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Financial Information and News

Legislative Council 26 May 2004 Motion for Adjournment

LEGISLATIVE COUNCIL 26 MAY 2004: THE BUDGET SESSION

(Motion for Adjournment )

 

Commentary by J. Brock (FINN)

 

CLLR. THE HON. MR. JOHN BIRMINGHAM:

 

Mr. Speaker, Honourable Members, in rising to speak to this motion, I must apologise to my constituents for my lack of having much to say yesterday in reply to the Governor’s address.  As people will be well aware, my lack of speech was more than made up by some of my colleagues.  The only thing I muttered yesterday in this House was that we would be making difficult decisions.  Well, we did make some but the main services are going to continue this year – next year at about the same level that they have.  There have been some rises in certain areas for which we – and that includes all Councillors – will have to pay more for some services.  But I think, really, it’s not been that bad and we can only hope that next year things will improve.  If not, watch this space.

 

I would like to thank Derek, Keith, and their staff and especially Olga for the work they have been up to in these last few weeks – and months – I might add. 

 

I am very often – and I am sure I am not alone in this – asked by people why it takes so long for posts to be filled within FIG.  Why does it take so long for those that are unsuccessful to be told.  One reason, I believe, is the understaffing of the Human Resources Department.  Another reason is the sheer cumbersome way in which the Falkland Islands Government employ people.  It has taken two months from the start of advertising to a person being put in post and I’m not talking about anything senior.  I am talking about a very junior appointment.  Even the Lollypop man at the Junior School, who does a very responsible job, I might add, had to wait for a long time before he was appointed.  What is it about the system.  We spend thousands of pounds on management training.  Could we not simplify the recruitment process at a local level.  And yes I am aware of the part that Councillors play in this.

 

Everybody’s got their little baby when it comes to budget session.  Mine this year has been a new childcare facility.  It’s going to go ahead.  I am confident of that and I would like to thank the other Councillors for their support on this project.  It is a fact that in this day and age the majority of parents work.  And, to try and run a nursery in an outdated and inadequate premises.  It’s just not good practice at all. 

 

Now, along with all the cuts that we have included in the spending, there is, of course, the subventions and donations vote.  This, as most people will know, is money that is given to various organisations such as the Overseas Games Association, the Scouts, the Guides, the Sea Cadets, even the Duke of Edinburgh Award Scheme.  These organisations do terrific work with the youngsters and are all run by volunteers, I might add.  Some meet every week, while some have running costs but some don’t, such as the Duke of Edinburgh Awards Scheme. 

 

I wonder if some of these organisations have just got into the habit of asking every year for money from the Falkland Islands Government.  Maybe there will be some who don’t really need that money.

 

As I have mentioned the Duke of Edinburgh Awards Scheme, who, as far as I am aware don’t have a premises.  I would be more than happy to meet with the chairman of that organisation to see what problems they apparently have at the moment and see if their needs are being met.

 

There was a plea from the Shack in last week’s newspaper for help.  I often get calls from people telling me their rights. I believe that the children and pupils in the Senior School are now being taught something called “Rights and Responsibilities-” civic responsibilities.  And, I would suggest that people might like to think about their responsibilities.  If your child goes to the Shack, or if your child goes to one of the other organisations that are desperate for assistance, why not have a think about it?  The more people that are involved in voluntary work, the easier it becomes for everybody.  Remember, we all have rights.  We also have responsibilities. 

 

Now, this House is very often used for rattling cages and I am going to put my stick away a little bit now.  But it’s also used to say hello and farewell.  After yesterday, we now know that Mr. Manfred Keenleyside is the new DPW.  So, welcome, Manfred.  As the Chinese would say, I am sure with your post, you will live in interesting times.  I wish you luck and I am sure many other people will as well. 

 

The farewell is to Harold Rowlands.. I only mention his sir name for the record.  He was just Harold to all who knew him.  Although never having had the pleasure of working with him as a Councillor, I knew him reasonably well.  He was always kind to me.  And, the last conversation I had with him, he told me what he thought of my speech to the Commonwealth Conference earlier this year.  And, it came something like Sh 1T.  But he did say it with a twinkle in his eye.  I’ve been around long enough to know and value the contribution that Harold made to the well-being of this community.  And, such was his part in the recent history of these Islands that I consider his passing to have closed a chapter in the on-going story of the Falkland Islands.

 

Now, today, for those who are not aware, is challenge day.  It’s a day to do something physical.  You don’t have to put on shorts.  Now, later on I will be trying to have a go at this “Fit Ball” that they apparently do at the Leisure Centre.  As I am the first to speak here, that in itself can have its perks but also can have its down side because no matter how high you fly, you can be shot down later on with no reply. But what I do wonder is do the other Councillors around this table and senior officials tend to do to lead the community towards a more healthy future.

 

Mr. Speaker, I support the Motion.

 

CLLR. THE HON MR STEPHEN LUXTON:

 

Mr. Speaker, Honourable Members, I would also like to echo my colleague on the excellent work that is being done by treasury staff in this year’s budget.  It’s been a very demanding process.  I think we are all now glad that it’s all over and done with. 

 

Apart from the issues I touched upon yesterday, I think one of the significant grievances we have had in recent months has been the fall-out from the Access to Information Ordinance.  This bit of legislation enacted by the last Council was put in place for the best reasons: to open up public access to Government decision-making processes. Perversely, the actions of a few members of the public in ensuring the provisions of the ordinance are followed to the letter, has undoubtedly resulted in less access to information than there was before the whole discussion blew up a few months ago.  The current provisions, when vigorously enforced, serve to restrict and cripple the affective discussion of issues to an unacceptable degree.  In my view, the sooner we can come up with a more workable solution, that will allow maximum possible public access to information, the better.

 

I asked a question yesterday about the Post Office wheel chair ramp.  The answer that the Hon. Roger Edwards gave me was broadly what I expected in cost terms but I can’t let the matter conclude without expanding on the observation that I made in my supplementary question.  When we originally discussed a ramp for the Post Office, I envisaged something like the existing entrance being replaced with a ramp up to the existing doorway and perhaps 6 ft. long, used by pedestrians and wheel chair access alike.  Total cost – about £1,000.00, probably less.  I don’t dispute the finished product looks very fine but in the context of our over-all budget, one could argue that £6,000.00 is the kind of money you could lose down the back of the corporate sofa. 

 

There’s a bigger issue here, which is the necessity for value for money being incorporated in the planning stage.  To draw a comparison, I am in the process of building a double garage – nearly 60 square meters of floor area, or 2/3rds the size of my house.  And, it isn’t costing very much more than this wheel chair ramp.  This was achieved through a good basic design.  It will fulfil the requirement identified without expanding into expensive twidly-bits.  I am afraid this is a fundamental principle that’s overlooked in many projects initiated by FIG.  I should say at this point, I am in no way criticising the contractor, who has done an excellent job on this and other small projects for Government.  But this little ramp, and I don’t doubt many other projects of all sizes, is, in my opinion, over-specified in the design stage. 

 

In view of the current financial situation we face I really do urge the design people to take a far more down to earth and grass roots approach to capital projects of all sizes.  This will be one way, for sure, we can get more output for less money.  It can be done.  The excellent and good value resurfacing work is taking place on a number of Stanley’s roads in the last couple of years.  It is a splendid example of achieving more for less and is to be commended.

 

Mr. Speaker, I would like to close today by also remembering Harold – somebody that I saw fairly regularly – not every day but probably three or four times a week.  He loved just down the road from where I work.  I think he is a part of our community that will be very much missed indeed.

 

Sir, I support the Motion.

 

CLLR THE HON MRS NORMA EDWARDS:

 

Mr. Speaker, in rising to support the Motion for Adjournment, may I echo my colleague’s comments on the sterling work that Derek and his team have done at the treasury?  Although it hasn’t been an easy budget, it went reasonably smoothly, I think.  And, I hope the general public will understand and see that we have done the best we can, given the circumstances.  As Cllr. Birmingham said, I don’t think it will be too bad and I hope that the fishes come home next year.

 

I, too, would like to wish Manfred Keenleyside well and I apologise for interrupting Mr. Michael Summers for rudely interrupting him the other day.  I can only say it was a senile moment that I had and I suddenly thought it was Charles Keenleyside.  However, I hope you will forgive me for my brain deteriorating.  I am pleased that Manfred has been appointed DPW.  I wish him well in his new job and he deserves all the help he can get.  It’s a difficult and demanding job to undertake and not everybody would want it.   However, I am sure he will make a very good  job of it.

 

May I also comment on Harold, who I did know well and who I worked with for quite some time?  We went abroad together and at one time camp back with a pushchair.  Harold and I had many escapades here and abroad and I will miss him greatly.  He always gave me good advice and he served this community very well indeed.  He loved the Falkland Islands and he loved the Falkland Islands’ people.  He will be sadly missed and we are grateful for all that he has done for us over the years, not least all the budget sessions that he chaired and very well indeed.  When we didn’t have any money, the first time the budget that I attended in this house was under – you will remember, Mr. Speaker because you were on the Council of the day at the time - £6Million.  Long gone are those days.  And now we are worrying about not being able to make ends meet with £40 odd Million.  It’s merely a sign of the times.

 

I am pleased that some of my pet projects are going to happen in this budget, not least to say the start of the old folks ward, or whatever it’s going to be called – senior citizens ward.  I think that’s long overdue and, I hope that by the time we are in this House at the next budget, it will have been completed.  I hope we don’t lose sight.  We moved further sheltered housing from the budget for the moment.  And, I hope that next year we don’t lose sight of that fact for the future.  We will need more sheltered housing, come what may.  That’s not going to go away.

 

The other thing that I am particularly pleased about is that we are going to continue with two road gangs on the west.  In fact, that’s needed.  When it gets bad, those are the times you put money into keeping as many people in work as you possibly can in hard times at the lower end of the scale.  If we have to make cuts in the future, we probably will, and I hope we don’t look to the bottom end of the scale to make those cuts.  That’s where the real hardship occurs.

 

Sir, I support the motion.

 

CLLR THE HON JAN CHEEK:

 

Mr. Speaker, Honourable Members, I would like to join the others in giving thanks to Derek and the treasury staff for the very efficient way the various budget sessions we have had over many months.

 

Some people, I know will be upset over some of the decisions.  I am not happy with all of them but they were all made after much thought and with the intention of spreading the money as far as possible and avoiding the kind of silly comments that have gone on in the past and lead to people losing their jobs.  I can’t promise the Hon. Councillor John Birmingham that I am going to do anything desperately energetic today and I do hope that casualty staff are on stand-by if, for whatever it is he’s going to do.  I can do nothing to add to Cllr. Luxton’s comments on access to information except to actually agree with him.

 

We all have, as others have said, a particular bugbear at any particular one time.  And, to me it’s disturbing that, again, unwarranted criticism of contract officers that is being bandied about on the slimmest pretext.  On this occasion, the budget proposals have been used as an excuse.  I would ask those contract officers, who feel offended or upset over unjustified criticism not to assume that the unreasonable comments of a few are representative of opinions generally.  I believe that most of us recognise and appreciate the competent and conscientious work done by most contract officers.  These people have been invited here to do jobs, which we cannot otherwise fill.

 

In spite of great strides in education and training in recent memory, we are still looking at many years ahead before we have residents qualified and suitably experienced to take up all those posts.  To qualify and gain experience for some professions, our young people may have to spend from five to ten years out of the Islands.  A good number have done so.  More are in the process.  It’s not easy and I congratulate those who have only the determination and hard work that it takes.  Young people hoping to return need to work closely with the Education Department and with possible future employers to ensure that they do the right courses and gain relevant experience.

 

Finally, I, too, would like to say my good-bye to Harold, who helped me learn to read, taught me to ride a bike, encouraged me in all the things I did as a youngster.  But above all, as everyone knows, Harold loved the Islands.  His kindness extended way beyond his family and he was always fun.

 

I support the Motion.

 

CLLR THE HON MR. RICHARD COCKWELL:

 

Mr. Speaker, Honourable Members, in reverse of the Hon. John Birmingham, I’m going to be noticeably short this afternoon.  I would like to congratulate Derek and his staff, Keith and all the rest of staff that worked long and hard on this budget.  It’s not what any of us would really have liked but I think it has actually achieved something, which is as painless as we are able to manage to make it.  I know that some people will find some things rather difficult but we have to make savings somewhere.

 

The Hon. Stephen Luxton said that the work is over for us and I think that’s right but the work is only just starting for Derek and his staff to actually monitor this right through the year.  We mustn’t forget that it doesn’t stop here.  And, I look forward to the results being better than was forecast.

 

I, too, would like to remember Harold Rowlands.  I think one of the things, which was paramount with Harold was that he was a lovely person and he loved life.  I think that life was really an example to all of us.  To actually enjoy life and make the most of what you have – he will be sadly missed.

 

Mr. Speaker, I beg to support the Motion.

 

CLLR THE HON MR. ROGER EDWARDS:

 

Mr. Speaker, in rising to support the Motion for Adjournment, I would like just to say one or two things.

 

I will start off by saying thank-you to Derek and all the team for a good job done.  I would not liked to have been a fly on the wall, as I suspect that office was sometimes very hot and steamy – probably caused by comments over changes that have been insisted upon in Derek’s already good budget proposals.

 

It is interesting that as you walk around the town of Stanley and meet folk and every single one of them has a different opinion on how you should have run the budget and where you should make the cuts.  I recon, of the 2500 people in these Islands, 2000 will find different ways of doing things.  I wasn’t the only on that was correct.

 

Yesterday, in my motion of thanks speech, I did not mention the Abattoir.  And, two farmers last night picked me up on that.  They phoned me up.  One was pro-Abattoir and one was dead against.  They both asked the same question – where are we now?  So, having spoken with my colleague, Mike Summers this morning, I did go and see FIDC and spoke about the Abattoir.  And, the figures I’m going to give are not the final figures.  There is still much work to be done.  The figures have not gone in front of the FIMCO Board and I would not like to pre-empt their final decisions on the year.  Also, another problem is the fact that the Abattoir year runs from January through to December and the Government year runs from July to June.  They overlap and it’s difficult to actually put anything into one financial year.

 

However, last year, when there was some considerable doubt – I will say I WAS an Abattoir sceptic – the actual adjustment to the Abattoir was an additional £800 odd thousand – a huge amount of money- of which half was spent on capital projects like cold storage, incinerator and some plant changes, leaving the other half to subsidise the sheep.  Farmers were paid £89,000.00 for their sheep and Government paid as subsidy £422,000.00.  In other words, for every £5.00 a farmer got for his sheep, we subsidised £26.00.  It’s a huge amount of money.  And, I think on that basis, anyone would be sceptical.  Since then, with the Board of FIMCO taking over, looking at the thing, planning it better, being more aware of the set-up and are absolutely delighted to announce that this year the farmers’ payment has risen to £136,000.00 and the subsidy of sheep through the Abattoir has fallen by almost exactly ½ to only £13.00.  That improvement in one year is quite remarkable.  And I think FIMCO and all those connected with the Abattoir should be jolly well congratulated.

 

For the future, it looks very much as though, for the actual killing season, the three to four months of the actual killing, the Abattoir can actually look forward to breaking even.  And, I think that is a dramatic change from only last year, or the year before.  However, we wish the Abattoir to remain open for 12 months to provide meat for Stanley.  That will cost.  And, no doubt, in the future, we will be seeing an EXCO paper on how we actually fund that.  And I do believe that FIMCO and the Abattoir and all those connected with it should be congratulated.  They are heading in the right direction.  I am less sceptical and maybe, as time goes by, I will become a full supporter of the Abattoir.

 

I am delighted to tell the people who phoned me the previous evening that through surreptitious use of the STABEX money and other funds, Agricultural support should be fully funded as put forward by the Agriculture Department.  And, I think that was an excellent outcome.

 

I am also delighted that the roads programme is going ahead with two gangs on the West.  We had to make savings and so that budget was used to buy a crusher, which will improve the surface initially on the MPA Road, which will enhance road safety on that road.  But we have had to delay the Little Chartres Bridge by one year.  You can’t get everything out of nothing.

 

I can’t sit down without replying to Stephen Luxton.  I think it would be very nice if we could put a little ramp up there.  I could have done that.  I could have built one out of plywood that probably would have cost £20.00.  The fact of the matter is, we have to build things here in accordance with accepted standards.  And, the standard of slope you would have required to get a wheelchair up there would have meant we would have gone out into Ross Road.  And I think we would have had other problems as well.  Why we had the ramp sideways from the door was because we had to get the slope on it so that it doesn’t go out into Ross Road.  If we projected it straight out of the door, we would have been on to the road, which would not have been satisfactory at all.  That’s basically the answer to why it was built like it is.  There are other reasons as well.

 

I, too, would like to echo all my colleagues remembrance of Harold.  I always have known him as “Super Chap.”  I didn’t know him all that well, I must admit.  But every time I did meet him, he was cheerful, happy and a very good chap.

 

Sir, I support the motion.

 

CLLR THE HON MR. IAN HANSEN:

 

Mr. Speaker, Honourable Members, in rising to support the Motion for Adjournment, I would just like to make a few very general comments.  First of all, I, too, would like to thank the Financial Secretary, the Deputy Financial Secretary and, of course, the treasury team for working on what must have been one of the more difficult budgets for some time.

 

As this is my first budget, it will come as no surprise that I found it difficult, certainly to judge where savings can be made and at what level is acceptable.  I had noticed that Councillors have their preferences and I believe it’s how it should be.  It keeps us more concentrated on developing just a few certain areas.  Then, the result would undoubtedly be an unbiased and fair budget.

 

Even under the present financial circumstances, I feel we should strive to continue development and cultivating options that have potential for the future.  Fishing, Agriculture and Tourism are our three main industries.  I think we must ensure that we take a long-term view of these industries.  If we can, we should develop each one as opportunities arise.  Looking ahead is much better than looking back.

 

I would just like to mention the Camp Roads Programme as well.  It has my full support.  Even if there are less kilometres of road constructed during next season, I think the fact that there is still progress being made, sends a very positive message to those who are going to be linked to the system.  And I believe we should continue two gangs in the West and proceed to the remaining farms in the East.  The Rural Road Programme is nearing completion and maintenance will be an on-going expenditure for the next few years.  This, of course, isn’t the end of the Islands’ infrastructure.  And, in a few years, I would like to see more financial aid to outlaying islands.  But that is another issue for another day.

 

This particular budget will see a reduction in funding, postponement of capital projects, while, at the same time, increases in some costs and some public services.  I can understand the irritation people must feel at this.  But in many cases, I honestly believe, that other options were available.

 

Finally, Sir, I, too, would like to remember Harold.  I first heard him here presenting budgets and in later years, of course, as a Member of Legislative Council and it was a pleasure to meet him.

 

Sir, I support the Motion.

 

CLLR THE HON MR. MIKE SUMMERS:

 

Mr. Speaker, Honourable Members, Harold will have a place in history.  Not everybody manages that.  Therefore, I think that’s his own tribute.

 

I would just like to remember one other public servant who has passed on recently.  That is Jimmy Stephenson from the Post Office.  Jimmy from BAS, Jimmy the Met man.  He was a piece of history in his own right, I gather.  He is the last of the old BAS Met men to be in the Falklands.  He will be missed by many and be talked about by many.  So, we send our condolences to his family, too.

 

The budget, of course, has been the big issue.  My thanks, as always, to the treasury staff.  It’s not just a rote.  It’s genuine thanks for the very hard work that has been done.

 

I would also like to thank the Heads of Department who have put in many, many hours and, for them, too, quite difficult hours the cutting away of budgets that have been built up over the years, having to make judgements on their own about services that can be curtailed, not provided or services that should be charged for that previously have been free.  It’s not easy for them, either.  So, I thank them for their contribution.

 

I think as you sit in the budget session, you can always spot one thing that’s going to cause some excitement.  The bins levy is it.  Anybody I have seen on the street or spoken to on the phone since yesterday has talked about the bins levy, or whatever we like to call it.  I thought to remind somebody today on the phone that it’s actually only a few years ago, I don’t know how many, that we actually got rid of rates.  We got rid of rates because we could afford to do so.  We have introduce a charge now, for a service that the Government buys from the private sector, because, frankly we cannot afford not to.  Lets not always imagine that things are not as good as they used to be in the Good old days.  In the good old days, the rates were significantly higher than the service charge is now. 

 

The other issue, of course, will be – I know, somebody’s going to ask me tonight why don’t we introduce MSL.  For a very good reason.  There is a cost of collecting it both for employers and to the Government.  Whereas, the bins levy, at least, will be collected at the same time it is charged and there won’t be additional bureaucratic burden in collecting that.

 

The budget by in large has been satisfactory.  The deficit of £3 Million is, perhaps more than I would have liked and perhaps more than we would have liked but that is the reality.  But just to provide a little balance to it because we tend to talk about revenue measures in here and cost-cutting measures in here, we don’t always present the bigger picture.  And, the general public might be interested to know that the Public Works Department budget has been reduced by £900,000.00.  That is a significant amount.  That’s over 12% of last years budget.  The Fisheries budget is decreased by about 7% by £400,000.00.  The central administration budget has decreased by £900,000.00 – a very significant percentage.  Even the Legislature budget is reduced by about 15%.  So, its not just the things you have heard about on the floor here that have been worked on, It’s the core budgets.  And, when people say to you that too much is spent on this or on that, there has been very significant effort, I can assure you, to cut down everywhere across the board, without affecting core services without affecting investment in the future without affecting growth. 

 

I have one comment to make on the issue of criticism of people that we employ in the Falklands from outside.  I was hugely amused actually by the outcome of the correspondence in the newspaper.  And I thought it attracted quite what it deserved.  But it is time, sometimes, at times like this, for people to step up.  It’s a remark I have made here before. Again, if you think that you can do a job that’s currently being done by someone else, step up and say so.  Put yourself forward.  Be available to do the work for us and our community.

 

Finally, in closing, as usual, one comment about foreign affairs – it was a marvellous thing.  Somebody phoned me up today and asked how did we celebrate yesterday?  What?  The person asked, ”Don’t you remember?  It was since de mayo.  We all had forgotten about it.  There’s a thing, aye?

 

I support the Motion.

 

(100X Transcription Service)



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