Falklands : Summary of Executive Council (25 June 2009)
Submitted by Falkland Islands News Network (Juanita Brock) 01.07.2009 (Article Archived on 22.07.2009)
Executive Council has taken the decision to close Stanley Dairy
Summary of Executive Council Meeting 25th June 2009
This month’s meeting started with the consideration of a Project Initiation Document for a new port in the Falkland Islands. The Director of Major Projects’ report proposed an approach to be adopted which would meet the strategic aims of this project. A number of activities and milestones leading up to the selection of a preferred site by the end of this year were approved. Members were concerned that a number of the key stakeholders were not engaged to the extent that would be expected at this stage of the project, and so requested that they be made aware of outcomes of consultations as soon as possible. Members noted the staged approach to this project in terms of key decision points and requested that the funding be aligned to this staging. Members approved that a request for £57,000 in order to carry out the work required to get the project to the next stage (selection of a preferred site), be referred to Standing Finance Committee.
Following a period of in depth discussions with parties interested in taking over the management and subsequent ownership of Stanley Dairy, FIDC were unable to secure a successful bidder under the terms previously set down by Executive Council. Reluctantly Members therefore had to conclude that the Dairy should be closed as soon as possible and that FIDC should seek to maximise the return on the sale of assets in order to defray the operating losses incurred by FIG over the past 4 years.
A paper seeking some minor tariff changes for the Concordia Bay were considered. Members approved that frozen goods to be carried to Fox Bay be charged at the standard island frozen food rate subject to a minimum charge (£85 per cubic meter, £40 respectively) but that consolidation and delivery would not be organised by the Government or FIDC, and ratified that vehicles delivered to the outer islands by Concordia Bay through the consolidation service are charged at the consolidation goods rate and the ferry surcharge for oversized light vehicles. The subject of tariff charges will be further considered at the July meeting of Executive Council as part of a report on the operation of the ferry and coastal shipping service.
Members considered a request from the Company Taxation Officer to introduce a further Extra Statutory Concession to the Tax Ordinance 1997. ESC 15 will make provision for the relaxation of the definition of “relative” for the purposes of computing the tax threshold amount in Section 28 of the Tax Ordinance 1997. Currently two companies that are not commercially connected (for example one that sells fish and the other shoes) but which are owned and operated by relatives (as defined in the Ordinance) will have their tax thresholds reduced by virtue of the relationship of the owners. Members considered that this matter should be resolved by adopting ESC15 which is to be effective from the date at which it is published in the Gazette, but noted that in due course further work will be required regarding how the interdependence of companies is to be assessed.
A series of papers from the General Manager of FIGAS were then considered. The first was a report on the FIGAS Recovery Action Plan, reviewing the summer season. Members raised a number of questions regarding the operation of the new system and subsequently concluded their continued support of the Recovery Plan including the development of second tier commercial operations. The second report considered the impact of the FIGAS Recovery Action Plan on the tourism industry, this paper was for information only. Whilst Members noted the concerns from some quarters, they recognised that overall there is support for the Recovery Plan. The third paper to be considered regarded FIGAS passenger fares for 2009/10 and beyond. A number of recommendations were approved; that effective from the 1st July 2010 the capped resident rate on the FIGAS shuttle is increased by 10% to £55 per one-way journey and that in order to provide advanced notice, that Budget Select Committee shall consider and announce all shuttle fares and charges in May of each year, with any new rates being effective on 1st July the following year. Members agreed that a penalty fee for changes and cancellations be applied to flight bookings after 8am on the day prior to flight and that this will not be applied in circumstances outside the passenger’s control. Members also agreed that effective from 1st July 2010 a price differential is introduced for the capped resident fare to outer islands and that this differential be set at £5 below the fare to and from East and West Falkland (in recognition to the lack of a ferry service to these outer islands). Finally a paper on air freight rates was deferred in order that it can be considered alongside the review of the ferry and coastal shipping service next month.
A request to introduce the Human Papilloma Virus vaccination for 12 year old girls was approved. A catch up programme to include all girls up to the age of 18 years will be carried out over a 5 year period. The Human Papilloma Virus is responsible for causing cervical cancer in women and so immunisation against this virus will assist in the prevention of this disease.
A request from the training Department to continue with the Entry to Employment Scheme, a scheme which assists school levers with entering into the workplace, was approved subject to the conditions of residency, which apply to students seeking Further Education support, also being applied to this scheme.
An information paper from the Head of Policy on the progress of the Economic Development Strategy was noted.
A number of Land and planning matters were considered. An application to purchase unserviced land on the south-side of Jersey Road for use as a residential building plot was considered and approved. In order to facilitate the use of this piece of land a departure from the adopted Stanley Town Plan was also approved. The piece of land in question was previously classed at greenspace, however as part of the Draft Alteration to the Plan, which was subsequently considered by Executive Council, it is proposed that the greenspace provision should no longer apply to this area. Following a consultation period with the public on the draft alterations to the Stanley Town Plan, Executive Council agreed to adopt Draft Alteration No.1 which included the reinstatement of the housing allocation to the east of Stanley Services and changed the greenspace boundary to the west of 1 Jersey Road.
A request to revise the pedestrian crossing arrangements in the Infant and Junior School area and to control on street parking was considered and agreed with minor amendment.
As a result of the announcement in March 2009 that the Bulk Liquids and Gas sub-committee of the International Maritime Organisation approved the ban on use of heavy fuels in the Antarctic region, the FIG Policy Unit and the Falkland Island Tourist Board have assessed the potential impacts of the ban on the Falkland Island economy. Whilst Executive Council recognise the huge environmental benefits of such a ban in the Antarctic region, Members agreed that the Foreign and Commonwealth Office be made aware of the potential impacts upon the Falkland Island economy and requested that any ban recognises that time will be required for the cruise industry to adapt to these new rules.
There were a number of papers of a legislative nature for consideration at this month’s meeting of Executive Council. A request from the Attorney General to submit the Administration of Justice (Amendment) Bill 2009 to the July meeting of Legislative Assembly was approved. This amendment makes provision for the Supreme Court to sit outside the Falkland Islands to deal with any matter that can be dealt with in Chambers (in a private hearing) rather than just those where only one party attends the hearing. The Supreme Court will continue to sit in the Falkland Islands for all hearings that are to be held in public.
Following the public consultation on proposals regarding the establishment of a Public Accounts Committee, Executive Council agreed to a number policy points including; that the minimum requirement for the PAC to meet should be at least once every 6 months, that PAC members should be appointed for 4 years, running mid-term to mid-term, that all Executive Council Members should be excluded from membership, that the role of the PAC should be to examine projects after they have been completed and not before they have started, and that the right of the Assembly to control the agenda of the PAC be amended so that the PAC is obliged to consult the Assembly on it’s proposed programme for the following year, to then consider Assembly views and the budget provided to it, in finalising that programme.
Executive Council approved the remittance of the Islands Plan to the July meeting of the Legislative Assembly in order that it be formally adopted for the fiscal year commencing 1st July 2009.
As a result of the change to the way in which Family Allowance is to be distributed, recently approved at Budget Select Committee, there is a requirement to make a number of legislative amendments. Members considered and agreed the making by the Governor of the Family Amendment Regulations, the publication of the Family Allowances (Amendment) Bill and the subsequent submission of the Bill to the meeting of Legislative Assembly in July 2009 and the making by the Governor of the Family Allowances (Penalty Notice) Regulations. Changes to the amounts of family allowance payable and the adoption of a system of means testing the household income require the provision of supporting definitions to assist in determining what makes up a family household for the purpose of means testing. Furthermore the adoption of a self-assessment system requires the strengthening of the power to prosecute in connection with the payment of family allowance, including increasing the fine from £50 to a level 5 fine (currently £3000). Finally a new provision to enable the Postmaster to invite a person to agree a penalty of 30% of any overpayment if that overpayment is a result of the person acting dishonestly, as an alternative to prosecution. This penalty is in addition to the liability to repay the overpaid allowance. It should be noted that the existing Family Allowance Ordinance contains a route of appeal, this right of appeal is against a decision of the Postmaster to the Governor, where a person feels that the allowance system has not been applied correctly.
Following on from the approval of a number of policy points with regard to the General Migrant Points system for Permanent Residence Permits at the meeting of Executive Council last month, Members were requested to further consider a number of issues and to approve the submission of the Immigration (Amendment) Bill 2009 to the July meeting of the Legislative Assembly. Members agreed that to in order to facilitate any peak in numbers of PRP applications and whilst the annual quota will apply, there should be flexibility across quarters during the first year. It was also agreed that the bonus points in respect of “offer of employment in critical skills area” are suspended for the forthcoming year because it will be impossible for the Head of Policy to be in a position to properly advise Executive Council in advance of lifting the moratorium on 1st August 2009. Finally Members agreed that the policy in regard to securing payment of medical costs for applicants over the age of 50 be deferred until further work on this matter can be completed.
Executive Council considered and approved the making of customs (Import Prohibitions) (Fees) Regulations 2009. These regulations will provide powers to properly regulate fees for the importation and exportation of animals and animal products. Whilst the fees themselves were recently set by the passing of the Finance Bill 2009, the way in which these fees are regulated was outstanding.
Finally two other matters were considered. It was brought to Executive Council’s attention that work on the Terms of Reference for the project looking at fishery resource rents and economic efficiency tests was considerably behind schedule. Members requested that the Director of Fisheries co-opt any resource he requires onto his team in order to facilitate the production of the ToR’s for the July meeting of Executive Council. Following a negotiation on the cost over-run of Phase 1 of the Sand Bay meat plant, Members agreed to refer the request for additional funding of £165,165 to Standing Finance Committee. This amount took account of a negotiated reduction of £42,500.
This concludes the Executive Council summary for June 2009.
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