Economy of the Falkland Islands
Encyclopedia
The economy of the Falkland Islands
, which first involved sealing, whaling and provisioning ships, became heavily dependent on sheep farming from the 1870s to 1980. It then diversified and now has income from tourism, commercial fishing
, and servicing the fishing industry as well as agriculture. The Falkland Islands have the highest standard of living in South America. The islands use the Falkland pound, which is backed by the sterling
.
During the 19th century, the supply and maintenance depot for ships at Stanley developed into a port serving ships rounding Cape Horn
. There was also trade in cow hides from the wild descendants of cattle introduced by French settlers in the late 18th century. Sheep farming was then introduced, taking over from the cattle trade in the 1870s and becoming self-supporting by 1885. The islands also provided a base for whaling and sealing
, with factories being built on East Falkland and South Georgia, but these industries ended, leaving the wool trade as the mainstay of the islands' economy.
By the 1980s, the economic viability of the islands was in doubt, but in the aftermath of the Falklands War
there was a new commitment from the United Kingdom government. The Falkland Islands Development Corporation was formed in mid 1984 and in its annual report at the end of that year it set out to increase employment opportunities by encouraging diversification, to increase population levels through selective immigration, to aim for long-term self-sufficiency and to improve community facilities. To achieve this, the Corporation identified agricultural improvements, tourism
, self-sufficiency in energy, development of the industrial and service sector, fisheries, and land subdivision as areas to tackle.
The largest company in the islands used to be the Falkland Islands Company (FIC), a publicly quoted company on the London Stock Exchange
. The company was responsible for the majority of the economic activity on the islands, though its farms were sold in 1991 to the Falkland Islands Government. The company now operates several retail outlets in Stanley and is involved in port services and shipping operations.
By April 2002, the Guardian
reported that the Falklands' economy was booming, with income from tourism and the sale of squid fishing licences as well as from indigenous fishing companies with locally registered boats. Fishing boats visit the islands from Spain, Korea, Taiwan and Japan, and obtain supplies and services from the islands.
In 2007, Argentina withdrew from a 1995 agreement that set terms for exploitation of offshore resources. It is thought that there might be up to 60 Goilbbl of oil under the sea bed surrounding the islands. Desire Petroleum and Rockhopper Exploration began drilling for oil in the vicinity of the Falklands in the first half of 2010, sparking strong protest from the Argentine government. An islander told the BBC
that "we were the luckiest people that was ever mixed up in a war."
Publicity stirred tourist interest. The islands are now a regular port of call for cruise ship
s. Visitors can glimpse what the islanders
had previously thought of as their humdrum existence. There are holiday facilities and activities such as trout fishing, golf, horse riding and sailing; other attractions include guided tours of battlefields, scenery and wildlife, particularly penguin
s, seabirds, seals
and sealions. Large numbers of 19th-century shipwrecks around the islands draw recreational divers.
However, diplomatic disputes with Argentina
disrupted tourism slightly in 2004. Buenos Aires refused permission for charter flights from Chile
that served cruise ships to fly over Argentina to reach the islands.
In the 2009/10 financial year, the government revenue was £42.4 million of which £14.5 million came from fishery licences and services and £10.5 million from taxes. During the same period the government expenditure was £47.6 million.
Other economic indicators include:
Electricity - production: (2003)
22.23 million kWh
Electricity - production by source: (1998)
Electricity - consumption: (2003)
20.68 million kWh
but the Standard Chartered Bank
which has a single branch in Stanley that offers retail, commercial and wholesale banking facilities.
The constitution requires the governor of the islands to seek the approval of a [British] secretary of state
before assenting to any bill that affects "the currency of the Falkland Islands or relating to the issue of banknotes" or any bill that establishes "any banking association or altering the constitution, rights or duties of any such association". These restrictions effectively give the British Government the ability to prevent the island's government from declaring the islands to be a tax haven or from establishing a central bank.
and Polwarth
breeds with Dohne Merino
, South African Meat Merinos, Afrinos and other breeds having been introduced to improve the fineness of wool and meat characteristics. The wool price suffered a slump in 2005/6 and a peak in 2008. Since 2003 the relative premium commanded by higher quality wool has increased with coarser wool missing out on the high prices in 2008. A summary of the prices for the period 2002 to 2010, which are often dictated by Australian exchange rate and weather conditions is shown below:
Although the production of wool is spread across all the islands, the breeding of animals for slaughter is concentrated on East Falkland where the EU accredited Send Bay abattoir is situated. An additional cost borne by producers on West Falklands is the fare charged for crossing the Falklands Sound. As of 2010, the ferry company making the crossing charged commercial vehicles £30 per metre for a single trip plus £2 per head of sheep. Wool on the other hand is charged "£45 per tonne delivered to Stanley".
An increasing number of farmers are supplying lamb to the Falkland Islands Meat Company. The abattoir received export accreditation in December 2002 and began exporting meat in May 2003. The number of farms supplying lambs increased from 6 in 2003 to 27 in 2007 while the number of lambs sent to the abattoir rose from 2600 to 11,963 in the same period.
Selected statistics for the year 2008/9 relating to sheep farming are given below:
There are also a small number of cows, pigs and horses on the islands that are reared for local use.
The principal ocean currents in the Falkland Island waters are the West Wind Drift, a cold current from the Southern Pacific Ocean that flows westwards to the south of the Burwood Bank and the north flowing cold Falklands current, an offshoot of the West Wind Drift that curls around the east of Falklands Plateau and along the Falklands and Patagonian escarpments. It joins the saltier warm Brazil Current
in the vicinity of the mouth of the Río de la Plata
to form the South Atlantic Current
.
In 1986 the Falklands opened up their fishing industry to outsiders with the declaration of a 160 nautical miles (296.3 km) radius Fisheries Conservation & Management Zone centered on the Falkland Sound
. This zone was later to become the Falklands Inner Conservation Zone (FICZ). Apart from the Falkland Trough, this zone lies within the continental shelf. In 1990 the Falklands Outer Conservation Zone (FOCZ) was declared – a zone that lay between the perimeter of the FICZ and the Falklands 200-nautical-mile economic zone boundary. The FOCZ includes part of the Burnwood Bank, borders on the confines of the continental shelf and includes part of the Falklands Escarpment - a 2000 metres (6,561.7 ft) undersea escarpment running east-west.
At the same time that the FOCZ was declared, the Argentine declared its 200-nautical-mile Exclusive Economic Zone (EEZ) and together with the British Government (acting on behalf of the Falkland Islands) set up the South Atlantic Fisheries Commission (SAFC) to coordinate the management of fishing stocks in the area.
(Illex argentinus) which typically has a mantle length of 20 to 28 cm (7.9 to 11 ) and a weight of 150 to 500 g (5.3 to 17.6 ) is the most important fish to the Falkands economy followed by its smaller cousin, the patagonian squid (Loligo gahi) which typically has a mantle length of 10 to 15 cm (3.9 to 5.9 ) and a weight of 75 to 150 g (2.6 to 5.3 ).
The lllex squid has its spawning grounds at the mouth of the Río de la Plata
and a migratory pattern that takes it southwards along the Patagonian Shelf as far as the FICZ to its feeding grounds. It then returns to its spawning grounds via a route that lies off the continental shelf. In some years, such as 2007, it enters the FICZ with a resultant good harvest, it other years, such as 2009, it does not migrate as far south as the FICZ at all. The catch for the 2010 season in the Falklands recovered to 12105 tonnes (11,913.8 LT), but still the fourth lowest since the beginning of the licencing system. This has been attributed to the lower than usual sea temperatures during the feeding season in February–May.
The Patagonian squid, unlike the Illex, remain in Falkland Island waters all year and are concentrated in the Loloigo box - an area within the Falklands Plateau to the east and south-east of the islands and are harvested during both the austral spring and autumn.
In 2006, a Spanish vessel on an exploratory trawl found commercial quantities of grenadiers (Macrourus spp., Coelorhynchus spp.) to the south and east of the Falkland Islands at depths between 750 and 830 m (2,460.6 and 2,723.1 ) depths in the eastern part of FICZ. It has been estimated that this species needs a stock biomass of 40000 tonnes (39,368.1 LT) to produce a sustainable harvest of 3000 tonnes (2,952.6 LT) per annum and is now reflected as a separate entry in the tables below.
Initially licences were issued on a total allowable effort (TAE) but in 2007, the toothfish longline fishery became the first fishery in the Falkland Islands to be issued on a total allowable catch (TAC) basis.
Apart from the Islander’s own fleet, the principal fishing fleets come from Spain
, Korea
and Taiwan
. When the Falkland Islands first opened up her waters, the Polish
fishing fleet had a presence as did the Japan
ese, but the Poles stopped fishing in the area in the mid 1990’s and the Japanese in the middle of the first decade of the twenty-first century.
Since 1993, the principal licence classes have been:
Revenue from licence fees (£ millions)
was signed by both the United Kingdom and Argentina in 1959. In its wake, the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR)
, a treaty signed by 24 nations and covering the area that includes most of the Falkland Islands watrers, came into force in 1982, having been signed by the United Kingdom on 31 August 1981 and Argentina on 28 May 1982. The convention covers Southern Ocean ecosystem which is generally accepted as being south of approximately 50° to 55°S. The CCAMLR provides a forum for exchanging information regarding marine life in the Antarctic region and has the authority to ban the harvesting of certain type of fish and also to ban or put restrictions on the use of certain methods of harvetsing. The convention requires that member states who are not parties to the Antacrtic Treaty accept certain provisions of that treaty.
The South Atlantic Fisheries Commission (SAFC) was set up in 1990 between the Argentine and the United Kingdom (acting on behalf of the Falkland Islands) to exchange information and to coordinate fishing activities in the South Atlantic. One of their prime activities was the monitoring of the Illex spawning stock biomass (SSB). If the SSB drops below a threshold of 40000 tonnes (39,368.1 LT) the SAFC recommend will early closure of the fishing season. Since 2005 the SAFC has been largely moribund as the Argentine Government reduced co-operation, declining to continue the routine joint meeting process and suspending joint scientific activities. She has since extended her claim to all of the Falkland Island waters.
The tourist industry and is managed by the Falkland Islands Tourist Board (FITB) - a 'Company Limited by Guarantee'. In 2010, the transport and hospitality sector was expected to contribute £7.8 million or 7.7% of the island’s GDP. Tourism forms a significant part of this figure with land-based visitors expected to contribute £2.7 million to the Islands’ economy in 2010. The islands have become a regular port of call for the growing market of cruise ship
s. Attractions include the scenery and wildlife conservation with penguin
s, seabirds, seals
and sealions, as well as visits to battlefields, golf
, fishing and wreck diving
. In addition to accommodation in Stanley
, there are tourist lodges at Port Howard, Darwin, Pebble Island, Carcass Island and Sea Lion Island. Self-catering accommodation at holiday cottages on island farms. The total contribution of tourism to the Islands’ is expected to reach £5.4 million in 2010.
During the 2008-2009 season almost 69,000 tourists visited the Falklands, with 62,600 of these arriving onboard cruise or expedition vessels. Since cruise liners have their own accommodation, substantial numbers of tourists can be accommodated at once, such as an occasion in 2005 when 3000 tourists visited the islands in one day.
Other sources of "tourist" revenue include spending by the British military personnel based on the islands, by business travellers and by pilgrims to the graves of both British and Argentine soldiers who fell in the 1982 Falklands War. Although there is still a resentment in the Islands to the Argentine occupation, the Falkland Islands Government continues "to respect the need for Argentine veterans of the 1982 conflict and their next of kin to visit the battlefield sites and the cemetery at Darwin". Such visits are arranged in conjunction with LAN (Chilean Airlines) who, on such occasions, use larger aircraft than normal for the weekly flights.
The latter three basins are part of a larger contiguous formation.
An agreement with Argentina had set the terms for exploitation of offshore resources including large oil reserves
as it was thought that there might be up to 60 Goilbbl of oil under the sea bed surrounding the islands. However, in 2007 Argentina unilaterally withdrew from the agreement. In response, Falkland Oil and Gas
has signed an agreement with BHP Billiton
to investigate the potential exploitation of oil reserves. Climatic conditions of the southern seas mean that exploitation will be a difficult task, though economically viable, and the continuing sovereignty dispute with Argentina is hampering progress.
, but the results from the first test well were disappointing. Two months later, on 6 May 2010, when Rockhopper Exploration
announced that "it may have struck oil", Argentina’s Foreign Minister warned that his country would take all possible lawful steps to impede British oil exploration and production there. On 17 September 2010, Rockhopper Exploration published the results of the borehole analysis - the well was drilled in water 451 m deep and a flow test showed that a payable oil column of 53 m was capable of producing over 2000 oilbbl/d. In February 2011 Rockhopper Exploration commenced an appraisal programme of the Sea-Lion discovery. An update of the first appraisal drill was released on Monday 21 March 2011 indicating a significant reservoir package with a downhole mini Drill Stern Test flowing oil at better rates then the September 2010 flow test: confidence in the commerciality of the Sea Lion discovery has been increased by this first appraisal.
On 14th September 2011 Rockhopper Exploration announced plans are under way for oil production to commence in 2016, through the use of Floating production storage and offloading (FPSO)
technology, replicating the methodology used on the Foinaven
field off the Shetland Islands
. The proposal envisages a FPSO vessel located 200 km offshore servicing 24 production wells and 12 water injection wells in about 450 m of water. The wells will be arranged in clusters of 6 wells per drill centre. The two water injection well clusters will be 3.0 km from the four oil well clusters. Oil will be transferred from the FPSO vessel to shuttle oil tankers.
The production site will require approximately 110 people working offshore and another 40 working onshore. The oil expected to trade at of the Brent crude price.
In October 1877, the Secretary of State of the Colonial Office
, the Earl of Carnarvon
began the process of application for the Falkland Islands to join the General Postal Union (renamed Universal Postal Union
in 1879). The first stamps, 1d, 6d, and 1 shilling
values featuring the usual profile of Queen Victoria
, were issued 19 June 1878. Since then the islands have issued their own stamps
, which are a source of revenue from overseas collectors. Between 2000 and 2008, the islands issued between six and eight sets of commemorative stamps. The workload placed on the Falkland Islands Post Office by overseas collectors led to the establishments in 1978 of the Falkland Islands Philatelic Bureau. The Bureau also handles philately-related sales on behalf of the governments of Government of South Georgia and South Sandwich Islands and of the British Antarctic Territory
.
Coins and banknotes may only be issued by the Falkland Islands Government with the authorisation of the British Government. Coins for local use were first struck in 1974 and are the same size as the corresponding British coins. There is a flourishing business in the issue of commemorative coins struck on behalf of the Falkland Island Government for collectors - in particular the 2007 series of coins that commemorated the 25th anniversary of the liberation of islands attracted much attention. The Falkland Islands Government (FIG) is required to deposit 110% of the face value of any coins struck on its behalf into its currency fund, thereby effectively backing the Falkland pound with the pound sterling
. In the case of commemorative coins that are unlikely to be redeemed, this money represents a long-term investment. In many cases the set-up and production costs are carried by the mint concerned, who pay the FIG a royalty on coins that it sells to collectors.
Falkland Islands
The Falkland Islands are an archipelago in the South Atlantic Ocean, located about from the coast of mainland South America. The archipelago consists of East Falkland, West Falkland and 776 lesser islands. The capital, Stanley, is on East Falkland...
, which first involved sealing, whaling and provisioning ships, became heavily dependent on sheep farming from the 1870s to 1980. It then diversified and now has income from tourism, commercial fishing
Commercial fishing
Commercial fishing is the activity of catching fish and other seafood for commercial profit, mostly from wild fisheries. It provides a large quantity of food to many countries around the world, but those who practice it as an industry must often pursue fish far into the ocean under adverse conditions...
, and servicing the fishing industry as well as agriculture. The Falkland Islands have the highest standard of living in South America. The islands use the Falkland pound, which is backed by the sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
.
Historical development
Cape Horn
Cape Horn is the southernmost headland of the Tierra del Fuego archipelago of southern Chile, and is located on the small Hornos Island...
. There was also trade in cow hides from the wild descendants of cattle introduced by French settlers in the late 18th century. Sheep farming was then introduced, taking over from the cattle trade in the 1870s and becoming self-supporting by 1885. The islands also provided a base for whaling and sealing
Seal hunting
Seal hunting, or sealing, is the personal or commercial hunting of seals. The hunt is currently practiced in five countries: Canada, where most of the world's seal hunting takes place, Namibia, the Danish region of Greenland, Norway and Russia...
, with factories being built on East Falkland and South Georgia, but these industries ended, leaving the wool trade as the mainstay of the islands' economy.
By the 1980s, the economic viability of the islands was in doubt, but in the aftermath of the Falklands War
Falklands War
The Falklands War , also called the Falklands Conflict or Falklands Crisis, was fought in 1982 between Argentina and the United Kingdom over the disputed Falkland Islands and South Georgia and the South Sandwich Islands...
there was a new commitment from the United Kingdom government. The Falkland Islands Development Corporation was formed in mid 1984 and in its annual report at the end of that year it set out to increase employment opportunities by encouraging diversification, to increase population levels through selective immigration, to aim for long-term self-sufficiency and to improve community facilities. To achieve this, the Corporation identified agricultural improvements, tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
, self-sufficiency in energy, development of the industrial and service sector, fisheries, and land subdivision as areas to tackle.
The largest company in the islands used to be the Falkland Islands Company (FIC), a publicly quoted company on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
. The company was responsible for the majority of the economic activity on the islands, though its farms were sold in 1991 to the Falkland Islands Government. The company now operates several retail outlets in Stanley and is involved in port services and shipping operations.
By April 2002, the Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
reported that the Falklands' economy was booming, with income from tourism and the sale of squid fishing licences as well as from indigenous fishing companies with locally registered boats. Fishing boats visit the islands from Spain, Korea, Taiwan and Japan, and obtain supplies and services from the islands.
In 2007, Argentina withdrew from a 1995 agreement that set terms for exploitation of offshore resources. It is thought that there might be up to 60 Goilbbl of oil under the sea bed surrounding the islands. Desire Petroleum and Rockhopper Exploration began drilling for oil in the vicinity of the Falklands in the first half of 2010, sparking strong protest from the Argentine government. An islander told the BBC
BBC
The British Broadcasting Corporation is a British public service broadcaster. Its headquarters is at Broadcasting House in the City of Westminster, London. It is the largest broadcaster in the world, with about 23,000 staff...
that "we were the luckiest people that was ever mixed up in a war."
Publicity stirred tourist interest. The islands are now a regular port of call for cruise ship
Cruise ship
A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship's amenities are part of the experience, as well as the different destinations along the way...
s. Visitors can glimpse what the islanders
Falkland Islanders
The 2006 census returns gave the population of the Falkland Islands, excluding military personnel and their families, but including staff working at the Mount Pleasant military base to be 2955. There were 1569 males and 1386 females giving a male to female ration of 1.13...
had previously thought of as their humdrum existence. There are holiday facilities and activities such as trout fishing, golf, horse riding and sailing; other attractions include guided tours of battlefields, scenery and wildlife, particularly penguin
Penguin
Penguins are a group of aquatic, flightless birds living almost exclusively in the southern hemisphere, especially in Antarctica. Highly adapted for life in the water, penguins have countershaded dark and white plumage, and their wings have become flippers...
s, seabirds, seals
Pinniped
Pinnipeds or fin-footed mammals are a widely distributed and diverse group of semiaquatic marine mammals comprising the families Odobenidae , Otariidae , and Phocidae .-Overview: Pinnipeds are typically sleek-bodied and barrel-shaped...
and sealions. Large numbers of 19th-century shipwrecks around the islands draw recreational divers.
However, diplomatic disputes with Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
disrupted tourism slightly in 2004. Buenos Aires refused permission for charter flights from Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
that served cruise ships to fly over Argentina to reach the islands.
Economic overview
The Falkland Islands have a GDP of $105 million, and a per capita GDP of $35,400 (2002 estimate) placing the islands on a par with the United Kingdom (GDP per capita of $35,200 – 2009 estimate). The contributors to the GDP by sector (2010 forecast) are:- Fisheries – 52.5%
- Government (including health and education) – 14.0%
- Communications, Finance and Business services – 11.4%
- Hospitality & Transport – 7.7%
- Construction – 6.6%
- Housing and other services – 3.2%
- Mining. Quarrying & Manufacturing – 2.1%
- Agriculture – 1.6%
- Utilities – 0.9%
In the 2009/10 financial year, the government revenue was £42.4 million of which £14.5 million came from fishery licences and services and £10.5 million from taxes. During the same period the government expenditure was £47.6 million.
Other economic indicators include:
Electricity - production: (2003)
22.23 million kWh
Electricity - production by source: (1998)
- fossil fuel: 70%
- wind: 30%
Electricity - consumption: (2003)
20.68 million kWh
Banking
The Falkland Islands do not have a central bankCentral bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
but the Standard Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
which has a single branch in Stanley that offers retail, commercial and wholesale banking facilities.
The constitution requires the governor of the islands to seek the approval of a [British] secretary of state
Secretary of State (United Kingdom)
In the United Kingdom, a Secretary of State is a Cabinet Minister in charge of a Government Department ....
before assenting to any bill that affects "the currency of the Falkland Islands or relating to the issue of banknotes" or any bill that establishes "any banking association or altering the constitution, rights or duties of any such association". These restrictions effectively give the British Government the ability to prevent the island's government from declaring the islands to be a tax haven or from establishing a central bank.
Agriculture
Farmland accounts for a little over 80% of the Falklands land area. Sheep farming was formerly the main source of income for the islands and still plays an important part with high quality wool exports going to the UK: according to the Falklands Government Statistics there are over 500,000 sheep on the islands. Roughly 40% of the national flock are on West Falkland and 60% on East Falkland. The base flock are CorriedaleCorriedale (sheep)
Corriedale sheep are a dual purpose breed, meaning they are used both in the production of wool and meat. The Corriedale is the oldest of all the crossbred breeds, a Merino-Lincoln cross developed almost simultaneously in Australia and New Zealand and first brought to the United States in 1914...
and Polwarth
Polwarth (sheep)
Polwarth is a breed of sheep that was developed in Victoria during 1880. They were of one quarter Lincoln and three quarters Merino bloodlines. They are large, predominantly polled sheep with long, soft, quite fine wool and produce good meat carcases...
breeds with Dohne Merino
Merino
The Merino is an economically influential breed of sheep prized for its wool. Merinos are regarded as having some of the finest and softest wool of any sheep...
, South African Meat Merinos, Afrinos and other breeds having been introduced to improve the fineness of wool and meat characteristics. The wool price suffered a slump in 2005/6 and a peak in 2008. Since 2003 the relative premium commanded by higher quality wool has increased with coarser wool missing out on the high prices in 2008. A summary of the prices for the period 2002 to 2010, which are often dictated by Australian exchange rate and weather conditions is shown below:
| Fibre diameter | Minimum price (p/kg) | Maximum price (p/kg) |
|---|---|---|
| 32 micron | 130 (2007) | 210 (2003) |
| 28 micron | 180 (2006) | 280 (2003) |
| 24 micron | 255 (2006) | 530 (2010) |
| 20 micron | 290 (2005) | 590 (2010) |
Although the production of wool is spread across all the islands, the breeding of animals for slaughter is concentrated on East Falkland where the EU accredited Send Bay abattoir is situated. An additional cost borne by producers on West Falklands is the fare charged for crossing the Falklands Sound. As of 2010, the ferry company making the crossing charged commercial vehicles £30 per metre for a single trip plus £2 per head of sheep. Wool on the other hand is charged "£45 per tonne delivered to Stanley".
An increasing number of farmers are supplying lamb to the Falkland Islands Meat Company. The abattoir received export accreditation in December 2002 and began exporting meat in May 2003. The number of farms supplying lambs increased from 6 in 2003 to 27 in 2007 while the number of lambs sent to the abattoir rose from 2600 to 11,963 in the same period.
Selected statistics for the year 2008/9 relating to sheep farming are given below:
| Region | Area used for sheep (ha) | Number of sheep | Sheep slaughtered | Wool clipped (kg) | Average fleece (kg) | Greasy wool yield (kg/ha) |
|---|---|---|---|---|---|---|
| East Falkland | 612,935 | 292,917 | 22,023 | 923,632 | 3.69 | 1.86 |
| West Falkland | 425,592 | 182,741 | 7,839 | 602,618 | 3.60 | 1.54 |
| Islands | 85,458 | 28,962 | 4,197 | 110,595 | 4.55 | 1.69 |
| Total | 1,123,985 | 504,620 | 34,059 | 1,636,845 | 3.95 | 1.70 |
There are also a small number of cows, pigs and horses on the islands that are reared for local use.
Fishing
Although Lord Shackleton's Report (1982) recommended the setting up of a 200 nautical miles (370.4 km) fisheries limit which gave an impetus to the fishing industry, the report did not go into much detail regarding the expansion of the industry. The Falkland Islands Development Corporation which was formed as a result of the Shakelton Report provided the impetus for the Falkland Islands to exploit their marine environment.Fishing grounds
The Falkland Islands' fishing waters are part of the 2.7 million square kilometre Patagonian Shelf large marine ecosystem and are located on a spur from the Pategonian Continental Shelf. Most of the fishing is carried out in water up to 200 metres (656.2 ft) deep on this spur or on the Burnwood Bank -another spur laying on an undersea ridge to the south the Falkland Islands and separated from the islands by a deep channel known as the Falklands Trough. At its highest point, the Burnwood Bank is 46 metres (150.9 ft) below sea level.The principal ocean currents in the Falkland Island waters are the West Wind Drift, a cold current from the Southern Pacific Ocean that flows westwards to the south of the Burwood Bank and the north flowing cold Falklands current, an offshoot of the West Wind Drift that curls around the east of Falklands Plateau and along the Falklands and Patagonian escarpments. It joins the saltier warm Brazil Current
Brazil Current
The Brazil Current is a warm water current that flows south along the Brazilian south coast to the mouth of the Río de la Plata. This current is caused by diversion of a portion of the Atlantic South Equatorial Current from where that current meets the South American continent...
in the vicinity of the mouth of the Río de la Plata
Río de la Plata
The Río de la Plata —sometimes rendered River Plate in British English and the Commonwealth, and occasionally rendered [La] Plata River in other English-speaking countries—is the river and estuary formed by the confluence of the Uruguay River and the Paraná River on the border between Argentina and...
to form the South Atlantic Current
South Atlantic Current
South Atlantic Current is an eastward ocean current, fed by the Brazil Current. That fraction of it which reaches the African coast feeds the Benguela Current...
.
In 1986 the Falklands opened up their fishing industry to outsiders with the declaration of a 160 nautical miles (296.3 km) radius Fisheries Conservation & Management Zone centered on the Falkland Sound
Falkland Sound
The Falkland Sound is a sea strait in the Falkland Islands. Running south west - north east, it separates West and East Falkland.-Name:The sound was named by John Strong in 1690 for Viscount Falkland, the name only later being applied to the archipelago and its two largest islands...
. This zone was later to become the Falklands Inner Conservation Zone (FICZ). Apart from the Falkland Trough, this zone lies within the continental shelf. In 1990 the Falklands Outer Conservation Zone (FOCZ) was declared – a zone that lay between the perimeter of the FICZ and the Falklands 200-nautical-mile economic zone boundary. The FOCZ includes part of the Burnwood Bank, borders on the confines of the continental shelf and includes part of the Falklands Escarpment - a 2000 metres (6,561.7 ft) undersea escarpment running east-west.
At the same time that the FOCZ was declared, the Argentine declared its 200-nautical-mile Exclusive Economic Zone (EEZ) and together with the British Government (acting on behalf of the Falkland Islands) set up the South Atlantic Fisheries Commission (SAFC) to coordinate the management of fishing stocks in the area.
Fish Stocks
Most of the fish that are harvested in the Falkland Islands waters are either squid or finfish. Other types of fish form an insignificant part of the Falkland Islands' catch. A significant number of the fish that are taken are migratory with the spawning grounds and feeding grounds of some species being highly dependent on the water temperature.Squid
The Illex squidSquid
Squid are cephalopods of the order Teuthida, which comprises around 300 species. Like all other cephalopods, squid have a distinct head, bilateral symmetry, a mantle, and arms. Squid, like cuttlefish, have eight arms arranged in pairs and two, usually longer, tentacles...
(Illex argentinus) which typically has a mantle length of 20 to 28 cm (7.9 to 11 ) and a weight of 150 to 500 g (5.3 to 17.6 ) is the most important fish to the Falkands economy followed by its smaller cousin, the patagonian squid (Loligo gahi) which typically has a mantle length of 10 to 15 cm (3.9 to 5.9 ) and a weight of 75 to 150 g (2.6 to 5.3 ).
The lllex squid has its spawning grounds at the mouth of the Río de la Plata
Río de la Plata
The Río de la Plata —sometimes rendered River Plate in British English and the Commonwealth, and occasionally rendered [La] Plata River in other English-speaking countries—is the river and estuary formed by the confluence of the Uruguay River and the Paraná River on the border between Argentina and...
and a migratory pattern that takes it southwards along the Patagonian Shelf as far as the FICZ to its feeding grounds. It then returns to its spawning grounds via a route that lies off the continental shelf. In some years, such as 2007, it enters the FICZ with a resultant good harvest, it other years, such as 2009, it does not migrate as far south as the FICZ at all. The catch for the 2010 season in the Falklands recovered to 12105 tonnes (11,913.8 LT), but still the fourth lowest since the beginning of the licencing system. This has been attributed to the lower than usual sea temperatures during the feeding season in February–May.
The Patagonian squid, unlike the Illex, remain in Falkland Island waters all year and are concentrated in the Loloigo box - an area within the Falklands Plateau to the east and south-east of the islands and are harvested during both the austral spring and autumn.
Finfish
In the 1970s many fin fish, particularly the rock cod, a high volume low value fish were exploited to near-extinction. The levels of rock cod taken in the whole of the South Atlantic dropped from 399700 tonnes (393,386.2 LT) in 1969-70, to 101560 tonnes (99,955.7 LT) the following year and 2740 tonnes (2,696.7 LT) in 1971/72 while the patagonian rockcod was fished to near-extinction in the Shag Rock area. This resulted in a ban on fishing which was only been lifted in 2005. Following the collapse of the Illex industry in 2008/9, the rock cod has become, by weight, the most heavily harvested species in the area.In 2006, a Spanish vessel on an exploratory trawl found commercial quantities of grenadiers (Macrourus spp., Coelorhynchus spp.) to the south and east of the Falkland Islands at depths between 750 and 830 m (2,460.6 and 2,723.1 ) depths in the eastern part of FICZ. It has been estimated that this species needs a stock biomass of 40000 tonnes (39,368.1 LT) to produce a sustainable harvest of 3000 tonnes (2,952.6 LT) per annum and is now reflected as a separate entry in the tables below.
License quota policy and revenue
With the establishment of the FICZ, the Falklands Fisheries Department issued licences that enable foreign vessels to fish in Falklands waters. Initially there were seven classes of licence, but as of the 2009 season, this was increased to ten classes of licence. Each class of licence has its own characteristics – species or combination of species that may be taken, net sizes that may be used and seasons when the licence is valid. The main fishing areas are in waters that are up to 200 metres (656.2 ft) deep with principal concentrations close to the confluence of the FOCZ, FICZ and EEZ to the north west of the Islands and also on the Burwood Bank – a shallow water to the south of the Islands.Initially licences were issued on a total allowable effort (TAE) but in 2007, the toothfish longline fishery became the first fishery in the Falkland Islands to be issued on a total allowable catch (TAC) basis.
Apart from the Islander’s own fleet, the principal fishing fleets come from Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...
and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
. When the Falkland Islands first opened up her waters, the Polish
Poland
Poland , officially the Republic of Poland , is a country in Central Europe bordered by Germany to the west; the Czech Republic and Slovakia to the south; Ukraine, Belarus and Lithuania to the east; and the Baltic Sea and Kaliningrad Oblast, a Russian exclave, to the north...
fishing fleet had a presence as did the Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese, but the Poles stopped fishing in the area in the mid 1990’s and the Japanese in the middle of the first decade of the twenty-first century.
Since 1993, the principal licence classes have been:
- A licence - Permits the taking of unresticted fin fish during the first season
- B licence - Permits the taking of Illex squid.
- X licence - Permits the taking of Patagonian squid during the second season (Loligo).
- Y licence - Permits the taking of unresticted fin fish during the second season (The Southern blue whitting and the Hoki in particular are classed as restricted finship).
Revenue from licence fees (£ millions)
| Licence type | 1989-1993 (Average) |
1994-1998 (Average) |
1999-2003 (Average) |
2004-2008 (Average) |
2009 | Average 1989-2009 |
|---|---|---|---|---|---|---|
| B | 19.91 | 12.45 | 13.60 | 4.09 | 0.00 | 11.92 |
| X | 3.77 | 3.58 | 3.67 | 1.70 | 1.94 | 3.12 |
| Y | 0.80 | 2.08 | 1.80 | 3.07 | 4.24 | 2.05 |
| Others | 1.70 | 3.67 | 4.87 | 4.65 | 4.67 | 3.76 |
| Total | 26.18 | 21.78 | 23.93 | 13.51 | 10.85 | 20.85 |
International Cooperation
The Antarctic TreatyAntarctic Treaty System
The Antarctic Treaty and related agreements, collectively called the Antarctic Treaty System or ATS, regulate international relations with respect to Antarctica, Earth's only continent without a native human population. For the purposes of the treaty system, Antarctica is defined as all of the land...
was signed by both the United Kingdom and Argentina in 1959. In its wake, the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR)
Convention for the Conservation of Antarctic Marine Living Resources
The Convention on the Conservation of Antarctic Marine Living Resources, also Commission on the Conservation of Antarctic Marine Living Resources, and CCAMLR, is part of the Antarctic Treaty System...
, a treaty signed by 24 nations and covering the area that includes most of the Falkland Islands watrers, came into force in 1982, having been signed by the United Kingdom on 31 August 1981 and Argentina on 28 May 1982. The convention covers Southern Ocean ecosystem which is generally accepted as being south of approximately 50° to 55°S. The CCAMLR provides a forum for exchanging information regarding marine life in the Antarctic region and has the authority to ban the harvesting of certain type of fish and also to ban or put restrictions on the use of certain methods of harvetsing. The convention requires that member states who are not parties to the Antacrtic Treaty accept certain provisions of that treaty.
The South Atlantic Fisheries Commission (SAFC) was set up in 1990 between the Argentine and the United Kingdom (acting on behalf of the Falkland Islands) to exchange information and to coordinate fishing activities in the South Atlantic. One of their prime activities was the monitoring of the Illex spawning stock biomass (SSB). If the SSB drops below a threshold of 40000 tonnes (39,368.1 LT) the SAFC recommend will early closure of the fishing season. Since 2005 the SAFC has been largely moribund as the Argentine Government reduced co-operation, declining to continue the routine joint meeting process and suspending joint scientific activities. She has since extended her claim to all of the Falkland Island waters.
Catch Statistics
The table below shows the average catch in tonnes of various species (as categorised by FIFD - Falkland Island Fishing Department) for successive five-year periods.| Common Name | Fish type | Season | 1989-1993 (Average) |
1994-1998 (Average) |
1999-2003 (Average) |
2004-2008 (Average) |
2009 | |
|---|---|---|---|---|---|---|---|---|
| Red Cod | Salilota australis | fin | Feb-Nov | 4350 | 6564 | 4932 | 3598 | 5079 |
| Southern blue whiting Southern blue whiting The southern blue whiting, Micromesistius australis, is a cod of the genus Micromesistius, found in the southern oceans where the temperature is between 3° and 7°C, at depths of between 50 and 900 m... |
Micromesistius australis | fin | Sep-Mar | 45053 | 31834 | 24675 | 20309 | 10395 |
| Illex squid Squid Squid are cephalopods of the order Teuthida, which comprises around 300 species. Like all other cephalopods, squid have a distinct head, bilateral symmetry, a mantle, and arms. Squid, like cuttlefish, have eight arms arranged in pairs and two, usually longer, tentacles... |
Illex argentinus | squid | Mar-Jun | 161277 | 89120 | 144665 | 72656 | 44 |
| Kingklip | Genypterus blacodes | fin | Feb-Nov | 1274 | 1635 | 1720 | 2483 | 3395 |
| Patagonian squid Loligo Loligo is a genus of squids and one of the most representative and widely distributed groups of myopsid squids.The genus was first described by Jean Baptiste Lamarck in 1798. However, the name had been used earlier than Lamarck and might even have been used by Pliny... |
Loligo gahi | squid | Feb-Apr Jul-Sep |
78238 | 60646 | 44811 | 44595 | 31475 |
| Martialia squid | Martialia hyadesi | squid | 36 | 2003 | 52 | 5 | 0 | |
| Common Hake Merlucciidae Merlucciidae is a family of cod-like fish, including most hakes.They are native to the Atlantic and Pacific oceans, being common in southern waters off Tasmania and New Zealand.... Austral hake |
Merluccius hubbsi Merluccius spp Merluccius Australis |
fin | Mar-Oct | 8448 | 2003 | 2583 | 7763 690 |
13051 0 |
| Skates and rays Skate Skates are cartilaginous fish belonging to the family Rajidae in the superorder Batoidea of rays. There are more than 200 described species in 27 genera. There are two subfamilies, Rajinae and Arhynchobatinae .... |
Rajidae | skate & ray | Apr-Dec | 5361 | 3769 | 4060 | 5009 | 5865 |
| Patagonian toothfish Patagonian toothfish The Patagonian toothfish, Dissostichus eleginoides , is a fish found in the cold, temperate waters of the southern Atlantic, southern Pacific, Indian, and Southern Oceans on seamounts and continental shelves around most sub-Antarctic islands.A close relative, the Antarctic toothfish , is found... |
Dissostichus eleginoides | fin | all year | 546 | 1806 | 2112 | 1640 | 1419 |
| Hoki Merlucciidae Merlucciidae is a family of cod-like fish, including most hakes.They are native to the Atlantic and Pacific oceans, being common in southern waters off Tasmania and New Zealand.... |
Macruronus magellanicus | fin | Feb-Nov | 9612 | 14973 | 21770 | 18992 | 23170 |
| Grenadiers | Macrouridae Grenadiers | fin | 787 | 958 | ||||
| Rock cod | Patagonotothen | fin | 46986 | 58149 | ||||
| Scallop | Zygochlamys patagonica | Mollusc | 273 | 764 | 13 | |||
| Other | all year | 2285 | 1662 | 2749 | 3706 | 246 | ||
| Total | 316479 | 215632 | 254284 | 203182 | 153258 |
Tourism
In 1982, an average of 500 tourists visited the Falklands per annum. In 2007, this figure had grown to 55,000.The tourist industry and is managed by the Falkland Islands Tourist Board (FITB) - a 'Company Limited by Guarantee'. In 2010, the transport and hospitality sector was expected to contribute £7.8 million or 7.7% of the island’s GDP. Tourism forms a significant part of this figure with land-based visitors expected to contribute £2.7 million to the Islands’ economy in 2010. The islands have become a regular port of call for the growing market of cruise ship
Cruise ship
A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship's amenities are part of the experience, as well as the different destinations along the way...
s. Attractions include the scenery and wildlife conservation with penguin
Penguin
Penguins are a group of aquatic, flightless birds living almost exclusively in the southern hemisphere, especially in Antarctica. Highly adapted for life in the water, penguins have countershaded dark and white plumage, and their wings have become flippers...
s, seabirds, seals
Pinniped
Pinnipeds or fin-footed mammals are a widely distributed and diverse group of semiaquatic marine mammals comprising the families Odobenidae , Otariidae , and Phocidae .-Overview: Pinnipeds are typically sleek-bodied and barrel-shaped...
and sealions, as well as visits to battlefields, golf
Golf
Golf is a precision club and ball sport, in which competing players use many types of clubs to hit balls into a series of holes on a golf course using the fewest number of strokes....
, fishing and wreck diving
Wreck diving
Wreck diving is a type of recreational diving where shipwrecks are explored. Although most wreck dive sites are at shipwrecks, there is an increasing trend to scuttle retired ships to create artificial reef sites...
. In addition to accommodation in Stanley
Stanley, Falkland Islands
Stanley is the capital and only true cityin the Falkland Islands. It is located on the isle of East Falkland, on a north-facing slope in one of the wettest parts of the islands. At the 2006 census, the city had a population of 2,115...
, there are tourist lodges at Port Howard, Darwin, Pebble Island, Carcass Island and Sea Lion Island. Self-catering accommodation at holiday cottages on island farms. The total contribution of tourism to the Islands’ is expected to reach £5.4 million in 2010.
During the 2008-2009 season almost 69,000 tourists visited the Falklands, with 62,600 of these arriving onboard cruise or expedition vessels. Since cruise liners have their own accommodation, substantial numbers of tourists can be accommodated at once, such as an occasion in 2005 when 3000 tourists visited the islands in one day.
Other sources of "tourist" revenue include spending by the British military personnel based on the islands, by business travellers and by pilgrims to the graves of both British and Argentine soldiers who fell in the 1982 Falklands War. Although there is still a resentment in the Islands to the Argentine occupation, the Falkland Islands Government continues "to respect the need for Argentine veterans of the 1982 conflict and their next of kin to visit the battlefield sites and the cemetery at Darwin". Such visits are arranged in conjunction with LAN (Chilean Airlines) who, on such occasions, use larger aircraft than normal for the weekly flights.
Energy and minerals
Four sedimentary basins that could potentially contain hydrocarbons have been identified in the Falkland Island waters. They are:- North Falkland Basin which is located to the north of the islands.
- Falklands Plateau Basin which is located to the east of the East FalklandEast FalklandEast Falkland the largest of the Falkland Islands in the South Atlantic, has an area of and a coastline long. Most of the population of the Falklands live in East Falkland, almost all of them living in the northern half of the island...
. - South Falklands Basin which lies to the south-east of the islands and extends up to the Falklands Trough.
- Malvinas Basin which lies to the south-west of West FalklandWest FalklandWest Falkland is the second largest of the Falkland Islands in the South Atlantic. It is a hilly island, separated from East Falkland by Falkland Sound. Its area is and its coastline is long. Including the adjacent small islands the land area is .-Population:The island has fewer than 200...
, between that island and Tierra del FuegoTierra del FuegoTierra del Fuego is an archipelago off the southernmost tip of the South American mainland, across the Strait of Magellan. The archipelago consists of a main island Isla Grande de Tierra del Fuego divided between Chile and Argentina with an area of , and a group of smaller islands including Cape...
at the head of the Falklands Trough. Part of this basin lies in Argentine waters.
The latter three basins are part of a larger contiguous formation.
An agreement with Argentina had set the terms for exploitation of offshore resources including large oil reserves
Oil reserves
The total estimated amount of oil in an oil reservoir, including both producible and non-producible oil, is called oil in place. However, because of reservoir characteristics and limitations in petroleum extraction technologies, only a fraction of this oil can be brought to the surface, and it is...
as it was thought that there might be up to 60 Goilbbl of oil under the sea bed surrounding the islands. However, in 2007 Argentina unilaterally withdrew from the agreement. In response, Falkland Oil and Gas
Falkland Oil and Gas
Falkland Oil and Gas Ltd , abbreviated to FOGL, is an energy company registered in the Falkland Islands and headquartered in London, the United Kingdom. Its business is based on exploring for offshore oil reserves off the coast of the Falklands...
has signed an agreement with BHP Billiton
BHP Billiton
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne, Australia and with a major management office in London, United Kingdom...
to investigate the potential exploitation of oil reserves. Climatic conditions of the southern seas mean that exploitation will be a difficult task, though economically viable, and the continuing sovereignty dispute with Argentina is hampering progress.
North Falklands Basin
In February 2010, exploratory drilling for oil was begun by Desire PetroleumDesire Petroleum
Desire Petroleum plc is an oil and gas exploration company headquartered in Malvern, United Kingdom. It owns offshore exploration and production licences in the North Falkland Basin in the waters north of the Falkland Islands...
, but the results from the first test well were disappointing. Two months later, on 6 May 2010, when Rockhopper Exploration
Rockhopper Exploration
Rockhopper Exploration PLC is an oil and gas exploration company headquartered in Salisbury, Wiltshire, United Kingdom. It owns offshore exploration and production licences in the North Falkland Basin in the waters north of the Falkland Islands....
announced that "it may have struck oil", Argentina’s Foreign Minister warned that his country would take all possible lawful steps to impede British oil exploration and production there. On 17 September 2010, Rockhopper Exploration published the results of the borehole analysis - the well was drilled in water 451 m deep and a flow test showed that a payable oil column of 53 m was capable of producing over 2000 oilbbl/d. In February 2011 Rockhopper Exploration commenced an appraisal programme of the Sea-Lion discovery. An update of the first appraisal drill was released on Monday 21 March 2011 indicating a significant reservoir package with a downhole mini Drill Stern Test flowing oil at better rates then the September 2010 flow test: confidence in the commerciality of the Sea Lion discovery has been increased by this first appraisal.
On 14th September 2011 Rockhopper Exploration announced plans are under way for oil production to commence in 2016, through the use of Floating production storage and offloading (FPSO)
Floating Production Storage and Offloading
A floating production, storage and offloading unit is a floating vessel used by the offshore industry for the processing of hydrocarbons and for storage of oil. A FPSO vessel is designed to receive hydrocarbons produced from nearby platforms or subsea template, process them, and store oil until it...
technology, replicating the methodology used on the Foinaven
Foinaven
Foinaven is a mountain in Scotland, situated in the far north-west corner of the Scottish Highlands. Like many of the monolithic mountains that surround it, the mountain is within the Moine Thrust Belt and is made up of imbricated layers of Cambrian quartzite which overlie the older Lewisian...
field off the Shetland Islands
Shetland Islands
Shetland is a subarctic archipelago of Scotland that lies north and east of mainland Great Britain. The islands lie some to the northeast of Orkney and southeast of the Faroe Islands and form part of the division between the Atlantic Ocean to the west and the North Sea to the east. The total...
. The proposal envisages a FPSO vessel located 200 km offshore servicing 24 production wells and 12 water injection wells in about 450 m of water. The wells will be arranged in clusters of 6 wells per drill centre. The two water injection well clusters will be 3.0 km from the four oil well clusters. Oil will be transferred from the FPSO vessel to shuttle oil tankers.
The production site will require approximately 110 people working offshore and another 40 working onshore. The oil expected to trade at of the Brent crude price.
East and South Falklands Fields
As of 2011 the East and South Falklands Fields had not been fully evaluated; a Leiv Eiriksson is a 5th generation semi-submersible drilling rig is scheduled to arrive in the Falklands waters during the fourth quarter of 2011 and is expected to drill two exploratory wells during the following nine months.Philately and numismatics
Colonial Office
Colonial Office is the government agency which serves to oversee and supervise their colony* Colonial Office - The British Government department* Office of Insular Affairs - the American government agency* Reichskolonialamt - the German Colonial Office...
, the Earl of Carnarvon
Earl of Carnarvon
Earl of Carnarvon is a title that has been created three times in British history. The first creation came in the Peerage of England in 1628 in favour of Robert Dormer, 2nd Baron Dormer. For more information on this creation, which became extinct in 1709, see the Baron Dormer.The title was created...
began the process of application for the Falkland Islands to join the General Postal Union (renamed Universal Postal Union
Universal Postal Union
The Universal Postal Union is an international organization that coordinates postal policies among member nations, in addition to the worldwide postal system. The UPU contains four bodies consisting of the Congress, the Council of Administration , the Postal Operations Council and the...
in 1879). The first stamps, 1d, 6d, and 1 shilling
Shilling
The shilling is a unit of currency used in some current and former British Commonwealth countries. The word shilling comes from scilling, an accounting term that dates back to Anglo-Saxon times where it was deemed to be the value of a cow in Kent or a sheep elsewhere. The word is thought to derive...
values featuring the usual profile of Queen Victoria
Victoria of the United Kingdom
Victoria was the monarch of the United Kingdom of Great Britain and Ireland from 20 June 1837 until her death. From 1 May 1876, she used the additional title of Empress of India....
, were issued 19 June 1878. Since then the islands have issued their own stamps
Postage stamps and postal history of the Falkland Islands
This is a survey of the postage stamps and postal history of the Falkland Islands.-Early mails:Early mail service depended on occasional calls by ships connecting to the Brazil packet via Montevideo; the earliest recorded letter dates from 28 January 1827...
, which are a source of revenue from overseas collectors. Between 2000 and 2008, the islands issued between six and eight sets of commemorative stamps. The workload placed on the Falkland Islands Post Office by overseas collectors led to the establishments in 1978 of the Falkland Islands Philatelic Bureau. The Bureau also handles philately-related sales on behalf of the governments of Government of South Georgia and South Sandwich Islands and of the British Antarctic Territory
British Antarctic Territory
The British Antarctic Territory is a sector of Antarctica claimed by the United Kingdom as one of its 14 British Overseas Territories. It comprises the region south of 60°S latitude and between longitudes and , forming a wedge shape that extends to the South Pole...
.
Coins and banknotes may only be issued by the Falkland Islands Government with the authorisation of the British Government. Coins for local use were first struck in 1974 and are the same size as the corresponding British coins. There is a flourishing business in the issue of commemorative coins struck on behalf of the Falkland Island Government for collectors - in particular the 2007 series of coins that commemorated the 25th anniversary of the liberation of islands attracted much attention. The Falkland Islands Government (FIG) is required to deposit 110% of the face value of any coins struck on its behalf into its currency fund, thereby effectively backing the Falkland pound with the pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
. In the case of commemorative coins that are unlikely to be redeemed, this money represents a long-term investment. In many cases the set-up and production costs are carried by the mint concerned, who pay the FIG a royalty on coins that it sells to collectors.
External links
- Falkland Islands Development Corporation - Annual Report 1984
- A Visitor's View of the Falkland Islands
- Guardian Unlimited - Special Reports - Share the Falklands
- Four Seasons and more than 3,000 Tourists in One Day
- "Falklands Experience" tours
- Falklandsinfo: Welcome to our Spectacular Islands!
- Britain sends minister to resolve Falklands air row with Argentina
- Guardian Unlimited - Special Reports - The Falklands' rise to riches