Falklands : Falklands Executive Council Meeting (24/07/08)
Submitted by Falkland Islands News Network (Juanita Brock) 30.07.2008 (Article Archived on 13.08.2008)
A meeting of Executive Council took place on Thursday, 24 July 2008. Following is a report on this vital committee meeting.
Summary of Executive Council Meeting 24th July 2008
A second paper reviewing the fees for the 2008 Toothfish fishery was considered. The purpose of this further paper was to seek clarity on the fee adjustment following the reduction in Total Allowable Catch for the 2008 season. Executive Council accepted the recommendation made in the paper to leave the fee level at the 15% fee:revenue ratio approved in April rather than adjust it in a pro-rata manner to the 14.16% set in October 2007. Director of Fisheries John Barton attended for this item and the following fisheries and Ocean 8 papers.
Following the recent discussions on fishing resource rents and licence fees, Executive Council agreed that a review of the basis and mechanism for setting fees in the fishery should be carried out and that the review should be made taking into account the wider economic environment in relation to the fishery including recommendations on tax policy, incentives and other fiscal measures which could benefit the fishery. Members requested that this paper be considered by the Fisheries Advisory Committee so that industry members have the opportunity to comment on the review before the final terms of reference are set.
A request to vary the Restricted Finish-Pelagic Fishery was approved. The effect of this change is to better protect the spawning grounds of Southern Blue Whiting by area and time restrictions on the fishery. Currently the fishery is closed during 1 July – 30 September, these changes will provide for the fishery to be open throughout the year but with a significant closed area applied during 1 July – 15 October.
A paper summarising the current status and options going forwards for how to deal with the Ocean 8 was considered. Council agreed that it required better technical advice on the likelihood of future leaks from the plugged vessel, potential pollution events resulting, and salvage options for the oil and the vessel. This would provide a stronger legal position which can be used to press the owners/insurers to take appropriate action to deal with the oil remaining onboard the Ocean 8. It was agreed that we should engage consultants to undertake the assessments and studies required.
Following recommendations from the Transport Advisory Committee Members agreed the re-allocation of the £450,000 of funds in the camp roads budget as follows:
a) 10,000 for road extensions to shearing sheds (Goose Green and Corriedale Farm);
b) £25,000 for cattle grid installation;
c) £350,000 for capping and road improvements between the Darwin cemetery turn-off and New Haven;
d) £65,000 for capping and road improvements from the Port Howards Jetty to the main road including resolution of the problem of too steep an incline on the current road.
A paper summarising the Camp Roads Construction Programme going forwards was considered. Council requested further work so that 3 separate reports are provided breaking down the current work programme and wider issues. Firstly a detailed capping programme should be provided; secondly a policy paper regarding rural road construction taking into account economic drivers including tourism; and thirdly a paper dealing with farms that remain to have roads built to them, either because they are currently unoccupied or because of cost issues.
A paper seeking to introduce an Employment Tax was considered and rejected. This proposal was modelled on the old Medical Services Levy, to raise revenue by way of a tax on employers and employees but was not linked directly to funding for the health service. Given that government officers are currently tasked with completing both a tax and a health service cost and funding review, Members decided that they should await the outcome of these reviews before deciding upon the best way forward.
A request to introduce a further Extra Statutory Tax Concession retrospectively from 1st January 2007, was considered and approved. This concession will have the effect of allowing employees to receive non-taxable benefits in the Falkland Islands, on shares acquired through Save as You Earn Schemes (Share Option Schemes) which have received approval in the UK.
Under the Retirement Pensions Ordinance 1996 actuarial reviews must be carried out once every five years and reported to the Governor. The purpose of such a review is to assess the ability of the pension fund to meet the long term payment commitments from the fund. At this month’s meeting of Executive Council, Members were provided with the recent review (only the second to be made since the introduction of this Ordinance) which had been carried out by the UK Government Actuary's Department (GAD). Over the past 5 years the value of the fund has declined from 60% of commitments to 50% of commitments as longevity and pension rates increase and payments to the fund have not kept pace with increased demand. The review recommends that a strategy be put in place in order to adjust the relationship between pensions payable and the contribution rates in order reduce this gap. The annual subsidy payment of £300,000 will continue but is not sufficient to mitigate for the differences between pension payments and contributions. Members approved that a draft strategy to deal with this issue should be completed which they will further consider in due course. It should be stressed that the pension fund can continue to meet all its commitments in the short and medium term and nobody's pension is at risk.
A request to amend the Medical Treatment Overseas Policy in order that one-off settlements for long term patients can be made was considered and approved. The policy will now allow for such cases to be thoroughly assessed and settlement payments to be made covering a period of up to a maximum of three years. This policy amendment will only apply to Permanent Residents and Falkland Island Status Holders.
Members went on to agree in principle to a review of the medical and healthcare service. This will be substantial piece of work looking at options for the practices, policies and standards of the health care service, and to provide cost comparisons with other countries, and to look at the funding options available to us to continue to achieve a high quality service. Suitable consultants will be identified and clear Terms of Reference set.
A request to approve a revised budget for Phase 1 of the Sand Bay Meat Plant upgrade was agreed and referred to Standing Finance Committee, although Members noted that the project, despite a clear costed design had managed to overrun by over £200,000, equating to 30% of the original cost and that this was unacceptable. Members declined to agree to a request for further costed designs for phases 2 and 3 until Phase 1 has been completed and until the review of the of the role of the Sand Bay meat plant in the economy has been carried out by the Head of Policy.
The Falkland Landholdings draft estimates for 2008/09 were provided for information only, these had not been tabled earlier due to an administrative oversight. Members noted that a comprehensive review of FLH financial and operational performance is to be provided to Executive Council in October.
The final draft of the FIGAS Internal Review was submitted to Executive Council this month following a period of consultation with key stakeholders and members of the public. The review proposes a Recovery Action Plan for FIGAS providing for an immediate and sustainable reduction in the level of subsidy required from FIG. Members considered and approved all of the 15 recommendations apart from one. The Recovery Plan essentially changes the service from an air taxi service to a shuttle and charter service allowing pilot and aircraft hours to be more efficiently utilised. Members declined to accept the introduction of a fuel surcharge at this time in light of the other increases in basic fares. Members felt that the issue of fuel surcharges should be re-examined following the forthcoming season. Members went on to request that the GM FIGAS remain flexible, asking that the management of this new system is always carried out in the most cost effective manner, which should include setting some thresholds for the minimum number of passengers booked in order to necessitate a flight. Members also requested that a progress report on the new operation be provided in May 2009, and that due consideration be given to the forward setting of fares in order that the tourism industry is sufficiently warned.
A request to accept the offer of £275,000 for the sale of MV Tamar to Captain Heather Chaplin of Argyle Coastal Services was approved.
Following advice from the Attorney General Members agreed that the review of remuneration for elected members should be carried out in a similar manner to that used in UK. An independent panel should be established consisting of members who are not Councillors or civil servants and who should be appointed by the Governor. This panel should conduct the review as it sees fit having regard to approaches to Members’ pay in the UK and other Overseas Territories. The panel should complete its review by March 2009 and make recommendations that can apply to elected members in the new Council in November 2009. Members of the public will be invited to put their names forward for consideration as members of the panel.
Following a period of public consultation on the Stanley Town Plan Review Members approved almost all of the responses made by the Environmental Planning Officer on proposed amendments made by the public. These recommendations will now return to the public for further comment for a period of 4 weeks following which the plan can be adopted.
Members approved the making of the Children and Young Persons (Tobacco) Ordinance (Amendment) Order 2008 and that a resolution of the Legislative Council be made in order to give effect to this Order. Members also approved that the Health and Social Services Department carry out advance publicity of the change in the law during the year leading up to the change and during the second year leading up to its graduated implementation. A resolution of the House was made on Friday the 25th July so that the Order comes into force one year after publication in the Gazette, ie the legal age will increase from 16 to 17 years at this time. The increase from 17 to 18 years will take place 2 years from the date that the Order is published in the Gazette.
The points system which is currently applied to all applicants seeking Government housing was considered and approved with 2 amendments. Firstly that a method of awarding points for unborn children was incorporated into the scheme, and secondly that the employment threshold was increased from £12,000 to £13,000 in line with the current tax threshold.
This concludes the Executive Council summary for July 2008.
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