Falklands : Legislative Council Budget Presentation
Submitted by Falkland Islands News Network (Juanita Brock) 28.05.2007 (Article Archived on 11.06.2007)
The Financial Secretary Mr. Derek Howatt presented his budget to Legislative Council on Thursday, 24 may 2007.
REPORT OF THE SELECT COMMITTEE ON THE 2007/08 ESTIMATES
MR SPEAKER, HONOURABLE MEMBERS
THIS REPORT COVERS BOTH THE APPROPRIATION BILL AND THE FINANCE BILL REFERRED TO THE SELECT COMMITTEE ON THE ESTIMATES YESTERDAY MORNING.
FOLLOWING THE DETAILED AND LENGTHY CONSIDERATIONS AT THE SPECIAL BUDGET MEETINGS OF THE STANDING FINANCE COMMITTEE THE PROCEEDINGS OF THE SELECT COMMITTEE WERE COMPLETED YESTERDAY AFTERNOON.
THE COMMITTEE WAS NOT SATISFIED WITH THE SMALL BUDGET SURPLUS OF £71,000 AS INITIALLY PRESENTED. IT WAS CONSIDERED THAT A LARGER SURPLUS THAN THIS WAS NEEDED TO COVER UNAVOIDABLE SUPPLEMENTARY EXPENDITURES WHICH ARE BOUND TO ARISE TO MEET UNFORESEEN SITUATIONS. THE AIM THEREFORE WAS TO IMPROVE UPON THIS BALANCE.
THE COMMITTEE APPROVED A NUMBER OF ADJUSTMENTS TO THE OPERATING BUDGET WHICH RESULTED IN AN INCREASE IN REVENUE OF £80,000 AND AN ALMOST COMPENSATING INCREASE OF £79,330 IN EXPENDITURE.
IN REVIEWING THE CAPITAL PROGRAMME, THE COMMITTEE REDUCED CAPITAL EXPENDITURE BY £780,000, FROM £9,160,000 TO £8,380,000. AS A CONSEQUENCE OF THIS REDUCTION AND THE ANTICIPATED RECEIPT OF A SUPPLEMENTARY ALLOCATION OF £1 MILLION IN 2008/09 FROM THE 9TH EDF IT WAS DECIDED NOT TO INCREASE THE TRANSFER TO THE CAPITAL EQUALISATION FUND BY £250,000 AS ORIGINALLY PLANNED. THIS THEREFORE REMAINS AT £4 MILLION.
TO CONTRIBUTE TO A HIGHER BUDGET SURPLUS THE COMMITTEE ALSO AGREED TO INCREASE THE RATES OF INCOME TAX AND CORPORATION TAX FROM 20% AND 25% TO 21% AND 26% RESPECTIVELY, WITH EFFECT FROM 1 JANUARY 2008. IT IS ESTIMATED THAT THIS MEASURE WILL RAISE £80,000 IN THE NEXT FINANCIAL YEAR AND AROUND £400,000 PER ANNUM THEREAFTER.
6.1 AS A RESULT OF THESE ADJUSTMENTS TO THE DRAFT ESTIMATES THE BUDGET SURPLUS WAS INCREASED TO £322,000. ALTHOUGH THIS REPRESENTS AN IMPROVEMENT, THE SURPLUS WAS NOT AS HIGH AS THE COMMITTEE WOULD HAVE LIKED IT TO BE. AS A CONSEQUENCE THE BUDGET STRATEGY FOR NEXT YEAR WILL AIM FOR A HIGHER SURPLUS AND THIS WILL ENABLE MEASURES TO ACHIEVE IT TO BE CONSIDERED IN GREATER DETAIL AT AN EARLIER STAGE OF THE BUDGET PROCESS.
HAVING REGARD TO GOVERNMENT’S DESIRE TO MEET THE NEEEDS OF A MODERN SOCIETY, THE COMMITTEE RECOGNISED THAT MANY DEPARTMENTS ARE STRUGGLING HARD TO MEET THEIR SERVICE LEVEL OBJECTIVES, FOLLOWING THE BUDGET CONSTRAINTS OF RECENT YEARS. IT WAS FELT THAT MOST OF THE EXCESS THAT ONCE EXISTED HAS ALREADY BEEN ELIMINATED AND REDUCTION IN SERVICE WOULD RESULT FROM CONTINUED EXPENDITURE CONTRACTION. THEREFORE, IN ADDITION TO REVIEWING USER PAY CHARGES, FURTHER CHANGES TO THE EXISTING TAX SYSTEM OR NEW TAXES MAY BE CONSIDERED IN THE CONTEXT OF FUTURE BUDGETS. IT WAS NOTED THAT THE “WIDENING OF THE NET” PART OF THE CURRENT TAX POLICY HAD NOT HAPPENED TO THE EXTENT ORIGINALLY ENVISAGED. THEREFORE THE CURRENT TAX POLICY NEEDS TO BE EXAMINED WITH THE MODEST INCREASE IN THE TAX RATES JUST APPROVED BEING THE FIRST STEP.
DESPITE ANOTHER TIGHT BUDGET ROUND ALL ESSENTIAL SERVICES ARE MAINTAINED BROADLY AT EXISTING LEVELS. FOR EXAMPLE, THE PUBLIC WORK DEPARTMENT IS ALLOCATED THE LARGEST SLICE OF THE CAKE AT £8.5 MILLION. NEXT IS HEALTH AND SOCIAL SERVICES WHICH ARE ALLOCATED £6.4 MILLION. EDUCATION AND TRAINING ARE ALLOCATED £5.3 MILLION. THE FISHERIES DEPARTMENT IS ALLOCATED £4.8 MILLION. THIS LEVEL OF EXPENDITURE IS NECESSARY FOR CONSERVATION AND MANAGEMENT PURPOSES AND REPRESENTS 30% OF THE ESTIMATED DIRECT INCOME TO GOVERNMENT FROM THE FISHERY.
£3.4 MILLION IS ALLOCATED TO CENTRAL ADMINISTRATION. THIS INCLUDES THE SERVICES PROVIDED BY THE SECRETARIAT, TREASURY, THE COMPUTER SECTION AND TAXATION OFFICE. THIS INCLUDES A PROVISION OF £300,000 AS A CENTRAL RESERVE FOR A PAY AWARD FOR THE PUBLIC SERVICE. AVIATION, WHICH COVERS CIVIL AVIATION, STANLEY AIRPORT AND FIGAS, IS ALLOCATED £2.3 MILLION AND THE DEPARTMENT OF AGRICULTURE IS ALLOCATED £1 MILLION. THESE EXAMPLES ARE JUST THOSE HEADS OF SERVICE WHERE EXPENDITURE IS £1 MILLION OR MORE. DETAILS OF THE APPROVED REVENUE AND EXPENDITURE FOR ALL DEPARTMENTS WILL BE SHOWN IN THE APPROVED ESTIMATES DOCUMENT. THIS WILL ALSO INCLUDE THE CAPITAL PROGRAMME, WHICH WAS AGREED SHOULD BE PUBLISHED IN FULL.
THIS DOCUMENT WILL BE AVAILABLE SHORTLY FROM THE SECRETARIAT FOR MEMBERS OF THE PUBLIC (AT £20 PER COPY).
NO ADJUSTMENT WAS MADE TO THE TRANSFER PAYMENTS BUDGET OF £4.8 MILLION. THE TRANSFER PAYMENTS BUDGET INCLUDES THE FOLLOWING IMPORTANT ALLOCATIONS IN THE FORM OF ASSISTANCE TO NON-GOVERNMENT ORGANISATIONS, SOCIAL PAYMENTS AND PROGRAMMES:
£220,000 TO SUPPORT THE PROMOTION AND DEVELOPMENT OF TOURISM.
£150,000 AS A CONTRIBUTION TOWARDS BUILDING 2 HOUSES AT MPA.
£156,000 FOR AIR TERMINAL, LIVE TV AND MET SERVICES SUPPLIED BY THE MINISTRY OF DEFENCE.
£300,000 FOR THE HOLIDAY CREDIT SCHEME TO ALLOW CREDITS TO ACCRUE AT THE RATE OF 26P PER DAY FOR ADULTS AND 13P PER DAY FOR CHILDREN.
£433,000 GRANT IN AID TO FIDC IN ORDER TO SUPPORT ITS EXPENDITURE BUDGET OF £1 MILLION PLUS A FURTHER £200,000 IN SUPPORT OF AQUACULTURE DEVELOPMENT.
£319,000 FOR FAMILY ALLOWANCES.
£75,000 FOR DONATIONS AND SUBVENTIONS TO SUPPORT YOUTH, SPORTS AND OTHER CHARITABLE ORGANISATIONS.
£165,000 TO SUPPORT THE FALKLAND ISLANDS RADIO STATION.
£107,000 TO SUPPORT THE PENSIONS BOARD OF THE FALKLAND ISLANDS PENSIONS SCHEME.
£50,000 TO SUPPORT THE MUSEUM AND NATIONAL TRUST.
£50,000 TO SUPPORT THE WORK OF FALKLAND ISLANDS CONSERVATION.
£2.4 MILLION FOR DIRECT AND INDIRECT SUPPORT TO THE CAMP COMMUNITY IN THE FORM OF ASSISTANCE WITH COASTAL SHIPPING AND FERRY SERVICES, MEAT COMPANY AND WOOL COMPANY SUBSIDIES, ENERGY GRANTS, AGRICULTURAL BUSINESS DEVELOPMENT, LABOUR SCHEME, GRASSLAND IMPROVEMENTS AND PENSION CONTRIBUTIONS.
THE CAPITAL PROGRAMME INCLUDES ALLOCATIONS FOR THE FOLLOWING MAJOR SCHEMES:
£1,250,000 FOR CONTINUING THE BUILDING AND CAPPING OF CAMP ROADS BOTH ON EAST AND WEST FALKLANDS. THIS INCLUDES £400,000 FOR A ROAD TO THE BYRON HEIGHTS FOR THE MOD FOR WHICH RECOVERY IS INCLUDED UNDER CAPITAL RECEIPTS.
£250,000 FOR THE SECOND YEAR OF A 3 YEAR PROGRAMME FOR REPLACING CULVERTS AT A TOTAL ESTIMATED COST OF £650,000.
£1.7 MILLION FOR THE CONSTRUCTION OF SEA TERMINALS, AND CONNECTED INFRASTRUCTURE.
£200,000 FOR MAJOR REPAIRS TO ROADS IN AND AROUND STANLEY.
£715,000 FOR THE RENOVATION AND CONSTRUCTION OF GOVERNMENT HOUSING.
£100,000 FOR CONTINUING THE BACKLOG OF PUBLIC BUILDING MAINTENANCE.
£700,000 FOR THE REFURBISHMENT OF THE POLICE STATION AND PRISON.
£115,000 TO COMPLETE DESIGN WORKS FOR THE PROPOSED NEW GOVERNMENT ADMINISTRATIVE BUILDING.
£200,000 FOR COMPLETING THE INSTALLATION OF SERVICES AT THE LOOKOUT ESTATE.
£500,000 FOR INFRASTRUCTURE DEVELOPMENT
£100,000 TO CONTINUE THE IMPROVEMENTS TO STANLEY’S POWER SUPPLY
AND FINALLY, £100,000 TO CONTINUE THE MAJOR REPAIRS TO STANLEY AIRPORT RUNWAY. A FURTHER £400,000 OF EXPENDITURE IS PROJECTED AT £100,000 PER YEAR TO COMPLETE THE REPAIRS AND RESURFACING.
THIS MIX OF CAPITAL CONSTRUCTION SCHEMES TOGETHER WITH THE OTHER MORE MINOR WORKS SHOULD KEEP THE IN-HOUSE LABOUR TEAMS FULLY OCCUPIED AND TAKE UP ANY SLACK IN THE PRIVATE SECTOR CONTRACTING BUSINESS.
AS WELL AS CONSTRUCTION SCHEMES, THE CAPITAL BUDGET INCLUDES THE FOLLOWING INVESTMENTS:
£672,000 AS A LOAN TO PETER SYMONDS COLLEGE FOR THE PREPAYMENT OF 80 STUDENT PLACES
£330,000 TO FINANCE HOUSING MORTGAGES PROVIDED UNDER THE JOINT GOVERNMENT/STANDARD CHARTERED BANK SCHEME AND TO FINANCE THE SHARED EQUITY SCHEME ONCE DEVELOPED.
£330,000 FOR THE PURCHASE OF PLANT FOR PWD, £165,000 FOR REPLACEMENT FIRE SERVICE VEHICLES, AND £200,000 FOR REPLACEMENT VEHICLES FOR THE WHOLE OF GOVERNMENT; AND FINALLY
£470,000 FOR MEDICAL EQUIPMENT AND HOSPITAL CAPITAL WORKS.
THE SELECT COMMITTEE APPROVED THE PROPOSALS ON REVISED FEES AND CHARGES WITH THE FOLLOWING MODIFICATIONS:
FOLLOWING AN APPEAL FROM A LOCAL BUSINESS, WHICH CONSUMES A LARGE AMOUNT OF WATER, TO THE EFFECT THAT THE PROPOSED 12.5% IN WATER CHARGES WOULD BE DEVASTATING, THE COMMITTEE APPROVED A LOWER RATE OF INCREASE OF 6%. THE CHARGE FOR METERED WATER SUPPLIES TO LOCAL NON-DOMESTIC USERS WILL THEREFORE BE INCREASED FROM £1.65 TO £1.75 PER TONNE, AN INCREASE OF 10P RATHER THAN THE 20P PROPOSED.
THE COMMITTEE APPROVED THE PROPOSED INCREASES IN THE HIRE CHARGES FOR THE TOWN HALL AND ALSO AGREED THAT THE SAME CHARGES SHOULD APPLY TO THE FIDF HALL. IT WAS CONFIRMED THAT BOTH HALLS SHOULD CONTINUE TO BE PROVIDED FREE OF CHARGE FOR EVENTS HELD FOR THE BENEFIT OF LOCAL REGISTERED CHARITIES.
I AM PLEASED TO REPORT THAT THE COMMITTEE APPROVED THE PROPOSALS ON REVISED PENSION CONTRIBUTIONS AND BENEFITS, SOCIAL PAYMENTS AND ALLOWANCES. ALL THE PROVISIONS OF THE FINANCE BILL TO IMPLEMENT THOSE REVISIONS, WHERE APPROPRIATE, WERE APPROVED. AT THE COMMITTEE STAGE I WILL NEED TO PROPOSE AMENDMENTS TO GIVE EFFECT TO THE AGREED CHANGES TO THE TAX RATES.
A PAPER SUMMARISING THE ADJUSTMENTS MADE TO THE DRAFT ESTIMATES AT SELECT COMMITTEE WAS PRESENTED TO EXECUTIVE COUNCIL EARLIER THIS AFTERNOON. I CAN NOW REPORT THAT THE EXECUTIVE COUNCIL RECOMMENDS TO LEGISLATIVE COUNCIL THE AMENDMENTS TO THE APPROPRIATION BILL NECESSARY TO ACCOMMODATE THOSE ADJUSTMENTS.
I WOULD LIKE TO THANK ALL OFFICERS AND HONOURABLE MEMBERS WHO TOOK PART IN THE BUDGET PROCESS. IN PARTICULAR I THANK HELGA FOR KEEPING ME ON TRACK AND ONCE AGAIN TO KEITH FOR ALL HIS NUMBER CRUNCHING. IN ADDITION I AM MOST GRATEFUL TO ALL THE STAFF IN THE TREASURY FOR ALL THEIR EXCELLENT WORK IN MAINTAINING THE ACCOUNTING AND FINANCIAL CONTROL SYSTEMS LEADING UP TO AND FOLLOWING THE APPROVAL OF THE BUDGET.
THE PROGRESS OF THE BUDGET IS MONITORED ON A MONTHLY BASIS BY THE STANDING FINANCE COMMITTEE. TO INFORM THIS PROCESS, MANAGEMENT ACCOUNTS AND INVESTMENT REPORTS ARE PREPARED. I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK CHIEF ACCOUNTANT, MICHELE TONNER, FOR THE PROFESSIONAL WAY THESE ACCOUNTS AND REPORTS ARE PRODUCED. MICHELE INCLUDES JUST THE RIGHT AMOUNT OF INFORMATION NECESSARY TO AID DECISION MAKING.
THE OUTCOME OF THIS BUDGET ONCE AGAIN DEMONSTRATES THAT THE ECONOMIC AND SOCIAL WELL BEING OF THE FALKLAND ISLANDS CAN BE SUSTAINED.
19. THIS CONCLUDES MY REPORT OF THE PROCEEDINGS OF
THE SELECT COMMITTEE ON THE ESTIMATES.
REPORT OF THE SELECT COMMITTEE ON THE 2007/08 ESTIMATES
MR SPEAKER, HONOURABLE MEMBERS
THIS REPORT COVERS BOTH THE APPROPRIATION BILL AND THE FINANCE BILL REFERRED TO THE SELECT COMMITTEE ON THE ESTIMATES YESTERDAY MORNING.
FOLLOWING THE DETAILED AND LENGTHY CONSIDERATIONS AT THE SPECIAL BUDGET MEETINGS OF THE STANDING FINANCE COMMITTEE THE PROCEEDINGS OF THE SELECT COMMITTEE WERE COMPLETED YESTERDAY AFTERNOON.
THE COMMITTEE WAS NOT SATISFIED WITH THE SMALL BUDGET SURPLUS OF £71,000 AS INITIALLY PRESENTED. IT WAS CONSIDERED THAT A LARGER SURPLUS THAN THIS WAS NEEDED TO COVER UNAVOIDABLE SUPPLEMENTARY EXPENDITURES WHICH ARE BOUND TO ARISE TO MEET UNFORESEEN SITUATIONS. THE AIM THEREFORE WAS TO IMPROVE UPON THIS BALANCE.
THE COMMITTEE APPROVED A NUMBER OF ADJUSTMENTS TO THE OPERATING BUDGET WHICH RESULTED IN AN INCREASE IN REVENUE OF £80,000 AND AN ALMOST COMPENSATING INCREASE OF £79,330 IN EXPENDITURE.
IN REVIEWING THE CAPITAL PROGRAMME, THE COMMITTEE REDUCED CAPITAL EXPENDITURE BY £780,000, FROM £9,160,000 TO £8,380,000. AS A CONSEQUENCE OF THIS REDUCTION AND THE ANTICIPATED RECEIPT OF A SUPPLEMENTARY ALLOCATION OF £1 MILLION IN 2008/09 FROM THE 9TH EDF IT WAS DECIDED NOT TO INCREASE THE TRANSFER TO THE CAPITAL EQUALISATION FUND BY £250,000 AS ORIGINALLY PLANNED. THIS THEREFORE REMAINS AT £4 MILLION.
TO CONTRIBUTE TO A HIGHER BUDGET SURPLUS THE COMMITTEE ALSO AGREED TO INCREASE THE RATES OF INCOME TAX AND CORPORATION TAX FROM 20% AND 25% TO 21% AND 26% RESPECTIVELY, WITH EFFECT FROM 1 JANUARY 2008. IT IS ESTIMATED THAT THIS MEASURE WILL RAISE £80,000 IN THE NEXT FINANCIAL YEAR AND AROUND £400,000 PER ANNUM THEREAFTER.
6.1 AS A RESULT OF THESE ADJUSTMENTS TO THE DRAFT ESTIMATES THE BUDGET SURPLUS WAS INCREASED TO £322,000. ALTHOUGH THIS REPRESENTS AN IMPROVEMENT, THE SURPLUS WAS NOT AS HIGH AS THE COMMITTEE WOULD HAVE LIKED IT TO BE. AS A CONSEQUENCE THE BUDGET STRATEGY FOR NEXT YEAR WILL AIM FOR A HIGHER SURPLUS AND THIS WILL ENABLE MEASURES TO ACHIEVE IT TO BE CONSIDERED IN GREATER DETAIL AT AN EARLIER STAGE OF THE BUDGET PROCESS.
HAVING REGARD TO GOVERNMENT’S DESIRE TO MEET THE NEEEDS OF A MODERN SOCIETY, THE COMMITTEE RECOGNISED THAT MANY DEPARTMENTS ARE STRUGGLING HARD TO MEET THEIR SERVICE LEVEL OBJECTIVES, FOLLOWING THE BUDGET CONSTRAINTS OF RECENT YEARS. IT WAS FELT THAT MOST OF THE EXCESS THAT ONCE EXISTED HAS ALREADY BEEN ELIMINATED AND REDUCTION IN SERVICE WOULD RESULT FROM CONTINUED EXPENDITURE CONTRACTION. THEREFORE, IN ADDITION TO REVIEWING USER PAY CHARGES, FURTHER CHANGES TO THE EXISTING TAX SYSTEM OR NEW TAXES MAY BE CONSIDERED IN THE CONTEXT OF FUTURE BUDGETS. IT WAS NOTED THAT THE “WIDENING OF THE NET” PART OF THE CURRENT TAX POLICY HAD NOT HAPPENED TO THE EXTENT ORIGINALLY ENVISAGED. THEREFORE THE CURRENT TAX POLICY NEEDS TO BE EXAMINED WITH THE MODEST INCREASE IN THE TAX RATES JUST APPROVED BEING THE FIRST STEP.
DESPITE ANOTHER TIGHT BUDGET ROUND ALL ESSENTIAL SERVICES ARE MAINTAINED BROADLY AT EXISTING LEVELS. FOR EXAMPLE, THE PUBLIC WORK DEPARTMENT IS ALLOCATED THE LARGEST SLICE OF THE CAKE AT £8.5 MILLION. NEXT IS HEALTH AND SOCIAL SERVICES WHICH ARE ALLOCATED £6.4 MILLION. EDUCATION AND TRAINING ARE ALLOCATED £5.3 MILLION. THE FISHERIES DEPARTMENT IS ALLOCATED £4.8 MILLION. THIS LEVEL OF EXPENDITURE IS NECESSARY FOR CONSERVATION AND MANAGEMENT PURPOSES AND REPRESENTS 30% OF THE ESTIMATED DIRECT INCOME TO GOVERNMENT FROM THE FISHERY.
£3.4 MILLION IS ALLOCATED TO CENTRAL ADMINISTRATION. THIS INCLUDES THE SERVICES PROVIDED BY THE SECRETARIAT, TREASURY, THE COMPUTER SECTION AND TAXATION OFFICE. THIS INCLUDES A PROVISION OF £300,000 AS A CENTRAL RESERVE FOR A PAY AWARD FOR THE PUBLIC SERVICE. AVIATION, WHICH COVERS CIVIL AVIATION, STANLEY AIRPORT AND FIGAS, IS ALLOCATED £2.3 MILLION AND THE DEPARTMENT OF AGRICULTURE IS ALLOCATED £1 MILLION. THESE EXAMPLES ARE JUST THOSE HEADS OF SERVICE WHERE EXPENDITURE IS £1 MILLION OR MORE. DETAILS OF THE APPROVED REVENUE AND EXPENDITURE FOR ALL DEPARTMENTS WILL BE SHOWN IN THE APPROVED ESTIMATES DOCUMENT. THIS WILL ALSO INCLUDE THE CAPITAL PROGRAMME, WHICH WAS AGREED SHOULD BE PUBLISHED IN FULL.
THIS DOCUMENT WILL BE AVAILABLE SHORTLY FROM THE SECRETARIAT FOR MEMBERS OF THE PUBLIC (AT £20 PER COPY).
NO ADJUSTMENT WAS MADE TO THE TRANSFER PAYMENTS BUDGET OF £4.8 MILLION. THE TRANSFER PAYMENTS BUDGET INCLUDES THE FOLLOWING IMPORTANT ALLOCATIONS IN THE FORM OF ASSISTANCE TO NON-GOVERNMENT ORGANISATIONS, SOCIAL PAYMENTS AND PROGRAMMES:
£220,000 TO SUPPORT THE PROMOTION AND DEVELOPMENT OF TOURISM.
£150,000 AS A CONTRIBUTION TOWARDS BUILDING 2 HOUSES AT MPA.
£156,000 FOR AIR TERMINAL, LIVE TV AND MET SERVICES SUPPLIED BY THE MINISTRY OF DEFENCE.
£300,000 FOR THE HOLIDAY CREDIT SCHEME TO ALLOW CREDITS TO ACCRUE AT THE RATE OF 26P PER DAY FOR ADULTS AND 13P PER DAY FOR CHILDREN.
£433,000 GRANT IN AID TO FIDC IN ORDER TO SUPPORT ITS EXPENDITURE BUDGET OF £1 MILLION PLUS A FURTHER £200,000 IN SUPPORT OF AQUACULTURE DEVELOPMENT.
£319,000 FOR FAMILY ALLOWANCES.
£75,000 FOR DONATIONS AND SUBVENTIONS TO SUPPORT YOUTH, SPORTS AND OTHER CHARITABLE ORGANISATIONS.
£165,000 TO SUPPORT THE FALKLAND ISLANDS RADIO STATION.
£107,000 TO SUPPORT THE PENSIONS BOARD OF THE FALKLAND ISLANDS PENSIONS SCHEME.
£50,000 TO SUPPORT THE MUSEUM AND NATIONAL TRUST.
£50,000 TO SUPPORT THE WORK OF FALKLAND ISLANDS CONSERVATION.
£2.4 MILLION FOR DIRECT AND INDIRECT SUPPORT TO THE CAMP COMMUNITY IN THE FORM OF ASSISTANCE WITH COASTAL SHIPPING AND FERRY SERVICES, MEAT COMPANY AND WOOL COMPANY SUBSIDIES, ENERGY GRANTS, AGRICULTURAL BUSINESS DEVELOPMENT, LABOUR SCHEME, GRASSLAND IMPROVEMENTS AND PENSION CONTRIBUTIONS.
THE CAPITAL PROGRAMME INCLUDES ALLOCATIONS FOR THE FOLLOWING MAJOR SCHEMES:
£1,250,000 FOR CONTINUING THE BUILDING AND CAPPING OF CAMP ROADS BOTH ON EAST AND WEST FALKLANDS. THIS INCLUDES £400,000 FOR A ROAD TO THE BYRON HEIGHTS FOR THE MOD FOR WHICH RECOVERY IS INCLUDED UNDER CAPITAL RECEIPTS.
£250,000 FOR THE SECOND YEAR OF A 3 YEAR PROGRAMME FOR REPLACING CULVERTS AT A TOTAL ESTIMATED COST OF £650,000.
£1.7 MILLION FOR THE CONSTRUCTION OF SEA TERMINALS, AND CONNECTED INFRASTRUCTURE.
£200,000 FOR MAJOR REPAIRS TO ROADS IN AND AROUND STANLEY.
£715,000 FOR THE RENOVATION AND CONSTRUCTION OF GOVERNMENT HOUSING.
£100,000 FOR CONTINUING THE BACKLOG OF PUBLIC BUILDING MAINTENANCE.
£700,000 FOR THE REFURBISHMENT OF THE POLICE STATION AND PRISON.
£115,000 TO COMPLETE DESIGN WORKS FOR THE PROPOSED NEW GOVERNMENT ADMINISTRATIVE BUILDING.
£200,000 FOR COMPLETING THE INSTALLATION OF SERVICES AT THE LOOKOUT ESTATE.
£500,000 FOR INFRASTRUCTURE DEVELOPMENT
£100,000 TO CONTINUE THE IMPROVEMENTS TO STANLEY’S POWER SUPPLY
AND FINALLY, £100,000 TO CONTINUE THE MAJOR REPAIRS TO STANLEY AIRPORT RUNWAY. A FURTHER £400,000 OF EXPENDITURE IS PROJECTED AT £100,000 PER YEAR TO COMPLETE THE REPAIRS AND RESURFACING.
THIS MIX OF CAPITAL CONSTRUCTION SCHEMES TOGETHER WITH THE OTHER MORE MINOR WORKS SHOULD KEEP THE IN-HOUSE LABOUR TEAMS FULLY OCCUPIED AND TAKE UP ANY SLACK IN THE PRIVATE SECTOR CONTRACTING BUSINESS.
AS WELL AS CONSTRUCTION SCHEMES, THE CAPITAL BUDGET INCLUDES THE FOLLOWING INVESTMENTS:
£672,000 AS A LOAN TO PETER SYMONDS COLLEGE FOR THE PREPAYMENT OF 80 STUDENT PLACES
£330,000 TO FINANCE HOUSING MORTGAGES PROVIDED UNDER THE JOINT GOVERNMENT/STANDARD CHARTERED BANK SCHEME AND TO FINANCE THE SHARED EQUITY SCHEME ONCE DEVELOPED.
£330,000 FOR THE PURCHASE OF PLANT FOR PWD, £165,000 FOR REPLACEMENT FIRE SERVICE VEHICLES, AND £200,000 FOR REPLACEMENT VEHICLES FOR THE WHOLE OF GOVERNMENT; AND FINALLY
£470,000 FOR MEDICAL EQUIPMENT AND HOSPITAL CAPITAL WORKS.
THE SELECT COMMITTEE APPROVED THE PROPOSALS ON REVISED FEES AND CHARGES WITH THE FOLLOWING MODIFICATIONS:
FOLLOWING AN APPEAL FROM A LOCAL BUSINESS, WHICH CONSUMES A LARGE AMOUNT OF WATER, TO THE EFFECT THAT THE PROPOSED 12.5% IN WATER CHARGES WOULD BE DEVASTATING, THE COMMITTEE APPROVED A LOWER RATE OF INCREASE OF 6%. THE CHARGE FOR METERED WATER SUPPLIES TO LOCAL NON-DOMESTIC USERS WILL THEREFORE BE INCREASED FROM £1.65 TO £1.75 PER TONNE, AN INCREASE OF 10P RATHER THAN THE 20P PROPOSED.
THE COMMITTEE APPROVED THE PROPOSED INCREASES IN THE HIRE CHARGES FOR THE TOWN HALL AND ALSO AGREED THAT THE SAME CHARGES SHOULD APPLY TO THE FIDF HALL. IT WAS CONFIRMED THAT BOTH HALLS SHOULD CONTINUE TO BE PROVIDED FREE OF CHARGE FOR EVENTS HELD FOR THE BENEFIT OF LOCAL REGISTERED CHARITIES.
I AM PLEASED TO REPORT THAT THE COMMITTEE APPROVED THE PROPOSALS ON REVISED PENSION CONTRIBUTIONS AND BENEFITS, SOCIAL PAYMENTS AND ALLOWANCES. ALL THE PROVISIONS OF THE FINANCE BILL TO IMPLEMENT THOSE REVISIONS, WHERE APPROPRIATE, WERE APPROVED. AT THE COMMITTEE STAGE I WILL NEED TO PROPOSE AMENDMENTS TO GIVE EFFECT TO THE AGREED CHANGES TO THE TAX RATES.
A PAPER SUMMARISING THE ADJUSTMENTS MADE TO THE DRAFT ESTIMATES AT SELECT COMMITTEE WAS PRESENTED TO EXECUTIVE COUNCIL EARLIER THIS AFTERNOON. I CAN NOW REPORT THAT THE EXECUTIVE COUNCIL RECOMMENDS TO LEGISLATIVE COUNCIL THE AMENDMENTS TO THE APPROPRIATION BILL NECESSARY TO ACCOMMODATE THOSE ADJUSTMENTS.
I WOULD LIKE TO THANK ALL OFFICERS AND HONOURABLE MEMBERS WHO TOOK PART IN THE BUDGET PROCESS. IN PARTICULAR I THANK HELGA FOR KEEPING ME ON TRACK AND ONCE AGAIN TO KEITH FOR ALL HIS NUMBER CRUNCHING. IN ADDITION I AM MOST GRATEFUL TO ALL THE STAFF IN THE TREASURY FOR ALL THEIR EXCELLENT WORK IN MAINTAINING THE ACCOUNTING AND FINANCIAL CONTROL SYSTEMS LEADING UP TO AND FOLLOWING THE APPROVAL OF THE BUDGET.
THE PROGRESS OF THE BUDGET IS MONITORED ON A MONTHLY BASIS BY THE STANDING FINANCE COMMITTEE. TO INFORM THIS PROCESS, MANAGEMENT ACCOUNTS AND INVESTMENT REPORTS ARE PREPARED. I WOULD LIKE TO TAKE THIS OPPORTUNITY TO THANK CHIEF ACCOUNTANT, MICHELE TONNER, FOR THE PROFESSIONAL WAY THESE ACCOUNTS AND REPORTS ARE PRODUCED. MICHELE INCLUDES JUST THE RIGHT AMOUNT OF INFORMATION NECESSARY TO AID DECISION MAKING.
THE OUTCOME OF THIS BUDGET ONCE AGAIN DEMONSTRATES THAT THE ECONOMIC AND SOCIAL WELL BEING OF THE FALKLAND ISLANDS CAN BE SUSTAINED.
19. THIS CONCLUDES MY REPORT OF THE PROCEEDINGS OF
THE SELECT COMMITTEE ON THE ESTIMATES.
REPORT OF THE SELECT COMMITTEE ON THE 2007/08 ESTIMATES
MR SPEAKER, HONOURABLE MEMBERS
THIS REPORT COVERS BOTH THE APPROPRIATION BILL AND THE FINANCE BILL REFERRED TO THE SELECT COMMITTEE ON THE ESTIMATES YESTERDAY MORNING.
FOLLOWING THE DETAILED AND LENGTHY CONSIDERATIONS AT THE SPECIAL BUDGET MEETINGS OF THE STANDING FINANCE COMMITTEE THE PROCEEDINGS OF THE SELECT COMMITTEE WERE COMPLETED YESTERDAY AFTERNOON.
THE COMMITTEE WAS NOT SATISFIED WITH THE SMALL BUDGET SURPLUS OF £71,000 AS INITIALLY PRESENTED. IT WAS CONSIDERED THAT A LARGER SURPLUS THAN THIS WAS NEEDED TO COVER UNAVOIDABLE SUPPLEMENTARY EXPENDITURES WHICH ARE BOUND TO ARISE TO MEET UNFORESEEN SITUATIONS. THE AIM THEREFORE WAS TO IMPROVE UPON THIS BALANCE.
THE COMMITTEE APPROVED A NUMBER OF ADJUSTMENTS TO THE OPERATING BUDGET WHICH RESULTED IN AN INCREASE IN REVENUE OF £80,000 AND AN ALMOST COMPENSATING INCREASE OF £79,330 IN EXPENDITURE.
|
