-Introduction to the Falkland Islands-
CONTENTS
GEOGRAPHY AND CLIMATE...... 2
NATURAL RESOURCES...... 3
Agriculture...... 3
Fishery...... 5
Mineral Resources...... 7
THE PEOPLE...... 8
THE GOVERNMENT...... 8
The Islands Plan...... 9
DEFENCE...... 10
ECONOMY...... 10
THE FALKLAND ISLANDS DEVELOPMENT CORPORATION ………...………………..…….12
COMMUNICATIONS...... 13
EMPLOYMENT/ IMMIGRATION AND CUSTOMS...... 14
TAXATION...... 15
Income Tax...... 15
Medical Services Tax (MST)……………………………………………………………………….15 Employee Tax………………………………………………………………………………………..16
Tax Residency……………………………………………………………..………………………..16
Tax Examples……………………………………………………………………………………….17
Retirement Pension Scheme...... 18
EDUCATION...... 19
HEALTH SERVICES...... 21
PHILATELY & POSTAL SERVICES...... 22
CURRENCY / BANKING...... 23
TRANSPORT SERVICES...... 24
International...... 24
Internal...... 26
Air Freight...... 26
TRAVEL & TOURISM...... 27
WILDLIFE...... 29
RECREATION / AMENITIES...... 30
RELIGION...... 31
USEFUL ADDRESSES...... 32
Travel Agents in the Falkland Islands...... 33
Falkland Islands Support Groups...... 34
LIST OF FREIGHT FORWARDERS………………………………………………………………...35
Please note that all information herein is subject to change without notice
GEOGRAPHY AND CLIMATE
Situated in the South Atlantic, the Falkland Islands lie some 400 miles (483 km) from the South American mainland and 850 miles (1,365 km) north of the Antarctic Circle. The Islands are located between Latitude 51˚ and 53˚ S and Longitude 57˚ and 62˚W; approximately the same latitude south as London lies north.
The Falkland Islands comprise two main Islands (East and West Falkland) and 778 smaller islands, with a total land area of approximately 4,700 square miles (12,173 square km), covering an area just over half the size of Wales. The distance from Stanley, on the extreme east, to NewIsland, on the extreme west, is some 148 miles (238 km).
The coastline is deeply indented and affords many good anchorages. There are no major inland waters. Topographically the Islands are generally hilly, with the highest points being MountUsborne at 2,312 ft (705m) on East Falkland, and MountAdam at 2,297 ft (700m) on West Falkland. Most of the uplands are comparatively bare of vegetation, being of eroded peat, scree and stone runs (‘rivers’ of angular quartzite boulders that ‘flow’ from the hilltops). Whilst cultivated trees do grow, there are no indigenous trees, the natural vegetation being grassland, with some species of heath and dwarf shrubs. Bird and marine mammal life, such as geese, penguins, seabirds and seals, are diverse and unspoiled. There are no native land animals. Legislation provides for the protection of most birds and mammals and for the establishment of some areas as wildlife sanctuaries and reserves.
The climate is characterised by a narrow temperature range, which varies from 24˚C (76˚F) in January, to - 5˚C (22˚F) in July, with a mean annual temperature of approximately 5.6˚C (42˚F). Strong winds are common, but the rainfall pattern is comparatively low and evenly distributed throughout the year, averaging 625 mm (24 inches) in Stanley. The climate is influenced by the cold surface current from the Antarctic, which is much colder than the polar cap of the north.
Falkland Islands winters tend not to be as severe as found in some parts of the United Kingdom, although snow has been recorded in most months it seldom lies for long. Whilst summers are not quite as hot, the Islands generally enjoy more hours of sunshine than the south of England. A combination of clear air, light winds and bright sunshine increase the risk of sunburn; the wearing of a high factor suntan cream is recommended for extensive periods outdoors.
NATURAL RESOURCES
Agriculture
For 160 years, until the introduction of the Fishery Conservation Zone in 1987, sheep farming and the export of wool provided the main base of the Islands economy.
Since 1987 the sale of fishing licences has become the major income source for the Islands. However, sheep farming remains the major form of land use. The soils of the Islands are quite acidic and relatively infertile. These inherent difficulties, when coupled with a windy and cool oceanic climate, and added to the geographic isolation of the Falklands, have ensured that wool is still the main land based export.
Farmland extends to approximately 1,140,500 hectares and carries approximately 600,000 sheep and 5,000 cattle. Pre-1979 there were 36 farms in the Islands. However, as a result of Government policy to increase the number of locally owned and operated farms through sub-division of some of the larger ‘corporate farms’, there are now 88 farms. Most of these are run as family units with an average size of 10,000 hectares running 6,400 sheep.
In 1991, four large farms, equating to about 25% of the total farm land in the Islands, were purchased by the Falkland Islands Government from the Falkland Islands Company, demonstrating the Government’s commitment to agriculture in the Islands. The Falkland LandholdingsCorporation was established as a statutory organisation to run these farms, which total 308,000 ha, with 180,000 sheep and approximately 900 head of cattle.
The Islands average annual wool clip for the past decade has been approximately 2,200 tonnes (greasy) with an average fibre diameter of 26 micron. Sheep breeds are predominantly Polwarth and Corriedale. In 2005 an ongoing major ovine Embryo Transplant and Artificial Insemination programme was initiated, with the aim of speeding up the lowering of micron and improving meat carcasses in order to increase revenue to farmers. This includes introducing sheep breeds such as Dohne Merino and SAMMS (South African Mutton Merino) on farms.
In December 2002 the Islands newly constructed abattoir received accreditation to enable meat exports to the UK and Europe. Sand Bay Abattoir’s first production ofsheep meat was exported to the UK in May 2003. In 2005 the meat from approximately 23,000 sheep and lambs was exported to the UK and into European markets.
In addition to the sheep improvement work, funds are available through the Department of Agriculture for pasture improvement. Farmers are being encouraged to run their farms as profitable businesses that can compete on world markets and can enrol on the scheme if they can demonstrate a return on funds provided by the Government.
NATURAL RESOURCES
Agriculture (cont)
Farms in the Falkland Islands are extensively managed and lend themselves to the production of sheep meat, wool and beef grazed almost exclusively on natural pastures with very little use of synthetic chemicals or treatments. A number of farms in the Islands are designated as organic suppliers for their produce.
The main charter of the Department of Agriculture is to foster a viable and internationally competitive agricultural industry through integrated applied research,extension, business skill development and regulatory programmes. The Department also provides veterinary, quarantine and agricultural laboratory services to the Islands.
Department Agriculture
StanleyFalkland Islands
FIQQ 1ZZ / Tel:
Fax: Email:
Web: / + 500 27355
+ 500 27352
NATURAL RESOURCES
Fishery
Falklands waters are noted for their squid production, accounting for c. 10% of world squid supply. Squid usually account for around 75% of annual catches of some 200,000 tonnes, and are destined for markets in Europe and the Far East. The balance of catches consist of various finfish species including Blue Whiting, Hake, Hoki and Toothfish.
Illex argentinus squid are fished principally by specialist squid jigging vessels from the Far East. Loligo gahi squid are fished mainly by trawlers registered in the Falklands and owned jointly by Falklands and European companies. There are 21 ocean going fishing vessels registered in Stanley.
Revenue from the sale of fishing licenses has been as high as £20-25M. More recently revenue has declined to £12-15M per annum as a result of several poor Illex seasons. Some £5M of fisheries income is spent each year on fisheries protection and research.
To ensure that conservation targets are achieved, fishing effort is controlled by limiting the number of vessels licensed to fish within the zone. Additional restrictions include closed areas and seasons to protect spawning squid and, in the case of finfish, a minimum mesh size is imposed. Catch data is collected from all vessels on a daily basis.
To protect against poachers, the waters are patrolled by Falkland Islands Government aircraft and an armed fishery protection vessel.
A recent major review of fisheries policy concluded with agreement on three significant policy initiatives, outlined as follows:
- The development of port infrastructure and services to enable more fishing vessels to use Stanley as their home port, and to develop the range of fishing related activities that could be undertaken ashore, such as services to vessels and storage and processing of catch;
- The development of aquaculture and marine farming, introducing specific legislation to facilitate and regulate development;
- The introduction of a system of transferable rights in the fishery, which will have similarities with the Individual Transferable Quota schemes used elsewhere, but continue to be based on fishing effort. The security and flexibility this will give the industry should lead to significant development making this probably the most fundamental change in the fishery since the introduction of the fisheries zone.
Fishery (cont)
The common theme of all three policy initiatives is to greatly expand the contribution made by fisheries and maritime businesses to the Falklands economy.
Falkland Islands fisheries law was substantially revised and re-stated in 2005; this is the first major revision of fisheries law since the introduction of the Fishing Zone in 1986. The new law enables and regulates the new system of transferable fishing rights. It has also provided the opportunity to update fisheries law incorporating a number of international developments particularly in relation to the conservation of marine resources.
Fisheries Department
StanleyFalkland Islands
FIQQ 1ZZ / Tel:
Fax:
E-mail:
Website: /+500 27260
+500 27265NATURAL RESOURCES
Mineral Resources
Oil exploration around the Falkland Islands has gained considerable momentum over the last two years, providing a welcome, temporary boost to the Islands’ economy and making long-term oil production in the Falklands an increasingly realistic prospect.
The 2010-2012 drilling campaign undertaken by Desire Petroleum and Rockhopper Exploration saw 11 wells drilled, most notable of which was the Sea Lion Oil Discovery and its subsequent appraisal and test wells. Rockhopper believe that the Sea Lion discovery could hold some 350m barrels of recoverable oil, and have begun planning for a possible production phase.
Should any operator enter a long-term production phase, it is envisaged that production and processing infrastructure will be based offshore. This will not only reduce the onshore environmental impact on the Islands, but will also ensure that the socio-economic impact will not prove overwhelming for the existing infrastructure.
The Falkland Islands Government has began to plan ahead to ensure that the Falklands are prepared should a production phase take off. This includes reviewing not only the current level of infrastructure and service provision, but also the relevant legislation to ensure that it conforms to international best practice. Furthermore, an Oil & Gas Development Group has been set up in order to ensure that the existing private sector benefits from any oil exploration or production.
Maintaining the unique natural heritage and unspoilt environment of the Falklands remains a key Government priority in approving any exploration or production. As such, all such operations require operators to submit an Environmental Impact Assessment (EIA), which in turn is subject to a strict public consultation period. The current exploration campaign has seen a very inclusive environmental auditing process, whereby NGOs and stakeholders are included in environmental impact discussions from as early a stage as possible. Furthermore, the department of Mineral Resources, in conjunction with operators, environmental stakeholders and other government departments, has created the Offshore Hydrocarbons Environmental Forum, whose aim it is to promote cooperation between all relevant bodies and jointly develop a shared vision on how best to protect the unique environment of the Falklands.
Department of Mineral Resources
StanleyFalkland Islands
FIQQ 1ZZ / Tel:
Fax:
Email:
Web: / +500 27322
+500 27321
THE PEOPLE
There was no indigenous population and the Islands remained uninhabited until 1833. The population of the Falkland Islands is almost exclusively of British birth or descent, and many can trace their origins in the territory back to the mid-nineteenth century.
The 2012 census showed that excluding contractors at MPA and military personnel, the population figure of the Falkland Islands was 2,563. This figure includes the 91 residents not present in the Islands on the date of the census. This indicates that the population has remained static since 2006.
Not considering those residents who were out of the country at the time of the census, the capital, Stanley was home to 2,121 people, 75 per cent of the overall population, an increase of less than 1 per cent since the 2006 census. The population in Camp (areas outside of Stanley) has however declined by 3.3 per cent however to 351 people.
THE GOVERNMENT
The Falkland Islands are a United KingdomOverseasTerritory by choice. Supreme authority is vested in Her Majesty The Queen and exercised by a Governor on her behalf, with the advice and assistance of the Executive Council and Legislative Assembly.
Following almost ten years of discussion and negotiation, a new Constitution for the Falkland Islands took effect on 1 January 2009. Marking an important milestone in the history of the Falkland Islands, the new Constitution provides enhanced local democracy and internal self-government, and enshrines the right of self-determination.
The Falklands have developed considerably both economically and socially since the previous Constitution was introduced 1985, and the new Constitution reflects this. The Islanders’ right to determine their own future has been reinforced, as self-determination is now embedded in the main body of the Constitution. The Constitution enhances local democracy, while retaining sufficient powers for the UK Government to protect UK interests and to ensure the overall good governance of the Territory. It provides for greater transparency and accountability through the creation of a Public Accounts Committee and a Complaints Commissioner, and the Human Rights chapter has been brought up to date to bring it into line with international agreements.
In line with other UK Overseas Territories, the Legislative Council will now be called the Legislative Assembly, and Legislative Councillors are now Members of the Legislative Assembly.
The new Constitution makes much clearer Assembly Members’ responsibility for most domestic policies and that, in general, the Governor will now have to abide by the advice of the Executive Council on such matters. However, the new Constitution will also enshrine a power for the Governor not to act upon Executive Council's advice "in the interests of good governance", or in relation to external affairs, defence, internal security, the administration of justice, audit, and management of the public service.
The Legislative Assembly (LA) is chaired by a Speaker and includes two ex officio members: the Chief Executive and the Financial Secretary. The Attorney General and Commander British Forces South Atlantic Islands (CBFSAI) are also entitled to attend LA meetings. The Speaker is a non-elected position, chosen from the community by Councillors.
Each year the Legislative Councillors elect three of their number to stand as members of the Executive Council (ExCo), which includes the same two ex officio members who sit on LA. In addition, the Attorney General and CBFSAI may attend and speak on any matter. The Governor is obliged to consult ExCo in the exercise of his functions.
LA is empowered to pass legislation for the peace, order and good government of the Falkland Islands, subject to the approval of Her Majesty the Queen, acting through her Secretary of State for Foreign Affairs. LA meetings are held in public, usually bi-monthly.
Elected Councillors have a substantial measure of responsibility for the conduct of affairs concerning the Falkland Islands, although the Governor retains responsibility for external affairs and defence. The Governor nevertheless consults regularly with Councillors on these issues.
The Islands Plan
In 2001 the Falkland Islands Government (FIG) introduced The Islands Plan – a three year rolling programme aimed at achieving sustainable economic growth, whilst preserving the natural environment and unique culture of the Falkland Islands.
Diversification of the economy is fundamental to the Plan. In particular, a business plan for agriculture has been approved, and is now being implemented, to reduce reliance on income from wool by the development of a meat export industry meeting European standards. Newly introduced legislation which completely re-structures fisheries licensing has been implemented to encourage the development of the industry including services onshore, and encourage the development of related industries such as mussel farms and freezer plants. Investment in communications and tourism is also underway with a particular emphasis on the development of land-based tourism building on successful cruise ship tourism.
Reviewed each year, The Islands Plan lays out nine themes under which targets for society, the economy and environment in the medium term are laid out. The themes include:
- Ensuring, in partnership with the United Kingdom, the Islands’ right to self-determination and British Sovereignty;
- management of the economy to allow all sectors of society to prosper;
- providing all residents with the opportunity to develop their skills and abilities through education and training in a way that suits them and the needs of society;
- working to develop infrastructure, particularly transport and communications, to meet the economic and social development needs of Falkland Islanders;
- building a healthy and fit society;
- improving efficiency of Government Services to the community and ensuring that Government reserves are held at sensible levels;
- Camp to remain viable as a well populated and economically and socially self-sustaining community;
- protecting and treasuring the unspoiled nature of the environment through environmentally sustainable development;
- ensuring a well-housed, well-served, safe community.
All nine themes support FIG’s mission ‘to protect and to improve the quality of life of Falkland Islands People and Community’. The latest and complete edition of the Islands plan can be downloaded from the Falkland Islands Government website