Tristan : ST HELENA EXCO REPORT 77 – 9th August 2011
Submitted by Tristan Times (Juanita Brock) 13.08.2011 (Article Archived on 27.08.2011)
This session of Executive Council turned out to be a long one as we had two very important matters on our agenda – a video conference with the UK concerning the airport, and a discussion regarding untargeted subsidies.
ST HELENA EXCO REPORT 77 – 9th August 2011
This session of Executive Council turned out to be a long one as we had two very important matters on our agenda – a video conference with the UK concerning the airport, and a discussion regarding untargeted subsidies.
We began however by approving the minutes of our last meeting and under Matters Arising we touched on the ongoing negotiations with Cable & Wireless, as well as the situation with regard to progress with our plans for community broadcasting. Both of these subjects remain confidential at this stage.
We then were able to have a video conference with Sharon Wainwright and Nigel Kirby who were in London. They are both members of the negotiating team that are in constant touch with Basil Read in Jo’burg as they hammer out details of the contract to build our airport. The negotiations are still progressing well and the feeling that we all got from the hour long discussion was that those involved remain very positive.
Much of what we already know about the airport was unchanged, but I will highlight some bullet points:
· The contract has two distinct phases – Phase 1 is the construction of the airport itself, and Phase 2 is its operation. Basil Read, (the builders), are working with a company called Lanseria, who would be the operators.
· The task of the negotiators is obviously to reduce the price whilst being satisfied that the risks involved are at an acceptable level. We were left in no doubt that progress has been made, but that substantial savings will need to be found.
· There is a clear focus on attracting Saints to help in the construction of the airport. We have fairly full employment here and would hope to add to home based skills by encouraging Saints living abroad to return.
· It is proposed to build a high quality camp at Bradley’s for about half of the workers.
· If concluded, the contract will retail most of the original components, including a fuel farm, a wharf at Rupert’s, and haul road.
· Among the risks that are being mitigated in one way or another are exchange rates, oil prices and timing.
· If the contract is signed during this year, it is hoped that the airport should be finished and certificated by Christmas 2015
Sharon pointed out that if there is only one plane a week to start with, running the airport to simply turn that one plane round would be very expensive. She said that a staff of at least 29 would be required, but only for about half a day a week. That could involve a great deal of wasted time and money, so it was suggested that some kind of “community working” could well be helpful. Thus in the early years of operation only a few of the jobs at the airport will be full time. The rest will be part time. That will provide enormous opportunity for flexible working and multi-tasking that can only be good news for all on the island.
The video conference started our minds racing as to all the opportunities that lie ahead, but we still have to be patient and not get too excited before a contract is actually signed.
Our other substantive item led us into a broad discussion on the subject of untargeted subsidies. I have mentioned these before and they are highlighted in the MOU between us and DFID as a subject that we must tackle with resolve.
An untargeted subsidy is of course one where the government pays something extra to everyone involved irrespective of whether that person is poor or better off financially. Obviously that creates a waste of public money and it is our policy to try and make sure that all such help ends up only with those who really need it. One of the areas of concern is the student allowance.
This is a very controversial issue and many opinions were expressed. Is it a subsidy at all? Do we not wish to encourage all our students to stay on at school for as long as possible? On the other hand, could the money be better used elsewhere in education to improve the level of school leavers’ skills?
This particular payment is not one where a quick change can be made anyway because the students actually sign a contract for two years, so all those in receipt of the allowance will continue to get it. It was also decided that the level of support for work experience will remain in place. However a gradual movement towards ensuring that this subsidy is properly targeted will be made, and the issue will be re-assessed in the light of the economic situation when next year’s budget is discussed.
In addition EXCO noted its very strong support for the appointment of a Technical Trades Coordinator and asked the Financial Secretary to have discussion on that issue with the Education Department. In view of the time we decided to postpone one item until next week and we had little Any Other Business.
The meeting finished around 1.45 pm
Andrew Gurr
Governor
9th August 2011
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