Approval could be viewed as “discriminatory to lower earners”.
The Portfolio Participation Programme (PPP) from the Falkland Islands Development Corporation (FIDC) has raised £500,000 from Falklands investors. FIDC had applied to the tax office seeking to exempt all subscribers of PPP from paying tax on interest earned.
Updating the board on Wednesday chairman Michael Poole said he had been informed the tax status has been declined.
Head of Finance Steve Cannon, said the general assessment was the scheme appealed to higher earners and could be discriminatory to lower earners, so tax exemption was not agreed.
Some members of the board expressed surprise at the decision saying the financial secretary sits on the FIDC board and had been involved in discussions on this for the better part of a year and tax exemption had been a critical part of discussions.
Mr Poole suggested the decision was “short-sighted” as people investing in the Falklands is a “good thing” and added “it took government advisors months to tell us what we could do, but the decision is taken.”
Mr Canon said he thinks the treasury has learned from this and it could be raised much earlier in the future.
The Wool Warehouse formed a reasonable part of discussion in the open section of yesterday’s meeting.
The managing director’s report said a group was formed and discussion on the warehouse was held on June 27.
According to FIDC’s project manager, a number of outstanding works were identified and some of those addressed over the last 4 to 6 weeks.
However, some outstanding issues with the building include replacing the skylight panels that have blown out.
The board was told the previous FIC construction team was under the assumption the replacement skylights were already here, however the new team says that is not the case. It was said they are looking to get here in time but for now, there is a big hole (in the roof).
The door on the compressor shed is also going to be moved from south facing to east facing.
Mr Poole said there has been some progress since the last meeting and FIC accepts responsibility but there are still problems with the roof. He said the worst-case scenario is a complete redo of the roof which could take 6 to 9 months.
It was asked if there would be recourses for the contractor, it was said would be discussed in the closed section.
MLA Gavin Short pointed out payment was being withheld until all of the issues were rectified.
Getting power to the building was also said to be an issues with MD Zachary Franklin saying they can’t have tenants in until there is power, and they can’t get a timetable as public works and the power station don’t have the resources.
