MercoPress. South Atlantic News Agency

Penguin News Update.

Headlines:
Budget deficit forecast but ?finances in good shape'; Governor: relations with Argentina ?disappointing'; Search for runaway teens ends happily; University students pass; Frances is May Queen.

Budget deficit forecast but ?finances in good shape'

"THE public finances remain in good shape, even in an interim deficit budget situation and the prospects for continued economic growth are sound." That was the message delivered by the Financial Secretary, Derek Howatt, at the end of the government's budget session this week. As was the case last year, the choices made during the session were not easy, Mr Howatt said, due to the impact of a much lower level of fisheries licence fee income, owing to the failure of the illex fishery this year. However, despite another tight budget round, all essential services are maintained, "...broadly at existing levels." A deficit of £1.4 million is now expected at the end of this financial year, compared to a deficit of £3 million forecast a year ago. The reason for this £1.63 million improvement, Mr Howatt said, is due to a net increase in revenue, "...mainly from taxation and investments." Next year's deficit is expected to be even less - around £400,000. Measures approved under the new budget include a 1.5p increase per unit of electricity, a general 3.5% increase in house rents, an increase in postage on airmail letters to 55p and on postcards to 45p, an increase in vehicle licence fees and an increase on customs import duty on cigarettes and alcohol of 15% and 5% respectively. An increase to charges at Stanley House Hostel from £1.50 to £2 per day was not approved; instead an increase of 10% to £1.65 per day was approved, along with the principle for incremental increases for future years. There is to be no change in income and corporation tax rates and allowances, embarkation tax, passenger tax, customs fees and harbour dues or water, refuse and service charges. The level of the child allowance is to remain unchanged at £53.50 per month per child and civil servants are to receive a cost of living pay award of 1.5%. Councillors' allowances for the new council (due to be elected towards the end of the year) will be increased by 7%, representing the total increase in the government salary scales over the four year life of the current council. Reflecting on the week's proceedings, Chairman of Standing Finance Committee, Councillor Mike Summers commented, "One cannot be entirely satisfied at setting a deficit budget but, in all the circumstances, a deficit of less than £400,000 is not too bad at all. We have been able to retain the projected level of reserves at 2.5 times operating expenditure which is in line with the Islands Plan. This is after taking out from income a further £2 million anticipated reduction in illex fee income. "We have tried to be fair and equitable, and to adopt the user pays principle as far as is possible, and have been able to maintain levels of investment in the key production areas of fisheries, agriculture, tourism and minerals, as well as general development through FIDC, infrastructure, education and health services." *Legislative Council coverage in Penguin Newsnext week will include reports on Bills passed by the House and councillors' motion for adjournment speeches. Photo: Councillors contemplate their forthcoming budget in the Court and Council Chamber on Tuesday.

Governor: relations with Argentina ?disappointing'

"THERE is little I can say that is positive in terms of relations with the Argentine Government," His Excellency the Governor has reported in his annual Address to the Nation. Speaking to Legislative Council and the Islands as a whole on Tuesday, Howard Pearce described as "regrettable" Argentina's refusal to discuss co-operation on a high seas fisheries agreement for the region on terms which the UK and Falkland Islands Governments could accept, "...despite there clearly being a mutual interest in improving the quality of regional fisheries management." He said there had been some progress in discussions between the UK and Argentine Governments on a feasibility study concerning the removal of mines from the Falklands, however on the issue of charter flights, "...there has been no movement, and there is currently no sign that the Argentines are prepared to discuss it on terms which would be acceptable to Falkland Islanders." Mr Pearce's annual address was shorter than in past years; having consulted on the matter, he decided to focus his remarks on "some personal impressions of the events of the last year and the prospects for the next twelve months." His more traditional department by department report will be available in written form, from the Government Secretary. In his address on Tuesday, His Excellency commended councillors' attendance at overseas meetings, saying they are right to take, "...every opportunity to put the Falklands' case for self-determination to the international community," and said it was important to welcome, "as wide a variety of overseas visitors to the Islands as possible." Mr Pearce also touched on the nature of the relationship between the Overseas Territories and the UK Government. He said the white paper Partnership for Progress and Prosperity, published by the Foreign and Commonwealth Office in 1999, describes the relationship as a "new partnership" and bases it on four fundamental principles: self-determination; mutual obligations and responsibilities; freedom for the territories to run their own affairs to the greatest degree possible; and a firm commitment from the UK to help the territories to develop economically and to assist them in emergencies. Continued on page 3.

Search for runaway teens ends happily

TWO girls who ran away from home on Tuesday were found safe and well later that same day. At 12.40pm on Tuesday police received a report that the two girls, believed to be aged 14 and 15, were missing. Officers established that both had run away from home. A search operation was mounted, co-ordinated by the Royal Falkland Islands Police and involving members of the Falkland Islands Defence Force and Her Majesty's Forces. A radio appeal for information was transmitted by both the British Forces Broadcasting Service (BFBS) and the Falkland Islands Broadcasting Station (FIBS), which generated several calls from members of the public. As a result of these calls a search area was identified. At 4.15pm, both girls were found safe and well, in the vicinity of Mullet Creek. On Wednesday, the Chief Police Officer said he was grateful to, "...all members of the Falklands Islands Defence Force and HM Forces who assisted, BFBS and FIBS for broadcasting the appeal and all those members of the general public who telephoned in their information."

University students pass

TWO Falkland Islanders studying in Britain have achieved university degrees this week. James Wallace, son of Stuart and Lilian Wallace, has gained an MBA with distinction from Southampton University while John and Veronica Fowler's son, Daniel, has gained a 2:1 MSc from Edinburgh University. Daniel is planning to return to the Falklands to work later this year.

Frances is May Queen

FRANCES DOUSE, daughter of Andy and Bronwen Douse, was crowned May Queen at the annual May Ball last weekend. Full coverage inside.