MercoPress. South Atlantic News Agency

Penguin News Update.

Headlines:
Santa calls in. New tax system from January 1. Christmas cruises.
Soldier wounded. Passenger tax rises. Clearway until March. Symonds loan agreed

Santa calls in

SANTA CLAUS made an early journey to the Falklands last week with a special trip, via helicopter, to visit children in Camp. His reindeer took a break as he flew to seventeen settlements in two days aboard a British International helicopter. Penguin News caught up with Santa before he made his return journey to the North Pole. He assured that this would not be his only visit to the Falklands and he will be back on Christmas Eve as part of his usual round of deliveries. Full report on page 3 Santa Claus delivers presents to Liam and Ysanne Rozee and Bethan and Madeline Halliday at Fox Bay. Photo: MPC Photographic Centre.

New tax system from January 1

A Bill implementing recommendations from the recent Tax Policy Review was passed by Legislative Council at its meeting last week. The rates of income tax are changed from a three tier system to a two tier system. The first £12,000 of chargeable income will be taxed at 20% and the remainder at 25%. At present the rates are 20% on the first £22,000 of chargeable income, 25% on the next £13,000 and 40% on the remainder. In a speech to Legislative Council, the Financial Secretary, Derek Howatt said, "Most of the existing income tax deductions are removed. These allowances are earned income relief, maintenance payments, mortgage interest relief, dependent relatives allowance, married man's allowance, age allowance, additional allowance for children and life assurance premium relief. The deductions allowed for pension contributions are maintained. "The personal allowance is increased by £5,500 from £6,500 to £12,000. This reflects one of the main simplification measures to replace all those allowances removed with one higher allowance." These changes take effect from 1January 2004 income and follow on from the introduction of independent taxation for married men and women introduced by an amendment Ordinance last year. Significant changes were also made for corporate tax payers. These include: lowering the rates of tax in line with those for income tax; abolition of Advance Corporation Tax; improvements for group relief; abolition of initial depreciation allowances; carry back of losses. The Bill was passed as proposed by the Financial Secretary, with one technical and several minor amendments. The Benefits in Kind Rules were also approved, with effect from January 1, 2004, subject to approval by Executive Council of an amendment proposed by Councillor Roger Edwards. This amendment would place a ceiling of £4,000 on the taxable value of board and accommodation charged under those Rules. The Rules with the proposed amendment will not come into force until they are made by the Governor. He will not make these Rules until the amendment has been considered and approved by Executive Council in January.

Christmas cruises

A LARGE number of cruise ships will be visiting over the Christmas and New Year period. Today New Island will host Explorer II and Europa will be at West Point Island. Andrea will be in Stanley. Vistamar will spend Christmas Day in Stanley. The World will head to West Point and New Island on Saturday and Stanley on Sunday. On New Year's Eve, Amsterdam will be in Stanley, Grigoriy Mikheev will be at West Point and Carcass Island and Polar Star will be at New Island. Discovery and Grigoriy Mikheev will call into Stanley on New Year's Day. Polar Star will be at West Point and Carcass Island. On January 2, Discovery will head to West Point and Norwegian Crown will be in Stanley. Polar Star will visit Steeple Jason. Royal Princess will be in Stanley on Saturday, January 3 and on the 5th Clipper Adventurer will visit Sea Lion Island. The next day she will head to New Island. Professor Molchanov will be at New Island and Carcass Island on January 7 and Clipper Adventurer will return to Stanley. Andrea will visit New Island North and West Point. On Thursday, January 8, Professor Molchanov will be in Stanley, Clipper Adventurer will visit Bleaker and Sea Lion Island and Andrea will call into Carcass and Saunders Island.

Soldier wounded

A SOLDIER was evacuated from the Islands at the weekend after he was injured during a live firing exercise. Fusilier Raymond Hurst, a member of the Roulement Infantry Company, (A Company, 1st Battalion Royal Highland Fusiliers) received a gun shot wound to his lower leg during an exercise at Onion Range on Friday afternoon. A military spokesperson told Penguin News, "An investigation is ongoing but it looks almost certain that he slipped and discharged his rifle himself. "It seems this was just a very unfortunate accident." Fusilier Hurst was flown to hospital in Stanley after the accident then medivaced on Saturday night's Royal Air Force Tristar to the United Kingdom and is receiving treatment.

Passenger tax rises

THE government passenger tax paid by visitors to the Islands will rise by £3, to cover the cost of improved security. At their meeting last week Executive Council considered a paper about the extension of the Safety of Life at Sea (SOLAS) Convention to the Falkland Islands. His Excellency the Governor, Howard Pearce explained, "This is important in connection with new security arrangements for visiting cruise vessels. We agreed that these arrangements should be implemented by the Falkland Islands Government in order to comply with new requirements under the SOLAS Convention." Other changes will include the Marine Officer taking on duties of the Port Facility Security Officer and the preparation of a Port Facility Security Plan. Mr Pearce said the extra funds required to carry out these measures, "...will be recovered through an increase in the existing passenger tax from £10.00 to £13.00 per head."

Clearway until March

THE Ross Road clearway is to remain for the rest of the summer, until March 31, 2004. His Excellency the Governor said Executive Council will review the future of the clearway at its February meeting. "Meanwhile work is in hand to make provision for parking for the benefit of those businesses affected by the clearway at the east end of Ross Road." Mr Pearce added that the Clearway Order will be amended to allow parking on Ross Road on public holidays and weekends.

Symonds loan agreed

A LOAN agreement has been approved by Executive Council (ExCo), between the Falkland Islands Government and Peter Symonds College in the United Kingdom, covering the payment of fees for Falkland Islands pupils over the next seven years. ExCo also recommended that Falkland Airport Services should be granted a further two year contract from December 3, 2003 for the provision of air transport security services.