MercoPress. South Atlantic News Agency

Measures to improve Falklands' camp economy

The Falkland Islands government announced its commitment to improve agricultural productivity and farm incomes by moving from short term financial assistance to long term measures and solutions.

Among the measures to develop according to an official release are: improving the quality of communications; identifying ways in which land in Camp which is suitable for housing development might be purchased by FIG so that it can facilitate the growth of the Camp population; exploring, with FIMCo, the expansion of new local markets ? particularly for beef; continuing to permit on farm work eligible for Labour Scheme grants; making access to Agriculture Department grant schemes conditional upon participation in training and development activities and production of farm accounts; tailored packages of assistance will be developed for ?failing' farms where the owner wants to leave farming as an owner/manager; access to investment finance at low rates of interest; the replacement of dedicated marketing skills within FIDC and possible tax incentives.

However Councillors also agreed that the short term measures providing financial assistance to the Camp and which were introduced as part of the preparation of the 2006/07 budget could be repeated next year.

"There is no doubt that the short term measures introduced earlier this year have been very welcome. Farms continue to diversify wherever possible and tourism has made a big difference to some. That trend needs to continue. FIG remains totally committed to following the Agricultural Business Plan and so the challenge now is to encourage wider participation and more rapid progress. We firmly believe that there is great potential. We also accept that a very small number of farms continue to find it impossible to make ends meet and FIG will, if requested, work with them to find long term solutions", said Councillor Ian Hansen who holds the portfolio for the Camp economy.

Results of the short term measures show that 44% of farms have taken advantage of the mortgage interest holiday at a cost of £ 85.500; only five farms with FIG or FIDC held mortgagees have not participated in the scheme. In contrast, only one farm with a private sector mortgage applied to join the scheme. Fourteen of the participating farms had opted to continue making repayments in order to reduce the term of their loan.

The Department of Agriculture also advised that, as planned, FIG had met the cost of internal wool freight for the last wool clip and that there had been a good response to changes in the rules which allowed more flexibility in the use of Agricultural Labour Scheme funds.

"All in all, the short term measures had been welcomed and had made a positive impact", indicates the release