Falklands : Falklands Executive Council Report (01/11/07)
Submitted by Falkland Islands News Network (Juanita Brock) 01.11.2007 (Article Archived on 15.11.2007)

A meeting of Executive Council took place on 24 October 2007. Following is a report about that meeting.

Summary of Executive Council Meeting 24^th October 2007

Under the Fisheries (Conservation and Management) Ordinance 2005, provision is made for charging for access to the fishery on the basis of quota ownership. Previously access fees have generally been charged as vessel specific licence fees. The move to charging for quota is part of an ongoing process and thus far only the Toothfish fishery is charged on a quota ownership basis. As part of this process Members considered a paper outlining annual quota charges for the Loligo and Finfish fisheries for 2008 (noting that Loligo has a second season which is not included in this paper). Members approved, the charges outlined in the table below.

* The change for A/Y fishery represents a reduction on the theoretical baseline option but represents an increase on revenue previously raised)

The paper put to Executive Council proposed an increase in Loligo charges of 20% reflecting a desire to bring the fee/revenue ratio back to 10% from 7.7%. Members considered that given the consistent escalation in fuel prices and noting that the fees are set retrospectively, an increase of 10% which brings the fee/revenue ratio to 8.48% would be more appropriate. If the fee/revenue ratio does not come back up to 10% when quota fees are next considered then further adjustments can be made if necessary.

Following a request from Executive Council for further work on the methodology of how resource rents are collected as well as a proposal for the application of the Economic Efficiency Test, the Director of Fisheries has proposed a way forward and with which Council agrees. A period of consultation will be held with the industry and with other relevant groups such as the Treasury and FIDC, on the design and application of the Economic Efficiency Test (with the purpose of assessing performance of ITQ owners); in the short term (2-3 years) some type of comparative ratios will be applied to assess company performance using in-house accounting resources if possible, together with any test devised as a result of the consultation to be held; and in the longer term (> 3 years) engage consultants to analyse data collected and to undertake a wider review to set out options on resource rentals.

The issue of introducing the Automatic Identification System (AIS) to all vessels licensed for the Falkland Island Fishery was first considered by Executive Council in August 2007. Council were not content that the issue of supply of AIS units had been fully explored and so asked for further information. Council now note that the supply and installation of AIS units can be made using the private sector and consequently approved that the deadline for making the carriage of Class ‘A’ AIS units mandatory for fishing vessels licensed for FI conservation zones, be set as 1 July 2008.

The Falkland Island government has contracted fisheries management advice from Imperial College for the past 20 years. Following a decision to localise this area of work, the contract advice has been reduced over the past 5 years and the department has recruited appropriately qualified staff to enable the transfer of these tasks to the Falklands. Council agreed that a further contract be entered into with Imperial College for a period of 3 years to provide advice in three core areas, these will include transition support for the new ITQ system, stock assessment advice and quota fee advice, this advice is in terms of an alternate opinion for the latter 2 areas. Costs will start at £73,473 in year 1 and reduce to £60,402 in year 3.

Following an application to the Falkland Island Government for the listing of three non-Falkland Island flagged vessels under the Fisheries Products Ordinance 1998 (listing allows the Falkland Island Competent Authority (Veterinary section) to inspect transhipments, cargo consignments, etc. to see if they satisfy the standards for export to the EU), Council requested that a definition of “close economic connection”, as required under the Ordinance, be provided, so that any applicants can be assessed against transparent and objective criteria. Council approved the criteria set down by the Director of Fisheries, that requests to be listed are likely to be considered favourably if the application is submitted by a company owning ITQ or PQ in the Falkland Islands, if there is a close connection between the vessels and that company, and if there is significant economic benefit for the Falkland Islands. Requests from Falkland companies which do not own quota will be considered on their merits. Requests will be considered by the Fisheries Committee (with input from the Veterinary section) with a recommendation going to EXCO for the final decision. Listing will be on the basis of FIG achieving full cost recovery, will only occur with the support of the flag state; and the FI company applying would need to have sufficient control to ensure compliance with the Fisheries Products Ordinance. Council further stated that listing in this manner does not provide any non-Falkland Island flagged vessel access to EU derogated quota and that listing be time limited for 12 months so that a review of the close economic connection can be made to ensure it has not been degraded.

As a further contribution to the cost of defence Council approved that the construction of the Mount Byron Road be carried out, at cost, during the 2007/08 construction season.

Executive Council were advised in July 2007 that the method of delivery of television and radio services to the Falklands by SSVC was to change to a digital system which will be accessed direct from a satellite. The Military need for the service delivered by the analogue TV and FM radio transmitters on Mount Maria will therefore cease. We are also aware that the risk of critical failure of the transmitter on Mount Maria has become a reality with most of the rural population now unable to access TV and some radio services. Council were requested to accept proposals submitted by SSVC for the future delivery of digital television and radio services in the Falkland Islands. This change in delivery will bring with it an increase in both operational and capital costs, and with it a need to introduce licence fees in order to recover the costs of this service. Council decided that prior to making its final decision on whether to proceed with this proposal, we would like to consult with the public on their views. To this end we have requested that comments be sought over the next 4 weeks so that a final decision can be made in December.

The final budget provided to the Falkland Island Tourist Board following Budget Select Committee earlier this year did not include funding for the employment and relocation of a General Manager. Having successfully completed a recruitment process FITB has now requested, and Council has approved, the release of funds to cover the costs associated with recruiting and employing a General Manager for the Falkland Island Tourist Board for a period of 2 years.

Council considered the final report of the Working Group on the possible prohibition of smoking in public places. Given that there are still a number of areas that remain to be resolved Council requested that the paper firstly be re-drafted to provide clear options in each key area, following which the paper is to be referred to the Chief Police Officer so that consideration of practical issues relating to enforcement can be provided. Following a period of public consultation on the final report Council will then provide direction.

Following the recent audit of FIGAS by our regulator, Air Safety Support International (ASSI), a number of areas that are in need of attention have been identified, in particular in relation to air operations into New Island, Beaver and West Point Islands. Council agreed to the requirements laid down by ASSI for the three islands, prior to the visit of an independent inspector, on the basis that these requirements reflect existing policy. Council further agreed that in order to address outstanding matters raised by ASSI a Flight Manual Supplement for the Islander aircraft flight Manual be procured from Britten Norman and that the FIGAS operation manual be revised.

Under the Elected Councillor’s Allowances Ordinance elected members are entitled to claim for 36 portfolio days per annum, although during the priority based budget process in 2002 members decided to claim only 24 days per annum, a practice that continues today. Rather than pursue the issue of full remuneration for Members during the current term of office, Council approved the request to increase the number of claimable portfolio days to 60 per annum. This is to take into account the increased workload when the revised portfolio structure is introduced in November 2007. Further, Council agreed that reference to claimable mileage should be removed and that provision should be made for this to be determined by the level set for all public officers.

Council received an information paper reviewing the progress of Falkland Landholdings over the past 12 months of operation. In summary many of the objectives laid down in the Recovery Plan have some way to go before they are met, however there has been some significant progress in that the average micron has improved by around 0.5 micron per annum over the past 3 years and wool income is improving and remains close to that budgeted. Council requested that budget projections be reviewed as there are some consistent discrepancies between budget and actual figures going forward, and further requested that given the rather low levels of subsidy required in future years that the Board of FLH consider whether or not the use of an overdraft facility in order to cushion deficits would be appropriate.

Following the consideration of a review of Woolco which was submitted to the August meeting of Executive Council, Members requested a further report to specifically address the issue of performance of the company against its original objectives, to review the original business plan and to allow the company time to collect further data. Members noted the performance of the company, which despite a difficult year has made considerable progress, the company recognises it has some way to go and that there is a clear need for better communication with its customers. It is also recognised that the reality of a co-operative such as this will be more beneficial to certain types of customer than to others, but that in general the underlying principle is still valid. Members also noted that going forward the requirement for financial support has decreased by £45,000 (from £175,000), so that the total requested is £105,000 for 2007/08 and £25,000 for 2008/09. Members requested that the 2008 review of Woolco include additional detail regarding new buyers, volumes and sales.

Council approved the use of census data by FIG officers for purposes such as analysis for policy developments, so long as the data has been encoded so that the individual names and addresses cannot be ascertained, and provided that the Attorney General has approved access to the census data in each particular case. The Census Ordinance requires that the Attorney General prepares a report on census patterns to be laid before Legislative Council, but it does not make provision for any further use of the data. This approval rectifies this anomaly.

Council noted the Annual Report of the Director of Education, and asked that further information be provided in two areas. Firstly that comparators are provided for GCSE results along with some information regarding the general performance of key stage 4, and secondly that the A’level results are analysed such that the performance over time can be observed perhaps by grade averages.

Following the dissolution of FITEC and its associated groups in September 2006 (as a result of a review of the Training Dept), it was determined that these groups should be consolidated into a single advisory group. Consequently, a request from the Director of Education to form a ‘Vocational Board’ as a subcommittee of the Education Board has been received and approved, along with terms of reference and membership of the Board. Members further approved the drafting of a Bill to amend section 5 of the Education Ordinance to facilitate the representation of the training dimension of the education service on the Education Board.

As a result of a number of difficulties encountered by Customs and Immigration staff, inconsistent travel advice and an unclear policy on the provision of medical treatment regarding travel/medical insurance for visitors, Council were requested to approve a future strategy. Council requested that the requirement for travel/medical insurance remain but indicated that Customs and Immigration Officers should not provide a checking service or advice on individual policies. Council approved that the recommended minimum limit for the medical insurance component include medical treatment, areo med to a third country and repatriation costs, at US$200,000; that a letter be issued to cruise company agents and other tour operators regarding travel/medical insurance and that a consistent message and wording about travel/medical insurance is in the public domain. Finally Council requested that the procedure for handling sick/injured visitors be considered further by the Attorney General and the Chief Executive prior to consideration by Executive Council.

This concludes the Executive Council summary for October 2007.

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