MercoPress. South Atlantic News Agency

Breaking News from Pta. Arenas.

Headlines:
Lagos visit to Punta Arenas; Unexpected unemployment jump in Punta Arenas; ENAP will invest 50 million US dollars in gas exploration.

Lagos visit to Punta Arenas

Chilean president Raul Lagos will be visiting Punta Arenas next January 6/7 together with Defence Minister Jaime Ravinet and the Commander in Chief of the Army General Juan Emilio Cheyre. Mr. Lagos will be inspecting the rural penetration road system under construction by the Chilean Army Engineers Corps. Two roads are particularly significant: one leading north from Puerto Natales that will offer a further access to Torres del Paine national Park and in Tierra del Fuego an access to Yendegaia. "We are very much interested in the road construction project because it will improve connectiveness and is closely linked to investments in the tourism industry", said a spokesperson from La Moneda (Government House) in Santiago.

Unexpected unemployment jump in Punta Arenas

In spite of the strong performance of the Chilean economy, unemployment during the September/November mobile quarter increased half a point compared to the same period a year ago and now stands at 8,6%, although 0,8% less than the previous 2004 quarter. Similarly in Magallanes Region unemployment jumped to 7,2% almost a full point more than the same period a year ago (6,3%), surprising local authorities who were expecting a recovery of jobs following the winter season and a figure closer to 6%. Besides the September/November percentage has proved to be the highest unemployment mark in Magallanes since 2000. The regional Chilean Statistics Office indicates that the Magallanes labour force actually dropped by 2,750 people compared to a year ago and the total number of employed similarly with a contraction of 3,190. However, compared with the rest of the country Magallanes (7,2%) figures as the fourth region with lowest unemployment. A detailed analysis of the Statistics numbers shows that woman unemployment received the worst impact jumping from 6,5% in September/November 2003 to 9% this year. However for men the difference between the 2003/2004 quarters was just 0,1%. Magallanes authorities are also concerned because there was a considerable drop in the number of social services, community and self employed jobs, 1.160 less than the same period a year ago. Actually employment in all sectors of Magallanes Region economy contracted with the exception of manufacturing and public utilities. In spite of the high season retail trade, agriculture, fisheries and hunting lost 930 jobs. Bernardo Troncoso the Finance Ministry regional representative admitted that even when unemployment in the mobile September/November quarter was less than the previous August/October, "we expected an improvement in new jobs". Mr. Troncoso added that regional unemployment is closely linked to the labour situation of women and to the retail sector because of the massive opening of shopping malls and supermarkets in Punta Arenas. But the regional Commerce Chamber CEO Arturo Lillo was not enthusiastic because the latest increase in unemployment breaks a three years decreasing tendency and does not reflect the traditional dynamism linked to the high season. "If we include the 5,000 people who are linked to seasonal activities and this year apparently have desisted from looking for jobs, unemployment in the region would become a scary issue", emphasized Mr. Lillo. Of the nine economic sectors in Punta Arenas, seven have lost jobs, particularly in areas such as fisheries, mining and retailing, plus social and community services which are mostly subsidized by the local government during winter months. "Compared to a year ago, employment conditions have worsened, with less people holding jobs, more unemployment and less pressure on the labour market because given a decreasing job supply, people's jobs expectations have dropped", concluded Mr. Lillo.

ENAP will invest 50 million US dollars in gas exploration

Chile's oil company ENAP confirmed an investment of over 50 million US dollars in Magallanes Region specifically targeted to natural gas exploratory activities. ENAP General Manager Enrique Davila visited Punta Arenas for the celebration this week of the 59 anniversary of the discovery of oil in Tierra del Fuego and during a video conference to all company offices in the world including the international branch of the company Sipetrol, outlined that "ensuring a sustained supply of natural gas" has become the main objective, an "executive order" from the Chilean presidency. Mr. Davila also talked about the challenges which finding commercially exploitable natural gas reserves in Magallanes region represents for the company, and revealed that in the coming months ENAP will be calling an international bid for the supply of liquid natural gas to address the country's growing demand. Following the experience of Spanish legislation, Chile anticipated it will limit energy provision from an only supplier to below 60%.