SEPTEMBER EXECUTIVE COUNCIL
This was a very varied ExCo meeting, although a lot of the topics discussed related to personal or commercial subjects, which obviously I cannot talk about in detail here. However there were a number of other issues that came up which I am sure will be of interest to the public.
ExCo agreed a change to the Holiday Credits scheme to ensure that only those children with Falkland Islands status receive the credits. At the moment the scheme applies to all children who are born here, regardless of whether or not they are citizens of the Falkland Islands. The change will narrow the definition of eligibility to make it clear who is intended to benefit from the scheme.
There were discussions on a number of matters related to taxation, such as the definition of self-employment, the tax status of employees working at the Falkland Islands Government Office in London, and the question of taxation on accommodation and food at road building camps. This last point arose because it was felt to be unfair to tax workers on road construction projects in Camp on the value of their food and, in certain cases, accommodation. The sums raised from such taxation were minimal, but it was a big disincentive for people considering taking on this work. Members therefore agreed that workers employed on publicly funded road construction and maintenance programmes should be exempt from taxation in respect of the accommodation and food benefits they received. There was also a general discussion about taxation of benefits, in particular the implications for tax purposes of being self-employed, and members will consider this subject further in the future.
Following last month’s discussions about Permanent Residence Permits, members took note of the work which is still ongoing on the guidance notes and application forms for PRPs. They agreed that in future applications for PRP should be supported by references. They also considered the question of the charges which applicants for PRP or for Status must pay. Although there will be no change to the fees for applications, which cover the administration costs of processing the application, they decided to change the application system so that applications for Permanent Residence Permits could be made in the first instance without medical examinations. Applications would then be approved subject to satisfactory medical clearance. Once this approval in principle was given, an applicant would then have to have a medical examination at the same cost as currently applies. The difference is that an applicant will not have to pay for a medical if their application is unsuccessful. Of course, if the medical examination shows that there are medical reasons why a person should not be given PRP status – for example they will be a large burden on the Falklands health system – then ExCo can reconsider the decision and may turn the application down.
Executive Council considered a number of other financial matters. Of most interest to many listeners is perhaps the proposal to start work on calculating new rates for freight transport around the islands. The detailed work on this remains to be done, but members agreed the principle that work should be based on the concept of freight rate equalisation in respect of coastal shipping. This means that for shipping freight to essential ports – for example those that depend on shipping for their economic and social viability – a set subsidy based on volume will be applied, regardless of distance. This is because the cost of the service to FIG is fixed, no matter where the vessel calls. At the same time as looking in more detail at coastal shipping charges, members agreed that FIGAS freight subsidies should also be discussed, although as different circumstances apply, there will be different considerations to take into account.
Members discussed matters concerning the circulation of coins, in particular a proposal to issue a £2 bi-metal coin, featuring the new effigy of HM the Queen on the obverse, and a down-sized version of the reverse design of the commemorative millennium crown size coin. Discussions are ongoing with the Royal Mint.
Finally Members considered the way training is managed and administered on the Islands. At the moment both FIG and FIDC have training budgets and different responsibilities for training. They agreed it would be sensible to merge the two and put the budgets under the control of the Education Department. This should increase co-ordination between public and private sector training and enable a more comprehensive and strategic approach, based on the needs of the Islands as a whole. In particular members hoped that the new structure would improve training and developmental opportunities for more vulnerable members of the community who may have special needs with regard to education and employment. They also hoped the new body would address the lack of opportunities and supervision for trade apprentices in the Islands.
