Submission from Members of the Legislative
Council of St Helena
BACKGROUND
1. The Island of St Helena, an Overseas
Territory of the United Kingdom, is of volcanic origin and covers
47 square miles. It is located north of the Tropic of Capricorn
in the South Atlantic Ocean, 4,000 miles from the UK, 700 miles
from Ascension, 1,100 miles from Angola, and 1,700 miles from
Cape Town. Our population is around 4,000 persons and has fallen
significantly in recent years. The economy is mainly dependent
on imports and there is an unusually high proportion of remittance
income. The private sector is small and all costs relating to
transport and energy are high. With access only by ship, the economy
has not really entered the global market, and we are heavily dependent
on UK government assistance. Following a recent feasibility study
it has been agreed to fund an international airport on St Helena
but this will not be in operation until approximately 2012, until
which time shipping will remain the only mode of access for all
goods and people. It is hoped that the establishment of an airport
and associated tourist development will stimulate wider economic
development and eventually lead to a financially independent St
Helena.
THE LATE
SUBMISSION OF
EVIDENCE
2. When the invitation to submit evidence
to the FAC was discussed in the Executive Council (Exco) last
October, the atmosphere of government was rather different and
the decision was made not to make a submission. All Councillors
have since reconsidered that judgement in the light of a number
of positive developments over the last few months. We now have
a new Governor, a new Chief Secretary, a more open style of government
as well as the positive news of the submission of two bids for
the construction of the airport at the end of November. These
and other factors have generated a rather less cynical atmosphere
throughout the community. This opportunity to make a late submission
therefore comes at an opportune time, and we would wish to make
a number of comments that we trust will be of assistance to the
Committee.
AIR ACCESS
4. The St Helena Air Access project tackles
the long term future of the Island and is foundational in enabling
us to create a situation that gives us the best chance of having
a self-sustaining economy. This project is probably the most important
venture ever undertaken on the Island and is the cornerstone of
our dual desire to achieve financial independence and put an end
to the problems of depopulation.
The project comprises:
— the construction and operation of
an airport capable of supporting services by Boeing 737-800 or
equivalent aircraft;
— the conception and implementation
of an appropriate tourism marketing strategy;
— the essential changes to the legal
and regulatory framework to facilitate air services and protect
against possible unwanted side effects;
— the setting up of environmental safeguards
including a rigorous Environmental Impact Assessment (EIA); and
— the establishment of effective and
appropriate project management arrangements to deliver the project.
5. Work on Air Access is at a key stage.
An Invitation to Tender for the Design Build and Operate contract
was issued in May 2007. Two of the pre-qualified consortia subsequently
withdrew from the process. The remaining two consortia attended
a week long site visit to St Helena in June 2007 and one of the
consortia made a further visit to St Helena. Both of these consortia
submitted bids on 30 November to build the airport and related
infrastructure. We will know the fate of the project during the
northern spring once the complex evaluation process has been completed.
6. DFID is supporting the establishment
of a scheduled service, (initially a weekly flight), to a recognised
international hub. We are especially concerned that a regular
air link to Ascension Island, where 78.1% of the population are
Saint Helenian (Saints) is established right at the start. Procurement
of an air service provider will be carried out once construction
of the airport begins.
7. The Public and Private Sectors of the
economy are planning to work in harmony on the many plans for
modernisation, development and managed improvement that are aligned
to the construction of the airport. Our Sustainable Development
Plan (SDP—copy attached), is the result of a great deal
of work, much of it carried out by Islanders. The SDP charts our
pathway and shows that we will be working closely with HMG in
ensuring that the financial assistance from the UK is well managed.
It will be focussed on developing our infrastructure, on strengthening
the institutional framework, and encouraging and growing the private
sector through outsourcing and direct stimulation.
8. It is believed that the presence of the
airport will enable the many Saints living and working elsewhere
to be able to visit, and in many cases return to, their homeland.
Although this resource may well be a driver of economic growth,
we are all too aware that we will need to develop a long way before
our salary levels equate to those available to Saints elsewhere.
The re-uniting of families is an important priority to us.
9. The economic growth plans concentrate
on tourism. Much of our thinking has been led by the success of
other islands in this sphere. Nevertheless we appreciate the risk
inherent in the degree of dependency on this market which is at
the whim of world economic pressures. We are hoping to improve
the productivity of our fishery as well as striving to move our
agriculture back towards the prominent place it held in our rich
history. However we know that these prizes will be hard won and
are all too conscious of the size of the graveyard of past plans
and reports.
LEGAL AND
REGULATORY CHANGES
10. An Airport Development Ordinance was
passed in 2006 to facilitate the design, construction and operation
of the airport, and to provide the necessary legal framework for
St Helena to enter into the relevant contractual arrangements.
It includes provision for the application for Development Permission
to be submitted directly to the Governor in Council rather than
the Land Development Control Board.
11. A full review of the legislative environment
has been completed, and a further programme of legislation is
planned. In an effort to seek the views of the public and to make
Government more transparent and accountable, We have established
a new pattern for consultation over all future proposed legislation.
This will enable the public to debate and scrutinise draft legislation
and evolving policies at constituency meetings. This new procedure
will provide for a broader and more structured input from the
public.
FINANCIAL SERVICES
LEGISLATION—PUBLIC
CONSULTATION
12. In 2007, we published a statement of
our policy in relation to the management of financial services
in St Helena; the statement announced an intention to enact appropriate
legislation. Since then our officials have been consulting with
relevant specialist advisers off-Island, to prepare draft Bills
to carry the policy into effect.
13. To assist with this consultation, the
Attorney General's Chambers published the draft Bills on 19 December
2007. The drafts, a Financial Services Bill and a Money Laundering
Bill, are important at both a local and at an international level.
Locally, the Bills aim to protect St Helenians from falling victim
to unscrupulous financial service providers as the economy begins
to develop in preparation for tourism. At the international level,
the new laws are necessary for St Helena to comply with international
obligations and ensure that St Helena itself and businesses operating
here are not subjected to sanctions by other countries and territories.
DEVELOPMENT ASSISTANCE
PLANNING MISSION,
MARCH 2007
14. A UK Government team (Development Aid
Programming Mission) visited St Helena in March 2007 to review
the use of budgetary aid over the previous year and agreed a three-year
package of future development assistance. The team also advised
on the draft SDP and linkage to departmental business plans including
a framework for monitoring progress towards implementing national
and departmental reform programmes. As a result of agreements
reached during the Mission, the Saint Helena Government (SHG)
is able to benefit directly from any reform measures by being
able to retain and reallocate any budgetary savings in the recurrent
budget made from efficiency measures and/or higher domestic revenues
within the three-year framework.
15. The advent of the airport within five
years means that capital investment in infrastructure will need
to be speeded up in order to allow for the completion of agreed
projects in a shorter timeframe than would ordinarily be possible.
Thus certain infrastructure needs (eg in the island's roads, utilities
and buildings) should enjoy a "front-loading" of capital
investment from HMG. This helpful timing of investment is dependent
on the achievement of short term goals that are clearly set out
in the SDP. However we are nervous over the utilisation of the
phrase "full cost recovery" especially in the light
of the poorer members of our society.
16. The SHG published the SDP on the 20th
November 2007. The Plan builds on the six priority strategic objectives
identified and contains details on key areas of work that are
an essential part of the process to prepare the Island for the
opening of the Airport. These are:
— further improvement in the standard
of education for the people of St Helena;
— the development of a sustainable
and vibrant economy to the benefit of St Helena;
— the development of a healthy community
in a safe environment;
— the promotion and development of
a sustainable workforce; and
— progress towards the establishment
of modern democratic and human rights for all our people.
ECONOMIC DEVELOPMENT
17. SHG published its new Investment and
Tourism Policies in October 2006. These policies demonstrate SHG's
commitment to raising standards of living, by securing greater
levels of investment and ensuring maximum benefit from tourism
development for the island's economy and people. The investment
policy seeks to provide appropriate encouragement to inward investors,
while at the same time ensuring that St Helenian businesses and
employees are able to benefit from opportunities arising from
air access.
18. The St Helena Development Agency has
responsibility for identifying business opportunities for Saint
Helenians and creating the conditions for a more dynamic and stronger
private sector. It is also the first and most important point
of contact for overseas investors.
CONSTITUTIONAL REFORM
19. Following detailed negotiations with
St Helena Councillors, a draft new Constitution was prepared in
2005. The draft Constitution would have established a ministerial
system of government in St Helena as well as introducing revisions
in a wide range of areas. Some of the proposed changes were acknowledged
to be controversial. In particular the question as to whether
a new Constitution should establish a ministerial system. This
question was put to the people of St Helena in a consultative
poll. The result of that poll was negative. Further consideration
of a new draft will shortly be underway which builds on the 2005
basis but accepts that we are not yet ready for a ministerial
form of government.
20. In an attempt to achieve greater transparency
and trust between Government and the Public, and more inclusiveness
amongst elected representatives, ExCo has agreed to its Chairman
making a broadcast summarising the discussions immediately following
each ExCo meeting. In addition all Councillors have agreed to
the distribution of ExCo papers to all twelve Councillors rather
than just the five on ExCo. These moves appear to have been well
received by the public, have helped to dispel allegations about
unnecessary secrecy, and provided a broader base for discussion
and advice both within and to Government.
THE FUTURE
21. We do not doubt that once construction
of the airport begins there will be a surge of much needed confidence
throughout the Island. However we are acutely aware that we are
the stewards of a unique natural and social environment and we
will strive to ensure that the advent of the improved access that
we all want is not achieved at the sacrifice of much that we hold
dear.
22. We are also aware of the need for training
and support throughout the community. The ongoing success of the
AVES Project (Adult Vocational Education) demonstrates this point.
Indeed we as Councillors are already undergoing a helpful training
process and we are keen to see the whole of our administrative
and managerial support in government working to the highest professional
standards and shaking off the bureaucratic systems that bedevil
much of post colonial administration. We feel that we have started
on the road to achieving these aims.
23. All Councillors strongly support the
recommendation contained in the recent NAO Report on the Overseas
Territories, that HMG Departments in addition to the FCO and DFID
should have greater involvement in the OT's. Much as we respect
and appreciate the support given by both the FCO and DFID, we
feel we would greatly benefit by having direct access to DEFRA,
the NHS, the DTI and other HMG Departments.
24. The next few years are crucial in St
Helena. We enjoy sustained support from HMG and are keen to manage
the pathway towards a prosperous and self-sustainable future.
There will be pitfalls, and there are risks, but all Councillors
feel that the considerable effort will be worthwhile.
29 January 2008
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