MercoPress. South Atlantic News Agency
Falklands' budget challenge: how to distinguish recurrent funding from oil windfall income
The Falkland Islands Executive Council, (EXCO), considers essential more public scrutiny to budget affairs discussions so that individuals can better understand what monies are available for ongoing funding and which are windfall incomes from oil related matters. Read full article
Comments
Disclaimer & comment rulesAnd that very same windfall is blowing the unmighty
Dec 18th, 2013 - 06:51 pm - Link - Report abuse 0CFK right of her perch..lol
Let us not forget, that in 2007 Nestor Kirchner voided Falklands fisheries, flights and hydrocarbon deals. T o o b a d.
Dec 18th, 2013 - 07:11 pm - Link - Report abuse 0Steady as she goes is the order of the day until exploitation begins proper. Adjust the reserve limit and only invest in essential hydrocarbon-related requirements and capital projects that are sustainable with our current budget revenue streams.
Dec 18th, 2013 - 10:13 pm - Link - Report abuse 0Simples
Article says…:
Dec 18th, 2013 - 10:42 pm - Link - Report abuse 0”……................. The Capital Gains Tax (CGT) agreement reached with Rockhopper Exploration which amounts to 146 million dollars resulting from its sale of a 60% stake in the Sea Lion oil field to Premier Oil in 2012….............…”
Let’s have a look at the real deal we got today, shall we?...:
1) The parties have agreed the total CGT payable is $146 million with payment split into TWO tranches……
2) The first payment due immediately equates to $42 million, of which Rockflopper Exploitation already paid $39 million in June.”
3) The second payment equates to $104 million and will now be paid at the same time as the first royalty payment to the FIG(leaf) from oil production at Sea Lion.”
All the above means that Rockflopper Exploitation got a VERY Generous Tax Deferment of 71% till sometwhen in 2020…..
A VERY generous Tax Deferment of 71% only payable IF Rockflopper Exploitation ever produces oil..... and IF Rockflopper Exploitation still exists in a solvent state at that time…
Them Kelpers got $42 million in the bank…..
Knowing them, they must feel happy………. and then…….
The London City Boys from Rockflopper Exploitation, on the other hand, must feel ecstatic……
Deadbeat at 4
Dec 18th, 2013 - 10:59 pm - Link - Report abuse 0Rockhopper are happy, we're happy. Just face it, no matter how you dress it up, you're the only one not happy.
Chuckle chuckle
(5) Joe Bloggs
Dec 18th, 2013 - 11:11 pm - Link - Report abuse 0I have no problems at all “Facing” anything my dear Kelper...
Remember that we Argies are here for the long term...
London City Boys only for the short term...
Now that is a coincidence Think - the Kelpers are there for the long term too :-)
Dec 18th, 2013 - 11:30 pm - Link - Report abuse 0Poor think.
Dec 19th, 2013 - 06:14 am - Link - Report abuse 0Always the bridesmaid, never the bride!
2020 seems pretty long term to me.
Dec 19th, 2013 - 08:25 am - Link - Report abuse 0That is a longer economic horizon than that held by Argentina.
Think- I know it is a very un Argentine approach- Arg approach would be “smash grab and expropriate- nationalize and corrupt it and collapse it”
Dec 19th, 2013 - 09:46 am - Link - Report abuse 0The long term Falklands approach is - The Oil Company has to do this as part of the partnering in capital raising business to exploit the field - without which Falklands will receive zero royalties.
The Law says this tax has to be paid on this type of business
Therfore common sense logic is the company pays part now - and the bigger part when they actually have an income stream to pay it with.
Its called co-operation and creating a business friendly climate that ATTRACTS foreign investment into a Country.
I realise it is all total goboldygook to Argentina though!
Only 'skimming', Think - so don't treat me bad for shallow analysis ;-)
Dec 19th, 2013 - 10:44 am - Link - Report abuse 0'... how to distinguish recurrent funding from oil windfall income'.
Surely taxation falls on residual income once costs are covered.
If 'windfall income' is applied early in the extraction process, this compromises the development towards 'recurrent income'.
In fact, if you hit too hard, you may never reach the recurrent phase.
Perhaps TFI should look at the case-history of Argentina -Repsol to understand how not to do it.
We have shown over the past decades how to manage an economy wisely, even on low and uncertain incomes. That approach will continue to ensure the best future for our country.
Dec 19th, 2013 - 10:46 am - Link - Report abuse 0Compare and contrast...........
@Think (6)
Dec 19th, 2013 - 11:22 am - Link - Report abuse 0Argies are here for the long-term? Are you trying to reassure Islanders? Because it comes across more of a threat. If you are trying to insinuate that the Argentines can help us, shall we look at recent history?
1. Invasion
2. Lobbying UN and other states to remove Islanders human rights
3. Actively overfishing the South Atlantic to destroy the Falklands fishing industry
4. Attempting to blockade the Falklands
5. Attempts to deter investors in carrying out business in the Falklands with the creation of laws
Shall I go on? So Think, in conclusion, don't try and pretend that Argentina is here to help the Falklands and its people, because you clearly are thinking of yourselves. The fact you and your fellow Argentines call us pirates, unsurpers, colonialists, turnips, etc, etc, speaks volumes.
Argies !
Dec 19th, 2013 - 12:02 pm - Link - Report abuse 0Read this and weep : http://news.bbc.co.uk/onthisday/hi/dates/stories/december/19/newsid_2538000/2538857.stm
Argies there a for a long time?
Dec 19th, 2013 - 12:40 pm - Link - Report abuse 0Didn't exactly hang around for a long time in 1982. Spent a lot of time running in the opposite direction if I remember rightly (as well as painting a red cross on every building possible).
“Quick, where is the post office? I need to crap myself”
Think doesn't understand that 7-10 yrs is not a lot of time in civilized well run countries.
Dec 19th, 2013 - 03:02 pm - Link - Report abuse 0In his country they can't even keep the same currency for 10 years! If this was in Argentina the debt would be worth 1/10 of what it is booked at today a decade later.
This is why he is having such a hard time understanding the concept.
It is not his fault he doesn't know any better.
BTW 6 days of HUGE swaths of BA without power and water.
The peso crashing because BCRA is out of funds to support it.
I am happy.
@ 6 Lunatic
Dec 19th, 2013 - 04:07 pm - Link - Report abuse 0Don’t you just love it when yankeeboy makes just a little contribution?
“In his country they can't even keep the same currency for 10 years!”
And so true! Ha, ha, ha etc!
Now you just run along and play with whatever you have that keeps you happy: just don’t tell us what it is, I have a bad enough mental picture of you anyway.
The FIG of course is doing serious planning for the future but I would expect nothing less given their track record so far. Well done and keep carrying on.
(13) M_of_FI
Dec 19th, 2013 - 07:28 pm - Link - Report abuse 0You say...:
“ The fact you and your fellow Argentines call us pirates, unsurpers, colonialists, turnips, etc, etc, speaks volumes.”
I say...:
I may have called you Kelpers Usurping Squatting Colonial Pirates a couple of hundred times in the past.....
But I don't recall having ever called any of you, Usurping Squatting Colonial Pirate Kelpers for “Turnips”.....
I reserve that to the Turnips.....
(15) Beef
How are your “averages” doing?
Considering investing in YPF.... perhaps?
Have you taught “Little Beef” how to kick a bold?
I like Think, he's fun and often light hearted.
Dec 19th, 2013 - 07:59 pm - Link - Report abuse 0He's also usually epically wrong on anything that relates to oil.
Anyway its been a while since our Argentine friends have said there is no oil or you can't get the oil without the help of Argentina or SA, I miss those posts!
Merry Christmas!
Mark this post Thicko
Dec 19th, 2013 - 09:24 pm - Link - Report abuse 0YPF will be dilisted due to:
corruption
gov't supplying false information
or both
Either that or the Holdouts will get the Gov't shares as part of their restitution.
and I will laugh and laugh
How the Peso going?
Any more neighborhoods blacked out?
I hear the chinese stores are all closed so they don't get robbed.
Do you want me to send you some recipes for dog?
I really want to have to live through more hyperinflation and the food, fuel rationing.
and I'll laugh some more
Think, you can call us names like a spoilt child in the playground, it wont make any difference. 1982 and the Falklands referendum sealed Argentinas fate. Eat your porridge and eat your heart out with longing, whichever you choose, you are stuffed.
Dec 19th, 2013 - 10:24 pm - Link - Report abuse 0As I say... your attitude speaks volumes. You couldn't care less about the people who were born in the islands you hold so dearly. You only see them as an obstacle to your nationalitic pride.
Dec 20th, 2013 - 04:19 pm - Link - Report abuse 0Just to let you know, we are not only here for the long-term, but we are here forever.
and still there is not a decent hotel in such islands!
Dec 21st, 2013 - 06:21 pm - Link - Report abuse 0@23
Dec 21st, 2013 - 11:22 pm - Link - Report abuse 0“and still there is not a decent hotel in such islands!”
As you have no idea what the islands are like:
1/- The people who live there don't seem to mind that there are no skyscraper hotels.
2/-Tourists don't travel to the Falkland Islands to see hotels.
What's wrong with the Island lodges?
What's wrong with converted shepherds huts?
You have obviously never had the privilege of staying with Falkland Island families who treat the guest better than any hotel would.
I pity you.
I had many pleasant nights under a basha with a bivi bag in the Falklands.
Hotels ?
Overpriced brick tents.
Pffffft.
@24
Dec 23rd, 2013 - 08:13 pm - Link - Report abuse 0The fact is that the islanders don't have money and class.
Keep the islands in a british arse!
@ 25 No octane in the tank, only piss and wind.
Dec 23rd, 2013 - 09:43 pm - Link - Report abuse 0We know thta stupid saying: “Keep the islands in a british arse!”!
You are SUSSIE. Ha, ha, ha.
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