF 10 PENCE PER KILO FOR FREIGHT FOR RESALE IN STANLEY ONLY IF AN AIRCRAFT ALSO EMBARKS OR DISEMBARKS PASSENGERS, OTHERWISE THE FULL RATE OF 30 PENCE PER KILO WILL APPLY.
AN INCREASE IN REGISTRY FEES AND IN STANLEY AIRPORT LANDING AND ASSOCIATED CHARGES.
THE PROPOSED INCREASE IN ACCOMMODATION CHARGES AT STANLEY HOUSE FROM £1.50 TO £2.00 PER DAY PER CHILD OF RESIDENT FAMILIES WAS NOT APPROVED. INSTEAD, AN INCREASE OF 10% TO £1.65 PER DAY WAS APPROVED BY A MAJORITY OF MEMBERS, AS WAS THE PRINCIPLE FOR INCREMENTAL INCREASES IN FUTURE YEARS.
THE COMMITTEE NOTED THAT THE LEVEL OF TUITION AND BOARDING FEES FOR CHILDREN OF NON-RESIDENT FAMILIES WOULD BE REVIEWED AT THE NEXT MEETING OF THE EDUCATION BOARD AND THAT ANY PROPOSED INCREASE WOULD NEED TO BE APPROVED BY EXECUTIVE COUNCIL AND THE STANDING FINANCE COMMITTEE BEFORE COMING INTO EFFECT ON 1 SEPTEMBER 2005.
THE SELECT COMMITTEE AGREED THAT THERE SHOULD BE NO CHANGE AT PRESENT TO THE FOLLOWING REVENUE CHARGES:
INCOME AND CORPORATION TAX RATES AND ALLOWANCES,
EMBARKATION TAX,
PASSENGER TAX,
CUSTOMS FEES AND HARBOUR DUES OR
WATER, REFUSE AND SERVICE CHARGES.
THE COMMITTEE APPROVED THE FOLLOWING PROPOSALS ON PENSION BENEFITS, CONTRIBUTIONS AND SOCIAL PAYMENTS:
AN INCREASE OF 3% IN PUBLIC SERVICE PENSIONS PAYABLE UNDER THE 1979 AND 1965 ORDINANCES AND IN PENSIONS PAYABLE UNDER THE FORMER FALKLAND LANDHOLDINGS SCHEME.
AN INCREASE OF 5% IN RETIREMENT PENSION CONTRIBUTIONS AND THE EARNINGS LIMIT THRESHOLD.
TO LIMIT THE PAYMENT OF PENSION CONTRIBUTION CREDITS TO STUDENTS AGED 21 OR OVER
AN INCREASE OF 3% IN RETIREMENT PENSIONS AND EX-GRATIA PENSIONS
AN INCREASE OF 3% IN WELFARE ALLOWANCES AND THE ATTENDANCE ALLOWANCE
AN INCREASE OF 35% TO £270 IN THE WINTER FUEL ALLOWANCE
THE FOSTERING ALLOWANCE TO REMAIN UNCHANGED AT £20 PER DAY
TO REDUCE THE ELIGIBILITY UPPER AGE OF CHILDREN FOR THE CHILD ALLOWANCE FROM 19 TO 17 AND TO FURTHER LIMIT ELIGIBILITY FOR THE ALLOWANCE SO THAT IT SHALL NOT BE PAYABLE TO A PERSON WHO DOES NOT HOLD EITHER FALKLAND ISLANDS STATUS OR A PERMANENT RESIDENCE PERMIT, EXCEPT WHERE THE CHILD CONCERNED HAS FALKLAND ISLANDS STATUS.
THE LEVEL OF THE CHILD ALLOWANCE TO REMAIN UNCHANGED AT £53.50 PER MONTH PER CHILD
AND FINALLY
TO CONTINUE TO PAY A CHRISTMAS BONUS OF ONE WEEK’S PENSION TO RESIDENT PENSIONERS IN RECEIPT OF A RETIREMENT OR EX GRATIA PENSION.
TO RECAP ON THE FINANCIAL POSITION, I AM PLEASED TO REPORT THAT, FOLLOWING ALL ADJUSTMENTS, THE ESTIMATED DEFICIT HAS BEEN REDUCED BY £135,000 TO £393,000.
THE ESTIMATES, NOW THAT THEY HAVE BEEN APPROVED, FORM A SERIES OF PROMISES, IN FINANCIAL TERMS, TO THE GENERAL PUBLIC. THE JOB OF THE PUBLIC SERVICE IS TO DELIVER THOSE PROMISES AND OBTAIN BEST VALUE FOR MONEY FOR THE BENEFIT OF ALL RESIDENTS. AS USUAL, HONOURABLE MEMBERS WILL BE ABLE TO MONITOR PROGRESS THROUGH THE MONTHLY MEETINGS OF STANDING FINANCE COMMITTEE.
A PAPER SUMMARISING THE ADJUSTMENTS MADE TO THE DRAFT ESTIMATES AT SELECT COMMITTEE WAS PRESENTED TO EXECUTIVE COUNCIL EARLIER THIS AFTERNOON. I CAN NOW REPORT THAT THE EXECUTIVE COUNCIL RECOMMENDS TO LEGISLATIVE COUNCIL THE AMENDMENTS TO THE APPROPRIATION BILL NECESSARY TO ACCOMMODATE THOSE ADJUSTMENTS.
I WOULD LIKE TO THANK ALL OFFICERS AND HONOURABLE MEMBERS WHO TOOK PART IN THE BUDGET PROCESS. IN PARTICULAR I THANK MY PA HELGA FOR KEEPING MY PAPERS IN ORDER AND ONCE AGAIN TO MY DEPUTY KEITH FOR ALL HIS SUPPORT AND HARD WORK.
16. As this is the last budget session of this Council I would like to say how much I have enjoyed working with Honourable Members. There is a fair share of banter but without it, the work would be boring. On the serious side I hope it is fair to say that there is mutual respect. Depite the different approach of individual members I am confident to say on behalf of both elected and ex-officio members that our main aims and objectives in setting the budget are in harmony, AND HAVE BEEN MET at least most of the time. The reduction in the forecast deficit, in the face of much lower revenues and many cost pressures, was an achievement to be proud of. From the legacy of this Council, the new Council can continue to build from a firm financial foundation. To take a leading role in the business of government is demanding and to chair official meetings is even more so. There is no doubt that Councillor Summers, as Chairman of both the Standing Finance Committee and the Budget Select Committees over the past four years, will be a hard act to follow, unless of course he follows himself!
At this time of year my memories of my mentor, the late Harold Rowlands, are more accute. Harold didn't like deficit budgets and it was a much harder task in his early days to find ways to balance the budget, but with Treasury slight of hand he did and he kept the public finances in the black. Following the budget sessions of recent years and surplus bALANCES I would get a phone call from Harold with positive comments and congratulations on boosting the reserve funds. I am not expecting any phone call this year but trust that Harold, wherever he is, can rest assured that the public finances remain in good shape, even in an interim deficit budget situation, and that the prospects for continued economic growth are sound.
17. THIS CONCLUDES MY REPORT OF THE PROCEEDINGS OF
THE SELECT COMMITTEE ON THE ESTIMATES.
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