Falklands : Falklands Chamber of Commerce Reacts to Proposed Budget Submitted by Falkland Islands News Network (Juanita Brock) 29.05.2008 (Article Archived on 12.06.2008)
The Chamber describes the budget proposals as inflationary.
Press Release
Following the Financial Secretary’s appropriation bill speech the Chamber Council and interested members met to consider the proposals. We were only able to react to the speech as full budgets were not publicly available but based on that information we make the following points-
We believe this is an inflationary budget.
Tax increases should be dealt with by a full tax review that should include the Employment tax/ MSL proposals as stated by Councillor Summers.
The Medium Term Financial Plan is the cornerstone for meeting key targets in the Islands Plan, which will affect the whole economy of the Islands. It is disturbing that Government spending has not been cut as set out in that plan with operating expenditure rising by some £1.8 million over the current years estimate instead of the £0.5million cut in the MTFP. That is a £2.3 million shortfall on the plan. The unbridled increase in Government expenditure has resulted in a penal budget.
We are concerned the extra burdens placed on the producers such as the cruise vessel passenger levy increase will be detrimental to the growth of these industries which have shown a 17% average year on year increase in numbers and thus revenue to FIG.
The deletion of the FIDC subsidy for one year will make future savings in expenditure even more difficult.
