MercoPress. South Atlantic News Agency
The Governor's annual address to Legislative Council.
Mr Speaker, Honourable Members of the Legislative Council, Listeners to the Falkland Islands Broadcasting Station, Ladies and Gentlemen:
It is a great privilege to be making my first annual address on the state of the Nation. Since I have only held office in the Falkland Islands for just under half of the year in review, I am indebted to those who have provided me with advice about events during the months before my arrival.
I knew before I took up my post that the Falkland Islands enjoyed a reputation amongst those in the know as a dynamic, forward-looking and optimistic community. I now know from personal experience how accurate that assessment is. The Islands' achievements since the 1982 conflict are truly remarkable.
The commemoration last year of the events of 1982 and the liberation of the Islands was time to remember and express gratitude to those who sacrificed their lives and who helped the Falklands to regain their freedom. But it was also an occasion to reflect on what has been achieved since then and to present to the outside world a modern and up-to-date image of the Islands. The Prime Minister and other senior members of the British Government took the opportunity to reiterate Britain's unshakeable commitment to the Falkland Islanders' right to self-determination.
I should like to express my appreciation to all those involved in organising last year's commemorative events. I can only begin to imagine how much work was entailed. But my appreciation also goes to the Falklands community as a whole. The warmth, friendliness and hospitality of you, the Islanders, made a great impact on the veterans and others who visited for last year's events, and made it possible for many ghosts to be laid.
I should make a special mention of the visits by the Minister of State for the Armed Forces, Mr Adam Ingram, in June, and by His Royal Highness the Duke of York in November, at the same time as the pilgrimage by members of SAMA 82.
This is perhaps the moment to say something about the work of the Falkland Islands Government Office in London, who performed wonders in connection with last year's arrangements, and especially the SAMA pilgrimage. This was only part of the continuing work of the Representative, Sukey Cameron, and her team on behalf of the Islands. It is right to refer to them early in my address because this year is the twentieth anniversary of the establishment of FIGO. In the coming year they will continue their excellent work of representing the Falkland Islands at Westminster, in Whitehall, and at a very wide range of meetings and events throughout the United Kingdom. They also represent Falklands interests in Brussels, where the Falkland Islands has been elected onto the Executive Committee of the Overseas Countries and Territories Association, which works on behalf of the overseas territories of the EU Member States with the EU Commission.
The Falkland Islands Defence Force were also very heavily involved in last year's commemorative events. The FIDF played a pivotal role in the ceremonial parades which were held in most challenging conditions. All members of the Force were proud of the part they played, and were honoured by their participation in the parade marking the presentation of the Freedom of the Falkland Islands to HM Armed Forces. That part of the ceremony in which the FIDF marched through the ranks of British Forces Falkland Islands symbolised the shared allegiance and excellent relationship that exists between FIDF and HM Forces.
Eleven officers and NCOs of the FIDF have benefited from training by the British Army's Small Arms School and have qualified in a range of key military skills during the year. There has been an excellent response to the recent recruiting campaign, with fifteen recruits now nearing completion of their initial training programme. These achievements will enable the FIDF to continue to train for its primary role of assisting with the defence of the Falkland Islands, while maintaining the capability to be deployed on fisheries protection duties at short notice.
I have referred to the excellent relationship between the FIDF and HM Forces. But that relationship goes much wider, and I should like to pay tribute to British Forces Falkland Islands past and present for their contribution to our community. It would be difficult to imagine a better civilian/military relationship. Commander British Forces, we appreciate you and your colleagues' presence here and all that you do for us.
There are many new faces in the Islands since my predecessor's address a year ago. Apart from myself, we have a new Chief Executive, Mr Chris Simpkins, who already has his feet well under the desk, a new General Manager of the Falkland Islands Development Corporation, Mr Julian Morris, and of course a new Commander British Forces who ? such is the speed with which CBFs come and go ? is already nearly half way through his tour of duty.
I know I speak for us all in referring again to the warmth, hospitality and friendliness of the Falkland Islanders. I am immensely grateful for the kindness which has been shown to me since my arrival, in Stanley and in Camp. I have already had the opportunity to do some travelling in Camp and have visited 14 farms to date, if I have done my arithmetic correctly. I plan to do a great deal more. My objective is to visit every farm in the Falklands before I leave here ? a rash undertaking, perhaps, but I shall do my very best! I must pay particular tribute to the previous Chief Executive, Dr Michael Blanch. Dr Blanch made an enormous contribution to the Islands during his 3 years in office. I believe that he will particularly be remembered for his work in modernising government and the Civil Service. That is very much work in progress, but Michael Blanch has laid some substantial foundations. I am delighted that, for a while at least, through his role with Stanley Services he is maintaining a continuing involvement with the Falklands.
Legislative Council's work this week will be focussed on next year's budget, so it is appropriate that I should turn next to the state of the Falkland Islands' economy.
I turn first to developments in the Falklands fishery, as the single most important element in the economy. There have been mixed fortunes. Unfavourably cold environmental conditions resulted in record low catches of both Illex and Loligo squid in 2002. This resulted in some refunds of fishery licence revenue. The good news is that the performance of the Illex fishery has been much better in 2003, with total catches exceeding 100,000 tonnes. There has been a good take-up of licences, which has helped return licence revenue to normal levels. But the biomass of Illex has reduced towards the end of the season, to the point where it has been deemed prudent to close the fishery at the end of May, some two weeks early. There will as a result be some refund of licence fees, but without much effect overall on income from licence revenue. Catches of loligo have been reasonable despite the much shortened season.
The year also started with two shipping disasters. In June the Korean longliner Han Dong 11 sank in the entrance to Berkeley Sound. Fortunately all 35 crew were picked up from the ship or liferafts by FIC and Sullivan Shipping Services launches. In July a Korean trawler, the Tunggal Jaya 18, caught fire in Berkeley Sound. The fire was fought for four days by the Falkland Islands Fire and Rescue Service. The fire was extinguished and the vessel eventually towed away. The fact that there were no casualties in either incident, and no oil pollution in the second incident, owed much to the efforts of the launch crews and Fire and Rescue personnel. Additional assistance from British Forces Falkland Islands and FPV Dorada was provided at various times. Indeed thanks are due to BFFI and in particular to 78 Squadron for the excellent service which they have continued to provide throughout the year with the evacuation of seriously ill or injured fishermen from their vessels.
The Dorada was used in the joint research programme with Argentina for the first time in September, as part of an expanded survey of Southern Blue Whiting stocks in Falkland and Argentine zones. Several Argentine scientists were embarked on the Dorada. Unfortunately progress on other fishery issues with Argentina has been slower than expected, but we hope that there will be a productive exchange at the next meeting of the South Atlantic Fisheries Commission, now planned for the end of June.
During the course of the year a Working Group under Councillor Cockwell's chairmanship has undertaken a major review of fisheries policy. This has culminated in the production of three reports, covering the development of marine farming and aquaculture, the development of the port and port infrastructure, and a review of the licensing and fisheries management system. The central proposal in the last of these reports is to move from the current system of relatively short term licences to the establishment of long term transferable property rights in the fishery. Executive Council has agreed the principle. Councillor Cockwell and his Working Group will be continuing work on the detailed implementation of this important new policy. New fisheries legislation could be in place by early 2004. The objective of these developments is to expand the benefits to the Islands economy which flow from fishing and related activity.
Agriculture is another key element of the Islands' economy. The recent rise in the wool price has improved the position of the industry after a long and very difficult period of depressed prices. The global outlook for wool for the next 12 to 18 months appears firm, with production from the major wool producing countries forecast to be lower than normal. The Agriculture Department has worked closely with farmers over the last year on business skills development in the "Way Forward" project. Farmers using wool price benchmarking to guide their wool marketing have increased incomes by up to £4000 per annum. Participating farmers now believe they have greater control over how their wool clips are sold. The Agriculture Department has also supervised the core sampling of about one third of the annual wool clip (twenty times the number of bales sampled two years ago). The information which farmers have been able to gain from this analysis has helped farmers to obtain the highest price possible for their product.
Meanwhile preliminary reports suggest that the number of sheep in the Islands has decreased because of seasonal conditions during the 2002 winter and the previous summer. This clearly places an imperative on achieving the maximum price possible for the wool produced.
The abattoir secured EU certification in December. This makes the opportunity for farmers to develop meat enterprises that complement wool production a reality. The first sample shipment of meat to the UK has now been delivered. During the next financial year the Agriculture Department will continue to work with relevant stakeholders on the development of the sheep meat and beef industries.
The Falkland Islands Development Corporation continued its work to promote the diversification and development of the Islands' economy. The organic certification scheme has continued to grow and eight farms now have this status. More than sixty wind power systems have been installed throughout the Islands through the energy grant scheme. Tourism has had a successful year, despite a difficult global environment, with some 68 cruise ship visits during the 2002/3 season, eight up on the previous year. The prospects for next year are encouraging, and we can look forward to visits by the QE2 and "The World". With some 30,000 cruise ship passengers visiting the Islands there are enormous opportunities for the economy of which we have yet to take full advantage. There is plenty of room here for creative and imaginative thinking, and for the development of our skills in customer service.
Passenger volumes on the Lan Chile flight have continued to grow ? by some 17% over the last year ? and negotiations for a second weekly flight during the next summer season are in train.
A new strategy for tourism has led to the establishment of Falkland Islands Tourism, with strong private sector involvement, as an independent body no longer operating under the FIDC's umbrella.
Mineral resources represent another important element of the Islands' economy, actual and potential. Ten open door production licences covering a large proportion of the undrilled South Falkland Basin were awarded to the Australian led Falklands Hydrocarbon Consortium last July. If the results of the three-year exploration phase are positive, the Consortium will plan a drilling programme. Meanwhile Desire Petroleum, Argos Evergreen and Talisman Energy continue to operate licences in the North Falkland Basin.
An excellent marketing relationship has been forged during the year between government personnel, including consultants from British Geological Survey, and licensees. A number of companies are now poised to become active in the Falkland Islands once global conditions for hydrocarbon exploration in frontier areas improve.
A second seabed survey by the Southampton Oceanographic Centre in conjunction with the Falkland Islands Government, utilising the British Antarctic Survey vessel James Clarke Ross, was completed in April. The data now acquired over two seasons should make it possible to put together a sizeable continental shelf claim under the United Nations Convention on the Law of the Sea. The advice of Dr Phil Richards of the Southampton Centre has been invaluable in this connection.
Onshore mineral exploration has seen some interesting developments this year. If the analysis of the trenching exercise on East Falkland carried out by the Minerals Joint Venture in January and February is positive, more exploration for gold sources may follow. However, modern mining legislation will be a sine qua non, and is being prepared along with appropriate environmental legislation for public and Executive Council consideration.
Taxation may not be a popular subject, but is crucial for any economy. The taxation system has undergone significant modernisation this year, with the introduction of independent taxation for married women, which has removed an enduring and outmoded element of discrimination from the Islands. Also during the past year, the Taxation Office has completed the process of bringing a substantial backlog of work up to date, and is now concentrating on developing its professional service to customers.
Far reaching proposals for the simplification of the tax system have been published, and have undergone a programme of comprehensive public consultation. Work on this will be taken forward in the coming months. The objective is a personal tax regime straightforward enough to be easily understood by the majority of people.
The Falkland Islands offer an exceptionally high quality of life. One of the institutions we have to thank for that is the Royal Falkland Islands Police. I am pleased to take this opportunity on behalf of everybody in the Islands to express our gratitude for all the Police do to make our lives safer and easier. Thankfully, crime is low in the Falklands. Indeed, over the last year there has been a further small reduction in crime figures and the detection rate has improved to a remarkable 98%. The Force continues to strive to become more community focussed. To this end they have introduced their own customer charter, and have taken steps to consult the public on policing matters. The DARE programme is an important part of this strategy in promoting drugs awareness, and is going from strength to strength, in cooperation with the Health, Education and Social Welfare Departments.
I have already made some reference to the work of the Fire and Rescue Service. The Service has been through major staffing changes during the last few years, but has dealt successfully with a range of incidents during the year, including the major ship fire in Berkeley Sound to which I have already referred. The Service has continued with its fire safety programme and visits to farms during the year, as well as its internal training programme. The firefighters are to be congratulated on their successful fundraising efforts.
The Health and Social Services Department also make a major contribution to the quality of Falkland Islands life. Plans are well advanced for the Nursing Home extension to the King Edward Memorial Hospital, as well as for additional sheltered housing units. These are long awaited and welcome developments in improving the care available to older residents. The Social Work Department and Community Nurses have worked with elderly members of the community and individuals with special needs to form the Acorns Group, which meets regularly in the Day Centre at the hospital.
Following the Chief Medical Officer's report "Health of the Nation" in 1999, steady progress has been made with the completion of the strategies on oral health, smoking and alcohol, and, even more importantly, turning the strategies into action. The remaining two groups, the first dealing with mental health and the second the Teen Health Forum, are hard at work and should be completing their deliberations later in the year.
There has been tremendous progress with improving the hospital infrastructure. A state of the art X-ray system using digital film has been installed. There has been excellent progress with the conversion of part of the upper floor into an extended laboratory to undertake enhanced tasks associated with food safety. And in a busy year the engineers have also installed a modern energy management system which has achieved a reduction of a third in heating oil consumption. There may be lessons here for other government departments.
There has been a steady increase in the amount of care provided by the Health and Social Services Department. More patients than ever before have been sent overseas for advanced diagnostic tests and treatment. A growing number of patients has been sent to Chile for these purposes, offering a quicker, more efficient and more cost-effective service for a number of illnesses. The number of aeromedical evacuations, mainly of foreign fishermen and tourists, has also grown substantially, requiring effective coordination among a number of government departments. The fact that these urgent humanitarian flights happen so smoothly speaks volumes for the values and compassion of our community.
Education is the bedrock of our community. The opening of the Infant Junior School extension by HRH The Duke of York in November last year has provided the Islands' younger pupils and their teachers with a splendid modern facility of which any school anywhere would be proud. It is therefore heartening that the inspection of the Infant Junior School, the Community School and Camp Education which took place in November and December last year produced such satisfactory results. Naturally enough, some concerns were raised, particularly in the very difficult area of Camp Education, but there were few surprises. In the coming year particular attention will be given to improving the curriculum on offer and extending more able pupils; putting into place a foundation stage curriculum for younger children; developing systems for using assessment data; the role of senior teachers; developing teaching and learning policies; and differentiation and support for pupils with special educational needs.
Staff and pupils should be congratulated on the last set of GCSE results, with two local pupils achieving high grades and others gaining very satisfactory points totals which will allow them to study in the UK in the 2003/4 academic year.
Pupils from both schools gained recognition for personal and group achievements during 2002. Congratulations are due especially for the Community School's first prize in the Times Educational Supplement's Newsday 2002 competition for the production of an excellent "20 Years On" edition of their newspaper "Focus".
This has been a busy year for the environmental agenda. The Falkland Islands Development Plan made good progress. The Stanley Town Plan Location Issues report was presented for public consultation, including a public meeting in the Town Hall. The Draft Structure Plan and Town Plan have both been considered by Government Departments and Councillors and will be available for public consultation later in 2003.
During 2002, 173 applications for Planning Permission and/or Building Permits were considered. Detailed approvals were given for 20 new dwellings. 10 new dwellings were constructed during 2002.
The Department made a successful bid for FCO project support to help drive forward the Falkland Islands Environmental Charter and to act as a pilot for progressing similar charters in other UK Overseas Territories. A two year post has been established which will produce a Conservation Strategy and Biodiversity Action Plan for the Islands.
The Department is advancing proposals for the establishment of three National Parks at Hill Cove Mountains, Hill Cove Forest and Wickham Heights. Draft management plans have been prepared by Falklands Conservation and considered by Executive Council prior to a period of public consultation.
In August 2002 the Falkland Islands Government gave its support to the UK's ratification of the Agreement on the Conservation of Albatrosses and Petrels. This requires mitigation measures to be in place to prevent bycatch of seabirds by longliners, active habitat management, and an end to the licensing of albatross egging.
The Falkland Islands Government Air Service has continued to provide an indispensable service to the community and the developing tourist industry. We must never take this splendid and very professional service for granted. The controversial issue of flying on public holidays was addressed, and following extensive discussions between the Administration and FIGAS arrangements to fly on a number of annual holidays were implemented in late November. The usage of the service on these days will be carefully monitored over a three-year period to establish the true value of the exercise.
It is gratifying that external audits continue to confirm the consistently high standards of the maintenance and operational aspects of FIGAS. The service will strive to maintain the validity of these accolades.
There were some 3467 movements at Stanley Airport in 2002 and 7105 people used the airport during the year. An important objective for the Civil Aviation Department in the short, medium and long term is the repair of the Stanley Airport runway.
The working relationship between the Civil Aviation Department and the military authorities at MPA continues to develop. Coordination of communications on international flights, aeronautical information and airspace management has improved.
A new company called Air Safety Support International has been formed to carry out the UK's responsibilities for oversight of civil aviation regulation in the Overseas Territories. The establishment of an effective working relationship with the new company will be a major preoccupation for the department over the next year.
Following a review of the Coastal Shipping Service, a new contract is in the process of being put in place and will come into operation from 1 July this year.
Work has proceeded on Camp roads, with some 47 kilometres constructed during the year. The new road to Port Stephens in West Falkland is expected to be completed ahead of schedule by the middle of next year.
This is only one of the most visible aspects of the very wide range of work carried out by the Public Works Department during the year, much of which continues unnoticed but is "vital to life" ? for example, the supply of electricity and clean water. The partnering arrangement with Morrisons (Falklands) Ltd, now known as AWG Construction Services (Falklands) Ltd, has continued. Works undertaken during the last year include infrastructure for 29 housing plots at East Stanley, the FIDF ammunition bunker, sea truck ramps and alterations within the FICS. Also under way is work on the sheltered housing project on Villiers Street and construction of the final phase of the East Stanley housing infrastructure project.
Work has proceeded on waste management policy and proposals for the management of asbestos based materials. An electrical review is shortly to be undertaken covering development of three important areas of the electricity supply: renewal of the existing generating plant, a possible high voltage link with Mount Pleasant, and an assessment of the integration of wind power into the Stanley electrical system.
Within the Property and Municipal Section, a more proactive approach to maintenance work has been the main focus for the past year, with the implementation of a scheduled maintenance programme for key tasks. It is intended that plumbing and related maintenance work will be outsourced during the 2003/4 financial year.
It has been a busy year for Customs and Immigration, with a marked increase in the number of visiting cruise ships in a year when the Department has suffered from staff shortages. A significant event during the year was the conviction of two individuals for possession of unlawful drugs following an operation conducted in cooperation with a Royal Air Force drugs search dog team. Two ocean-going fishing vessels were added to the Falkland Islands Shipping Register, bringing the total number of vessels registered in the Falklands to 30.
The invasion of overseas press in connection with last year's commemorations and the events themselves meant an exceptionally full year for the Falkland Islands Broadcasting Station. The station now has a firm foundation from a programming and news output and has covered many major local events during the year.
Archives and the Museum have worked closely together during the year on the presentation of Falkland's history. The highlight for the Archives was the generous donation by the Hon. Alexandra Shackleton of an important painting of Keppel Island by William Parker Snow. Diaries and other records dating back over a hundred years were given by two farms on East and West Falkland.
Mrs Leona Roberts has taken over as the new Museum manager. New leaflets and posters have been produced during the year, together with the construction of a Museum Website. A Museum Kids Club is being set up. The Museum shop achieved a threefold increase in sales last summer season and has plans to better this next season. Projects for the coming year include the restoration of the Governor's taxi and continued work on Nutt Carmel Cottage.
The Post Office handled around 1 million items of mail during the year, and in excess of £1 million of cash in connection with the sale of electricity meter cards and payment of pensions and family allowances. The Philatelic Bureau exported some 6,500 packages to customers around the world and provided philatelic and postal services on board 17 cruise ships.
This has, as always, been a very full year for the Attorney General and his staff, with a substantial programme of legislation and an important, time-consuming and costly arbitration in progress. There is a particularly heavy programme of legislation over the coming year, including a Mining Bill, a new Fisheries (Conservation and Management) Bill, a Marine Farming Bill, and a Planning (Amendment) Bill, together with a review of sentencing options which is likely to result in a Bill being brought before Legislative Council later this year.
The Registry too has had a busy year. A particular concern relates to the preservation of documents, with serious deterioration being suffered by Crown Grants books and other registers. Urgent work is required to address this problem.
The Courts continue to provide an independent and effective safeguard of the rights of all those living and working in the Falkland Islands. There have been 84 days of sittings in criminal matters and 36 days in civil and family cases throughout the year. In addition 11 deaths were reported to the Coroner and inquests were held in four of those cases.
It is essential that we maintain, support and develop a strong and independent judicial system, which is the hallmark of a mature society. It contributes to the protection of our safe way of life, provides a framework within which investment in the Islands can continue, and is a shield to all citizens against the potential excesses of the State.
The work of the Secretariat, with its key role in promoting good governance in the Falkland Islands, lies at the heart of government. The new Management Code, the result of many hours of work and consultation throughout the public service, is near completion and should be formally introduced later this year. It is an impressive document. The Falklands is the first of the UK's Overseas Territories to modernise the rules and regulations governing the management of its public servants. I am confident that it will serve as a model for other territories, and my fellow Governors have already shown interest in the work which has been undertaken here.
The Secretariat has already demonstrated its commitment to self-improvement with its success earlier this year, together with a number of other government departments, in achieving the Investor in People award.
The new Chief Executive is carrying out an evaluation of the business processes of Government. His intention is that over the next twelve months there should be a thorough review of decision-making processes, leading to the design and introduction of a uniform annual business planning process and a range of other initiatives which are aimed at developing a culture of continuous improvement in the performance of government.
Budgetary planning is a key part of this process. The Treasury has carried the burden over the last year of the Priority Based Budget exercise. It has been a tough but necessary process in order to prepare government for the contingency of a collapse in income from the fishery. Fortunately the doomsday scenario has not been realised. But there is no room for complacency, and the events of last year are a warning of the risks involved in dependency on a single source of income.
The Treasury has also made a start with modernising audit arrangements, following the appointment of Mr Peter Copp as the new Principal Auditor, with a view to improving standards of financial management and governance.
I turn finally to the Legislature, the core of the Islands' democratic infrastructure. Legislative Council has sat on six occasions in the last year and has passed 29 Bills. Select Committee has met six times, mostly to take forward the review of the Constitution. Executive Council has had 11 meetings, and has considered more than 300 papers, together with a great deal of other business.
I am very conscious that last year's events placed a particularly heavy burden on Councillors and their staff. By all accounts everybody rose to the challenge impressively, and I know that your visitors, ranging from HRH the Duke of York to the Ground Force Team and Jim Davidson, were deeply impressed. I should like to say a particular word of thanks to Claudette Anderson, and to congratulate her on the award of the MBE.
Councillors played a key role in representing the Falkland Islands overseas, in both the Commonwealth Parliamentary Association and a range of other bodies. This is important work, and essential for maintaining and further enhancing the Islands' international profile. It was also good to welcome a number of British Members of Parliament to the Falklands.
In February next year the Falkland Islands will host the British Isles and Mediterranean Regional Conference of the Commonwealth Parliamentary Association, at which we are expecting some 40 guests from overseas.
Before I took up my post as Governor, a friend of mine in the UK questioned whether I would have enough to do here. My summary of Government's activity over the last year provides a pretty clear answer to that question. Even so, I am conscious of how much I have left out, and I apologise to anyone who feels that their particular work has not been given the attention it deserves. But I did not want to detain my audience too long! This may be a small community in numbers, but the range of activity is astonishing. Government does here much the same as it does in any other country ? including indeed a number of things which Governments do not do elsewhere. I think we should be grateful to the public service for doing it so well. Small may beautiful, but it does not necessarily mean life is simpler!
In closing, Mr Speaker, I should like to thank a number of important people. First, my staff at Government House, for everything they have done to make my life easier since my arrival nearly 6 months ago. I should like to pay a special tribute to my Deputy, Russ Jarvis, and his wife Joan. Their six and a half year tour here must be something of a record. I know that they have enjoyed the Falkland Islands immensely. I shall greatly miss their wisdom and support following their departure in July. I extend to both Russ and Joan very best wishes in their new post in Montserrat.
I should also like to say a very warm thank you to all members of Executive and Legislative Councils ? for all the help and patience which you have shown towards me as I have been learning the job here, but even more for everything that you have contributed to the Falkland Islands over the last year. And finally, my thanks to the people of the Falkland Islands, who make these Islands really special. Government is run for your benefit. I hope all of you will continue to tell us ? whether me, the Chief Executive, other senior officials, or, most especially, your elected Councillors ? what you think of it. H.E. Governor H. Pearce - Stanley
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