12 November 2019
Executive Council met today, Tuesday 12 November 2019, to consider and advise whether the Currency (Amendment) Bill, 2019 should be printed, published and presented as Government Business at the next formal meeting of Legislative Council on 6 December 2019.
The amendments address two issues, namely:
- Deficit arrangements – that any deficit in any given Financial Year is covered by the General Reserve of the Currency Fund
- Distribution of Surplus in any given Financial Year, and related powers for Currency Commissioners.
Before considering the proposed amendments, Members noted that these were procedural and administrative changes to the Currency Ordinance and that the Currency Fund has not incurred a deficit in recent years but that it is prudent to ensure that provision is made in the legislation should a deficit occur in the future.
Members also noted that these amendments provide that the Commissioners are able to allocate as much of any surplus generated in the year to build the General Reserve and build financial resilience and security for the Currency Fund rather than the surplus having to be allocated to the General Revenue of St Helena Government (SHG).
Secondly, it will give the Commissioners the ability to contribute to the General Revenue of SHG, if it is deemed equitable to do so with the approval of the Governor, through a clear and unambiguous process.
These proposals had been previously endorsed by the Economic Development Committee and Members accepted the proposed amendments and changes therein.
Council viewed this as a tidying up exercise of the legislation and fully supported this pragmatic approach.
12 November 2019