MercoPress. South Atlantic News Agency

Falklands Government prepare for fishing revenue loss

A ?disastrous' fishing season, has forced the Falkland Islands Government to delve into its reserves, withdrawing £4 millions ($US 6 millions) for the 2002/3 budget. In an official press release, it was stated that:
?Although a capital programme of £7.8 millions ($US 12 millions) is likely to be approved, Government will hold back from starting new contracts or ordering equipment of around £3 millions ($US 4,5 millions) until next February. It will also plan to delay £500,000 ($US 750,000) expenditure from the Islands Plan reserve, and delay around a further £500,000 in other works expenditure until February'.

Government Departments have already had their budgets severely cut for 2002/3, saving another £1.2 millions ($US 2 millions).

The announcement was not unexpected as fishing companies, licenced to operate in Falklands waters, continue to report all-time low catches, particularly of the normally abundant Illex Squid, which, through license fees, brings around £17 millions ($US 25 millions) annually to the Falkland Islands Government. However it will not be until the season of 2003, before a full valuation of the effects of the current poor season will be known.

However Councillor Mike Summers, Chairman of the Standing Finance Committee, reassured worried Islanders who fear that job losses might occur as a result of the anticipated loss of revenue from fishing. He said, ?There is no need to panic ? we are prepared for years like this'.

Recently the Financial Secretary, Derek Howatt, confirmed that the Falklands Government has a massive £165 millions ($US 240 millions) in its Reserve Fund ? to facilitate public services for a population of just 2,300 people! ?Therefore we can afford to take a little more out of the reserves if necessary', said a confident Mike Summers.

However the 8 elected Councillors have understandably taken a cautious approach, with respect to spending in the forthcoming financial year 2002/3. The press release warned the population that a slow down in some areas of construction can be expected: ?Capital projects likely to be delayed will include Ross Road (repair), the MPA road (which links the Military Base to Stanley), housing at MPA (regular gifts to the Ministry of Defence by the Falklands Government), slurry sealing at Stanley Airport and some slow down of infrastructure works on East Stanley. However, sites for around 25 houses will still be produced on East Stanley later this year, on target, so that there should be minimal effect on local house builders'.

According to Councillor Summers, ?This action represents a prudent re-phasing of our spending, and we believe the effect on the local economy will be minimal. If matters turn out to be optimistic next February, then Government will continue on with its plans with little or no dislocation. Important projects such as sheltered housing projects and Camp roads, will be unaffected'.

While the Government is taking early measures in anticipation of a loss of revenue, the fishing company owners have not been forgotten either. The Councillors agreed during a recent meeting of the Standing Finance Committee, ?to allow leeway to fishing companies to pay the next tranche of licence fees up to a month late'.

Despite the poor level of catches of Illex squid, it was reported that there are still 115 fishing ?jiggers' operating within the Falklands zone.