St Helena : ST HELENA EXECUTIVE COUNCIL REPORT
Submitted by Saint Helena Herald (Public Relations Information Office) 12.12.2010 (Article Archived on 26.12.2010)
This Executive Council had a particularly substantial agenda that included items covering immigration, investment, land disposal, tax reform, the draft budget for the next three years, the MOU between ourselves and DFID with regard to the airport, and TV broadcasting after 31st December. The substantial amount of work put in by both members and Officers at Council Committee level in creating and understanding the Papers that were before us meant that we were able to finish our meeting by 2.20 pm.
ST HELENA EXECUTIVE COUNCIL REPORT
This Executive Council had a particularly substantial agenda that included items covering immigration, investment, land disposal, tax reform, the draft budget for the next three years, the MOU between ourselves and DFID with regard to the airport, and TV broadcasting after 31st December. The substantial amount of work put in by both members and Officers at Council Committee level in creating and understanding the Papers that were before us meant that we were able to finish our meeting by 2.20 pm.
We welcomed Councillor Tara Thomas back from the OTCC and Councillor Green’s absence was covered by Councillor Derek Thomas. Tony Kilner stood in as Acting Financial Secretary in the absence of Paul Blessington.
Under Matters Arising from the last EXCO we discussed the publication of the report on the future of the RMS that we have now received from Julian Morris. It was agreed that the executive summary of the report would be issued this week and that the public would have ready access to the main report should they wish to see it. It will be published in full on the SHG website. Councillors hope to have a video conference with Julian in the near future and there will probably be a press conference next week when Sharon Wainwright will be able to add her conclusions following her management work on the RMS during its current voyage.
The acting Financial Secretary indicated that a satisfactory solution to the cemetery funding problem had been found and Councillor Gunnell indicated that he will not, after all, be attending the EU/OCT Forum in New Caledonia as he would be absent from the Island for too long at a crucial time which will include our DAPM negotiations covering our funding for the next three years.
We then rejoiced at the fact that the courtyard cobbling and renovation has now been completed and remarked on how attractive it looks. I also commented on the degree of misunderstanding that has arisen as to the nature and the economic impact of the tables and chairs that could be sited there so that those who work in the Castle, and others, can partake of refreshment and have discussions, in pleasurable surroundings.
The first substantive item was entitled “Review of Immigration, Investment and Land Disposal Policies”. There has been a great deal of discussion on these topics, both in Committees and in public consultation over the past few months. You may recall the public document entitled “Mapping the Pathway to Economic Growth” that contained most of the recommendations now before us. On this occasion we were endorsing principles, many of which occur in the MOU that we hope to sign with DFID in the near future. The details underlying those principles will of course be subject to more discussion and consultation between now and next June, and Councillors recommended that the policies should now be developed in more detail.
Our EXCO meeting was then adjourned for about 45 minutes in order to discuss the details of the MOU draft with all Members and additional officials. Yet again here was a paper that is becoming very familiar to Councillors, and members were pleased with the clarity that has been achieved within the document. The draft is likely to pass to and fro between here and DFID over the next few days and it seems likely that we will be ready to sign it on 10th December. It could be delayed for a few days beyond that, but I see no reason to feel that such a “pause” (if I can use the word to mean a very small period of time), would be anything more than administrative.
We then moved on to the complicated issue of taxation. It is no secret that our present system of taxation is unwieldy, has no clear policy intent, and is not really designed to facilitate economic growth. The Tax Reform Working Group has therefore made a number of proposals to overcome those inherent problems, and the policies behind the reforms formed the basis of this Paper. It was emphasised by the Acting Financial Secretary that the recommendations come as a package. One of the underlying principles is simplicity, and therefore any change in detail will add back complexity.
Members agreed that the impact of the proposals should be neutral, in the sense that we should not collect any more or less tax than before, that they should be business friendly (and that includes very small businesses where paperwork can be a real incumbrance), and that the tax base should be both broader and fairer.
The discussion was long and detailed and all the members felt that the general approach of the Paper was to be welcomed. However there were concerns raised over the impact of some of the proposals on certain sections of the community. These were specific enough to warrant a fresh look to see if fairness could be assured and the Finance and Economy Committee will be able to see if they can achieve that prior to our next meeting in a week’s time.
The next item had also been through the Committee system. Indeed all government Departments and Infolegco have had a hand in it as well as it represents our three year forecast of revenue and expenditure. In other words it is the starting point for our DAPM negotiations due to take place here during the last week of February. It has been prepared on an output basis with funds allocated to outputs, each of which are supported by lists of deliverables which may be used to monitor whether our spending is achieving the desired results. As members were so familiar with the figures, the Memorandum was agreed after a few relevant comments.
We next agreed that Cable and Wireless should receive a letter giving them a degree of comfort regarding the renewal of their TV broadcasting licence. As the existing licence comes to an end with the year, we felt that this was a sensible and timely action.
There were few matters raised under AOB and so this business-like meeting finished part way into the working afternoon.
Andrew Gurr
Governor 7th December 2010
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