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Financial Information and News

Squid: The Bigger the Better

PUBLIC MEETING: TUESDAY, 28 JANUARY 2003

PART 2

Commentary by J. Brock (FINN)

Q4-P1: Two recent charter flights from Chile requested by FIDC flew in some tonnes of cartons for the purpose of transporting products from the abattoir at, no doubt, some considerable expense. Given that the TAMAR FI had just returned from a scheduled trip from Punta Arenas, why was such an apparent waste of funds allowed to occur?

PM: I have here an answer from Richard Baker of FIDC:

"As a result of high passenger loads on the LanChile flights early in January, inbound freight was restricted and Stanley Growers Ltd. Contacted FIDC to ask for some assistance in trying to organise a mid week flight to bring in fruit and vegetables to service two passenger exchanges on Saturday, 18th of January. The Abattoir also had packaging material waiting to be transported in via LanChile. Negotiations with our main customer in the UK had been concluded at the end of December 2002 and a better price was attained by agreeing to vacuum pack certain items and to use wax-lined cartons for other products. The packaging did not arrive in Punta Arenas in time to meet the Tamar in early January so we decided to air freight enough in to keep production going with further quantities to come by sea when the Tamar visits next sailing on 10 February. For logistical reasons both in Chile and also in relation to the runway sealing taking place at Mount Pleasant, LanChile could not bring an aircraft into the Falklands that week. However, we were able to arrange for a new freight operator, "Alpine Air," to bring in two Beach 1900 C Aircraft carrying 2.1 tonnes of fruit and vegetables and 1.8 tonnes of packaging materials for the abattoir. Alpine Air are an established company in Chile. They carry freight from Punta Arenas to Santiago on a daily basis and this is now a viable route for getting additional freight into the Islands when LanChile is full."

MS: I think the key fact in making the decision that Richard made – and I think he made it rightly – is that there had been a change in the packaging specification for export meat supplied by the persons with whom they had been negotiating. Based on that change, packaging specifications and some other production parameters, the price we are going to receive is significantly higher. Very significantly higher than they had previously been expecting. So, I think, on that basis, getting those was-lined cartons in that we didn’t have here was a sensible decision.

NE: They needed them to come by air, did they?

MS: They needed to get them here as quickly as possible.

PM: They didn’t bring them all in, obviously.

MS: No. There will be some more on the next shipment on the Tamar. They brought what they needed between now and the next arrival of the sea freight.

Q2-P2: When a student is at university and for some reason they are depressed and need or want to give up and they come home, do they have to pay the money back?

JC: It depends on the circumstances. If it’s a well and documented medical problem or something of that kind, then a sympathetic ear is taken. If it’s someone who has just decided this is not for me, they are expecting me to work, I want to go home, then a less sympathetic view is taken. In some cases, it’s possible for an individual to take up a course again at a later stage. And, people have found themselves on the wrong course. And, as long as they have shown a willingness to work up to the end of the first year, or whatever, then they can usually negotiate a change to something more suited to them. So, in each case, individual circumstances would be looked at. And, hopefully, the best outcome for the student.

Q3-P2: What if that student simply sticks it out until the end of the year just so he can take the money without having to pay it back?

JB: Can I just say, that last night, I along with other parents from last year’s year 11 went to the Senior School to have a talk about Peter Symonds and Chichester College for the next intake that will be going up there. Those students will get their results at the end of this week. Both Mrs. Cole and the Headmaster, Alan Purvis, talked about this particular issue. And, they kept emphasising all the time, if there is a problem, tell somebody. If there is an issue, tell somebody quickly. What’s been happening is that there have been difficulties and problems with various students who haven’t informed anyone. So what starts off as a minor problem then gets blown up out of all proportion and you end up with a major difficulty where somebody just won’t go to college any more. They have got to communicate with the people down at this end. We were told last night that if there is a difficulty and if people talk to the authorities at the other end, as well as people here as well, then all things are possible. They must speak out.

Comment: Maybe it is difficult for them to talk to the authorities who are complete strangers.

JB: They can phone up their parents. They have access to e-mail – they have all that kind of access but don’t leave it until things get worse and worse.

NE: I think you might have meant what do you do about students who cash in on the whole system. Because, we did have one case where a pupil just didn’t turn up.

Comment: More than one!

NE: One in particular who was still claiming their allowance and everything. In that case we said the student had to pay it back.

Comment: There was a student who really did try to cope and that person received a rather terse e-mail.

JB: This sounds like an individual case which we don’t like to discuss in a public meeting. There is a Board of Education here. If somebody’s got a particular problem, they should speak with a Board Member.

Comment: But what if they quit in the middle of the year? Wouldn’t that save FIG money?

JC: Every case that has come my way has been dealt with sympathetically. There is a great understanding, I think, of the kinds of problems you can have when you are so far from home – or not so far from home. It is unusual for people to be asked to pay back money. Quitting in the middle of the year won'’ necessarily save us money. Some of the fees have to be paid up front and are lost. The only times that I am aware of when students have been asked to repay anything is where they have behaved, to be blunt, dishonestly. In a couple of cases, they actually quit their courses. One actually had quit the course and joined the Military without telling us, having taking the Christmas allowance away with them. And, they were asked to repay.

Q4-P2: It’s nearly February. Where are we with Fishing Revenue and the alternative budget?

 

MS: The position is that, as far as I understand it, there is a meeting of Standing Finance Committee this week and I would be better informed after that. The Illex Licences were all sold. So, one of the major concerns has been dealt with when we managed to sell that number. They haven’t yet all been paid for. That’s a different matter. We will be collecting them bit by bit so we are getting there. Having said that, we want to bare in mind that the money that we are charging this year is substantially less than it has been in previous years. We will be competitive but we will be down by £7Million in this financial year, plus the licences that don’t ultimately get paid for.

Q5-P2: Landholdings are moving from their John Street office to Shackleton House at FIDC. Is there enough room for them in Shackleton House? Why have they been moved when they are not really part of FIDC?

MS: There’s room there because the tourism people have moved down the road to the Philomel Store – to the upper floor of the Philomel Store. Mandy McLeod has moved back across to the Agriculture Department.

PM: So it means then, that there won’t be any rent to pay.

MS: One of the principle reasons for it is sharing financial management services with FIDC so the Financial Controller at FIDC is also the Financial Controller of FLH. It makes sense for the General Manager to be there.

JB: It’s not unusual for the Rural Business Association to be located in the Agriculture Department.

Comment: Large amounts of squid are being caught on the high seas. This will reduce our stocks.

JC: I am aware that huge amounts of squid are being caught on the high seas. Last I heard, they weren’t very large. We just have to hope they congregate in our area when they are supposed to.

MS: We have been told that there are 199 Taiwanese.

JB: That’s a precise figure.

MS: They don’t need a licence from us. They need a licence from their home state. (Presumably this means to catch squid on the high seas.)

Q6-P2: Is that why the British Ambassador to Argentina was here last week?

JC: The squid are there every year. This stuff hatches somewhere off the coast of Brazil and moves gradually down, growing as it comes. It would be a lot better for all concerned if they left it until it grew into big squid because that would be many more tonnes – thousands of animals. But, of course, the Taiwanese are driven by cash considerations and no doubt the Koreans and other nationalities as well. They catch them where they can and when they can.

MS: Cash is important for those guys. They caught very little last year. But it is all the reasons why we have been pushing as hard as we can for some kind of multilateral high seas agreement. It should be on the agenda again, for sure at the next SAFC.

MS: There are also a number of trawlers operating there. The trawlers are largely licensed to operate in Falklands waters during the first season. They fish on the high seas for the early part of it.

 

(100X Transcription Service)



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