ExCo Report 23 February 2010
4 March 2010
This was another long EXCO, primarily because of financial papers relating to the forthcoming budget; hence the fact that this report is a day late, for which I apologise.
Councillor Tara Thomas has left the island on Council business and her place on EXCO was taken by Brian Isaac. The appointment of a temporary Member of EXCO is normally recommended to the Governor by the absent Member and we try to ensure that the replacement is representing the same constituency.
In the open session we agreed that the Food Hygiene regulations 2003 should be brought into force. These ensure that the majority of food premises, including restaurants, shops, canteens and others are operating in an hygienic manner. We also agreed to release a small amount from the Development Fund for the construction of two cattle grids on the Canterbury pastureland at West Lodge. There was another financial approval relating to costs incurred as a result of restructuring within the Human Resources Department.
At the beginning of the closed session we approved the minutes of the last meeting held on 9th February and had some fairly lengthy discussions under Matters Arising.
I asked Hon. Members how they felt that the new committee system is working. The general response was that after an understandably slow start, when many issues relating to a new structure had to be decided, there have been some very useful meetings. There was a particular liking of the cross-cutting mechanism, where Members have to make sure that the views of other portfolios are taken into account.
Virtually all of the points that required following up had been actioned, and we moved on to consider the important issue of taxation benefits for those who own property that is rented out. Quite a lot of complaints had been received about this as many other countries allow a property owner to depreciate the value of rental property for tax purposes. Councillors advised that such a concession should apply here and I agreed with that recommendation.
The annual budget always contains one part that affects most people, and that is the allowances that are given to all taxpayers before they become liable for tax. At the present time one can earn £3,000 before any tax is due and a then a further £3,000 incurs the lower tax rate of 17%. The New Tax Legislation passed in April 2009 was committed to reducing the overall tax burden on individuals and the recommendations from the Financial Secretary were discussed in the light of that policy. However it would be wrong of me to indicate what his recommendations actually were as that must be reserved for Budget Day on 19th March. However I can indicate that particular help is going to be given to farmers as there will be a new allowance introduced that can be applied to profit made from the sale of farm produce.
We then considered a paper that was entitled Income Tax – Variety of Administrative changes. There were ten detailed changes recommended in this paper all of which modernised or improved the administration of tax in some way. For instance we will be able to fill in tax forms on our computers if we so wish, the Commissioner for Tax can use his or her discretion in deciding whether an organisation or event is actually treated as a charity for tax purposes, certain terms were defined with more clarity and so on.
The next paper dealt with a widening of exemption from Capital Gains Tax. At present those Saints who live abroad, yet retain a home here on the island, could well be liable for paying tax on any gain on the sale of that house. Generally speaking the widening of exemption proposed will benefit such people.
Most budgets deal with the rate of duty on alcohol and tobacco. The actual changes in the rates are of course a matter for Legislative Council, but here at EXCO we saw the recommendations and approved them.
Then a paper proposed an increase on the fees charged for inspections of cars and cranes, but Councillors felt that this had not had enough consideration by the relevant committee and so we referred it back for further work.
Under Any Other Business we considered the present parlous state of our vital fishing industry and agreed that some short term assistance should be paid to fishermen until the end of March. You will have noticed the strong support for farmers being adopted through the taxation system and here Council expressed their equally strong support for our other basic food supply.
We then discussed the forthcoming visit of Sue Wardell of DfID. There will of course be a delay in the arrival of the RMS from Cape Town and this means that Sue’s visit will be shorter by a whole day. Some re-jigging of her programme has had to take place but Councillors will still be able to meet with her both at the beginning and end of her visit. She will also be interviewed by both media channels on Wednesday 3rd March prior to her departure. It is difficult to over emphasise the importance of Sue’s time with us. Without DfID the state of this island would be sorry indeed, and Sue is the Director responsible for us. We are however a very small fragment of her overall role and it is an unusual privilege to have someone at her level actually coming to meet us. Personally I welcome it very much as I am sure nobody can understand how special St.Helena is without seeing it for themselves. We can tell her of the friendliness, intelligence and positive attitude of Saints that still exists in spite of all the disappointment over the airport, but when she experiences it for herself – it is bound to make a difference.
During our meeting I received the sad news of Mike Clancy’s death. Mike held the offices of Chief Secretary and Governor with considerable distinction and all members of Council asked that their condolences should be passed on to Claire. Today I have written that letter and enjoined all Saints in that expression of sadness. As you will be aware our flags are flying at half mast as a mark of respect.
The meeting closed at 2.25 pm.
Andrew Gurr
Governor
24 February 2010