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Falkland Islands: Weekly Penguin News Update

Falklands team manager Patrick Watts reports from the Island Games in Aland. Turn to page 4 for the action.

Headlines: Hundreds to lose out as means testing kicks in; End of the line for fresh milk as Stanley Dairy set to close; Farmer livestock costs to rise.

Hundreds to lose out as means testing kicks in

MORE than 200 children have had their family allowance payments stopped since means testing came into effect this week – but government is determined to press on with the controversial changes.

Postmaster Moira Eccles, in charge of collating forms for the family allowance payments, said a “substantial” number of children no longer qualified for the allowance.

Of the 441 applications received so far for July, 230 have been approved – including 85 receiving half-payment – and 211 children have had their payments stopped completely.

The new rules, calculated against the gross earnings of the adults who make up the family unit, replace the previous flat rate payment of £53.50 per month per child, irrespective of household income.

Income is calculated before tax, pensions and other payments have been deducted, based on the previous year’s tax form, and does not include the income of others living in the property such as lodgers or older children.

Councillor Andrea Clausen said means testing had been under consideration for some time, and had only been considered due to financial pressures: “It’s a controversial subject,” she said. “We’re all victims of it to a degree, but if that money’s not there, we all have to share the burden.”

The government anticipates it will recoup savings of £80,000 from the move.

“We’ve tried to come up with as fair a system as possible, but in the time we’ve got it’s a very simple system,” said Cllr Clausen. “We’ve got to take action now, we can’t keep delaying these decisions.” She emphasised the new system was not designed

Some who lose out, though, are those who pay maintenance for other children they have from a previous relationship, as those maintenance payments are not deducted before family allowance is calculated.

But Cllr Clausen said she did not believe it was the government’s or the taxpayers’ job to “pick up for lifestyle choices and relationship choices.”

The Treasury has set the family allowance threshold at £31,000, an amount it argues is enough for a family to live “comfortably”.

Cllr Clausen said while some households may have seen a drop in income over the past year, for any number of reasons, those on more than £31,000 were still earning a “substantial” sum of money. “It just means you might not be able to go on holiday to Chile every year, or you might not be able to have your brand new 4x4,” Cllr Clausen said.

“We have to be realistic. If the whole financial climate is changing in the Falklands, all of us are going to have to take a little hit.”

There is no appeals system in place, but if any families are hit particularly hard, they are advised to contact the welfare system, as assistance is provided for those in financial difficulty.

But Cllr Clausen added: “If there is an absolute widespread reaction, with large numbers of the population having a massive hit to their income, then of course this wi be considered.”

End of the line for fresh milk as Stanley Dairy set to close

FRESH milk is to disappear from our shops and homes, with confirmation this week Stanley Dairy is set to close.

Today will be the last date for fresh milk deliveries, and from next Monday (July 6) the dairy will produce unpasteurised full-fat milk only, available for just two weeks from the West Store and Seafish Chandlery.

The move follows a decision made by Executive Council last week. Councillor Andrea Clausen said the main reason for the closure was the absence of anyone willing to take over the management under the criteria ExCo had set.

A decision had been made that “no further support for operational activity in terms of financial assistance would be given,” although there would have been an opportunity for a one-off payment in the form of a grant, if the amount of money was matched by the individual applying for the position.

Cllr Clausen told Penguin News ExCo had been assured all applicants had spoken with FIDC and were made aware of the level of funding available.

She said ExCo had “felt very strongly that absolutely every possible avenue should be looked at in order to try and keep this business afloat,” and that the ability to purchase fresh milk in the Falklands was important.

Even basic operation required £5000-6000 a month operating subsidy: “It’s already cost us a load of money. Taxpayers can’t afford it, we can’t afford it, it’s as simple as that.”

Farmer livestock costs to rise

FARMERS are reeling after learning they will have to foot the bill for the haulage of their animals to the abattoir – an issue likely to take centre stage during Farmers Week talks in Stanley next week.

Contained in the minutes of the latest Falkland Islands Meat Company (FIMCo) meeting sent to farmers this week was notification that, as a consequence of the £133k budget reduction for the abattoir this financial year, FIMCo would no longer pay for the transportation of livestock to the abattoir. It costs in the region of £5 to move an adult sheep from a West Falkland farm to the abattoir.

Tony Hirtle of The Peaks farm said: “I think the mutton market would be finished by this. It would take us down to making only a couple of quid a sheep and that’s just not worth it. It could bankrupt the abattoir.”