H. E. THE GOVERNOR
ADDRESS TO THE NATION 2004
THE GOVERNOR’S ANNUAL ADDRESS TO LEGISLATIVE COUNCIL 2004.
Mr Speaker, Honourable Members of the Legislative Council,
Commander British Forces, Listeners to the Falkland Islands
Broadcasting Station, Ladies and Gentlemen:
I can hardly believe that twelve months have passed since I gave my first annual address to Legislative Council on the state of the nation. Time seems to pass so quickly in the Falkland Islands, that I am convinced the clocks go round faster here than they do elsewhere in the world. Yet as I look back over the last year we seem to have packed far more than a year’s worth of activity into those twelve months.
We have had the good fortune to welcome several distinguished visitors to the Islands during the year. I was delighted that Bill Rammell, Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs, whose wide-ranging responsibilities include the Overseas Territories, was able to come here in November last year. I am particularly pleased that the Falklands was the first Overseas Territory to be visited by the Minister. Bill Rammell made some good friends in the Falklands during his visit, and we have been grateful for his support since. I am pleased too that Lord Bach, Minister for Defence Procurement in the Ministry of Defence, included a brief stopover in the Falklands en route to Chile at the end of March.
Other distinguished visitors included three members of the House of Lords – Lords Parry Mitchell and Ron Oxburgh, and Baroness Walmsley – on their way back from the Antarctic, together with, John Lawton, the Chief Executive of the Natural Environment Research Council and Chris Rapley, the Director of the British Antarctic Survey. Three British Members of Parliament, Tom Cox, James Paice and Ben Chapman, were amongst the participants in the regional seminar of the Commonwealth Parliamentary Association which took place here in February. I shall have more to say about this later on. I also had the pleasure of receiving three bishops in the Islands over the last 6 months – two from the Anglican Church and one from the Roman Catholic Church.
In the “non-official” category, we welcomed Sir Ranulph Fiennes on his remarkable and successful bid to run 7 marathons in 7 days in 7 different continents, John Ridgeway, his wife and crew as they sailed around the world as part of the “Save the Albatross” campaign, and Ellen MacArthur, the doyenne of the young generation of yachtsmen and women.
All of which is a reminder that the Falkland Islands are far from being off the beaten track, and that if you wait long enough the rest of the world comes here sooner or later!
And then there are the goodbyes. Sadly, we have had to bid farewell during the year to several people who have played an important role in our community. Peter Johnston made a quiet but distinguished contribution to the development of agriculture in the Islands, and I know from my own discussions with farmers here how much he was appreciated. Mike Forrest handed over one of the toughest jobs in government – Director of Public Works – after many years at the helm of the Department. I am glad to say that Mike remains a part of this community, and we look forward to continuing to benefit from his wisdom and experience. Philip Miller resigned for personal reasons from Legislative Council, but I know that Philip retains an active interest in politics and the wider Falklands community. Brigadier Jamie Gordon moved on to Northern Ireland after completing his year as Commander British Forces.
I welcome their successors to their new responsibilities- respectively, Phyllis Rendell, Manfred Keenleyside, Ian Hansen and Air Commodore Dick Lacey.
Our legal community is losing two of its senior members. Graham Cripps and his wife Margaret left the Falklands at the end of last week after 3 years as Principal Crown Counsel. I should like to take this opportunity to pay tribute to the distinguished and essential work done by the Attorney General’s Chambers in providing the legal underpinning to the work of Government and Legislature. Graham made a substantial contribution to that work and to the Islands while he was here. I wish him, Margaret and their family every future success.
Our outgoing Senior Magistrate, Nick Sanders, has played an active role in the Falklands community, seen and unseen, in both his official and unofficial capacities. I congratulate Nick on his appointment as a District Judge in the UK, and wish him, Alex and their family all the best for the future. I look forward to welcoming Graham and Nick’s successors to the Falklands in the next few months.
Before I turn to my detailed review of the work of the Falkland Islands Government over the last year, I should like to make some more general remarks. Two sets of circumstances – the failure of the illex squid fishery and the deterioration in the relationship with Argentina - have coincided to make this year, and possibly several years to come, especially challenging for the Islands, and most of all for your elected representatives. The almost total failure of the illex squid to appear in Falklands waters this year has made this the worst year in the history of the illex fishery. It is impossible to say yet whether this is the beginning of a trend or whether the fishery is just going through a difficult period in the cycle. The scientific advice is that the cause is the oceanographic and climatic factors, which have prevailed this year to make conditions for the fishery unusually adverse.
The very substantial reduction in the Government’s income which this will cause means that this budget session of Legislative Council will have to take some tough decisions about Government spending over the next few years. Fortunately Government has been able to build up a substantial reserve over a period of years which makes it possible to address the budgetary shortfall in a measured way. In other words there is no cause for panic. Nevertheless, it is going to be a difficult budget session. It is understandable that almost everybody in the community will have particular interests which they will want to protect, and will be putting pressure on Councillors not to cut this or that Government activity. There is nothing wrong with that in our democratic society. But I would encourage the wider public to be understanding of the very difficult task which elected members face this year. Nobody likes having to cut spending. It is never popular. The electorate rapidly takes for granted the provision of new or improved services, and complains when they are put under threat. But there are areas where public provision has been especially generous here in the Falklands and where current spending is unsustainable. It is certainly true that in a number of areas local provision has been substantially more generous than the UK equivalent. Councillors have a duty to face up to these realities, to prioritise, and to take unpopular decisions when, as now, circumstances make it necessary.
The failure of the illex fishery has coincided with a difficult period in the Falklands’ relationship with Argentina. The Kirchner Government, elected into office last year, appears to have concluded that putting pressure on Falkland Islanders will contribute to their objective of bringing the Islands to the negotiating table to discuss sovereignty. Hence their decision to refuse authorisations for charter flights bringing cruise ship passengers to the Falklands, and the incursion by the Argentine naval vessel Almirante Irizar into the Falklands fishing zone. My message to the Argentine Government is very clear. Such tactics are entirely counterproductive. Falkland Islanders are determined to maintain their right to self-determination. The commitment of the British Government to uphold that right is unshakeable. That commitment is demonstrated by the presence here of significant British Forces, recently redesignated British Forces South Atlantic Islands, for which Islanders continue to be extremely grateful. Let me be clear that sovereignty is not and will not be on the agenda. But Falkland Islanders are ready to engage in constructive, pragmatic and practical cooperation with Argentina. Both parties stand to benefit from such a relationship. They have done so in the past. But recent events have not made that any easier. Progress requires a stable, predictable and reliable Argentine partner equally committed to mutually beneficial cooperation.
It is easy enough to allow these factors to engender an atmosphere of doom and gloom in our community. We should not allow them to do so. I invite you to stand back for a moment from current events and to reflect on the extraordinary achievements of this tiny but dynamic society over the last decade and more. The steady improvement in the quality of life in the Falklands has been remarkable. Despite the difficulties, the prospects for the future diversification and growth of the Falklands economy are real. Success will depend on Islanders’ continued ability to innovate and on their commitment to hard work, and there will be obstacles to overcome, many of them not of Islanders’ making. But I am an unashamed optimist about the future of the Falklands, and of your ability to demonstrate that my optimism is well founded.
I turn now to my review of Government activity over the last 12 months.
FISHERIES DEPARTMENT
As I have already described, developments in the fisheries sector have been overshadowed by the devastatingly poor Illex season. Catches of Illex in Falkland zones were virtually non-existent. The total catch at the time the season closed two months early was only about one percent of the longterm average catch. This has resulted in very significant refunds of license fees. We can only hope that the situation in the Illex fishery returns to normal in 2005, and that that, together with the refund policy, encourages fishing companies to return.
The poor catch rates have contributed to a quiet year for fisheries protection. However, it has not been without excitement. In August the ‘Dorada’ together with a South African vessel assisted the Australians with the apprehension of the longliner ‘Viarsa 1’. The incident highlighted co-operation amongst CCAMLR parties.
While scientific effort has been expended on the problems in the Illex fishery, a variety of other projects have continued. In particular responsibility for the assessment of the Loligo fishery passed from Imperial College to FIG during the course of the year. Dr. David Middleton, who has done much to develop a local stock assessment capability, leaves the Fisheries Department later this year after 5 years in post. We wish him well for the future.
Progress has continued on the new fisheries policy, which should place the fisheries sector on a more rational economic footing.
A somewhat different maritime issue has been the development of port security measures to combat terrorism. Even in areas like the Falklands where the threat is negligible it is necessary to comply with the requirements set by the International Maritime Organisation. Measures need to be in place for the next cruise ship season.
DEPARTMENT OF AGRICULTURE
Agriculture continues to be a core activity in the Falklands. A ten-year business plan for agriculture was published in mid 2003 under the directorship of Peter Johnston and in consultation with stakeholders. The plan has enabled FIG to introduce significant cost-savings by appointing Phyl Rendell as joint Director of Minerals and Agriculture, following Peter Johnston’s departure. A new Senior Agricultural Advisor post has been created, and three contract posts have been restructured. They are now filled by two Stanley based Officers responsible for animal husbandry, reproduction, wool production and grazing management.
A review of the pasture improvement programme, now in its sixth year, was completed. Following wide consultation with farmers, recommendations for the continuation of this ten year project have been presented to the Falkland Islands Development Board (FIDB) and Councillors. They include a broader emphasis on use of funds over the project’s remaining four years to introduce sustainable improvements to farm productivity and, perhaps more importantly, farm profitability. A similar review has been conducted on a four-year business development initiative promoted by the department, with encouraging results for farmers.
Considerable progress has been made this year with embryo transfers and artificial insemination for both cattle and sheep. Technicians skilled in genetics have visited the Islands from America, New Zealand and Australia to instruct departmental staff and farmers in reproduction techniques. Results were always expected to be uncertain, but ram sales and Rural Business Association shows have demonstrated the wide range and high quality of breeds now available for farm selection. The programmes are aimed at increasing the value of both wool and meat exports. If the “new” genetics prove to be hardy enough to flourish in the Falkland Islands environment, they should offer significant financial opportunity to the farming community, and also generally to the Falkland Islands economy as a whole.
The Veterinary Section of the department, in addition to animal welfare work Island wide, has made a growing contribution to the economy through inspection of Falklands registered fishing vessels and their catch, and inspection of the Sand Bay abattoir, in order to retain certification for export to the EU for fish and meat products.
The Department is committed to working with the farming industry next year through key projects to deliver the agreed ten-year goals of improving profitability on farms.
DEPARTMENT OF MINERAL RESOURCES
The Department of Mineral Resources has had an active year. Interest in exploration for hydrocarbons in frontier areas increased in the second half of 2003 because of unrest in the Middle East and consistently high oil prices. The Falkland Islands is benefiting from this interest. Enquiries from oil companies have been significant, particularly following attendance by the Minerals Department at an oil convention in Barcelona in September. Contact with companies was consolidated in April when FIG and British Geological Survey consultants attended the annual AAPG Convention in Dallas, Texas.
Desire Petroleum are to be congratulated on funding an 800 km2 3D seismic survey this year. Results available in September will assist in pinpointing drilling targets in their acreage in the North Falkland Basin. Spectrum Energy, a British geophysical survey company which conducted surveys in the northern offshore areas in the 1990's, has also been committed to encouraging continued exploration. They have, at their expense, reprocessed data using new techniques and have been actively marketing these data to oil companies.
The Falklands Hydrocarbon Consortium, led by Global Petroleum and with partners Hardman Resources and the Falkland Islands Company, has completed reprocessing and interpretation of South Falkland Basin data, and has worked closely with the Department in recent months in preparing a further work programme. It is anticipated that the group will undertake a 2D seismic survey over their licensed acreage within the next year.
The prospect for further investment in exploration for hydrocarbons later this year looks positive as interest in the area increases.
Onshore exploration for minerals has progressed significantly this year with a new company, Falkland Minerals Limited, being registered in Stanley. The company comprises previous licence holders and new investors, RAB Capital, a London based company. An aeromagnetic survey was flown over the Islands during April and May and the results will assist the operator, Global Petroleum, in designing a shallow drilling programme to start next summer. Meanwhile, draft mining legislation is to be considered by Councillors later this year in parallel with environmental legislation.
FALKLAND ISLANDS DEVELOPMENT CORPORATION
FIDC has continued to provide a key role in assisting and advising Falkland Island businesses. Tourism is a vital sector of the economy, and early in the year broad commercial agreement was reached with Lan Chile as to how a 2nd flight could be achieved. Unfortunately, this was overtaken by the deteriorating relationship with Argentina and is currently on hold. Both Pebble Island and Port Howard lodge have successfully moved from FIDC’s management into the private sector.
FIDC was pleased to assist Byron Holdings re-finance both of the fisheries protection vessels that it now owns. This not only helps ensure the protection of the fishery, but also has attracted off-islands finance into the Falklands maritime sector.
The continued development of Sand Bay abattoir has taken up much of FIDC’s resources. Progress has been made and the business has transferred to the recently formed Falkland Islands Meat Company Ltd, a company run by farmers. This business has doubled turnover to £500,000 and weekly productivity has increased by the same factor, with the season shortened from five to three months. Much remains to be done, however.
The provision of asset and risk finance is a core FIDC service. A model has been developed to help determine farm valuations. A review has shown that during the period 1996-2002, 96.5% has been recovered out of £5.5m lent to Falkland Island businesses. This reflects the strength of Falkland Islands businesses and was further supported by the Falkland Island Business Survey. However, the Falkland Islands remains a fragile economic environment, very heavily dependent on the fishing industry.
24-hour renewable energy systems have continued to be installed, with 85% of Camp now generating energy this way. A new scheme for part-time Camp users has been introduced.
Looking forward, FIDC is seeking increasingly to work with industry to help individual sectors achieve their own goals. Accordingly, FIDC has sought input from industry trade bodies on its 2004/05 budget submission. FIDC has reduced its budget in line with FIG requirements but is seeking to preserve project funding, as this frequently provides the ‘seed-corn’ for future developments.
EDUCATION DEPARTMENT
Education is the key to the future of Falklands Society, and it has been a year of significant achievement for the Education Department. Two Falklands students gained 1st class honours degrees in July and a third student has recently gained a high distinction in her degree course at an Australian University.
GCSE results from the November exams were very satisfactory and it was good to see local Falklands students achieving either top grades or grades higher than their teachers had predicted.
Parents’ concerns about the shortened academic year in the first half of 2003 have been calmed by these successes. Teachers and children reported that the changes to the academic year were almost imperceptible. This does not, however, suggest that it was easy. The headteachers, staff and students are to be congratulated on the planning and cooperation which enabled such an important strategic change to happen.
Local people cannot have failed to notice the substantial changes at the Stanley Leisure Centre since the appointment of a new Manager in September 2003. New daytime and holiday activities have been developed, using the inherent skills of the staff and tapping into the previously unused skills of local people. In addition, the Library, following a review, is now providing a wider range of activities and services, especially to younger children and elderly people.
The Infant Junior School’s Gold
