Ascension : Administrator’s Report: Formal Session of the Ascension Island Council - 17 June 2010
Submitted by The Islander (Ascension Island Government) 01.07.2010 (Article Archived on 15.07.2010)

A formal meeting of the Island Council was held last Thursday, 17 June at 2pm in the Council Chamber. All Councillors were present, the Governor was present by telephone link, and Crown Counsel represented the Attorney General.

After agreeing the minutes from the meeting held on 30 April, the usual update on items under Matters Arising was given. This included the question of the money from the European Union under EDF10 for improving our main road network. The latest news is that we might expect this money in late 2010 or possibly early into 2011.

Crown Counsel reported that she and one of the Councillors will shortly hold the first consultation meeting with a food retailer about the proposed Food Hygiene Regulations. The aim is to have something that protects consumers while not placing onerous burdens on the retailer.

The Director of Operations reported that the visit by a rat expert has been agreed in principle and is to take place in the near future. The expert will spend time with the Environmental Health Team Leader and others to assess the situation and advise how best to manage the problem.

The Administrator recently signed the commercial agreement with Pobjoy Mint who will now design, produce and sell Ascension Island commemorative coins on our behalf. This should give us some helpful, if modest new income.

Arrangements for selling commercial fishing licenses are very nearly in place and the first sales of licenses to foreign vessels should hopefully happen shortly.

The first substantive agenda item concerned the proposed Noise Nuisance Ordinance. The aim here is to strike a reasonable balance between people's wish to enjoy a social life and the need for people to be able to relax and get to sleep at a reasonable hour, so there is a question about reasonable noise levels, frequency and duration. Councillors plan to hold a meeting with club managers and the DJs to discuss a way forward.

The next item concerned the possible renewal or extension of the Telephony License held by Cable & Wireless. Council is giving thought to issues that need to be raised in the negotiations that will need to commence shortly.

This was followed by an update on the review of taxation, or funding of services on the island. A sub-committee consisting of two Councilors and the Director of Resources has been set up to do the detailed work on possible changes to the existing tax regime, and this had held its first meeting on Wednesday. The sub-committee will bring its findings to the rest of Council. There will also need to be consultation with stakeholders to elicit their views and give them adequate warning of any changes.

Still on the subject of tax, it was suggested that Section 24 of the Property Tax Ordinance should be repealed on the grounds that it was unfair as it currently only applied to one organization. There was also a suggestion that Section 25 (b) which gives the Governor flexibility to make certain exemptions, include a requirement for Council to be consulted. The Governor will seek legal advice on both suggestions.

The Director of Operations then gave a short brief on a proposed Youth Training Scheme. This would replace the existing Young Worker scheme and represent a major improvement. While the Young Worker scheme provides work experience, the Youth Training Scheme would provide a larger element of training as well as work experience, a portfolio of experience and a qualification that would better equip the trainee in finding work in the job market. Councillors approved of the initiative but felt it might be ambitious. It would be billed as a pilot scheme initially, and it would need to be made clear that there is no guarantee of a job at the end. It was hoped that other employers on the island might be interested in joining the scheme themselves in due course.

There was then a discussion about the problems facing the small business sector. Some businesses had been hit quite hard by the tax increase and revaluation. Could anything be done to soften the blow for these? The Tax Review sub-committee will take this forward by meeting with the small business operators to gain a better understanding of their situation. However any changes e.g., introduction of a small business rate would need to form part of the overall review of taxation and as this year’s budget is so tight, there is no scope to offer any comfort during the remainder of this financial year.

Council then considered the position of tax paying organizations that had faced penalty charges under the new Property Tax Ordinance as a result of late payment. Some of these had asked for the penalty charge to be waived as they had fully intended to pay in full and had now done so, while their parent organizations had not been able to respond quickly enough to the changes, which had been announced with immediate effect. Council advised the Governor that those who had paid their assessed taxes before 31 May should be refunded the penalty payments by way of an ex-gratia payment.

The first item in the Closed Session concerned the long outstanding tax debts owed to the government. With no sign of any positive movement on this still, Council advised the Governor on the next steps.

Under AOB, the Governor was asked about rumours of fare increases on the RMS between Ascension and St Helena. The Governor explained that the aim is to market the ship to better reflect demand. Councilors pointed that if this meant fares increasing at e.g., the busy pre-Christmas period, this would have an impact on the budget in Ascension.

There being nothing further to discuss the meeting was ended at 1700.

Ross Denny

Administrator

24 June 2010