MercoPress. South Atlantic News Agency

Falkland Islands: Weekly Penguin News update

Sir Cedric Delves KBE DSO (left), Cmdr of D Sq in 1982 and Lt Cdr Roger Edwards RN who was seconded to the unit, with Kirsty Gallagher, the daughter of D Squadron Sgt Maj Laurence Gallagher SAS

Headlines: '82 veterans bond on Falklands visit; Some difficult choices before the next budget; Former governor fined.

'82 veterans bond on Falklands visitTHIS year's group are almost like a family, said SAMA Chairman Gary Clement, reflecting on the visit by 46 family and veterans of the 1982 war. "The smaller group has meant they have got to know each other well and it's all for the good," he enthused on Thursday as the week's planned programme drew to a close. Mr Clement said the visit this year had also been greatly enhanced by the "fantastic and greatly appreciated" assistance from all aspects of the British military forces in the Falklands. "The military have really pushed out the boat this year, just like the locals always do and it has enabled veterans to carry out acts of memorial at specific spots and get so much more out of their visit." A particularly poignant part of the 2008 SAMA pilgrimage was that at numerous times during the week a toast had been made, not only to those who were lost in 1982 but also to those who are still being lost today, said Mr Clement. • The group leave the Islands on Saturday and as always we hope that the visit has brought a little peace of mind and that the Falklands and the people will evoke fond memories in the future. More pictures on page 4 Some difficult choices before the next budget A PRESENTATION by Chief Executive Tim Thorogood, opened Tuesday's Public Meeting on the Green Paper on the Budget, which sets out the Government's views on its finances over the next five years and is designed to raise the level of understanding of financial issues and to stimulate debate about the choices that face the Islands. Mr Thorogood said that Government cut-backs over several years meant that the limits had been reached on what could be achieved through "good housekeeping." "The strain on public finances is greater now than ever before, with high expectations of public services." The small population and remoteness of the Islands made everything particularly expensive, while there was a continual need to invest in economic growth and infrastructure, he said, adding that while strong fisheries revenues had allowed the development and delivery, at little charge, of services, which elsewhere would not be provided, or would be charged at full cost, a drop in Ilex revenue over recent years meant that other means of financing had to be found. Financial Secretary Keith Padgett, then presented an overview of the Government's present financial situation and projections, which demonstrated that in real terms Government raises less revenue and also spends less than it did 10 years ago. He explained that the main aim of the Government's 2007 Medium Term Financial Plan, which set targets for reducing spending by £0.5 million each year, was to reduce dependency on reducing Ilex revenues, to ensure sufficient budget surpluses to meet future cost pressures in periods of generally static Government revenues. It was hoped also to free up resources for redirection to new priorities in the Islands Plan. However, the Chief Executive predicted that, based on the 2008/9 budget, targets in the MTFP would not be met for lack of sufficient revenue growth and expenditure reductions. Government was likely to face inflationary pressures on goods and services while on the revenue side Ilexincome could be expected to continue to fall. Interest on investments was also likely to be limited in the global financial climate and government needed to further reduce spending or to increase its revenue through taxation or other means, Mr Thorogood said. Government department heads had been asked to reduce expenditure by 3% this year, however following many years of pruning budgets the easy or obvious economies had already been made and some "difficult choices" would have to be made, he added. Set out in the Green Paper were possible options on how to bridge the predicted £3 million gap in the MTFP by 2012/13: * Raise £3m from personal tax – an average of £2,304 per year per person. This would hit the lower paid particularly hard. * Raise £3m from company tax – an average of £55,555 per company (for a typical company currently paying £86,295 on a pre tax income of £357,159 in 2006). This would discourage investment and reduce economic growth. * Reduce Health and Education spending by £1.5M each. This would mean ending medical treatments overseas for all but desperately urgent cases and all support for students overseas in further and higher education. * Close the Falkland Islands Meat Company (FIMCO) and/or cease the East to West ferry. This would mean large parts of the Government's strategy for providing a sustainable Camp would be negated and the waste of money already spent. Dipping into the Government's £87million Consolidated Fund would be irresponsible, said Mr Thorogood, adding that reducing Government expenditure was not automatically a good thing. Individuals, particularly the vulnerable and those on low incomes, would be affected. Less money in the economy would have a negative effect on business sales and economic growth. Continued on page 2Former governor fined RICHARD Ralph, Governor of the Falklands from 1996 to 1999, has been fined £117,691.41 by the British Financial Services Authority (FSA) for insider trading. According to FSA, when he was chairman of mining company, Monterrico Metals, Mr Ralph asked a friend to buy him shares in the company worth about £30,000, although at that time Monterrico Metals was in takeover talks with giant Chinese mining consortium, Zijin. Mr Ralph was closely involved in the takeover talks and should have publicly disclosed any dealing in company shares. Filip Boyen, who bought the shares for Mr Ralph, has also been fined by the FSA to the tune of £81,982.95.