Falklands : Summary of Executive Council Meeting 18th March 2009
Submitted by Falkland Islands News Network (Juanita Brock) 25.03.2009 (Article Archived on 08.04.2009)
This month’s meeting of Executive Council was relatively short in terms of items to report on as a number of papers dealt with funding matters which have now being referred to the Select Committee on the Budget.
Summary of Executive Council Meeting 18th March 2009
This month’s meeting of Executive Council was relatively short in terms of items to report on as a number of papers dealt with funding matters which have now being referred to the Select Committee on the Budget.
The first paper to be discussed was regarding the Role and Terms of Reference of the Falkland Islands Defence Force. Council had previously requested that the role of the FIDF with regard to their interaction with British Forces South Atlantic Islands be considered and that the terms of that relationship be laid down in writing so that all parties were clear about how the 2 forces would interact. The paper laid before Members provided clear Terms of Reference for that relationship and also set this in the context of the other non-military roles that the FIDF carry out. Council adopted the Terms of Reference and the model of development for the primary defence role of the FIDF and agreed that this development should progress in line with the FIDF Strategic Plan.
Following receipt of the last actuarial review of the Retirement Pensions Scheme in July of last year, Members requested that the Treasury seek some potential options from the Government Actuary’s Department (GAD) to enable FIG to address the shortfall in the fund (from 60 to 50 % funded in the past 5 years). The shortfall in the fund has resulted because of 2 keys factors: the shortfall between what should be charged as a full actuarial rate and the rate which is charged for voluntary overseas contributions; and the deliberate shortfall between what should be charged as an adjusted actuarial rate and the rate which is charged for compulsory resident contributions (the annual subsidy no longer covers this shortfall). GAD have provided a number of options to the Treasury who have in turn recommended a course of action to Executive Council. Options provided include increasing the retirement age, increasing the number of contributions made to receive a full pension and decreasing the shortfall in the level of contributions made. Council have agreed that the shortfall in the Retirement Pension Fund must be addressed and has requested that with this in mind a public consultation on the options provided takes place.
As a direct result of the falling prices of wool and the decline in rate of wool sales Falklands Landholdings have found themselves unable to accommodate their cash-flow within the £250,000 overdraft facility currently provided. FLH therefore requested a subsidy of £160,000 for the 2008/09 financial year in order to remain solvent. As shareholders of the company FIG were faced with a decision to either not provide the company with the funds requested and declare the company insolvent, following which it would have to cease trading and wind-up, or to provide the funds requested to enable to company to continue to trade for the remainder of 2008/09. Members agreed to the request for funds to resolve the current cash-flow problem and referred the matter to Standing Finance Committee. Members did not agree to a request for further subsidy for 2009/10 of £140,000. Members went on to request that urgent attention is given to the options for the Restructure of FLH farms so that the apparent worsening of the financial position of the company can be resolved alleviating the need for further subsidy.
Members approved the making of an Order to prescribe the minting of coins to commemorate the bicentenary of the birth of Charles Darwin.
In order to draw down the recently allocated €4.13 million of the 10th European Development Fund assigned to the Falkland Islands for budgetary support, FIG must submit a Single Programming Document to the Commission. This document outlines the objectives and performance indicators that FIG will achieve following receipt of these funds. Members approved the formal submission of the SPD to the EC and that the Policy Unit be responsible for recording and monitoring the drawing down of the funds.
Executive Council agreed to the grant of a lease for land in the vicinity of Stanley Airport so that a Karting Track can be installed. Members further decided to provide the land rent free for 2 years, given that such a proposal assists in the provision of public amenities, following which an annual rent of £1500 would be levied. In order to accommodate the grant of this lease Members also agreed to amend the boundaries of Stanley Common.
Following the publication of the National Tourism Strategy in 2008 it was recognised that ownership of the strategy should sit with Falkland Islands Government as many of the objectives set required strategic input of a kind that the Tourist Board alone could not provide. The Tourist Board recently considered and approved a proposal to establish a National Tourism Strategy Working Group through which FITB could work as a key partner to help deliver the Strategy objectives. Executive Council endorsed the establishment of this strategic working group which shall consist of the Elected Member with responsibility for tourism, the General Manager of the Tourist Board, the General Manager of the Development Corporation, two elected Members/Directors of FITB and a Policy Officer. It was agreed that the Director of Public Works would attend only when required. Any recommendations made by this working group will be duly considered by Executive Council and Standing Finance Committee as required.
Proposed Terms of Reference for consulting services on Telecommunications Tariffs and Law were considered and approved subject to comment from the Telecommunications User Group.
This concludes the Executive Council summary for March 2009.
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