Falklands : Falklands Executive Council Report for September 2008
Submitted by Falkland Islands News Network (Juanita Brock) 02.10.2008 (Article Archived on 16.10.2008)
Cllr Mike Rendell updates us on what happened during this important committee meeting.
Summary of Executive Council Meeting 25th September 2008
A paper seeking approval for the drafting of a Falkland Islands Statistical Ordinance was agreed in principle, but Members agreed that drafting cannot proceed until specific policy directions have been established. The need for such an ordinance has come about because it is clearly going to be necessary to facilitate economic planning by monitoring and evaluating the economy, and there is currently no legal requirement to provide statistical and commercial information on the economy, at least beyond the existing Census and Livestock Ordinance provisions. The proposed ordinance will need to create a legal basis for all parties to provide relevant and up to date information and it will also have to safeguard commercially sensitive information by providing legal assurances that the data collected will remain confidential and will be used only by the Policy unit for the purposes outlined.
The next agenda item was a late paper recommending some urgent amendments to the Wearing of Seat Belts (Prescribed Roads) Regulations 1996. Anomalies in the existing regulations purporting to impose a general requirement for adults to wear seat belts have recently come to light and Members therefore agreed that the amendments to the regulations be approved to be made by the Governor and then submitted to the sitting of Legislative Council to be held on 26 September for approval by resolution. This has become necessary in order to ensure that the law does actually reflect the purpose for which the regulations were drawn up, namely to make it a requirement for all adults to wear seat belts. The regulations also serve to correct any uncertainty that this applies to the road between Stanley and Mount Pleasant Complex, they do.
Members then considered and upheld a recommendation that a diving service licence in respect of diving services to the Shallow Marine Surveys Group by an employee and volunteers, restricted to scientific purposes, should be granted.
Executive Council then agreed to the development of an economic development strategy, its core group membership, the proposed timetable of activities and the work programme of the various focus groups and working teams. The objective of the EDS programme is to develop and define a long-term comprehensive strategy for the FI economy which is collaborative, achievable and sustainable taking into account long term global economic and social trends, available public, private and foreign resources, and commitment from each stakeholder present. The route map requires the joint participation and collaboration of FIG and the private sector in defining a common and shared vision, coherent economic policies and objectives, as well as specific long term strategies to achieve these defined goals. The themes that the six focus groups will develop are:-
fiscal framework, budget spending and tax policy;
existing industries development (incl. tourism, offshore fishing, wool/meat, export etc);
privatisation and diversification;
financial resource mobilisation and capital market deepening;
integrated area development (urban-rural synergy, spatial planning and strategic land use, environmental issues, etc);
small & medium scale enterprises (SMSE), labour, immigration and new directions/business initiatives
The time frame for completion of the EDS is that it should be achieved by the 2nd half of 2009 and would feed into the 2009-10 budget and medium term financial plan process.
The next paper for consideration was entitled Civil Service Pay. This contained several recommendations looking at how the current pay structure should be adapted to cope with difficulties in recruiting for specific posts; Market Related Pay was one of these. It was agreed that MRP would add considerable complexity but that alternatives, enhanced contractual gratuities and development of the Job Evaluation Scheme were two ways in which salaries for posts that are difficult to fill could be made more attractive. It was also agreed that the provision of flexible contract lengths of between 1 and 3 years, and possibly up to 5 years with ExCo approval should be introduced. This particular provision could be problematic in relation to current work permit approvals, and it was acknowledged that some work would be needed before this could be a practical option, particularly in relation to how it would apply to the private sector. It was agreed that Performance Related Pay should be resurrected, but not until performance management training had taken place sufficiently widely to be confident that PRP could be paid in a systematically, justifiably and manageable way. Members agreed that this might take several years to implement, possibly being introduced in 2010-11 and starting the process with the two top salary bands. Finally it was agreed that an annual pay award for 2008/9 of 2.5% be paid, effective from 1 July 2008.
ExCo then accepted in their entirety the recommendations of the Director of Fisheries related to setting the levels of Illex license fees for 2009. These recommendations retain the fee formula for returning Illex license customers (Formula 1) at 2008 levels; set Formula II for new customers at a level equating to Formula I+5% (a reduction of about 6%); extend the available loyalty discount by one year to 10%; amalgamate the 5% ‘vessel number’ discount into the fee formula; retain the early payment discount as is; maintain the 2% long-term license discount for the few qualifying vessels; and set the Illex trawler fees at 2008 levels, so no change. These measures reflect the efforts needed to attract new customers and retain existing ones. The paper also ‘floated’ a proposal that FI registered trawlers (part owned by FI companies) be able to trawl for Illex on ‘B’ (Illex) license conditions for a period chosen by the vessel owners within the prescribed full season of 4 months. The fees would be calculated pro rata for the period. The Director of Fisheries anticipates that this may provide some benefits for FI companies owning FI registered vessels and may also bring some impetus to the development of Falklands’ involvement in the Illex fishery. Members accepted the recommendation that this should be considered first in the Fisheries Committee, as unless it has FI industry support there is unlikely to be much interest in it.
ExCo then approved an amendment to the Taxes Ordinance to allow the payment of Trivial Pensions to be treated as income so that any refunds of tax can be made, or additional tax charged, whichever is appropriate. This applies where an individual’s accumulated fund is insufficient to purchase an annuity of at least £500 per annum and they elect to receive the accrued value of their fund as a Trivial Pension. It was noted that in order to achieve a pension (excluding any lump sum payment) greater than £500 per annum, this requires a fund of over £12,000. Under current legislation any balance remaining after deducting 25% of the fund value as a tax free lump sum is subject to FI tax irrespective of the individual’s earnings during the year. Members agreed that this is unfair particularly when the individual’s overall annual income does not exceed the taxable allowance criteria and especially if it is their only form of income for the year. It was agreed that this measure be made retrospective to 1 July 2003, the date when the first Trivial Pension was made.
ExCo then received a paper updating the Ocean 8 situation. The Chief Executive reported that a salvage plan had just been received from the P&I Club, which was welcome news. Members agreed that an FI-appointed consultant examine the plan in detail to ensure that it would achieve a full recovery of the oil remaining on the vessel.
Members then approved an FLH request for an overdraft facility with Standard Chartered Bank for up to £250,000, and that FIG provide a guarantee to SCB for the overdraft. It was reported that this requirement has come about as a result of an oversight when drawing up financial statements some time ago, which have only recently been spotted. Members were also advised that the annual review of the recovery plan and a report on options for the way forward for FLH would be provided before the end of the year. This will be an in depth review examining not only the physical and financial performance of the Corporation, but will also make recommendations on future modes of operation/ownership models.
Two papers on the undeveloped area known as the ‘Leading Lights’ were then considered. Planning permission was granted for development of up to 12 houses on the site, subject to the re-location and re-configuration of the two navigation lights, at the expense of FIG. This will involve the removal of the northernmost light, the raising of the southernmost light and it becoming the northernmost light, and the erection of a new southernmost light built on high ground some 70 metres south of the Airport Road. Members recognised that this development was a departure from the adopted Stanley Town Plan as the land is defined currently as green space, but noted that the Planning and Building Committee had agreed that the Leading Lights green space should be proposed for re-designation for residential development as an amendment to the Town Plan. Members then accepted the recommendation that the 5 individual building plots at the northern and southern edges of the area, known as 28 and 30 Hansen Hill and 13, 15 and 17 Sulivan Street should be advertised for sale by tender, subject to the standard conditions. They also agreed that the 7 central plots should not be offered for sale by tender until progress is made on the development of the various residential sites already held on building licence from FIG, that tenders should not be accepted from persons already holding residential building licences from FIG and that preference should be given to owner-occupiers.
The final building matter was in relation to an application from Mr Kevin Ross to purchase an unserviced plot of approximately 720 square metres situated on the north-east corner of Snake Hill and H Jones Road for the sum of £18,000. Members approved the application and noted that this was intended to be for use as a residential building plot for the construction of a home for the applicant.
A progress report on the work of the Children and Young People’s Strategy Group was then noted. It was also reported that the UN Convention of the Rights of the Child had recently been ratified by the UK, and that it followed that pressure would inevitably fall on the Falkland Islands to do likewise. Members observed that a substantial amount of work has been carried out by the CYPSG, particularly by the Education Department, but that the advent of the newly formed ‘Schools Out’ club had not been included in the report. It was further reported that despite this club making facilities available some children were still being taken to the workplace before and/or after school, which was unfortunate.
ExCo then gave approval to a Museum and National Trust request that the two Wren class locomotives originally brought to the Falkland Islands to transport coal and construction materials from the naval jetty at the Camber to the naval transmitter station at Moody Brook during the 1910’s and 20’s be salvaged and refurbished. An offer to carry out this work has been received from an engineering company called Alex Engineering based in Middlesex, and this company has agreed to cosmetically restore and return one of the engines to the Falkland Islands in exchange for the transfer of ownership of the second.
The last paper on the agenda was an information paper reporting on the responsibility for the road alignment on the steep hill behind the settlement at Port Howard. Members noted the report and expressed concern. The paper went on to explain that a relatively small proportion of the £65,000 allocated for capping in West Falkland this year would be used to realign the road in question.
This concludes the Executive Council summary for September 2008.
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