Fuel duty was specific part of deal for loan approval

| 06/12/2010

(CNS): The 25 cent increase in fuel duty which was introduced by the government earlier this year was a specific part of the commitment the Cayman Islands made to the UK in order to get approval for the CI$155million in borrowing for this financial year. According to a written answer from the FCO to Emma Reynolds, a UKLabour MP, asking what conditions were attached to the CIG loan, the fuel duty, the restructuring of debt consolidation of borrowing, divestment of government assets and a full set of audited up-to-date accounts by the year end are the specific conditions attached to the approval.

Reynolds has been questioning the coalition government’s decision to approve further borrowing to the Cayman Island when the previous minister, Chris Bryant, had stated that there would be no more borrowing approved until a new source of revenue generation, such as direct taxes or VAT, was introduced.

According to the written answer from Jeremy Browne, the Liberal Democrat FCO Minister, and not Henry Bellingham, the borrowing approval was subject to CIG making significant savings and efficiencies, to “raise revenue by increasing fuel duty over the three years”, and that CIG use the “proceeds of divestment activity to establish a dedicated "sinking fund" within the next year to rebuild reserves and offset debt attached to the recent bond issue.”

He said CIG was also restructuring existing loans to put in place arrangements to pay down debt over the longer term and that the “Cayman Islands have a full, up-to-date set of audited accounts by the end of the next financial year,” and that there would be no further requests for borrowing.

Reynolds had recently queried the OT minister Henry Bellingham on the floor of the UK parliament as to why the UK government had abandoned “the pledge to tackle the tax haven of the Cayman Islands,” when the coalition chief secretary to the treasury had stated the government was going to crack down on tax evasion and those hiding money offshore.

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Comments (5)

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  1. Anonymous says:

    I am English but frankly the British Government are a load of b@@@@ds!  I came here to get away from the taxing bankers…….

  2. I guess says:

    Reynolds posed an ignorant question and clearly needs to be addressed by Tony T!

    However, as for tax on fuel – I had already figured that out from the timing of the decision.  Also, (for those who don’t realise it yet) its only a matter of time before the UK give further conditions (when the opportunity arises) to tax fuel and alcohol in the same way.  You see that’s the way the Brits do it, so they seem to think its an easy fix for us too – because they can’t see any other way but the tax way in anything they do.

    • Pit Bull says:

      Well it is our territory, so we can do what we want.

      • Toodle Pip says:

        Reading your posts, Pit Bull, I get a strong impression that like an arsonist who simply enjoys starting fires, you enjoy irritating Caymanians (especially) and anyone in general who enjoys living in Cayman. Your posts elsewhere about your beloved London being 14% of the UK population/"spending the odd weekend in the country" and not visiting cities in the UK that sound like "awful places" to you are either mischievously amusing or the sad and worrying expressions of a latter day fascist and arrogant Bertie Wooster, without any of that splendid fictional character’s innocent charm.

  3. Anonymous says:

    Hmmm, – our beloved Leader fully embracing the ethos of ‘transparency’