MercoPress. South Atlantic News Agency

FIDC support to Falklands' economy

The multiple involvement of the Falkland Islands Development Corporation FIDC in providing a key role assisting and advising the Islands' businesses was highlighted in a recent official report made public in Stanley.

Among those areas vital for the Islands' economy that have received support from the FIDC are tourism, fisheries, agriculture and energy.

In Tourism the lodges in Pebble Island and Port Howard have successfully moved from FIDC management to the private sector. Earlier in the year FIDC reached a broad commercial agreement with Lan Chile for a second flight to the Islands, and although this has been overtaken by the deteriorating relationship with Argentina the project is on hold.

FIDC assisted Byron Holdings in re-financing both of the fisheries protection vessels that it now owns which not only helps ensure the protection of the fishery, but also has attracted off-islands finance into the Falklands maritime sector.

Another landmark of FIDC has been the continued development of Sand Bay abattoir in spite the fact this has taken up much of the institution's resources. However, progress has been made and the business was transferred to the recently formed, Falkland Islands Meat Company Ltd, a company run by farmers. This business has doubled turnover to £500,000 and weekly productivity has increased by the same factor with the season shortened from five to three months.

24-hour renewable energy systems have continued to be installed, with 85% of Camp now generating energy this way.

But FIDC has also been careful in ensuring loan recoveries with the provision of an asset and risk finance service which has helped determine farm valuations. This has meant that during the period extending from 1996 to 2002, out of the £ 5,5 million lent to Falkland Islands businesses 96.5% has been recovered.

However even when this review can be seen as reflecting the strength of the Falkland Islands businesses, indicates the report, the FIDC is well aware that the Islands is a fragile economic environment heavily dependent on the fishing industry.

Accordingly FIDC has sought input from industry trade bodies on its 2004/05 budget submission and has also reduced its budget in line with FIG requirements.

Looking forward FIDC is seeking to increasingly work with industry to help individual sectors achieve their own goals, preserving project funding since this frequently provides the "seed-corn" for future developments.