MercoPress. South Atlantic News Agency

Kirchner tactics “are entirely counter productive”

“The Falkland Islanders are determined to maintain their right to self determination” and Argentine President Kirchner's administration tactics to put pressure on the Islands “are entirely counter productive”, said Governor Howard Pearce this Tuesday in his annual address to the Legislative Council.

But "Falkland Islanders are ready to engage in constructive, pragmatic and practical cooperation with Argentina", stressed Governor Pearce saying that both parties stand to benefit from such a relationship, as they have done in the past.

And in spite that "recent events" have not made the relationship any easier, "progress requires a stable, predictable and reliable Argentine partner equally committed to mutually beneficial cooperation".

By "recent events", Governor Pearce was referring to the Argentine decision to refuse authorisations for charter flights carrying cruise ship passengers to the Falklands and the incursion by the Argentine naval vessel "Almirante Irizar" into the Islands fishing zone.

Further on Mr. Pearce underlined that "sovereignty is not and will not be on the agenda", insisting on the "unshakeable" support of the British government to the Islanders right to self determination. "That commitment is demonstrated by the presence in the Falklands of significant British Forces recently redesigned British Forces South Atlantic Islands, for which the Islanders continue to be extremely grateful".

The annual Governor's address to the Nation also signals the beginning of possibly the most significant legislative event for the Falkland Islands when the budget process, revenue and expenditure estimates for the next year, are considered by elected Councillors.

In his message Governor Pearce cautioned Islanders about the "especially challenging" several years to come because of "two sets of circumstances", the failure of the Illex squid fishery and the deterioration in the relationship with Argentina.

Described as the worst year in the history of the Illex fishery, --with no certainty about the future-- and substantial reduction in the government's income, will mean taking "some tough decisions about spending over the next few years". "It's going to be a difficult budget session", forecasted Mr. Pearce and "I would encourage the wider public to be understanding of the very difficult task which elected members face this year".

Governor Pearce pointed out that there are areas where public provision has been especially generous in the Falklands, "substantially more than the United Kingdom equivalent" and "where current spending is unsustainable".

In spite of the fact that the Islands government has been able to build up a substantial reserve over a period of years which makes it possible to address, without panicking, budgetary shortfall in a measured way, Governor Pearce again cautioned "Councillors have a duty to face up to these realities, to prioritise and to take unpopular decisions when, as no, circumstances make it necessary".

Falklands' main sources of income are fishing licences, tourism and interest from the Reserve Fund.