Ascension Island Government: Property and Business Policy
1. Purpose of Policy
1.1. This policy has been written to provide a basis for transparent and consistent practice in relation to:-
1.1.1. occupancy and use (including the regulation of business activities) of land on Ascension, so as to satisfy the undernoted needs within the terms of current legislation; and
1.1.2. disposal or re-allocation of land which becomes unoccupied without prospect of future use by the person or organisation to which it is allocated.
1.2. This policy applies to all land on Ascension Island except for sites occupied by the US Government (and its contractors as notified to the Governor). The UK Government provides sites to the US Government (and such contractors) in pursuance of an international treaty known as the Bahamas Agreement 1956. The policy does not limit the discretion of the Governor to grant permission to occupy and use land for purposes outwith the scope of the policy.
1.3. Needs of Ascension Island Government (as the local government)
1.3.1. Ensure no element of this policy is to confer right of abode to those working and living on Ascension.
1.3.2. Ensure no element of this policy has the effect of conferring ownership of, or any interest in, land on Ascension. As noted in paragraph 2.1, all land on Ascension Island is owned by the Crown.
1.3.3. Maintain a register of land and record all permissions for occupation and use of all land on Ascension.
1.3.4. Promote the granting of “Housing Licences” to those entitled to house staff on Ascension and ensure all housing stock is held by the Housing Licence holder to whom it is allocated.
1.3.5. Encourage the development of the best housing stock possible.
1.3.6. Maintain minimum standards of accommodation, ensuring they meet health, safety and environmental guidelines.
1.3.7. Ensure any disused building which is unsuitable for re-use is demolished and/or removed from Ascension.
1.3.8. Ensure the surrender to AIG of land which is no longer required by the person or organisation holding permission to occupy it.
1.4. Needs of the “Employing Organisations” and “Private Sector Business Operators” (as defined and listed in Appendix 1)
1.4.1. Employing Organisations and Private Sector Business Operators to be granted explicit permission to use land currently used for their own business purposes.
1.4.2. Employing Organisations and Private Sector Business Operators to be granted a Housing Licence for each residential property, that will allow the Organisation or Operator to house its staff in an appropriate manner. In the case of Private Sector Business Operators, annual Permit Fees will be charged.
1.4.3. It is the intention of this policy that existing building stock be used as far as is practicable. Should an Organisation or Operator require additional buildings for the purpose of its own business, which cannot be met from its existing stock, and which cannot be accommodated on the existing footprint of land of which it has occupancy, the procedure in paragraph 5 should be adopted.
1.5. Needs of Retail Operators (as defined and listed in Appendix 1)
1.5.1. No Housing Licence will be granted in connection with a retail operation. Retail Operators will be granted explicit permission to use land currently used for retail purposes in accordance with this policy. Every such permission will be limited to the duration of employment contract of the Retail Operator (or spouse/partner, as appropriate). Annual Permit Fees will be charged.
1.6. Needs of Small Businesses (run from residential accommodation, as defined and listed in Appendix 1)
1.6.1. Regularise existing arrangements by granting permission to operate the business. Each permission will be for one year, and a fee will be charged; the Administrator will arrange for an annual review to be carried out of the impact of the business on the neighbourhood, and will take the result into account when deciding whether or not to renew the permission.
1.7. Needs of Employees with single or accompanied status contracts
1.7.1. To be provided with appropriate housing, as a contractual obligation of the Employer, and to expect the accommodation to be of as high a standard as their Employer can provide for the duration of their contract, which in any event must meet or exceed the minimum standard stipulated by AIG.
1.8 General
1.8.1 This policy is also intended to provide for authorising the continued use of all other land on Ascension, including e.g. beach huts, guides huts, nursery, museum, Heritage Society, Islander Newspaper, etc.
2. Legal Context
2.1 All land on Ascension is Crown land: as such, it can only be lawfully occupied and used by others with the permission of the Governor (which permission is referred to in this policy as a ‘Land Occupancy Permit’). In practice, permission is given by the Administrator, acting on behalf of the Governor, and authorised to do so in accordance with section 51 of the Constitution.
2.2 A Land Occupancy Permit does not confer any permanent right to abide, or to occupy land, on Ascension, and will be withdrawn by the Administrator when the occupier ceases to occupy the land to which the Permit relates.
2.3 Every Land Occupancy Permit will specify the purpose or purposes for which the land may be used, and land may not be used for any other purpose whatsoever.
2.4 It is not possible, since all land is owned by the Crown, for anyone other than the Crown to sell, lease, sub-let or otherwise dispose of or transfer any land to any other entity or individual. Land Occupancy Permits are not transferable.
2.5 Liability to pay Property Tax is governed by the Property Tax Ordinance, Cap A8.
2.6 Employing Organisations, Private Sector Business Operators, and Retail Operators, are granted Land Occupancy Permits solely for their business purposes (including the provision of living accommodation for employees and contractors, as to which see Part 3 below) and for as long as they have a business need for the property.
2.7 For the avoidance of doubt, unless the context requires otherwise, ‘land’ includes all buildings or other structures erected on land.
3. Housing Accommodation
3.1. In this policy, the expression ‘Housing Licence’ is used to refer to a Land Occupancy Permit for a parcel of land which comprises (or land on which it is proposed to erect) a building or buildings designed or adapted primarily as living accommodation for people. Housing Licences will always include a condition that the land may be used only as residential accommodation and that no business or other activity whatsoever may be carried on upon or from the land except with the express written consent of the Administrator. A separate annual fee will be charged for such consent.
3.2. Housing Licences will be granted to Employing Organisations according to the terms of this policy and business need.
3.3. Housing Licences will be granted to Private Sector Business Operators whom the Administrator deems should be allowed to house their contracted employees on Ascension.
3.4. Housing Licences will not be issued to Retail Operators.
3.5. All employees housed by their Employer under a Housing Licence must vacate their accommodation when their employment contract ends (but may be allowed to remain for a period of up to 30 days pending repatriation) unless a consecutive contract is offered by the Employer and accepted by the employee.
4. Initial Action
4.1. . Land Occupancy Permits will be issued (in accordance with this policy) to Employing Organisations, Private Sector Business Operators, Retail Operators and other de facto occupiers of land at the date of this policy.
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4.2. Where an Employing Organisation is currently purporting to sub-let land (either to or from another Employing Organisation) that land will be surrendered to AIG by the current authorised user; the Administrator will then re-allocate the land by granting a Land Occupancy Permit to the Employing Organisation actually occupying it.
4.3. For the avoidance of doubt, paragraph 4.2 applies in cases where AIG has previously consented (in whatever form or terms such consent was given) to a purported transfer of land from one Employing Organisation to another.
4.4. In cases where the original authorised user demonstrates a business need to retain the land in the longer term, it may be possible to arrange reallocation of the land to that Employing Organisation after an agreed period.
4.5. The responsibility for paying property tax and maintenance will move along with the property.
4.6. For example, if MOD are currently “leasing” land from CSO or C&W, the land will be surrendered to AIG. The Administrator will then immediately reallocate the land to MOD, which will then be responsible for property tax (and for maintenance of any building).
4.7. The Administrator will grant formal written permission for existing small Businesses run from residential accommodation.
5. Allocation of additional land
5.1. Should an Employing Organisation or Private Sector Business Operator require additional land (whether for residential, commercial, or other purpose) for the purpose of its own business, which cannot be met from it’s existing stock, and cannot be accommodated on the existing footprint of land of which it has occupancy, an application should be made to the Administrator for a new allocation of land. Each application will be examined on a case by case basis, and subject always to availability. Employing Organisations and Private Sector Business Operators will be responsible for the supply of services (water, drainage, electricity, telephones) to any new buildings they erect under this or any other provision.
5.2. In the case of a Private Sector Business Operator, an annual Permit Fee will be payable (as well as property tax, which will apply in either case) in relation to the additional land.
5.3. A request for allocation of additional land by any other person or business operator will be considered on a case by case basis by the Administrator.
6. New Business Activities
6.1. The Administrator may, acting in his discretion, issue Land Occupancy Permits allowing for additional or expanding businesses or facilities if, in his opinion, it is in the public interest and aids the proper functioning of the Island and an acceptable business case is made. In general, however, no Land Occupancy Permit will be issued containing permission for use for any new Private Sector Business Operator, Retail Operator, Small Business or other facility.
6.2. For the avoidance of doubt, paragraph 6.1 applies both to new businesses seeking permission to operate on Ascension for the first time, and to retail businesses or small businesses already operating on Ascension, wishing to expand into a higher category.
7. Cessation of Land Occupancy Permits
7.1. Employing Organisations
7.1.1. Any land held by an Employing Organisation for which it no longer has a business need will be subject to a viability assessment by AIG to determine the condition of the land and any buildings thereon, and then must be either :
7.1.1.1.surrendered to AIG in a fit state to be re-allocated at minimal expense; or
7.1.1.2.surrendered to AIG, having demolished and removed from the Island (at the Employing Organisation’s expense) any buildings which the inspection reported unsuitable for re-use;
and (in either event) there will be no payment for surrendering the property but the Employing Organisation will no longer pay property tax on it
7.1.2. If an Employing Organisation anticipates a future business need for a unused land, within a period of 12 months, they are permitted to retain the land unoccupied for this period provided that any buildings on the land are maintained in an environmentally sound manner (liability for property tax continues).
7.1.3. Paragraphs 7.1.1 and 7.1.2 exclude land which is not normally occupied but nevertheless remains important for the effective operation of the Employing Organisation, such as for periodic temporary increases in housing requirements.
7.1.4. An Employing Organisation wishing to sell/transfer their business should inform the Administrator of this intention. The Land Occupancy Permit(s) held by the Employing Organisation will terminate when the business is sold/transferred. The prospective purchaser of the business will be required to submit a satisfactory business case and provided that the Governor is satisfied that it is in the public interest to do so, a new Land Occupancy Permit will be issued.
7.2. Private Sector Business Operators
7.2.1. For Private Sector Business Operators, Land Occupancy Permits will cease when their business on Ascension ceases.
7.2.2. In the event that a Private Sector Business Operator elects not to remain on Ascension to run the business but the business is to continue under new management, paragraph 7.1.4 applies as it would in the case of an Employing Organisation;
7.2.3. If a Private Sector Business Operator no longer has a business need for any land, paragraph 7.1.1 applies as it would in the case of an Employing Organisation.
7.3. Retail Operators
7.3.1. For Retail Operators, Land Occupancy Permits will cease when their business and/or reason for being on Ascension ceases. In such circumstances, paragraph 7.1.1 applies as it would in the case of an Employing Organisation.
7.3.2. If an Operator wishes to sell/transfer the assets (e.g. goodwill, equipment and stock) of the business, paragraph 7.1.4 applies as it would in the case of an Employing Organisation
7.4 General
Land occupancy Permits will also be issued for the occupation of other land not expressly addressed elsewhere in this policy. Where the occupation of any such land ceases, paragraph 7.1.1. applies as it would in the case of an Employing Organisation, except where (in the case of 7.1.1.2) the Administrator waives the need for the occupier to meet the cost of demolition. If the occupier ceasing to use the land has a preference as to who should take over the occupation, the Administrator may take that into account when issuing a new Land Occupancy Permit.
8. Maintenance of Property Registers
8.1. AIG will maintain a Property Register which records all Land Occupancy Permits to ensure the provisions of this policy are being adhered to.
8.2. All Housing Licence holders will be required to provide AIG with the details set out as Appendix 2 on the following occasions:
8.2.1. upon receipt of a Housing Licence, for each unit of accommodation used;
8.2.2. when a change in occupancy occurs; and
8.2.3. annually as at the 31 March, a summary of the changes which have occurred during the previous year.
9. Development Control
9.1. Each type of building must comply with or exceed AIG’s minimum health, safety and environmental standards for that type of building, as published from time to time.
9.2. Every Land Occupancy Permit will contain a condition forbidding any kind of development on the land except with the express written permission of the Administrator.
10. Property Tax Incentives to encourage the development of property stock
10.1. AIG wishes to encourage investment in the existing building stock, to discourage the non-use of buildings which cause them to become dilapidated, and to encourage the development of new buildings. Consequently, AIG will make amendments to the current property tax legislation to allow the changes outlined in paragraphs 10.2 and 10.3
10.2. The property tax rate on any newly constructed building will be reduced by 50%, to 1.5% of its property tax value for the first 10 years of its life, providing the property exceeds AIG’s minimum standards applicable to that type of building and is in use as staff housing.
10.3. If property that is surplus to the requirements of the Permit holder ceases to be used for a period of more than 6 months then property tax will be doubled to 6% of its property tax value from the date it becomes unoccupied. The higher rate of property tax will not apply to property which is not normally occupied but nevertheless remains important for the effective operation of the licence holder, such as for periodic temporary increases in housing requirements.
Appendix 1
Definition of Terms
1. “Employing Organisations”
An Organisation which has a strategic interest in Ascension and/or is vital to facilitate the use of Ascension by the other Employing Organisations, and which employ staff on standard contracts:.
MOD, plus Sub-Contractors as notified to the Governor
Cable & Wireless South Atlantic Limited
BBC, plus Sub-Contractor as notified to the Governor
C.S.O.
Obsidian Group Ltd
Solomons and Co (St. Helena) PLC.
2. “Private Sector Business Operators”
Businesses which are not owned by the “Employing Organisations” nor are Sub-contractors of them, but which provide strategic services to the Employing Organisations and/or the general population of Ascension, and which employ staff on standard contracts. (If these businesses cease and no one else wants to take them on – the business will close)
Business Operator Business
Tasty Tuckers Ltd Tasty Tuckers Café
Harold Henry Birdies Refuelling Station
Peter Maggot Freddie’s Bakery
Bank of St Helena Ascension Branch Bank of St Helena
3. “Retail Operators”
