Archive for October 30th, 2009
Tobacco ban remains elusive as date delayed again
(CNS): The minister of health has denied that the Tobacco Law has been abandoned but has admitted that the commencement date for this legislation has been delayed again. A year after the bill was passed by the elected members of the Legislative Assembly, the Tobacco Law 2008 has still not been implemented, and Mark Scotland said today that it will not come into effect until 31 December 2009. The law made its first appearance in the LA in March 2007, but more than two and a half years later Cayman is still languishing under a cloud of tobacco smoke.
“The amendment was approved in Cabinet earlier this week and will allow more time for finalising regulations and for putting the necessary administrative processes in place,” Scotland said, adding that the ministry hopes to present Cabinet with the final regulations within a few weeks, after which town hall-style stakeholder meetings will begin between late November and early December.
“These meetings will focus on educating people on the provisions of the law and will be open to the public. While we do regret this delay, on the bright side, the newly-scheduled implementation means that we will have a few extra weeks for public education before implementation,” the minister of health stated about the law, which was due to have been enforced from this month. “In the meantime, in the spirit of the law, we encourage businesses to familiarize themselves with the new legislation. We also congratulate those who are already adhering to the new requirements.”
It is not clear why it has taken the ministry so long to develop the regulations. The law itself was based very closely on WHO recommendations and the legislation essentially bans the use of tobacco in public places with a few notable exceptions, which were added after opposition, for local businesses here.
A number of local activists have raised their concerns that the constant delays are being driven by some bars who believe the ban willundermine their business. However, no jurisdictions in which a public place tobacco bans has been introduced has suffered a loss of business as a result. A number of studies have demonstrated rapid improvements in the health of populations where bans have been introduced, with anything from a 17-35% reduction in heart related deaths. Most health experts now believe that literally 100s of lives are saved each year where bans are implemented.
Travers dismisses Foot report
(CNS): The chairman of Cayman Finance, Anthony Travers, has dismissed the recent report by Sir Michael Foot, suggesting it is of little consequence. Pointing out the omission of any reference to the most recent FATF report regarding Cayman, Travers also suggests Foot’s report is too general and there is little that Cayman need do in response. Foot’s review of the UK’s offshore financial centres, which was published on Wednesday, makes a number of recommendations for all the territories and also raises specific concerns about economic mismanagement in Cayman and the problem of a limited tax base both here and in other territories.
However, Travers said he believed the report is "much ado about nothing”.
“Apart from a passing and justified concern over the recent short term funding problems experienced by our new government, the report is notable in that it acknowledges the enormously important role Cayman plays for the City of London and Wall Street, and that business is unlikely to shift from the offshore jurisdictions to the UK.
“The report strangely omits reference to the most recent FATF report, which describes the Cayman Islands anti-money laundering systems as superior,” Travers noted.
The Cayman Finance chair also stated that the understanding displayed of why fund structures utilise the Cayman Islands appears superficial and that Foot’s suggestions with respect to VAT fail to analyse properly the effect of import duties.
“As a matter of academics, the report is not helped by the generalised nature of its conclusions but which, on specific application to the Cayman islands legal and regulatory regime, do not suggest that any immediate action is required,” he added.
Although Foot’s report offers a general assessment of all nine territories, he says that a detailed explanation of the differences between the jurisdictions would not have served the objective of the report, which was to give the United Kingdom an idea of its risk and exposure as a result of the situation in all its dependent territories.
Foot also noted that, while his recommendations may not apply in the same weight in every territory, he warned that none of the jurisdictions reviewed could afford to be complacent and there were common themes. “Most are heavily reliant on financial services and tourism for economic output, government revenue and employment,” he said. “It was clear early in the review process that economic decisions taken by some of the jurisdictions during the long period of economic growth had weakened their resilience in a downturn.”
“Decisions taken by some of the Overseas Territories to use increased revenues to raise current and capital public spending, sometimes combined with insufficient attention to data quality and the absence of robust medium-term planning, has left local governments facing difficult short-term choices to restore the public finances. This is clearly illustrated by recent events in the Cayman Islands,” Foot wrote.
In his report Foot makes a number of specific recommendations, which he says all of the dependencies and territories should consider and measure themselves against. He also recommended that the UK make it clear to the jurisdictions the respective responsibilities and expectations between it and the territories. The quality and extent of financial planning in the jurisdictions should be aligned with the best performers, which he said were the crown dependencies.
“In particular, jurisdictions should implement a prudent approach to managing government finances by developing: a diversified tax base to maximise sources of revenue; mechanisms to measure and control public spending; and by building financial reserves during periods of economic growth,” he added.
The UK should also be proactive in satisfying itself that the territories are capable of identifying and responding to external shocks, and encouraging local governments to undertake responsible adjustment programmes where these are necessary, Foot said.
Among other recommendations, Foot also set out the need to meet international standards on tax transparency and that the UK should press for improvements in ‘know your customer’ minimum standards. Furthermore, he said all jurisdictions should have independent regulatory regimes and recommended that jurisdictions without an ombudsman scheme consider adopting one.
Cops post reward on suspect
(CNS): The police are offering a $5000 reward for information leading to the arrest or conviction of Dainian Cecil Henry on top of the Crimestoppers usual US$1000. With a CI$5,800 price tag on his head, the man who escaped from police custody is fast becoming Cayman’s “most wanted”. The RCIPS is advising the public to report any sightings of this individual immediately to the police but strongly advise them not to approach him directly. Henry, who is wanted in connection with firearm’s offences, escaped from custody at George Town police station on Sunday 25 October.
Police said he had made his escape by pushing over a woman who was entering the station with a baby in her arms. Henry made off down Elgin avenue and police say they were unable to catch him.
Henry was also listed to appear in summary court this week to face charges of possession and intent to supply cocaine, for which he had pleaded not guilty. According to a report in the Caymanian Compass, despite Henry’s absence the trial still took place and a verdict is expected on 10 November.
To report sightings the public can call 949-4222. To leave information on an anonymous voicemail service call 949-7777 or call Crime Stoppers on 800-8477 (TIPS). Anyone calling Crime Stoppers remain anonymous, and is eligible for a reward of up to $1000, should their information lead to an arrest.
GIS explains content of new constitution
(CNS): As the Appointed Day approaches Government Information Service is continuing its education campaign about the new constitution posted below is the second of a four part series which corresponds with a TV Documentary which is airing on local television. In part two the details of how representative democracy is defined in the new constitution and looks at the checks and balances that have been put in place to allegedly protect the people.
(GIS) The Constitution: Building Blocks and Safety Nets: ‘Representative governance’ is one way to define democracy. And this definition embraces the concept of primary ownership being vested in the people who will direct those elected – or selected – to apply principles outlined in the constitutional document.
The new Cayman Islands Constitution allows for more hands-on involvement by the people, and includes stipulations such as term limits and other checks and balances. The document’s preamble outlines 21 items of primary concern, ranging from Christian values to educational, healthcare, crime and drug abuse issues, as well as culture and employment.
Public accountability from the country’s leadership is a major constitutional revision milestone. Conditions include oversight of the top ranks of the public service as well as opportunities for citizen participation in policy-making.
In addition, there are term limits for the Premier, allowing for the periodic rotation of the seat of power, while stimulating new ideas. A Premier cannot serve more than two successive four-year terms (eight years), after which he / she may continue to run for office and serve as a Cabinet minister or member of the Legislative Assembly. Following at least a one-term break a former Premier may again be selected for this position.
While having greater authority in the shaping of government, the Premier will correspondingly fall under even greater public scrutiny. The appointee is obliged to carry out specific responsibilities in accordance with the Constitution and in the interest of the Cayman Islands.
There are also new internal controls: The Premier is answerable to, and dependant on, the support of an MLA majority. A no-confidence vote of at least two-thirds of the elected members can unseat the Premier (which would dissolve the entire Cabinet).
Other forms of oversight include the requirement stipulating that legislators make open declarations of assets in the Register of Interests. There is also protection of freedom of information; protection of the Constitution itself, and inclusion of the public.
A range of other official bodies called ‘Institutions Supporting Democracy’ are also enshrined in the Constitution. These bodies serve to enhance the principles of democracy and transparency. They include the Commission for Standards in Public Life; the Human Rights Commission; the Constitutional Commission, and Advisory District Councils.
In most cases, the Governor will appoint members of these new commissions in consultation with the Premier and Leader of the Opposition.
One such body, the Commission for Standards in Public Life (CSPL) will have broad remit over the public sector which includes making recommendations to bolster transparency, fairness, honesty and the overall conduct of all public officials, whether elected, appointed, or civil servant.
They will investigate breaches of established standards, review and establish procedures for awarding public contracts and review and establish procedures for appointing members to public authorities. The commission will also manage the Register of Interests, thereby promoting transparency.
The CSPL is expected to work closely with the new anti-corruption commission which will be formed in January 2010. Other checks and balances include limits on public debt and requirements for financial reporting.
The new Constitution also encompasses the debt limitations already established in the Public Management and Finance Law. Of equal importance, the public debt formula is established constitutionally, with borrowing being defined as loans to government or to any statutory body.
In any financial year borrowing shall not exceed total interest payments, plus other debt-servicing expenses, plus the principal or debt repayments. However, in exceptional cases as determined by Cabinet, a law may be enacted to provide for increased limited-time borrowing.
Then, on the broader issue of revenue and expenditure, while the Legislature governs government’s financial processes, adequate public reporting is required, thereby enhancing transparency. Further, at least one report must be made in the LA annually, outlining government’s financial position.
Constitutional protection of access to information has also been achieved. The FOI Law came into effect on 1 January this year, and outlines the right to access public information as well as any restrictions to that right. The only exceptions relate to security, upholding public safety and individual rights.
Likewise, the Complaints Commissioner’s Office is already provided for. Under the new Constitution the Premier and Leader of Opposition will consult with the Governor, prior to his appointment of the post-holder, who must not have held any political office for the preceding three years. :
The Constitution also calls for a new Human Rights Commission (HRC) to replace the existing Human Rights Committee. The focus is to protect citizens from governmental injustice.
One of the few permanent commissions, the HRC will promote the Bill of Rights which becomes effective in 2012, and will also act as a public watchdog. Individuals and groups may petition the HRC but no outside persons may direct or control this body.
HRC powers include being able to investigate infringements of any rights or freedoms as contained in the Bill of Rights or as provided in relevant international treaties. Independent investigations may also be launched. Responsibilities will include providing advice to victims, attempting to resolve complaints through mediation and educating the public on human rights.
Also facilitating the constitutional progress will be the non-partisan Constitutional Commission (CC) which will be formally and permanently established following the Appointed Day.
As another independent body, the CC will provide oversight and public education and awareness. General functions will include advising government on questions of constitutional development, and publishing reports and discussion papers.
The CC shall also promote understanding and awareness of the Constitution’s value, while overseeing its implementation, continued development and evolution.
Once the LA has enacted a law to permit their formation, the provision of Advisory District Councils will significantly expand the role of the general public. These non-elected council members will advise parliament on issues and concerns affecting their geographical areas.
Next, an independent, efficient judiciary is one of the three critical pillars of any constitutional democracy. Cayman’s revised Constitution continues to establish the courts, namely, the Court of Appeal, Grand Court and subordinate courts.
For the first time also, it expressly states that the constitutional responsibilities of the Chief
Appointments of the judiciary will continue to be vested with the Governor. However, the new Constitution requires him to seek the advice of an independent body called the Judicial and Legal Services Commission (JLSC) prior to making such appointments.
The JLSC will advise the Governor, who has power to appoint, discipline or remove officials. Members will include a non-lawyer chairman. Other members will come from the local public and private bar.
In short, the JLSC will have a fundamental impact on the judiciary and other public offices that undertake legal work.
The AG remains government’s principal legal advisor, but his role as is relates to prosecutions will now rest with a new public office called the Director of Public Prosecutions.
Public accountability is also evidenced by the formation of the National Security Council (NSC), which allows elected representatives and lay persons to now contribute to policy issues concerning national security. This was previously an exclusive function of the Governor and while the Police Commissioner will still report to him, he will update both the NSC and the Premier on internal security matters and criminal activity periodically.
The NSC will comprise the Governor as chair, the Premier, two more Cabinet ministers, the Leader of Opposition, the Deputy Governor, the Attorney General, the Police Commissioner and two members of the public. The Cabinet Secretary will serve as Secretary to the NSC.
Council members will advise the Governor on matters relating to internal security, with the exception of police operations and staffing which remain the Governor’s remit. His actions must accord with advice received, unless he believes it would adversely affect Her Majesty’s interests; in such cases, the Governor shall report his action to the NSC.
Moving on, a dramatic change in the electoral process is marked by the increase in the legislature from 15 elected members to 18 elected members. Soon after the Appointed Day, the Constitution requires that an Electoral Boundary Commission (EBC) be appointed to review the electoral district boundaries and submit a report to the Governor and the LA containing its recommendations for changes in the boundaries of the electoral districts with a view to adding these additional members.
The increase in the legislative assembly will not happen immediately as it can only take place after the legislative assembly is dissolved and new election takes place and new members are returned to the LA.
With all these facets in mind, it is evident that whether it is the possibility of being called to sit on temporary or permanent commissions and councils, or the ability to independently lobby as unelected district representatives, our new Constitution involves members of the public in the governance of these Islands and embraces real change by improving transparency. After the Appointed Day, the structure of the Cayman Islands Constitution will indeed permit a hands-on and much-needed fully-inclusive approach to local governance as we see these new measures implemented.
DEH urges people to keep island clean
(CNS): Following a month of hard work by many people across the islands to make Cayman look clean and beautiful the Department of Environmental Health (DEH) said that working towards beautiful surroundings is a year-round effort and not just something for October. Residents can do their part to keep things clean and green by constructing proper garbage enclosures; putting lids on garbage cans, keeping their property and helping the elderly members of the community and others needing help to maintain their property, the DEH stated.
Organize neighbourhood clean-ups to target problem areas and reporting illegal dumping and littering to the police will also keep Cayman clean year round. “Every individual can make a difference by committing to a healthier environment,” said DEH Public Education & Promotions Officer Tania Johnson. “Cayman is our home so we should do whatever we can to keep our surroundings clean.”
For further information, contact Tania Johnson on 949-6696 or 743-5952 or email at Tania.Johnson@gov.ky .
Saudi expert to visit Cayman
(CNS): History and current affairs author Robert Lacey will visit Books & Books, Camana Bay for a discussion and signing of his latest book, Inside the Kingdom: Kings, Clerics, Modernists, Terrorists, and the Struggle for Saudi Arabia next week. Lacey is the author of twenty books, including Great Tales from English History, The Year 1000, and the New York Times bestseller, The Kingdom. For the last three years, he has split his time between Jeddah, Saudi Arabia and London. According to Lacey, Saudi Arabia is a country defined by paradox: It sits atop some of the richest oil deposits in the world and yet its roiling disaffection produced fifteen of the nineteen 9/11 hijackers.
With Inside the Kingdom, Lacey gives readers a portrait of this most enigmatic of lands. More than twenty years after moving to Saudi Arabia during the oil boom to write his epic The Kingdom, Lacey returned to live once again among the princes and paupers, the clerics and the progressives. What he found was a society slowly recovering from the past. In this recounting, which takes us from the bloody seizure of Mecca’s Grand Mosque in 1979 to the deepening of US-Saudi relations during the Gulf War of 1991 to the fostering of a new generation of Islamic holy warriors led by Osama bin Laden, Lacey shows how Saudi Arabia came to the precipice at which it now stands, struggling to learn how to be at war with itself.
Inside the Kingdom is now available for purchase at Books & Books. This event is part of the International Visiting Author Series, sponsored by the Cayman Islands Department of Tourism, Ogier, and Sunshine Suites Resort, and is free and open to the public. For up to date information on all Books & Books events in Grand Cayman, visit: www.booksandbooks.com
Charity looking for $125,000
(CNS): One of Cayman’s longest running charities the National Council of Voluntary Organisations will host its 30th annual Televised fundraiser next weekend. Competing with a significant number of charities and NGOs all looking for support, the NCVO is pulling out all the stops to raise the $125,000 it needs to keep going for another year. The list of entertainers performing for free includes Barefoot Man, Sea N’ B’, Earl Lapierre, Hi Tide, Ratskin and many others. More than 50 prizes are also up for grabs donated by more than 40 different companies including jewelry, art work, a Blackberry phone from LIME, numerous gift certificates from popular stores and restaurants and a grand prize of round trip tickets to any Cayman Airways destination.
Fund manager faces money laundering charges
(Sun Sentinel): A German financial manager based in Miami was arrested on money-laundering charges Wednesday as part of a sweeping criminal investigation into an international hedge fund that has cost major banks about $400 million in losses, according to sources familiar with the probe. Stefan R. Seuss, has been charged in connection with a global criminal investigation into the German hedge fund, K1 Group, headed by Helmut Kiener, according to sources familiar with case. Kiener’s home in Germany was raided by authorities Wednesday.
To berth or not to berth….
That used to be the question, but with the decision imminent over who will develop the George Town cruise berthing facility it now seems to be a moot point. Even though it is probably too late, a report from the FCCA this week shows the argument that Cayman’s cruise tourism needs this facility to survive may be greatly exaggerated.
As speculation mounts that the Dart Group, partnering with a consortium of local contractors, will be officially awarded the contract anytime now, the question of whether we actually need this facility at all has been forgotten. Forget the environmental argument (which from a personal perspective I believe should have closed the discussion down years ago), there is a very solid economic argument against it as well.
Despite the fact that the berth is reportedly not going to cost us a dime — or so government keeps saying though there are plenty who disagree — the development may well cost the cruise industry more than it bargained for. While both political parties are sold on the idea of cruise berthing after being persuaded by the voices of the Association for the Advancement of Cruise Tourism and the leadership of the Cayman Islands Tourism Association (if not all its members), the report, published this week by the FCCA, makes it quite clear that Cayman is not only holding its own on the cruise front but is already doing better than some islands with berthing facilities.
Regardless of the long touted complaints that passengers don’t come off the ship because of those pesky tenders, the report revealed that 90% of passengers who come to Cayman aboard a cruise liner get off and visit. That’s one of the highest percentages of all the destinations surveyed. Other destinations with berthing facilities recorded only 80%. So even though the passengers can just saunter off when they feel like it, the passengers still stayed on board, contrary to what we have been told by those in the industry.
The other myth that was debunked by the FCCA report was the length of time cruisers spend on island. Again, the average time cruisers spent in Cayman compared very well to other destinations with piers. Although some of the major resorts where the ships dock over night scored higher than the Cayman Islands, this jurisdiction faired better than many others, with passengers spending well over three hours here. Moreover, the length of time passengers spend at the destination is obviously directly related to how long the ship is in port and the cruise liners coming to Cayman leave early, not because of the tenders but because the casinos are itching to open again. After all, we must never forget what is the leading money-maker for the ships.
Another issue is the money spent on food and drink, which Cayman businesses enjoy even though almost no ships stay in Cayman for the evening. With pier passengers easily tempted to return to the ship to enjoy a free lunch, the need to wait on the tender to take passengers back means those visiting Cayman are more likely to stay in the port and eat so they can enjoy the destination longer. Compared to other jurisdictions with berthing facilities, Cayman again did very well when it came to cash spent in local restaurants.
As Cayman’s average passenger spend was almost $97 per head, when compared to the Bahamas where it was less that $84, Jamaica $93, St Lucia $68, Turks & Caicos $67 and a mere $45 in Dominica, it is hard to make the argument that the lack of a pier is making cruisers in Cayman skinflints.
The danger is that, given the easy-peasy pier for passengers to alight and board at will, the restaurants at the very least will suffer, but so may many of the shops as well. Berthing could see the time passengers spend in Cayman reduced and therefore the overall spend may well decline because of the very fact they can get off and on whenever they like.
The debate obviously has two sides and there will be those who, I expect, will be quick to shout me down — after all, what do I know about cruise tourism? (It’s a good question as I am just an overworked and underpaid hack. In my defence, though, I read the entire report.)
However, judging by the comments made on the CNS website in the last few days, there are a number of people working in the tourism business better qualified than I who are not entirely convinced that the berthing facilities will make all Cayman’s tourism dreams come true.
The gap between the interests of businesses dependent on stay-over tourism and those on cruise tourism is a difficult one to bridge. At a recent public forum on the future of the industry, McKeeva Bush bemoaned the fact that the tourism sector does not speak with one voice and the goal of a common vision was elusive.
It is, however, hardly surprising. Those who cater to the needs of the tourists that come here for a vacation will tell you that the development of facilities for cruisers is exactly why they have stopped coming. Too many people in George Town, too high taxi prices, crowded beaches at peak cruise times, the arrival of Margaritaville and Senior Frogs, for example, are the things that drive those who come to stay on Seven Mile Beach away.
Cayman’s tourism product does have something of a bi-polar disorder, but no one really seems to know what meds it should be taking. So, how do you reconcile the needs of a tourist staying at the Ritz Carlton seeking seclusion and exclusivity with their Mai Tai with those of a cruise passenger looking for a giant lime green cocktail souvenir glass?
What is clear is the development of cruise berthing is hardly likely to be the cure, and if anything it may even push the jurisdiction into full blown case of paranoid schizophrenia.
Auzzie government fund sends cash to CI
(SMH): AUSTRALIA’S $60 billion Future Fund is sending money to Cayman Islands to try to minimise its tax bill.In the past year, the fund has opened five subsidiaries there, with which Australia does not have a tax treaty or information exchange. At the same the Prime Minister has been part of the global push to crack down on the use of such tax shelters. The tax counsel at the Institute of Chartered Accountants, Yasser El-Ansary, questioned the move. ”In this era of increased transparency across the world, perhaps the Government ought to consider whether this sort of approach is aligned to its broader commitments as part of its role in the G20,” he said.