THE GOVERNOR’S ANNUAL ADDRESS TO THE NATION,
24 MAY 2005
Acting Speaker, Honourable Members of Legislative Council, Commander British Forces, listeners to FIBS, Community School pupils from the Year 11 Citizenship Class, Ladies and Gentlemen:
I start with the good news: my annual address will be a good deal shorter this year. Having consulted widely following last year’s address, I have decided to focus my remarks on some personal impressions of the events of the last year and the prospects for the next twelve months. This means that I shall omit the traditional department by department report on the activities of Government.
This does not imply that these activities are any less important than they have been in the past - very much the reverse - , but I have agreed with Councillors and the Chief Executive that the report should be made available in written form only. This should make it more digestible. Anybody who would like to see the full report should apply to the Government Secretary. For those of you who were looking forward to listening to my voice for the hour or more that this speech has traditionally occupied, I apologise for disappointing you. But I suspect that the majority of you will be relieved!
I open by paying tribute to our public servants. It is easy to take them for granted. We are often quick to criticise and slow to praise, and of course we always think we know better. One only has to cast an eye over the columns of the Penguin News each week to see that. But my role enables me to gain special insights into the work of the public service. Our community may be small, but it is remarkably complex, and so likewise is the task of providing it with the full range of modern public services. Small may be beautiful but it is not necessarily simpler - sometimes the reverse - and it certainly militates against the economies of scale and breadth of choice which larger communities enjoy. Of course there are things which could be done better, and like the rest of us our public servants have to be prepared to embrace change, but I have frequently been impressed by the quality, skill and commitment which they display. So to all of you, from labourer to Chief Executive, to teachers, police officers, nurses, pilots, firemen, painters, plumbers and every other member of the public service, I say a very big thank you on behalf of the Falkland Islands community. I owe a particular debt to my Government House staff, for whose loyalty and hard work throughout the year I am immensely grateful.
This is the moment to bid farewell to some of those who have left us during the year. Norman McGregor Edwards, who departed just a few weeks ago, as Director of Health and Social Services occupied one of the most testing and high profile roles in Government. He was deeply committed to his work, and we owe him a debt of thanks for presiding over a period when resources were under especially heavy pressure and the Department was undergoing a period of difficult change. His achievements include the renegotiation of the memorandum of understanding with the Ministry of Defence, a lengthy and complex process, and its successful conclusion owes a great deal to Norman’s skill and determination. We wish him and Jane all the very best for the future, and look forward to welcoming his successor, Nikki Osborne, in July.
My thanks too go to Tony Lancaster, who left us after a valuable stint as Environmental Planning Officer. I welcome Dominique Giudicelli as Tony’s successor. Dominique is already well settled into her new job. We have also recently bid farewell to Andy Douse, who has done a great deal to raise environmental awareness in Government and for whose work on conservation strategy we are very grateful. I look forward to seeing this incorporated into a new strategy document very soon.
On the legal side, Clare Faulds has taken over as our new Senior Magistrate, and Melanie Chilton as Principal Crown Counsel. The extent and variety of legal work in the Falkland Islands is expanding all the time, and both Clare and Melanie are clearly relishing the challenge.
The Commander British Forces, Air Commodore Richard Lacey, will also be leaving us shortly. He is the first CBF to have served for a full eighteen months, and we have all benefitted from the greater continuity which the extended tour length has made possible. Two years would be even better! I have greatly appreciated Richard’s wisdom and advice, and I know that Islanders have welcomed his and Cate’s enthusiasm for island life and the trouble they have taken both to entertain Islanders at Mount Pleasant House and to travel widely around Camp. We shall miss you both. We wish you well as you move to Mons in Belgium to take up a senior NATO appointment. As the new CBF we welcome Commodore Iain Moncrieff and his wife Marion. They arrive at the very end of May. As a former Captain of HMS Endurance, Iain already knows the Falkland Islands well, and he is delighted to be returning here in his new role.
This gives me the opportunity to underline how grateful we continue to be for the essential work of British Forces South Atlantic Islands in ensuring the security of the Falkland Islands. The continued assertion of the Argentine claim to the Falklands demonstrates the need for the Islands to be properly defended and for Islanders to be reassured of the UK Government’s military commitment to the South Atlantic. We welcome the close involvement of many members of BFSAI in the Falklands community, and especially their excellent working relationship with the Falkland Islands Defence Force.
In my address last year I anticipated that the failure of the illex squid fishery and the deterioration in relations with Argentina would together make for a challenging period for the Islands. So it has proved. Although the illex fishery has not been quite as catastrophic this year as it was in 2004, it has nevertheless been pretty bad. The consequential reduction in Government income means that once again Councillors will have to take some tough decisions about Government expenditure in the next few days. It is impossible in the present state of knowledge of the fishery to make any confident prediction about catches in future years, but it would be foolish to assume that there will be a return to the bumper catches of a few years ago. The contrasting success of the first loligo squid season this year has provided some compensation, but cannot make up for the continued failure of the illex.
We may therefore have to face a long term reduction in Government expenditure. This means that Government cannot afford to maintain all services at their current levels, and that hard choices will have to be made. High spending services, such as Health and Education, cannot necessarily be immune. The temptation during an election year is to avoid painful decisions. It is true that Government’s substantial reserves provide a cushion. But it would be irresponsible to spend capital to meet a shortfall in running costs for more than a very short period. This year’s budget round will therefore require further steps towards a lower level of expenditure in the medium to long term. The whole community - electorate, public service and Councillors - has a role to play in bringing this about.
This has a number of implications for the future:
First, Government has to be rigorous (but fair) in collecting the money which is owed to it. In this connection I should like to commend the success of the Taxation Department over the last 12 months in reducing the level of tax arrears from just over £600,000 to £90,000;
Secondly, there are implications for the nature of capital expenditure. Some capital expenditure - for example on new roads - increases running costs for Government, in the case of roads because of the increase in the annual maintenance burden. Such proposals need to be looked at with particular rigour. But other types of capital expenditure can reduce running costs, sometimes significantly. The proposal to build a modern administration building to house all Government Departments falls clearly into this category;
Thirdly, the community needs to be both imaginative and courageous in looking at new ways of doing things. The work on a transport strategy currently being undertaken by Government is a case in point. A radical look at current transport arrangements could well reap substantial dividends, but will require a readiness to accept change;
Fourthly, diversification of the economy becomes even more important. Falklands Tourism are already hard at work on developing new opportunities, particularly in the realm of land-based tourism, and I commend their efforts. This will also require some imaginative investment from the private sector. There are new possibilities in the realm of aquaculture, which will again require some substantial investment. The recommendations of the consultants’ report on mussel farming are currently being studied. The work undertaken by the Agriculture Department, FIMCO and the farming community has demonstrated the scope for moving into new products, and some of our more progressive farmers have shown what can be achieved to improve the quality and thus the value of the traditional wool product.
I cannot leave economic issues without saying a word about minerals development, both on and offshore. I should say at the outset that, unless and until a commercial resource is found - whether gold onshore or hydrocarbons offshore - , the prospects remain by definition speculative. There is no case yet for counting our chickens. That said, the companies have been much encouraged by the survey work they have undertaken so far. Exploratory onshore drilling for gold is already underway. Following some positive results from their seismic work, Desire Petroleum are hoping to bring a rig down here early next year to drill exploratory wells to the north of the Islands. Falklands Oil and Gas Limited will be undertaking a substantial further tranche of seismic work in their blocks to the south and south-east of the Falklands to define further the prospects in that area, with a view to drilling in due course. A commercial discovery of offshore hydrocarbons could have exciting and far-reaching consequences for the Islands. It is not too early to be thinking through some of the implications.
This is perhaps the right moment to touch on relations with Argentina. Sadly, there is little I can say which is positive, at least in terms of relations with the Argentine Government. The South Atlantic Fisheries Commission continues to meet periodically to discuss the management of the south-west Atlantic fisheries, but the quality of the cooperation we have received from the Argentine side has been disappointing. Their refusal to discuss cooperation on a high seas fisheries agreement for the region on terms which the UK and Falkland Islands Governments could accept has been particularly regrettable, despite there clearly being a mutual interest in improving the quality of regional fisheries management. There has been some progress in discussions between the UK and Argentine Governments on a feasibility study concerning the removal of mines from the Falklands. On the issue of charter flights, there has been no movement, and there is currently no sign that the Argentines are prepared to discuss it on terms which would acceptable to Falkland Islanders.
More positive, however, was the visit to the Islands in March by representatives of the Argentine Families Commission, in order to see at first hand the new Memorial at Darwin following its completion last year. They went out of their way to include in their visit the cemetery at San Carlos and the Liberation Monument in Stanley, to pay tribute to the Britons who died in the 1982 Conflict. I have no doubt that we were right to welcome these visitors, all of whom had suffered profound personal tragedy through the loss of family members during the Conflict. They were visibly moved by the way in which they were received in the Islands. I know that some Islanders were not comfortable with the visit, and I can understand their reasons, but I believe that the majority accepted the need for it and felt the compassion for the visitors which their personal tragedies deserved.
Meanwhile, the commitment of the UK Government to Falkland Islanders’ right to self-determination remains as strong as it has ever been. The Argentine Government has no excuse for misunderstanding: Falkland Islanders wish to remain British and there is no prospect of their changing their mind on this point in the foreseeable future. I have no doubt that the new UK Government will be as unequivocal on this issue as its predecessor. I welcome Lord Triesman to his new appointment as Minister in the Foreign and Commonwealth Office with responsibility for the Overseas Territories, and hope that we shall have the opportunity of welcoming him to the Falkland Islands in due course. We look forward to enjoying as close a relationship with the new Minister as we did with his predecessor, Bill Rammell.
Councillors are right to take every opportunity to put the Falklands’ case for self-determination to the international community. The meeting of the Committee of 24 every June in New York provides an annual opportunity to do so. It is important that the Falkland Islands should continue to be represented at conferences of the Commonwealth Parliamentary Association, at meetings with other EU overseas countries and territories, and in international organisations at which issues of interest to the Falkland Islands are on the agenda. It is equally important to welcome as wide a variety of overseas visitors to the Islands as possible. As well as the annual group of MP’s from the UK, we were also able over the last year to host a lively group of Canadian politicians and the Red Ensign Conference.
As I draw to the close of my address I should like to say a few words about a topic discussed at the annual conference of Governors of UK Overseas Territories, which I attended in London in the early part of this month. It is also an issue which is raised here from time to time. It concerns the nature of the relationship between the Overseas Territories and the UK Government.
The white paper “Partnership for Progress and Prosperity”, published by the Foreign and Commonwealth Office in 1999, contains the most authoritative recent statement of the UK Government’s position on this subject. Describing the relationship as a “new partnership”, it bases it on four fundamental principles:
self-determination;
mutual obligations and responsibilities;
freedom for the territories to run their own affairs to the greatest degree possible;
a firm commitment from the UK to help the territories to develop economically and to assist them in emergencies.
The white paper states that the UK Government is committed to ensuring good government and sustainable political, economic and social development in the Overseas Territories and to guaranteeing their security and defence. In return the UK Government expects high standards of probity, governance and adherence to the international agreements to which the UK and the Overseas Territories are a party; and expects to minimise the extent to which the UK is exposed to contingent liabilities.
In the Falkland Islands these principles work well. There is close consultation between the UK and Falkland Islands Governments on relevant issues of foreign policy and international relations. Falkland Islanders run their internal affairs to a very large degree. Thus, although the Constitution allows the Governor the power, subject to certain conditions, to overturn the recommendations of Executive Council, I have never once exercised that power during my two and a half years here, or even come close to doing so. This is in itself a tribute to the standards of decision-making and governance achieved in the Islands. But in addition to the provisions of the Constitution, the UK Government needs to be able to protect its position, particularly with regard to its international obligations, through the occasional inclusion in certain key pieces of legislation of powers enabling it to act through the Governor. Such powers are already provided for in certain items of Falklands legislation, although they have in practice rarely been exercised, and are likely to be required from time to time in appropriate pieces of future legislation But this does not in practice derogate from the principle that Falkland Islanders are responsible for running their own affairs.
For its part, the UK Government fulfils its obligation to uphold the wishes of the Islanders, in particular by supporting them in their relations internationally, and to defend the Falklands through the presence of British Forces South Atlantic Islands, a responsibility which involves a substantial cost for the UK taxpayer.
I believe the partnership works well and, for most of the time, smoothly.
The white paper invited the Overseas Territories to consider whether they wished to propose changes to their constitutions to keep them in tune with modern requirements, including those of more open, transparent and accountable government. Councillors have been considering a range of proposals which will, I understand, be finalised soon, so that, following the general election in November, they will be ready for consideration by the incoming set of Councillors and, thereafter, for discussion with the UK Government.
The November elections will provide an opportunity to demonstrate that democracy is alive and well in the Falkland Islands. It is important that the electorate should be provided with a wide choice of candidates. I hope in particular that some younger members of the community will stand. The role of Councillor is demanding and time-consuming, but immensely rewarding. I look forward to a lively campaign.
I should like to end on a personal note. The last year has been one of the most extraordinary and wonderful of my life. My marriage to Caroline at Christchurch Cathedral on 21 October last year was a joyful and deeply moving occasion for both of us. We were delighted that so many of you were able to share our happiness, and our crowded party at the Town Hall was one of the highlights of our wedding day. I should like to use this occasion to thank Falkland Islanders for all your kindness, generosity and support. The Falkland Islands will always occupy a special place in both our hearts as the place where we met and married.
The next year promises to be an equally special one for us. As most of you will already know, Caroline is expecting our first child, with arrival scheduled for late September! Caroline will be returning to her home in the Netherlands for the birth, but we are both delighted that our son or daughter will spend the first few months of life in the Falkland Islands, and will thus always share our special link with this community.
I hope you will allow me to take a moment to pay tribute to Caroline. I have admired enormously the way in which she has thrown herself into the role of Governor’s wife with such energy and commitment. This is not an easy role, and one which she had never expected, yet without the years of Diplomatic Service experience which my predecessors’ wives have enjoyed Caroline has taken to it like a natural. I know that I have benefitted enormously in my professional role - as well as personally - from her support.
It only remains for me to wish Councillors success, both in the difficult decisions they have to take this week on the budget and during their remaining months in office, and to wish the Falkland Islands prosperity and good fortune in the year ahead.
