MercoPress. South Atlantic News Agency

Falkland Islands: Weekly Penguin News update

Headlines: Concordia Bay is on her way; Anger at squid fee hike; Argentine protest at drilling plans; Co-op in difficulty?

Concordia Bay is on her wayFOLLOWING successful final sea trials and compass swinging, the Concordia Baysailed from Miri in the early hours of Sunday morning with a crew of eight on board. Workboat Services Ltd Manager Adam Cockwell, who was in Malaysia to witness the event, said it was planned for the ship to head west via the Sunda Straight to Port Luis in Mauritius, then on to Port Elizabeth in South Africa: "From there the current plan is to round the Cape and head to Montevideo before heading south to the Falklands." Her estimated arrival in the Falklands was early July, he said. Yesterday the vessel was reported to be on schedule travelling at between eight and 11 knots through the South China Sea. Anger at squid fee hikeMEMBERS of the loligo fishing industry are reeling with shock at the announcement that, for the second time since 2006, the government is to increase licence fees by thirty per cent. This brings the total increase over the past five years to around 85 per cent and increases government revenue from the second season fishery by just under one million pounds. The fee set by Executive Council was ten per cent higher than the level recommended by the Director of Fisheries in a paper which highlighted areas of the fishing industry which would be sensitive to a major increase. According to the paper, fuel costs increased by 70 per cent in the last year and while the last loligo season (February to April) was relatively good with catches higher than last year's, the higher supply would almost certainly lead to a fall in prices - signs of which were already apparent on fisheries websites. The government believes that a licence fee equal to ten per cent of the value of catch is reasonable, however the Director of Fisheries noted that pursuing a rigorous ten per cent fee/revenue policy would also mean reducing fees when the ratio exceeded ten per cent: "In practice that has rarely been done," he said. The previous thirty per cent increase in 2006 resulted in this target having already been exceeded. Input from the industry was included in Mr Barton's paper including a statement that no other country charged their industry such high fees, explaining that this was partly because the government calculated their ten per cent fee not just on the value of the fish 'ex-vessel', but on the cost of transporting it to the market as well as the costs of storage and marketing. For the local industry, who pay the same fees as their foreign competitors as well as the same port costs in their home port, the level of fees is beginning to endanger the long term future of the industry. A spokesperson for the Falkland Islands Fishing Company Association told Penguin News: "What we could well be seeing is the beginning of the gradual destruction of our fishing industry before it has had a chance to develop. Whilst the industry can generate the cash that the government want to take from it, it leaves insufficient profit for reinvestment and vessel replacement. "When this happens, banks and other lenders see an industry that is not generating the return on the money invested in it. The end result is that we will simply not be able to borrow the money that will be needed to replace old vessels." He added: "In theory we shouldn't have to borrow, because the profits generated during the life of a vessel should pay for its replacement." Argentine protest at drilling plansTHE Argentine Foreign Ministry has made a diplomatic protest to Britain over plans by Rockhopper and Desire to drill for oil around the Falklands. The British Embassy in Buenos Aires confirmed that the protest was made on April 30, but not at ambassadorial level. It was made clear that the UK had no doubts about its sovereignty over the Falkland Islands and its surrounding maritime areas and that the Falkland Islands Government was entitled to develop a hydrocarbons industry in the waters under its jurisdiction and the UK government supported this. The protest came at the same time as the news that Rockhopper Exploration's share price had jumped almost six pence to 102¾ pence after it hired a number of advisers to help it to find potential partners to finance drilling and secure a rig. No date for drilling has yet been set and Sam Moody, the managing director of Rockhopper, told The Times that a fresh equity issue was also being considered. "It's a question of what's the best value for shareholders," he said. "We won't know the answer to that until we've tried the farm-out market." Also this week, speculation surfaced of a possible takeover of Borders and Southern Petroleum Plc by the UK Royal Dutch Shell Plc. However, Borders and Southern Chief Executive Officer Howard Obee told a British newspaper the company had not been approached. Borders and Southern was "not aware of any interest by Shell", said Mr Obee. Chair of Desire steps down due to illness - turn to page 2. Co-op in difficulty?THE Stanley Co-operative Society is experiencing cash flow problems and is seeking the support of its members to help it through a difficult time. A spokesperson for the Society's committee yesterday confirmed that they had approached the Development Corporation for financial advice and assistance and were holding their annual general meeting next week (May 12) to consider the present situation and the way forward. The reports of the committee and the balance sheet, together with an audit report - if it is received - on the previous year's accounts will be considered by the Registrar of Co-operative Societies, John Rowland or a person appointed by him. The committee will also hear and decide upon any complaints brought by members who are aggrieved by decisions made by the committee, provided that notice of complaints is given to the secretary at least two days prior to the meeting. A spokesperson for the committee urged as many members as possible to attend the meeting in the Town Hall.