Falklands : Falklands Executive Council Report (27 May 2008)
Submitted by Falkland Islands News Network (Juanita Brock) 04.06.2008 (Article Archived on 18.06.2008)
A review of what went on during this vital government committee meeting
PRESS RELEASE
Summary of Executive Council Meeting 27th May 2008
This month a number of papers considered related to the budget process, the Appropriation and Finance Bills were considered along with draft estimates and an application from FIMCo for budget support all of which were referred to Legislative Council and Budget Select Committee, and were reported on during Legislative Council last week.
A request for Executive Council to ratify a decision by the Falkland Island Development Board approving financial assistance totalling £137,188 to Stanley Dairy was made. This amount covers additional developmental support £33,859 and contributions to meet a trading loss made in 2007, £47,238 and a forecast trading loss of £56,091 for 2008, all to be met from FIDC reserves. Since a decision to support the Dairy was made in September 2005, a total of £376,510 has been invested to facilitate the upgrade and modernisation of the dairy. The current operating loss is expected to be temporary and will be rectified as soon as the MPC market has been secured. To this end Executive Council ratified the Board Decision. If this decision had not been ratified it would have resulted in the immediate closure of the Dairy.
Members went on the approve that Stanley Airport should only provide the category of rescue and fire fighting service (RFFS) that is necessary for FIGAS operations and that any aircraft that requires a higher category than FIGAS should no longer be permitted to operate at Stanley Airport. Members also approved the replacement of the existing Category 2 RFFS appliance.
Members then considered a further report on Concordia Bay tariffs. This had been requested so that Members could fully appreciate the variances in wool rates according to the mode of transport from producer to Stanley. To this end Members approved that the freight rate for wool delivered to New haven from Outer Islands be reduced from £42.33 to £25 per tonne. This adjustment allows degree of equalisation in transport rates of wool from different locations.
A detailed report from the Fisheries Protection Strategic Review Group was received and considered. Following the identification of clear strategic objectives the Group reviewed a wide range of options to meet the patrol and research requirements of the Falkland Island Fishery. Methods ranging from 100% observer coverage and port inspections to the full and part time use of vessels were investigated, as well as aerial options such as fixed and rotary wing. The recommendations of the Group were that a vessel solution was required to deliver effective patrol and research with some additional observer resource to address alleged breaches of licence conditions, and some aerial surveillance to assist with identifying IUU (Illegal, Un-licensed and Un-regulated) activity. Executive Council noted the recommendations of the Group and approved that FIG now proceed with a tender process to secure the services required to provide effective protection and research of the fishery. The cost of providing this protection and research is to be met from the existing budget.
An appeal from the Falkland Islands Fishing Companies Association against the Winter Loligo fees set for 2008 was received. As reported last month executive Council approved an increase in Loligo fees by 30% which achieved a fee:revenue ratio approaching the current target of 10%. Whilst Executive Council expressed sympathy regarding the relentless increases in fuel prices it was noted that there has been no evidence provided as to the effects that these increase have had. There is also no clear understanding of the impact of exchange rates, in particular given that fuel is purchased in dollars and the squid sold in Euros. Members remain firmly of the view that there is a need to review the way in which licence fees are set so that a clear and objective method for taking into account such factors is identified. Following full consideration of the information provided Executive Council decided to uphold their previous decision.
A request for financial assistance from the Falkland Islands Cricket Association to assist with costs for the under 17’s tour of Chile was supported. Council approved that up to £4,680 be provided from the Donations/Subventions vote.
Finally a new outlying islands member from the Transport Committee was approved. Mr Christopher May will be appointed to the committee for a period of 2 years.
This concludes the Executive Council summary for May 2008.
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