Falklands : Summary of Executive Council Meeting (28/03/07)
Submitted by Falkland Islands News Network (Juanita Brock) 04.04.2007 (Article Archived on 18.04.2007)
Pensions were a heavy topic during this important meeting.
Summary of Executive Council Meeting 28th March 2007
The number of papers put to Executive Council for consideration this month was relatively light, as is often the case when council approaches it’s first round of Budget Select Committee.
Council began the meeting by considering 3 papers on pensions. The first was a request for a subsidy payment of £107,000 to the Pension Board. The purpose of this subsidy is to meet the management responsibilities of the Pension Board and has to date been paid by FIG as a contribution to the running of the Falkland Island Pension Scheme (FIPS). Council decided that in line with FIG’s user pays principle we should discharge this subsidy over a three year period, which will in affect mean that the Pension Board will have to pass it’s costs onto the FIPS members.
The second paper related to protection of the pre-1997 benefits of FIG employees. This paper was brought to Executive Council as a result of the short-falls in investment returns and annuity rates from those predicted in 1997 (in 1997 annual investment return of 10% and annuity of 12.01 was predicted, currently running at 5.5% and 26 respectively). Council approved making provision to protect the pre-1997 pension scheme benefit rights of FIG employees who transferred to the Falkland Islands Pension Scheme (FIPS) in 1997; to meet the cost of any top-ups to support the pre-1997 protection from the Pensions (Old Scheme) Fund; the contingent liability from pre-1997 protection to be taken into account in the statutory triennial reviews of the OSF; and the drafting of a Bill to amend the FIPS Ordinance1997 so as to give statutory effect to the pre-1997 protection proposal. Two Executive Council members declared an interest and left the room, there being no objections or queries regarding this paper, no substitute members were called.
The final paper relating to pensions was a report from the Government Actuary’s Department (GAD) on the second triennial review of the Pensions (Old Scheme) Fund (OSF). Council noted the report and made a number of recommendations including that the Standing Finance Committee make provision in the draft estimates for fund transfers to the OSF of £150,000 in 2007/08, 2008/09 and 2009/10 (£450,000 in total) in order to reduce the assessed deficit of £500,000 to a more acceptable level prior to the next triennial review; continuation of contributions to the OSF in respect of future service of the remaining Old Scheme active employees at an aggregate rate of 25% of pay (cost inserted in relevant departmental budgets); that Standing Finance Committee reduce the projected Fund Transfer allocations to the OSF for death benefits, which may be payable to FIG employee members of FIPS, from £105,000 to £62,000; that progress on the projected calls on the OSF arising from the operation of the No Worse Off Guarantee
continue to be monitored and the funding position be considered again at the next triennial review.
Council went on to approve bringing forward the upgrade works to numbers 3 to 6 Police Cottages and inclusion of costs in the Capital Budget 2007/08. The moving forward of this works is simply as a result of the units becoming empty sooner than was expected.
A paper seeking the extension to the FIPASS Management Agreement between FIG and Byron McKay Port Services Ltd was sought and approved. This means that the current Agreement will now be extended until 31 August 2009 with the same terms and conditions applying.
The KEMH Memorandum of Understanding was the next paper to be considered. Following a substantial period of detailed negotiations between FIG and the MOD, Council was pleased to approve the adjustment of the baseline cost share figure from £950,000 to £1,045,000 from 2006/07, in line with inflationary increases over the past 3 years. The MoU is a document which outlines the roles and responsibilities of the MOD and FIG following the civilianisation of KEMH.
Executive Council approved the survey work and production of up to date aviation charts for Stanley Airport, but did not approve the funding requested, considering it to be excessively high. Council asked that the Aerodromes Manager give further consideration to the costs proposed and look for ways to reduce the amount requested. The charts required include a new procedure chart, due to the installation of the new navigation aid being located in a different position to the current one, and an obstacle chart, which will assist in planning and development as this information is currently very difficult to access.
A request from the Environmental Planning Officer for a new Lay Member on the Planning and Building Committee was approved. Anna King will be appointed for 3 years to sit on the committee.
A joint proposal from the Planning and Building Committee and the Lands Committee for a variation to the boundaries of Stanley Common on the north side of the Canache was considered. This request is in response to the inequality in land available for public use adjacent to the Canache. The land to the south of Canache is outside of the Stanley Common boundary but the land on the north shore is not, making it difficult to adopt a unified approach to the management and development of the area. Thus Executive Council approved the drafting of an amendment to the Stanley Common Ordinance removing from the common an area of land covered with hard-standing which lies on the north side of the Canache and instructed the Director of Public Works to erect four robust markers to mark the boundaries of Stanley Common.
In line with increases in costs for registering a Conveyance or Lease in the Land Register to £100, Executive Council approved the increase in fee for the preparation of Crown Grants and Crown Leases from £50 to £100. Furthermore Council also approved the introduction of a charge of £100 for each application for a licence to hold land under the terms of the Land (Non-Residents) Ordinance.
A progress report from the Children and Young People’s Strategy Group was received and noted, and Executive Council recommended that Standing Finance Committee consider setting up a fund of £5,000 for the group to carry out various projects in line with our obligations under the UN Convention of the Rights of the Child. This money should be managed by the Education Department.
Executive Council considered a further report on the Housing Strategy this time including feedback after a period of public consultation. Council acknowledged that the report sets out the framework of the Strategy but noted that there is still considerable work to be done on the fine detail before the complete strategy can be published. In the mean time Government officials will be working through each of the key areas and implementing them as soon as is practicably possible.
Following a period of difficulty in recruiting staff to the Department of Health and Social Services, the Director has produced a report on recruitment of health service staff overseas. The reasons for these difficulties are thought to be related to an increased demand and decreased supply of healthcare workers in the international recruitment market. Council approved that discussions with a number of agencies are opened, to ensure that they understand our requirements and to negotiate rates; and following this that the success of the agency is evaluated. The option of using visiting specialists from Chile willbe kept as a fallback option should it prove impossible to recruit from the UK in the future.
Although some departments have successfully introduced their own complaints procedures, there is currently no universal FIG Complaints Procedure. Many complaints received cut across departmental boundaries, and procedures specific to individual departments may lead to inconsistencies. To this end Executive Council have approved a draft FIG Complaints Procedure for consultation purposes and have requested that a report on the consultation exercise be reported back to ExCo in May 2007.
Following a request from Members of Executive Council at February’s meeting on the possible implementation of a ban on smoking in all FIG premises which currently do not have a ban, a paper to consider a ban in all parts of the Town Hall (including the external fire exit) was considered and approved.
Finally, Executive Council approved the registration of the new coastal services vessel ‘Concordia Bay’ on Part I of the Falkland Islands Register of Ships.
This concludes the Executive Council summary for March 2007.
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