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Falkland Islands Newsletter Falkland Islands Newsletter PPublishedublished bbyy TThehe FFalklandalkland IIslandsslands AAssociationssociation wwww.ww.fi aassociation.comssociation.com NNoo 111515 OOctoberctober 22018018 ppeopleeople eeventsvents ppoliticsolitics ssportport nnewsews 1 1 Falkland Islands editorial Association Newsletter by FIA Chairman Alan Huckle Published by: The Falkland Islands Association, Falkland House, ARGENTINA is in a real mess, politically and economically. London President Macri was elected in 2015 promising a return to a business-led, free market SW1H OBH economy. But his economic reforms, despite a good start, have not created the jobs required to offset the impact of the budgetary savings that he has imposed – and, despite Tel 020 3764 0824 recourse to the IMF for a US$50 billion stand-by arrangement, investor confi dence has honseci [email protected] plummeted. ISSN 0262-9399 To an extent, Macri has been hit by external factors – a stronger US dollar making debt repayments more expensive; action by the US Federal Reserve Bank to raise interest Edited by: rates attracting investors away from developing markets; and one of the worst droughts Lisa Watson in many years seriously affecting the level of agricultural exports. But for the average Stanley Argentine worker, struggling against rising prices and the loss of state utility subsidies, Falkland Islands Macri is directly responsible for the country’s social and economic woes. The Argentine lisawatsoni @gmail.com President is an embattled man, slipping down the popularity ratings. Whereas once he was expected to secure a second term in the 2019 Presidential elections, this is now Editorial Committee much less certain. Ms Cindy Buxton (Chair) The fi gures show the slide towards recession. By the end of August, the Argentine peso Mr David Tatham CMG stood at 39 pesos to the US dollar against 16 pesos in 2017; the infl ation rate had soared Mr David Ainslie from 24% in December 2017 to nearly 32%; foreign currency reserves had slipped from Mr Alan Huckle $55bn in February 2018 to $36bn in June; and overall economic activity had slumped Mr Tym Marsh with rising unemployment. In April, Macri had been forced to approach the IMF for a stand-by loan (a deeply unpopular move in Argentina with memories of the 2001/2 debt WEBSITE crisis); having already drawn down $15bn, Macri has since had to ask for accelerated www.i association.com disbursement – and the Argentine Central Bank has had to increase its interest rates three times to 40% then 45% and end-August to 60%. Argentina is in serious economic Release of copyright trouble. Politically, Argentina has been gripped by stories of entrenched corruption during the The Editorial Committee Kirchner regimes. An offi cial driver had kept meticulous records of cash payments totalling releases all copyrights many millions of dollars. Arrests have been made with nearly 20 senior businessmen and on the content of government fi gures seeking plea bargains. Cristina de Kirchner has had three of her the Falkland Islands houses searched (though her Senate colleagues are unlikely to agree to lift her immunity Newsletter except from prosecution). But it hasn’t inspired investor confi dence in the country. on pictures, cartoons Macri’s diffi culties may stand in the way of progress in implementing the measures and maps. Other agreed in the September and December 2016 accords. The ICRC’s programme for publications are invited identifying the unknown Argentine war dead in the cemetery near Darwin by DNA analysis to quote freely. has been a major success with 97 out of 121 identifi cations made so far. Fisheries talks in May renewed the practice of exchanging scientifi c data on key fi sh/squid species: further Howevever, we ask that talks are scheduled for later this year. Some progress has been made on the proposal for quotations are made in a second commercial fl ight between the Falklands and South America but Argentina may context and the Falkand put diffi culties in the way (and Macri may not wish to pursue an agreement that could be Islands Newsletter highly contentious in Argentina). Certainly, it seems unlikely that he will be able any time acknowledged as the soon to pass the legislation required to lift the sanctions imposed by the Kirchners on source. trade and communications with the Falkland Islands. Given his problems, he is likely to want to keep any positive Falklands-related issues out of the public eye for the moment. For further information All this is in sharp contrast with the thriving situation in the Falkland Islands. We have turn to the inside back commissioned a piece from the Falkland Islands Government to illustrate the economic page or alternatively progress made since 1982; it is well worth a read. Prospects are good: plans for oil contact the Editor Lisa production from the Sea Lion fi eld in 2019/20 are progressing well. The only major Watson (contact details concern is Brexit: with 94% of the Islands’ fi sh exports and 33% of its meat production above). going to the EU, the loss of tariff and quota free access to the EU market would be a serious blow. AAdvertising:dvertising: FForor rratesates sseeee iinsidenside bbackack On FIA news, it is a great pleasure to announce that General Sir Michael Rose ccover.over. KCB CBE DSO QGM DL has kindly agreed to become a Vice-President of the Association. As CO 22 SAS Regiment during the Falklands War, he negotiated the Argentine surrender in 1982. Printed by: Platinum Press Ltd We have also identifi ed an excellent candidate – John Duncan OBE – to stand for Tel 0844 880 4722 election as FIA Chairman at the Association’s AGM on 8 December – see page 30 www.PlatinumPressLimited.co.uk for further details. www.i association.com 2 The economy Falkland Islands: An Economic Transformation By the Falkland Islands twice weekly fl ights with the UK began, UK defence budget annually. The Government Policy Department which assisted in the economic and Falkland Islands are a strategically social growth of the Islands. At the important Permanent Joint Operating Development of the Falkland same time satellite communications Base (PJOB) for the UK and offer Islands since 1982 arrived in the Islands, which have a unique tri-service training area, recently been upgraded to 4G mobile involving army, navy and RAF assets. OVER the past three and a half network coverage. The construction The Islands Plan 2018-2022 decades the Falkland Islands and of over 1,000km of roads around In April 2018 the Government its people have undergone dramatic both main islands, connecting all published The Islands Plan 2018- change. Visiting the Islands today it is settlements and most farms, along 2022 which sets out a blueprint for hard to imagine how different things with improved ferry and domestic air improving the health and wealth of were 36 years ago as the legacy of services, has created the conditions Falkland Islanders over the next four the 1982 confl ict was a huge task for expedited development. years. of reconstruction and development. Another key priority, following It outlines an ambitious and bold Following substantial economic, Liberation, was to restore a civilian, future for the country, with a strong political and social reform, the democratic Government. The focus on stimulating economic Falkland Islands have grown into a Constitution, enacted in 1985 and growth, improving transport and modern, progressive and ambitious updated in 2009, guaranteed the communications links, modernising country that continues to prosper. Islanders’ right to self-determination local infrastructure, providing high Post Confl ict and began the process of moving quality education and protecting the The Liberation of the Islands towards full internal self-government. environment. in 1982 reduced the political In 2013, the resident population The 2018/19 Budget has been uncertainty of previous decades. formally expressed their right to self- designed to tackle some of the larger It allowed the implementation of determination through a referendum, objectives of The Islands Plan and is the recommendations of Lord which was overseen by international designed to ensure there are solid Shackleton’s second Economic Study, observers. The result was that 99.8% foundations for the future growth which updated his original 1976 report, of voters decided that the Falkland of the Islands. The plans include the fi ndings of which had broadly not Islands should remain an Overseas a new power station, modern port been implemented. Amongst the most Territory of the United Kingdom. facilities, improvements to the Mount important proposals was the creation The Economy and Budget Pleasant Airport passenger terminal, of a fi sheries zone and acceleration The economy of the Falkland a new vulnerable persons unit and of land subdivision to increase the Islands continues to perform well and expansion of the King Edward VII number of local owner occupiers, over in the past fi scal year has achieved a Memorial Hospital. The Government absentee land owners. The report healthy fi nancial surplus; Government will also continue to invest in road and also recommended the establishment fi nances are in a good position, house-building schemes, to support of a development agency to help end fortifi ed by strong reserves. This longer term plans for population the stagnation of under-investment in means the Islands are economically growth. These capital works will the economy. self-suffi cient in all areas but defence, cause more job opportunities for the By the mid-1980s the international the cost of which is met by the local population, but will also require airport had been built alongside the UK Government and is estimated additional overseas construction Mount Pleasant military base, and to amount to 0.18% of the total workers. 3 The economy Fisheries The main contributor to the country’s economic success has been from the creation of the Falklands’ fi shery, and the associated fi shing licences and corporation tax receipts from the local fi shing industry and allied businesses.
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