MercoPress. South Atlantic News Agency

Breaking News from Pta. Arenas

Record shearing; Magallanes Day; “A very poor performance”; Stray dogs and health risks;
Gradual elimination of labour subsidies

Record shearing

A Punta Arenas shearer is determined to break his previous record this coming weekend during a festival to collect funds for the Disabled Children of Magallanes. Mr. Percy García last year during a similar event managed to shear 1,300 sheep in two days. This time he will be going to the San Gregorio commune where a local cooperative of small sheep farmers are more than pleased to have their flock sheared. "We haven't agreed how much they are going to pay per sheep, but all funds will go for the Disabled Children of Magallanes", said Mr. García adding that on this occasion I plan to shear during Friday 25th and Saturday 26th non stop. "I'm sure I will be able to beat last year's record of 1,325", stressed Mr. García.

Magallanes Day

Magallanes Region celebrated last Sunday October 21st the 482nd anniversary of the discovery of the Magellan Strait, an event that now has been declared Magallanes Day and for Chilean history the official discovery of Chile from the south. Over the weekend Punta Arenas residents enjoyed parades, concerts, a students' musical band contest and all sorts of cultural activities open to the public, plus the first time appearance of recently designed Magallanes flag and coat of arms. "The celebration of the regional anniversary if very important in the context of Chilean history", said Colonel Mortimer Joffré, Commander of the Pudeto Regiment where many of the student bands practiced for the big parade. October 21st 1520 marks the day when Portuguese navigator Hernando de Magallanes, contracted by Spain and searching for a way to reach East beyond the recently discovered American continent and sailing in the South Atlantic came across the strait that would later be named after him. Magallanes had previously landed in Patagonia and when sailing through the strait and seeing in the distance to the south many bonfires he named the island Tierra del Fuego. That was the moment when the great navigator discovered what was later to become Chile. After 27 days sailing in the area and among the insular territory the expedition finally reached open sea, which given the difference with the stormy South Atlantic, was named Pacific sea. Magallanes sailed on to discover further Pacific islands including the Philippines archipelago where he was killed by aboriginals in 1521. Finally Juan Sebastián Elcano, and with just one vessel left, "Victoria", and a crew of twenty managed to return to Spain in 1522 after contouring the African continent, completing the first circumnavigation of the planet and proving the earth was round. "This is a national festivity and we want it to consolidate in each corner of Chile as the most important day for Chilean identity", said Magallanes chief executive Raúl Hein last Sunday.

"A very poor performance"

Magallanes lags behind the rest of the country and its regional and economic situation are of great concern to the private sector, according to a report addressed to Magallanes chief executive and his economic advisors. The report from Magallanes Production and Commerce Confederation, CPC, based on official statistics from the last two decades, indicates that the region exposes "a very poor performance" with an annual 1,75% average economic growth in the last eight years when Chile's overall growth was 7,09%. "Magallanes lags behind and is a main looser in the whole context of the national economy with its contribution to Gross Domestic Product, GDP, between 1985 and 1998 dropping 52% from 3,5% to 1,66%", reads the report. The latest two national census (1991 and 2001) also show that population increase in the last ten years is the lowest in Chile: 6,1% equivalent to 8.671 persons, with an annual accumulation of 0,59%, half the country's average of 1,2%. Besides unemployment now stands at the highest in the last twelve years and there's a growing tendency for well educated members of the working force to leave the Region. Two important sources of income and employment for Magallanes are in recession according to the CPC report. The depletion of ENAP's oil wells plus an annual 15% drop in the Free Zone sales since 1998, that has worsened this year to 23,4%, have had a direct impact in regional employment and activity. Unemployment in the current year is the highest in twelve years. To reverse the situation CPC proposes keeping government investment at current level and a greater regional financial autonomy; a clarification of environmental regulations; incorporation of protected forestry areas to productive development; turning short term legislation promoting private investment in Magallanes into long term; immediate privatization of Punta Arenas port; opening the oil monopoly ENAP to private capital and reduce government participation in productive activities.

Stray dogs and health risks

Punta Arenas Environment Committee revealed details from the Magallanes Health Department "Dog population and health risks" report indicating that 490 people are attacked and bitten annually with need of medical attention. The report will be the basis for a five years project to sensitize dog owners and find ways to eliminate the packs of stray dogs that roam freely in towns and in the camp. Canine population in Magallanes is estimated in 30,000 and given the significant number of stray dogs health risks are considerable in transmissible diseases such as hydatidosis and rabies which are endemic in Magallanes. According to the official Health Department statistics in Punta Arenas 3,060 were bitten between 1995 and 2000, 96% by dogs. Over half of patients bitten were minors under 15 years. The 470,000 US dollars of the project will be mostly invested in an education campaign to promote awareness of dogs' health risks to humans.

Gradual elimination of labour subsidies

Chilean Congress is considering a redrafted bill that will gradually eliminate subsidies to labour contracting in Magallanes Region and replace them by other promotion instruments for the extreme south of Chile. The special regime that according to the current law expires next December 31st will be extended at the same rate, 17%, for the next two years and will then gradually begin to be reduced in 2005 finally expiring in 2013. However those funds will be readdressed to other promotion instruments for the area. But the initiative has not been absent of criticism from the opposition who argue that the new bill was drafted without taking into account the suggestions from the different regions, besides the fact that there's not enough time to alter the bill without the Executive's consent. Under Chilean procedure, fiscal affairs are an Executive initiative, and since the current incentives expire at the end of next December there's not much chance of changing the bill. "The government did not honour its commitment with the Regions", said opposition Deputy Rodrigo Alvarez. However Bernardo Troncoso, the Economy Ministry representative in Magallanes argued that the government not only is committed to ensure promotion funds to the different country's Regions but also is turning short term legislation into a long term bill as requested by the private sector and investors. "Promotion decree 889 before was extended on a two/three years basis, now investors have an eleven years horizon, until 2013", insisted Mr. Troncoso, adding that the estimated 57 million US dollars destined to Magallanes will be available for other projects, including "labour subsidies if considered necessary". Under the new legislation the regional governments will have greater freedom in deciding where and how to invest these promotion funds with the support of a technical advisory committee with representatives from the public and private sectors.