Falklands : Are the Falklands Getting all the Micromanagement Paid For?
Submitted by Falkland Islands News Network (Juanita Brock) 07.05.2008 (Current Article)
For the past six months or so people in the Falklands have been hit with the prospect of paying more of their take-home pay to the Government in one way or another.
FALKLANDS: ARE WE GETTING THE MICROMANAGEMENT WE ARE FORCED TO PAY FOR?
An Editorial by J. Brock (FINN)
For the past six months or so people in the Falklands have been hit with the prospect of paying more of their take-home pay to the Government in one way or another. Whether it’s the implementation of a TV licence on all householders, higher or the increase in Loligo Licence fees, we are feeling the pinch.
Our incomes, however, have not increased to meet the demand from Government and there is where the consternation festers.
Though we know the debate concerning TV Licences, how the lower paid cannot have the luxury of being able to pay for two TV services. However it becomes more serious when the very basics of the Falklands recent prosperity are being hacked away, prior to any tax being levied.
“The more profits we make the happier Government will be because they will be able to take it from us in taxation,” said Seaview Logistics Director, Dick Sawle to FIRS. He went on to say
that he doesn’t think Government listened to any of the arguments that were put to them that were spelled out in the Executive Council paper.
It could well be easier for the Loligo industry to pay the additional 30% because they then can stay in business. There is no alternative. However, it reduces significantly the industry’s ability to re-invest back into the Falkland Islands.
According to the FIRS interview, Companies have tried to produce plans for investment, even if it’s down to building a simple warehousing facility or a cold storage facility and most people have found those plans thwarted, as it hasn’t been decided about businesses purchasing free-hold land from Government. “When it takes two years to agree a basic principle, how on earth can you agree to invest in a country where there is now a degree of instability,” said Mr Sawle.
The industry doesn’t know whether somebody might decide to put up tax rates again, or put up the licence fees again. What the industry wants is stability. “We want to know where we are going to be in 10 years’ time. We want to be able to re-invest that money back into services that in turn will produce more profits, said Mr Sawle.
Dick Sawle is optimistic about the fishing industry here not only because he is an optimist at heart but also because at the moment there is a culture here that sustains that innovation and entrepreneurialism. However, the more finances get bogged down in excessive Government fees then the less likely future investment will happen. He further pointed out that foreign fleets are left largely untouched” At the end of the day it is the local fleet that is providing stability and creating the wealth that Government runs on.
The Falkland Islands Fishing Company Association told Penguin News that we could well be seeing the gradual destruction of our fishing industry before it has a chance to develop due to the increased amounts of money that Government takes leaves a decreasing amount for re-investment in vessel replacement. He went on to say that when banks and other lending institutions see less of a return fishing companies won’t be able to borrow money to replace old vessels and that in theory we shouldn’t have to borrow to replace vessels because profits generated should be sufficient.
“It’s a dead issue,” said another colleague with ties to the fishing industry.
But with dead things, they tend to putrefy in due course. By nature John Q. Public breaths easy because he doesn’t get all the micromanagement he pays for. But with this Council that adage could change if we all have to pay for TV Licences and when businesses are given the choice to pay increased fees or quit.
No man's life, liberty or fortune is safe while our legislature is in session.
--- Benjamin Franklin
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