MercoPress. South Atlantic News Agency

Regional News from Pta. Arenas

Headlines: Clínica Magallanes to expand; Controversy over employment subsidies; Increase in drug crimes; Ferry company could be fined; Lan Chile sued; Employment increase

Clínica Magallanes to expand

Clínica Magallanes, the leading private medical organization in Punta Arenas is considering a five years expansion program given the increase in business and encouraging financial results. "We're currently assessing the situation but we have a growing and promising demand, so I guess that in three months we should have a final decision, positive I expect", said Manuel Urmeneta CEO of Empresas Consalud one of the main investors of the group that owns Clínica Magallanes together with other insurance companies. Rafael Castillos Manager of the Magallanes Clinic said the institution founded ten years ago had an important turn around three years ago with the introduction of new partners and a participation of the 45 medical specialists that belong to the permanent professional staff. "The convergence of efforts has been very successful and we're now involved in a five years expansion program that includes a new wing plus constant re equipment of the clinic. In December we'll be receiving 22 electronic beds from the United States, at a cost of 55,000 US dollars, that will make patients attention far more efficient and practical", said Mr. Castillos, adding that staff was being trained to make the most of the new equipment. "A new wing for the Clinic demands a long decision making process, but I'm convinced that the central office is Santiago will gives us the green light", stressed an optimistic Mr. Castillos. Controversy over employment subsidies

Magallanes fisheries industry have warned that reforming the current Decree 889 that gives companies in extreme regions of Chile special compensations to promote employment "will have a negative effect for the region and for the industry in particular". Drago Covacich president of the Fish Industry Association of Magallanes said that "given the remoteness of our region, D 889 has been very efficient in compensating disadvantageous conditions with the more metropolitan areas of the country". Although the reform does not contemplate a reduction in the annual promotion resources for Magallanes equivalent to over ten million US dollars, with a 17% pay compensation for workers employed in the region, "the new system of gradually eliminating the compensation and have those monies turned into a Development Fund to finance all sort of projects, and managed by a commission, will make the process cumbersome", said Mr. Covacich. "The current system works efficiently, but with the reforms labor costs are bound to increase and will have to be compensated either with less staff or lower income", warned Mr. Covacich. "This is not promising for the fish farming industry". The reforms under consideration in the Chilean Congress anticipate an eleven years phasing out of the employment benefits, (effective in two years time) with the savings collected in a Development Fund that will have a more investment options. The business community object particularly the creation of a local commission, with members from all the community, that will decide on the investment projects including employment compensations. The local trade unions grouping has also warned that, in spite of some excesses committed by employers with the current legislation, the proposed reforms "will endanger employment and income opportunities" for the workers. Business delegations from the extreme south and north of Chile are currently lobbying in Santiago to have the reforms modified.

Increase in drug crimes

A considerable increase in the number of drug related crimes has been reported by Magallanes authorities. During a recent seminar on Judicial Procedure reforms and Drugs held in Punta Arenas, the local branch of Chile's National Council for the Control of Drugs revealed that so far this year at least sixty people have been arrested in connection with drug crimes and similarly the volume of illegal products discovered has ballooned. Apparently local authorities are particularly concerned about the growing preponderance of cocaine in the arrests. As to how the drugs enter Punta Arenas, local Police recently busted a ring that had cocaine mailed in from the north of Chile, probably originally from Bolivia or Peru. In another operation two brothers were arrested last week in Punta Arenas airport in connection with chocolate boxes sent from Santiago with cocaine hidden in some of the wrappings. However authorities also revealed that a more strict co-ordination with transport companies is in effect both to keep track of domestic and international air, land and sea access to Punta Arenas. Chilean Congress is also considering reforms to the Drugs legislation including more powers to Prosecutors and making money laundering operations investigations secret and extending the inquiries from 40 days to six months.

Ferry company could be fined

The ferry company responsible for transporting passengers and cargo from Puerto Montt to Puerto Natales and further south to Punta Arenas will be fined if the recurrent delays in the service persist. Navimag's two vessels, "Magallanes" and "Puerto Edén" have jointly been out of service for several weeks impeding access of tourists to Puerto Natales and Chile's national parks just when the season has began, plus leaving the whole area with limited supplies of fresh vegetables, fruit, poultry and some types of fuel. Given the growing protests of the communities and local businessmen, Puerto Natales Transport Department representative Gustavo Farales warned Navimag that the company could loose part of the government's subsidy, be fined for round trip not accomplished or loose its collateral deposit. "Puerto Edén" has just resumed sailing, but "Magallanes" which is the largest of the two is still docked in Puerto Montt in spite of having a spare part and foreign engineers flown in specifically for repairing the engines. She's expected to sail sometime this week. According to contract Navimag must make at least three "regular" round trips evenly distributed per month to Puerto Natales and Punta Arenas, unless the interruption is caused by a major breakdown, certified by he Chilean Merchant Navy, or delays in the port terminals that are not the company's responsibility. When this happens the company must make up the missed trips the following month. However if major breakdowns are recurrent, this "could mean poor maintenance of the vessels or non trust worthy operational capacity and therefore the government can impose a 40,000 US dollars fine for each month the company is short of three round trips per month", said Mr Farales. Additionally the government can either subtract the fine from the annual subsidy or the collateral deposit. In September and October Navimag only managed two trips each month.

Lan Chile sued

Forty Lan Chile passengers who last September 14th had to spend overnight in Río Gallegos, Argentina, because climatic conditions impeded the aircraft from landing in Punta Arenas are suing the company. Punta Arenas local Consumer Office who first received the claim consulted with Santiago's main office that recommended a friendly conciliation. However Lan Chile refused arguing that minimum operational conditions in Punta Arenas airport forced the out bound Santiago flight to land in Río Gallegos. Passengers claim they were wrongly informed of what was really happening and forced to remain in a "freezing" Río Gallegos airport waiting allegedly for the aircraft to take off. But several hours later passengers were driven to a local hotel and early morning taken back to the airport for another six to seven hours wait. "They simply wanted to save on hotel expenses and kept us unnecessarily waiting; weather forecasts are pretty accurate and they (Lan Chile) were quiet aware of the situation", said one of the stranded passengers. Gabriel Vidal head of the regional Consumer's Office and who under Chilean law must make the official presentation said "we believe there was a transgression of current legislation but now it's up to the Judge to decide whether there are grounds for the claim".

Employment increase

Unemployment in Magallanes Region during the quarter July-September reached 7,3%, that is 1,2 less than the previous quarter and similar to a year ago, according to the latest release from Chile's Statistics Institute. The Regional Labor Department Officer Jorge Restovic said this was the result of the government's policy to promote employment "that during this last winter enabled Magallanes to have an additional 1,450 jobs". Construction, agriculture and fisheries were the areas most benefited by this policy. "We expect the next quarter to be even better, similar or below those of a year ago. May I also remind you that unemployment in Magallanes was the second lowest in Chile", stressed Mr. Restovic. The areas most employment dynamic were community, social and personal services (520); agriculture and fisheries (350) and construction (350). Those that did worse mining and quarries (-390) and financial services (-290). Compared to a year ago employment increase mainly in construction (1,640); transport and communications (860) and commerce (730).