Falklands : Executive Council 22/11/07 Report
Submitted by Falkland Islands News Network (Juanita Brock) 30.11.2007 (Article Archived on 14.12.2007)
This is an important Council Meeting.
Summary of Executive Council Meeting 22 November 2007
This month’s meeting started with a paper presenting the Supplementary Appropriation Bill, which Council agreed should be remitted to the meeting of Legislative Council on 23 November. The total amount of supplementary expenditure was £484,810, a proportion of which were carryovers from 2006/07, but with additional provision of £21,000 for survey work and chart drawing at Stanley Airport, £105,000 for abattoir compliance upgrade works and £37,900 required in connection with the appointment of the FITB General Manager.
Council then agreed that an amendment should be made to the POAT (Employees’ Deductions) Regulations 1997 so as to bring POAT deductions for employees who are non-resident in the Falkland Islands for tax purposes in line with the lower rate of income tax. At the moment these employees have deductions made at 20%, the current lower rate of income tax, but this will increase to 21% on 1 January 2008. Because these employees are present in the Falkland Islands for less than 183 days in any income tax year there can sometimes be difficulties in obtaining completed returns and pursuing any income tax liabilities. This amendment reduces the likelihood of a liability arising and in most cases, as the deduction does not take into account any Personal Allowance, the employee would be due a repayment. It was noted that it is up to the employee to claim any repayment due.
A paper considering underlying policy and options for the future with regard to Family Allowance was referred back to the Financial Secretary for further consideration by a working group, to report back to Executive Council in March.
Council went on to approve a revised staffing structure for the Treasury, having considered a report looking at capacity issues. This report highlighted the considerable problems resulting from staff turnover and the inability to attract and retain trained and experienced finance professionals. Council agreed a number of recommendations, the most fundamental of which is the merging of the post of Financial Secretary with that of the Deputy Financial Secretary. This change, combined with the appointment of a Financial Services Manager, who will have a higher level of responsibility than the current post of Chief Accountant, will provide a structure comparable to that which operates successfully in both the commercial and public sector elsewhere. The changes will also create other opportunities to develop less senior staff in responsible roles within the Treasury. Both the Financial Secretary and the Deputy Financial Secretary have been fully consulted at every stage of the process and are in agreement with the outcomes. Since ExCo, listeners will have heard the press release issued by the Financial Secretary announcing that he will be retiring as Financial Secretary in July next year. Council joined in formally acknowledging and thanking Derek for his 32 years of very able, professional and dedicated service to the people and government of the Falkland Islands.
The next paper brought Council’s approval to a 3% increase in all Health and Social Services charges, with effect from 1 October 2007. This policy, of increasing charges in line with inflation, had been recommended by the former Director of Health and Social Services, and should avoid any radical increases in the future, unless there is evidence of a large increase in providing services in a specific area. The schedule of charges covers a range of services provided by the KEMH including non-entitled patient charges, visits to ships, public health tests and inspections, vaccinations, medical examinations, dental charges and meal charges.
Council then considered and agreed funding of four animal crates to supplement the two already being supplied for use by the Concordia Bay. These crates will enable the efficient movement of sheep and cattle principally between farms and Sand Bay abattoir, and will be built in compliance with animal movement regulatory requirements. Whilst the cost of each crate will be nearly £30,000, it is estimated that the return on investment will be 3.6 years. This return will be to farmers and the abattoir rather than to FIG, and will be in the form of increased values in sheep weights due to avoidance of weight loss. Council agreed that the crates would be owned by FIDC but be managed and in the custody of FIMCo, although it was hoped that this might be only until such time as the private sector may consider the operation of these crates to be a business opportunity.
Council recommended to the Governor that approval be given for the renewal for one year, from 30 November 2007, of an exploration licence to enable Wavefield Inseis AS to continue to acquire 2D seismic data under contract for production licence holders Falklands Oil and Gas (FOGL) and Desire Petroleum plc. Bergen Surveyor, the vessel completing this work, had earlier this year experienced major technical problems which caused the vessel to sail to Montevideo for repairs, and the time lost prevented the company from completing the North Falkland Basin survey before starting a survey for the Uruguayan government. Wavefield Inseis AS has now found a window for the Bergen Surveyor to complete the site surveys before moving to South Africa, and the renewal was necessary because the outstanding work cannot be completed before the expiration of the original one year licence. Council noted that this recommendation is subject to Secretary of State approval.
A paper addressing issues related to proposed Cable & Wireless business broadband packages were referred back to the company for further deliberations. As this is ‘work in progress’ no further reporting of this paper is appropriate for the time being.
There then followed a number of planning related papers, the first being one seeking agreement to repeal the section of the Planning Ordinance which excludes the Planning Officer from the discussions in Executive Council relating to planning appeals. Council agreed to this change, and recognised that it should benefit the ExCo decision making process in regard to planning appeals, particularly in light of the fact that since the Planning Officer has no vote at the Planning and Building Committee she has not been a party to the planning decision that has been appealed. Council noted that this was a very different position from that of a member of ExCo who was one of the original decision takers on the planning application and who clearly cannot therefore deliberate at ExCo on an appeal from their own decision.
The next planning paper gave Council the opportunity to support the recommendation that Graham France should become the new lay member of the Planning and Building Committee, to replace Gerald Cheek, who recently completed his three year tenure.
The last planning paper sought approval for Council to remove permitted development rights for the recently approved planning application in respect of 25A Ross Road East. Given that the house will occupy 35% of the plot and that there will be distances of 2 -2.5 metres from the south, east and west boundaries, Council agreed the recommendation of the Planning and Building Committee. The consequence of this is that planning permission will be required should the applicant wish to consider building any extensions or outbuildings within the curtilage of the existing approved application.
Council then considered a paper entitled “Gordon Lines Industrial Area: Land Allocation and Management”. However, further clarification from the Lands Committee of one of the issues raised in the paper is needed before all of the other recommended guidelines can be approved. This is in consequence another ‘work in progress’ paper and will not be further reported on until the remaining issue is resolved.
The next paper, laid out in the form of a Memorandum of Understanding, outlined the arrangements for co-operation between British Forces South Atlantic Islands (BFSAI) and the Falkland Islands Defence Force, in the provision of support facilities, services and assistance during peace and in the event of any operations. Council approved this MoU for signature by the Chief Executive and the Commander British Forces, and agreed that it should be published when signed. In broad outline the MoU deals with such matters as charges for goods and services, billing arrangements, rations, clothing, equipment, ammunition, storage, training, instructors, helicopters, joint patrolling, use of ranges, rules of engagement, operational command and control states and liability and indemnity.
There then followed a wide ranging discussion regarding the various inconsistencies with regard to routes to and categories of Falkland Islands Status (FIS). These include:-
- Limiting the entitlement to FIS by birth to a person who was born a citizen in the Falkland Islands;
- Removing the possibility of FIS being inherited at a future date by the children of Falkland-born “non-settled” aliens who have subsequently acquired citizenship other than by connection with the Falkland Islands;
- The need to propose a further route to FIS to enable children born outside the Falkland Islands, for example for medical reasons;
- The need to remove the shortcut to FIS by choosing the naturalisation route;
- The possibility of revoking Status should be reviewed and restricted to acts of serious crime;
- Removing the short-cut to FIS by marriage;
- Removing the current anomaly where children lose their FIS at 18 and have to apply for it in their own right on reaching that age.
Most of these inconsistencies have already been highlighted in the Final Report of the Select Committee on the Constitution, but not all of them. Council agreed to approve the changes in principle, but subject to the negotiations that will form part of the Constitutional Talks which take place between 11 and 13 December.
This was the final paper on the agenda
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