MercoPress. South Atlantic News Agency

Falklands Councillors prepare for another tough budget

The Falkland Islands face an economically difficult year which means the elected Councillors have some tough decisions ahead regarding spending priorities

Rookie Councillor Andrea Clausen admits "it's not going to be an easy process; however I believe that most people are aware of the challenges that face us all".

Veteran Councillor Mike Summers said the coming 2006/07 budget will not be different from the last four or five. "We can all hope and pray that by May-time we have had a decent illex squid season and we may feel a little more relaxed". However "that won't mean there is going to be a good illex season the year after and the year after that, so it is going to be another difficult budget session".

Councillor Richard Davies said that spending priorities are already being considered and even when government departments have cut budgets successfully over the years, "this can't go on without reductions in services and difficult decisions". "Health and education spending has, to a large extent, been protected but those departments are feeling the squeeze as well and members of the public who attended the meeting on education last month will be aware that we are looking at ways by which we can maintain at current levels the numbers of our students going overseas for further and higher education, but it's not going to be easy."

Councillor Mike Rendell mentioned the "thorny issue" of medical treatment overseas. "A possible option that may be worth exploring is to require all non-FIG contract persons coming to work to the Islands from places other than from the UK - because we have reciprocal medical care arrangements with the UK - to take out medical insurance before arrival". "With rising expectations, we are just going to have to take measures to keep this particular area of health costs under control", he emphasized.

Councillor Summers focused on the need for a "certain amount of readjustment of sights" from the different government departments nevertheless, "we will, of course, try to be fair and reasonable to everybody and to maintain all of those essential services that the Falklands thrive on".

Falklands' budgets are closely linked to the South Atlantic squid fisheries which provide the main source of revenue. Poor catches in the last few years, compared to the bountiful nineties, have imposed a more austere outlook into the Islands finances, although the economy's fundamentals remain basically healthy, with increasing and promising potential in other areas such as tourism and minerals.