MercoPress. South Atlantic News Agency

Breaking news from Chile

Chile set to grow less. The International Monetary Fund, IMF, reduced Chile's growth forecasts this year from 3% to 2,6%, and in 2003, from 6% to 4,8%, because of a slower world economic activity and the extent of the regional crisis.

"Chile's economic fundamentals are solid, however Chile is operating in an adverse environment", said the IMF in its annual report draft, which is in line with the lowest estimates of the Chilean Economy Ministry that anticipates the country's growth for 2002, between 2,5% and 3%. In spite of the good medium term prospects, IMF believes that a weak domestic demand plus foreign investors caution will continue to have an impact in the long expected strong recovery of the Chilean economy. After praising Chile's long term economic policies and close working relation between the public and private sector, IMF recommends more labour flexibility, further privatizations and a greater banking competition to reduce interest rates. Chilean Central Bank officials said the IMF draft indicates "the economy is in the right path", and discarded any serious contagion from the regional turbulences in Argentina, Brazil and Uruguay.

Wildlife sightseeing tours

Beginning next November Patagonia Off Shore Austral Expeditions from Punta Arenas will offer wildlife sightseeing tours along the Magellan Strait visiting penguin rookeries, seals and other sea mammals common in the area. The first circuit tour will extend from Rio Seco to Magdalena Island Magellan rookery for which the company has three specially built vessels. "We've already worked closely with Discovery Channel and the Chilean Wildlife Heritage Office, so we have plenty of experience in conservation and the areas, and best times, to visit them with the least possible alteration for wildlife", said Norberto Luna, head of the Austral Expeditions. In the near future the company is planning to include tours of Tierra del Fuego, Cape Horn, Charles III Island and other extreme south Patagonia attractions. Mr. Luna revealed that another area of exploration, in combination with DAP airways is to organize flights to Antarctica where Chile has lodging facilities in several bases. "The ideal would be for example to fly to Presidente Frei Chilean Air Force Antarctic base, and from there tour the area in these special vessels we have had specifically built for extreme conditions", indicated Mr. Luna.

Punta Arenas services in the red

Punta Arenas public school and health systems are deep in the red with the situation worsening in the coming months, according to extracts from a 43 pages report published in La Prensa Austral. The Punta Arenas Municipal Corporation which runs the schools will end the current year with a shortage equivalent to 1,2 million US dollars that has severely conditioned the expansion of so called "full time" schools and delayed completion of programs currently under way. According to the report local banks are refusing new loans and the reschedule of short term debt. This has forced officials to request extraordinary financial assistance together with a "rationalization program" that includes administrative staff redundancies and advancing retirement of those in pensioning age. The report spells out that Punta Arenas Municipal Corporation schooling system covers 17,599 students and receives a subsidy equivalent to 650 US dollars for each student in "full time" schools. However since in many Punta Arenas children from low income families are forced to search for work they end up in night schools, where teaching standards are not necessarily so good and the subsidy for the Corporation is substantially reduced. "There is a serious risk, given the current level of debt, that the Corporation will have insufficient funds to cover costs in the last two months of 2002". Regarding health services, the report points out that cost has increased beyond budget estimates, because of the impact caused by the number of medical leaves forcing the Corporation to contract interim doctors. "This situation threatens the future purchase of medical supplies, and if no fresh funds are available debt with suppliers will necessarily increase", explains the report.

Puerto Natales, "ghost town"

Puerto Natales is suffering the full impact of the Argentine crisis and if no contingency programs are made effective, the area runs the risk of becoming a "ghost town", according to Puerto Natales Chamber of Commerce. Sales in Puerto Natales have dropped by 650,000 US dollars per month since the Argentines ceased crossing the border and local residents now make most of their shopping in Argentina given the favourable exchange rate. Besides the coal mines of Rio Turbio in Argentina that for decades employed mostly Chilean labour have been definitively closed and fisheries have not had a good year. The toxic red tide has limited income of many coastal fishermen and salmon farming has virtually left the area. The Argentine crisis has also affected the tourist industry since most visitors to Puerto Natales and Ultima Esperanza Region are Argentines. Out of the area tourists have not compensated in a year fearful of terrorist actions worldwide. Given the critical scenario, Puerto Natales Chamber of Commerce is demanding a two stage approach: emergency employment programs to overcome the social and jobs situation; and in the long term, an airport, a harbour where cruise vessels can operate and a special franchise system for the whole Region as an incentive to attract investors. Otherwise we are condemned to become a "ghost town".

Promoting Punta Arenas Free Zone

Chilean Congress has passed a bill that will considerably facilitate the purchase of vehicles free of tax in the country's free zone areas, including Punta Arenas. Although the bill was originally approved to help the famous Iquique Free Zone in the north of Chile, Magallanes Region residents will now be entitled to import more expensive cars and station wagons, free of all tariffs and taxes, with a maximum cost of 12,000 US dollars, a significant increase from the previous 9,252 US dollars, plus 15% for additional accessories. Foreigners will also be benefited, purchases in the Free Zone will begin paying VAT, value added tax, on sales above 1,000 US dollars, which is double the current exemption. Kishor Sachanandani, vice-president of Punta Arenas Free Zone said the new franchise should help promote sales in the region since "having access to these types of vehicles is no privilege, they respond better to weather conditions of an isolated area with adverse climate such as Magallanes Region". However regarding the VAT exemption, Mr. Sachanandani indicated that it will have an effect if Customs in the local airport, act with more flexible criteria towards tourists, "so they can make full use of the benefit without having to undergo bothersome questionings".

Daily ozone forecasts next spring

With the coming of the ozone layer phenomena, the University of Magallanes in Punta Arenas will be offering as of next September a daily forecast of ozone levels and UV radiation. "This is a new methodology based on experiences in European countries which we are planning to extend to the whole of Chile", said geophysics scientist Claudio Casiccia and head of the Magallanes University ozone monitoring lab. When asked about how intense the ozone layer phenomena will be this coming season, Mr. Casiccia explained that there's a certain cyclical pattern with "some years more turbulent, and others more quiet", and "this could be one of the rough ones, but you're never certain a hundred percent". Adapting the European methodology to local records and past experience will enable Magallanes University to announce with 24 hours anticipation ozone levels, according to Mr. Casiccia. "Since February when the new equipment was installed we've been doing trials adjusting its very sensitive instruments. Autumn and winter ozone levels have proved completely normal, but the real test begins in spring", indicated Mr. Casiccia, who recommended Punta Arenas residents not to be alarmed, simply "pay attention to the UV radiation levels we'll be reporting daily".

Joint US-Chile air exercises

Military aircraft from Chile and United States are participating in air exercises in the north of the country according to a release from the Chilean Air Force in Santiago. The "Salt Mines" exercise are taking place mainly over the Atacama desert and the Pacific Ocean including attacks on land objectives, air combat, escort and patrolling duties and reconnaissance tasks. Chileans are participating with French Mirage and American F 5 fighter bombers while the US wing is made up of six F 16 belonging to the "Tacos" Squadron from the National Guard seated in New Mexico. Exercises are scheduled to end this weekend. Chile recently acquired ten American F 16 costing 650 million US dollars as part of a renewal program for the Air Force. French Mirages and the Swedish Gripen with British engines were discarded.