Commentary by J. Brock (FINN)

A meeting of Legislative Council was held at 1030 on Friday, 31 October 2003 in the Court and Council Chamber of the Town Hall. The proceedings began with prayers by the Rev. Paul Sweeting of Christ Church Cathedral in Stanley. Confirmation of the record of the last meeting of Legislative Council held on 29 August 2003 followed this. The Speaker, the Hon. Mr. Tim Blake, signed the paper as a true record of that meeting.

The following papers were laid on the table by the Hon. Chief Executive - Copies of Subsidiary legislation published in the Falkland Islands Gazette since the last sitting of the Legislative Council and laid on the table pursuant to Section 34.1 of the Interpretation and General Clauses Ordinance 1977:

1. The Merchant Shipping Registration of Ships Regulations made in 2001 but these have not previously been laid on the table in this house.

2. The Building Amendment Regulations 2003 Correction Order 2003

3. The Education Amendment Ordinance 2003 Correction Order 2003

4. The Fishing Licenses Applications Fees Order 2003

5. The Buildings (Camp) Designation Order 2003

6. The Buildings (Stanley) Designation Order 2003

7. The Code of Practice in Relation to Disclosure Order 2003

8. Fishery Products Hygiene Revocation of Approval Order 2003

Mr. Speaker, Honourable Members, would the Honourable the Chief Executive explain the Falkland Islands Government policy on replacement of items of furniture such as tables, chairs in offices, schools and other FIG places of work?

Mr. Speaker, Honourable Members, the Falkland Islands Government does not have a fixed policy or programme for the replacement of office furniture. Replacement of furniture, such as desks, chairs and tables is authorised within each department, within approved budgets.

Bids for what might be described as large-scale replacements would have to be made and approved as part of the annual budget preparation process. Alternatively, if unexpected replacements were required, Departments would need to identify compensatory savings in accordance with approved procedures.

The question posed by the Honourable Member has identified possible opportunities for cost savings if purchases were co-ordinated throughout Government. I will arrange for this to be examined.

JB: Mr. Speaker, I thank the Hon. Chief Executive for his answer.

Mr. Speaker, Honourable Members, could the Honourable Mike Summers update me on the Goose Green project? And, will improvements to the infrastructure continue?

Honourable Members, a great deal has happened at Goose Green in the year since the project was given the go-ahead. The settlement has regenerated with all properties checked for electrical safety. The purpose of 24-hour power has taken some time to achieve due to technical difficulties but I think we are very nearly there.

The summer water shortage problem has been improved with the reservoir now being raised and more efficient water management. This will be an on-going improvement. All houses have oil-fired boilers fitted with full central heating, with loft insulation provided for efficiency. Not all the insulation has yet been installed because some members of the community haven’t got around to doing it. Double glazing for some properties has started. A life-long learning computer, internet and public telephone facility is up and running.

All houses are occupied and there is a constant interest in any becoming vacant. Inquiries have been received by several people to purchase building plots. And, these are in the process of being made available, with the drawing up of legal documents being discussed, just about now. Requests for expressions of interest from the public in regard to building plots will be processed in the very near future.

The original funding of £200,000.00 is being frugally spent and is fully earmarked for the continuation of double glazing and other efficiency saving areas. There will need to be further funding to keep the project momentum, particularly in the area of business start-up and growth, if continuation is to be achieved.

JB: Mr. Speaker, Honourable Members, I thank Councillor Summers for his very fill answer. With your permission, Sir, I would like to explain that this question had gone in some time ago before the article appeared in the newspaper. So, there is some duplication of information in the public now.

Would the Honourable Mike Summers inform this House on the current status of the Reindeer project?

Mr. Chairman, Honourable Members, this project was conceived some time ago as a long-term, high risk project and was developed by FIDC and approved by FIDB. The initial plan was to translocate 140 Reindeer, which would grow in 20 years to a herd of 8,000. It was envisaged that pay back would be between 10 and 18 years. It was envisaged that the reindeer would be sold as soon as possible to private farms. We will recall, however, that the number of Reindeer was not achieved in the translication.

Total FIDB approvals well over £166,000.00 and actual expenditure to date is £170,470.00. Expenditure still continues but at a small level. £2,000.00 this year on blood testing and £850.00 on supplementary feed. The testing has shown the Reindeer free from foot and mouth, malignant contaral fever and many other diseases that I am sure you wouldn’t wish me to read out to this house. Indeed, I may not be able to.

Approximately 2.5 years on, the Reindeer have been used in a limited way to promote tourism. And, it’s difficult to determine what is the financial return. Currently, income and expenditure are running below original forecasts.

The National Reindeer Herd is located at Saliderio. There are 15 females and 24 males, all in good condition. Most of the females are now pregnant and are due to give birth in November. The Department of Agriculture and FIDC are keen to see the National Reindeer Herd relocated to a private farm or farms to build up numbers for farming and tourism.

Looking longer term, moving the Reindeer into private management should enable more vigorous development of farming, tourism or scientific purposes. At this stage, it’s difficult to predict how effective this development will be. Expressions of interest in taking on the National Reindeer Herd were sought in September. Seven farms have expressed an interest. The farm taking on the Reindeer will need to comply with a number of conditions as they are formally still an asset of FIDC.

A draft agreement outlining these conditions has been drawn up and is being reviewed by the Attorney General’s Office.

JB: Mr. Speaker, honourable Members, I thank the Honourable Mike Summers for his very full reply. As you know, this is a project that was dear to my heart some time ago. And, I just wonder that, with so many males to females. I wonder when the public could expect to see the first Bambi-burgers on sale?

MS: Mr. Chairman, I think that will depend entirely on what the new custodians of the Reindeer intend to do with them. There will be a number of Bambis born in November as I previously mentioned. I hope they won’t be slaughtered for burgers.

Mr. Speaker, I just wonder whether the Honourable Mike Summers is aware of the fact there has already been a Bambi event. Three were born this week and I understand there are some more due today.

JB: Congratulations.

If we go on long enough maybe we can add to the total.

Will the Honourable Jan Cheek please confirm that there are no further plans to change the recently agreed structure of the school year in term times and, in particular, that there are no plans to lengthen the midwinter holidays and reduce summer holidays?

Mr Speaker, Honourable members, the official answer is that there are no plans to change the term in holiday dates. I can confirm that there has been no decision by the Board of Education to propose any changes. The length in timing of the terms and holidays was worked out about five years ago after consultation with the parents. At that time, many parents, especially those living in Camp, requested longer half-term dates, with one to cover Camp Sports Week.

The length and timing of the other holidays was largely dictated by the timing of Camp Sports. However, since this question was asked, I have been made aware of concerns expressed regarding the apparent whittling away of the long summer break. I’ve not had the opportunity to consult the Director of Education or members of the Board. But I believe there is some justification for that concern, as the break now appears to be only five weeks.

It’s possible that with the change in demographics in Camp, with many pupils on East Falkland able to go home at weekends, we may need a review. I will raise the question at the next board meeting, with the proviso that any change would have to be a careful compromise with legal and academic requirements and parental wishes.

Further, it must be noted, that if the summer break were to revert to six weeks in future years, then one week would be let off from their holidays.

MS: Thank you for that reply.

Can the Honourable Stephen Luxton please advise how many Government Houses are currently vacant, whether any of them have been vacant for extensive periods, what is the average void time for Government houses and whether repairs and renewals to Government houses between lettings enjoy any degree of priority in the maintenance programme?

Mr. Speaker, Honourable Members, as of 20^th October 2003, there were currently 14 houses vacant – seven for contract personnel and seven for local residents. One property, Cemetery Cottage, has been vacant for 15 months. And, two properties destined for contract personnel have been vacant for four months. The average void time is three weeks. This is adversely affected by the period of time houses allocated to contract personnel may be vacant, as the need to allocate the quarter quite well ahead of the arrival in order that a property may be available.

Use is, however, made of individuals willing to house sit, or take short-term lets to minimise this. Some of the older properties need some significant work doing requiring design input, which has to compete with more capital works. There’s a high degree of priority given to repairs and renewals between lettings.

The level of priority is dependant on both the urgency for which a house is needed and the level and nature of other works current at the time of the house becoming vacant. There are also occasions when resources to undertake works are over-committed.

The current status of the fourteen currently vacant: two are being redecorated, nine have already been redecorated, two are awaiting Planning and Building permission due to the extensive works required and were vacated to permit this refurbishment – those are Police Cottages – and one is the subject of a funding request to enable the extensive refurbishment works to proceed – planning and Building permission having recently been gained for these works. And, that’s Cemetery Cottage.

MS: I thank the Honourable Member for that extensive answer. Would he agree with me that only just submitting plans for the refurbishment of Cemetery Cottage after fourteen months of vacancy is an extraordinary long time when it is still clear to all of us that Housing is one of the key issues in our Capital Programme?

SL: I would agree with that statement.

JB: Mr. Speaker, Honourable Members, I no longer sit on the Housing Committee and haven’t done for some time but for your information, for Housing, Sir, I would like to suggest that the Housing Committee have no powers whatsoever on the actual repairs and maintenance of Government properties and it does fall within the remit of the Public Works Department.

Mr. Speaker, Honourable Members, would the Hon Mike Summers please provide details to this House of the total amount of money spent on the Port Howard Kitchen, who approved the expenditure, on what grounds the project was considered viable and whether a proper inventory is available for the equipment and utensils that were purchased for that project?

Mr. Speaker, Honourable Members, the project was developed by the Department of Agriculture and FIDC, working with Port Howard Residents to create a processor and outlet for surplus horticultural products in West Falkland, and for the creation of other food products. The intention was to supply the local market, with the majority being blast frozen for quality and sold at a competitive price. This would have created an employment opportunity at Port Howard at the time when there was a request for assistance in the area. It would also have given a value to what is currently excess produce during periods of over production. Finally, it would have created another area of import substitution for provision of frozen vegetables to the Stanley Shops.

The total spent to date is £28,141.00 of which £19,871 has been spent on the equipment. FIDC does have a full inventory. The store building, within which the kitchen was to be established, had some work done to it, many of the tasks being a necessity for the maintenance of the FIDC asset. And, it would have been done whether the building was to be used as a kitchen or otherwise.

The expenditure for the project was approved by FIDB. Unfortunately, local interest to run the kitchen as initially intended has waned due to other commitments and choices by the people involved in the project at the time. A decision has therefore been made by the management of FIDC to put the equipment up for tender. This has not yet been considered by the FIDC Board.

SL: Mr. Speaker, Honourable Members, can the Honourable Mike Summers indicate whether the facilities at the Port Howard Kitchen have actually ever been used at all, or was the project actually completed before it was decided it was no longer viable?

MS: Mr. Speaker, the kitchen is not fully completed, although all the equipment is there and the work was completed on the building. The project ran into difficulties when the main user of the facility decided that they would no longer be located at Port Howard and wouldn’t pursue the project. So, the work was never actually finally completed.

Mr. Speaker, Honourable Members, I would like to ask whether or not Mike Summers is aware that when a resident of West Falkland approached FIDC to enquire whether they could purchase a freezer of the same price that was being quoted, as the cost to install in this kitchen, they were informed that, in fact, that was only the basic purchase price of the freezer? It didn’t include freight, Vat and all the bits and pieces that were included in it. Would it make any difference to the over-all cost of the equipment in the setting up of this kitchen?

MS: Mr. Speaker, I am not aware of that, and having not had notice of the question, I would find it extremely difficult to comment.

Mr. Speaker, Honourable Members, would the Honourable Roger Edwards please provide this House with a break-down of all Capital projects completed to date under the construction partnership, giving for each project the original estimate, any cost increases due to subsequent contract variations at the request of the Falkland Islands Government, the final cost they have attained and how much the final out-turn was over or under budget as an amount and a percentage?

JB: Mr. Speaker, a point of order! Please. Would it be possible, knowing how some questions can sometimes make one think we should have brought a packed lunch – and I don’t mean that by being silly. But the history of replies from the Hon Roger Edwards tells me this could go on a fair bit. Would it be possible that the answer is published in written form?

I think, understanding the rules, as it is an oral question, we have to hear it.

JB: All of it?

TB: That is correct.

Mr. Speaker, Honourable Members, I will be as brief as possible. It’s a very detailed question. I can report though for all the out-turn has been 15% higher than the estimate. This is, however, largely a result of the out-turn differences of the Infant/Junior School and the Falkland Islands Defence Force project. The Falkland Islands Defence Force Project was some 56% over the estimate and the Infant/Junior School out-turn was some 28% over project. With the affect of these two project is factored out, then over-all, it is rather less than 40% higher than the estimate.

It should be noted that although phase 6 of the East Stanley Development has shown an out-turn of 5% over estimate, it is anticipated that phase 7 will come in lower than estimate.

We have had a very detailed reply in the form of a list covering the names of projects, the estimate, variation orders, final estimate, out-turn variant, percentages and so on and I would suggest, to save time, I will publish this and give a copy of this to all members, if that is satisfactory to the Hon Stephen Luxton.

SL: Mr. Speaker, Honourable Members, I thank the Honourable Edwards for his answer and yes, that would be satisfactory of that information were published. Thank you.

CA: This Bill has been published in the Gazette and requires a second reading.

Mr. Speaker, Honourable Members, this Bill would enable the guarantee to be made by the Governor to the Standard Chartered Bank in respect of a Housing Assistance Loan where the borrower is unable to obtain a policy of life insurance for the purposes of mortgage protection. It also makes further provision coming into operation in the event of the guarantee being enforced.

The Attorney General has received comment from Mr. Keith Biles, former Manager of Standard Chartered Bank in relation to the Bill. The comment relates to the definition of life Assurance, which is defined in section 2 of the Bill.

Mr. Biles has indicated that. in his experience that proceeds for the policy are often applied by way of assignment of the policy rather than by its terms. In light of this, I shall propose an amendment to the Bill at the Committee stage.

I beg to move the second reading of the Bill.

CA: This Bill has also been published in the Gazette and we go to the Second Reading

Mr. Speaker, Honourable Members, this bill enables any person who is committed to carry out a class or kind of insurance business in the United Kingdom to conduct that same business in the Falkland Islands, providing that permission is first granted by the Governor. Provision is also made for such permission to be rescinded. Consequential amendments are made to the Road Traffic Ordinance, and to the Employers’ Liability Compulsory Insurance Ordinance 1996.

Mr. Speaker, I beg to move the Second Reading of the Bill.

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