The Agenda for Executive Council on Thursday 24 July included a number of important policy issues. The other five members of Legislative Council were invited to join the three elected members of Executive Council for the discussions on Tax and Fisheries Policy.

Members of the public will be familiar with the proposals for a new and simplified tax structure. These were put out for public consultation at the end of March this year. Following an extensive programme of meetings and the receipt of many letters and other submissions from members of the public, the Working Group on Taxation Policy produced a final report, which was the subject of Executive Council discussion last Thursday. The final report included a number of changes or clarifications to the proposals put out for public consultation. Perhaps the most important change concerned the position of married pensioners. Under the proposals which came to Executive Council, married pensioners will be allowed to allocate pensions equally between them if required, so as to make the most of the couple’s allowances. The final report also recommended that, while contractor companies at MPA should henceforth be subject to Falkland Islands tax, employees of those companies should for the present retain their privileged tax position. This will, however, be subject to review over the coming few years.

Executive Council accepted the recommendations in the revised paper. They will come into effect from 1 January 2004. The result will be a much simpler and more easily understandable system of taxation. Income Tax rates will be based on a two-rate scale of 20 and 25%, and nobody earning under £12,000 will pay income tax. Corporation tax rates will be lowered to 25 and 20%. Analysis suggests that 56% of taxpayers will be better off, 29% will see no change, and only 14% will see an increase in their taxes.

Executive Council also considered two important aspects of the new Fisheries Policy. These concerned charges for fishing rights, and the allocation of initial rights on introduction of the new arrangements. On the issue of charging, it was agreed that this should be addressed through the taxation system, by ensuring that proceeds from all rights sales appear as revenue in the Company’s profit and loss account. On allocation of initial rights, Executive Council agreed a lengthy set of recommendations. The key elements are that each major fishery should be treated separately for the purpose of initial allocation of rights, that the initial allocation should be made in the first instance to current Falkland Islands participants in the fishery concerned, based on their effort history in that fishery, and that only qualifying companies rather than individuals can hold rights. This important series of decisions enables the implementation Working Group of the Fisheries Committee to continue their detailed work on the new Fisheries Policy. A series of papers on other aspects of the new Policy are expected to come before Executive Council over the next few months.

The Acting Attorney General briefed Members of Executive Council on latest developments in the Gordon Forbes arbitration.

The Deputy Financial Secretary introduced a paper setting out the Government’s Anti-Fraud Policy. This commits government to operating in an open and honest way, encouraging the prevention of malpractice, promoting the detection of malpractice, and identifying a clear pathway for investigation. Executive Council Members welcomed and approved this policy, and associated procedures, which reaffirmed Government’s refusal to tolerate any form of malpractice or irregularity whether outside or inside Government.

Executive Council considered a number of environmental and planning issues. These included a paper from Andy Douse, Conservation Strategy Officer, which updated Executive Council on the approach and timing for the development of a Conservation Strategy and Bio Diversity Action Plan for the Falkland Islands. Executive Council considered three new Planning Guidance Notes, covering the development of residential plots, off-street parking and the development plan, and decided to put these out for public consultation.

Executive Council also considered a number of issues in connection with the Ross Road clearway. They decided against the introduction of a new pedestrian crossing between the FIC West Store and the Capstan car park. They concluded that a report on the trial clearway (to include public comments) should be presented to Executive Council by the end of this year, and decided that, after consideration of this report, Members would consider the trial of a one-way circular system for Ross Road and John Street.

Executive Council considered a number of immigration issues, and concluded that a formal meeting of the Immigration Advisory Committee should be arranged to identify those aspects of immigration policy which merited consideration by Executive Council.

Finally, Executive Council discussed a report by the Health of the Nation Alcohol Strategy Group. The report recommended a range of measures to address the problem of alcohol abuse. Executive Council welcomed the report and expressed their gratitude to the Group for their work on this important issue. They invited the Group to produce composite and costed recommendations for Executive Council’s consideration.