CEC benefits will be indirect

| 26/01/2012

blick_0.JPG(CNS): The much anticipated techy park being developed by Cayman Enterprise City in the area of Savannah will, officials say, provide more indirect benefits to the public purse than direct fees. The CEO of the islands' first special economic zone, Jason Blick, said it was the people who would be brought here to work for the zone’s tenants that would boost government coffers by their spending and use of local services rather than through the usual fees businesses are required to pay. Tenants in the CEC will not have to pay duty on the items they import, trade and business or company license fees, and they will also be exempt from work permits for their staff or the need to provide business staffing plans.

Under the terms of the deal that government made with CEC and under the new special economic zone law which emerged as a result, it will pay government a flat fee of $1500 for every foreign worker in the zone, regardless of their position, for a five year employee certificate. No other fees, duties or taxes will be collected by government from the tenants of the zone.

Speaking at the Cayman Islands Chamber of Commerce’s latest “Be informed” meeting on Wednesday afternoon, Blick explained to a packed conference room that the tenants of the zone would pay a flat fee to CEC and not to government for their offices and all the other services provided in the business zone, and from that CEC would pass the per head employee certificate fee to government.

However, with no company registration fees, trade and business license or duty on the equipment that the companies in the zone will import for use in their business, the benefit to the country will be the duty government collects on what the zone’s workers spend outside their offices. In other words, the resulting population increase will generate more consumption and with it business for locals and duty to the public purse, Blick claimed.

Answering a number of questions about the project, Blick denied that the zone was just a commercial plaza and the CEC merely a landlord who could offer excellent concessions to tenants not available to other landlords and commercial developments.

“That is an over simplification,” Blick said, despite acknowledging that at its simplest the zone was offering bespoke office accommodation for an all-inclusive rate. He added that CEC would provide people in the zone with specialist services and described it as a business incubation centre. Blick said it was a major concern for the owners of CEC to deliver the message of why it was different from any other commercial development and why it was suchan enormous benefit to Cayman.

The CEO said that there would be a careers bureau on the site but he admitted there was no obligation under the law created to ring-fence the zone for any of CEC’s tenants to employ any Caymanians. Nor will employers in the park be required to advertise any of the posts locally and they will be free to bring staff from overseas.

Blick said the first tenants would be moving into what he termed gateway accommodation next month, and although they would not be physically in the ‘zone’ until the offices are completed sometime next year, the principles governing the zone would apply to what will be the “zone” companies immediately. He said that eight technology companies had signed up for the park and they would be housed in theinterim at empty offices around the island, such as the HSBC Centre and the Grand Pavilion.

When the development begins in the second quarter of this year, which Blick said the company was obliged to begin as part of its agreement with government to establish the zone, CEC, as the developers, would be paying stamp duty, planning fees and duty on all materials to construct the various technology campuses in Savannah. He said local sub-contractors would be employed to do that work, which would be another direct benefit to the country. Once completed, however, further benefits would come from the increase in people, new firms and technologies on island and the training opportunities they would bring, he explained.

He said the returns to the Cayman purse, which had been calculated by KPMG in a report commissioned by CEC, would be significant but he said that report would not be a public document. Blick stated that there would be an eventual contribution to the country’s GDP of $½ billion. 

Blick was also quizzed about the owners and investors in CEC but he remained tight lipped, revealing only that is was majority owned by Caymanians. Asked directly if the Hon development company had any remaining interest in the firm, Blick refused to be drawn as he said it was not relevant, and would not answer. Although Hon had been the original main investors in CEC, it is understood that the developers withdrew from the project but no explanation for their decision to pull out has ever been revealed.

Speaking to CNS after the presentation, Blick said it was difficult to deliver the message of just how beneficial the specialist zone would be to the country at large, and short of taking people to Dubai where there are existing extremely successful zones, it would be a matter of time before people began to realize the benefits.

Blick said, however, that the financial services sector was embracing the concept because although the companies in the zone would have access to far greater concessions than existing Cayman firms, it would be the clients of Cayman’s offshore industry that would be relocating to the zone.

“Every single law firm we have spoken to embraces this as they have said it has been needed for a long time as they have clients waiting to come to Cayman,” he told CNS, adding that offshore firms are desperate for the project as they have many clients that would have relocated to Cayman years ago but the existing regime was not attractive enough. Local firms will now be able to service their clients here on island, he explained, suggesting that the zone could act as a magnet for the elusive but much wanted physical presence.

He said the zone was welcomed by the private sector as well as government because it would create jobs, even though there was no obligation on the part of the zone tenants to employ local people. He said there would be fantastic opportunities for Caymanians as it was a “carrot approach” rather than the stick approach of the existing regime.

For more details on the zone see the CEC Website and see details of the legislation here.

Category: Local News

Comments (83)

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  1. Just Commentin' says:

    I should think that good governance, transparency, prudence and reason would dictate that the questions of "Whois?" and 'Wey de dollahs come frum to develop the SEZ?" would certainly be matters that would be made public early on in the process – long before any agreements were signed and certainly before any legislation was passed or authorities formed. Even more so if – as some say –  the SEZ will become "be the third pillar of Cayman's economy". That something so enormous and so important is at such an advanced stage and yet remains shrouded in such mystery is beyond comprehension.

    But, then again maybe I am being too old fashioned. The global trade and business stage is fast changing and perhaps…maybe…just mayyybe…the Cayman Islands are on the cutting edge of the profitable side of a scenario playing out right now: a global smack-down pitting greedy Tax-Pig jurisdictions like the USA and EU  vs. tax havens and other "legitimate" tax-free jurisdictions like the Cayman Islands.

    According to the SEZ law, a company can be here, but not here. (Get it?) The OECD and their member Tax Pigs are grunting for "tax transparency" so here it is! The SEZ offers the ultimate transparency! (Get it?) Total transparency – as in "invisible". This one should keep the IRS and EU and other Tax Pigs and securities and international trade regulators scratching their heads for a few years. Close a few loopholes and we open floodgates. Tek dat! Just when I thought the Cayman Islands was rolling over and showing the white of their belly to the OECD, I discover we were just playing possum. Then, BAM! We come up with the SEZ. Too doggone cool

    Just when Tax Pigs like Uncle Sam and the OECD and the EU come up with some seemingly ironclad ways to penetrate the secrecy and financial sanctity of companies and financial entities domiciled within the Cayman Islands, we – being smarter and faster than they – come up with: "Hey, mon…wha' company yah chat 'bout? Wha' shares? Wha profits? Wha people? Wha' clients? Landah wha money? Mi nah know, sah. Dey not yah, mon!"  An SEZ Never-Never Land!  Freaking brilliant!

    The only reason I am not bitchin' too loud about all the secrecy is that the Tax Justice Network and other Tax Pig minions absolutely hate the idea of the Cayman SEZ. To moi this is a good thing! (And enough reason to support he SEZ, in principle anyway.) We'll see. Maybe it won't pan out as I am hoping.

    So maybe I understand now: to ensure that everyone down the road is protected from the Tax Pigs, as a starting basis we must protect the identity of the developers, the source of their funds and the secrecy of the SEZ people and eventually the SEZ entities. Ok…if this is the reason for all the hush-hush, then it makes sense to me.  I am all for anyone who flips a finger at the Tax Pigs and tells 'em to bugger off. Especially if they make like the Cheshire Cat and go, "POOF!", and all the Tax Pigs can see is their smile.

  2. Anonymous says:

    WHAT A JOKE,  FOLISH STATEMENT!!

    DO NOT ALL PEOPLE LIVING AND VISITING  HERE contribute to the economy.

    WE will all have to pay for the special privilages they have gotten from the   UDP 

  3. Anonymous says:

    I looked into my Crystal Ball last night at 9:00 O' Clock and it told me that McKeeva will be re-elected. It's being doing that for the past 12 months. So McKeeva will be our next Premier. 

  4. Through The Looking Glass says:

    Thinly disguised colonialism.  "What comes around, goes around."  More domestic helpers, more gardeners, more servers in high end restaurants, more gas station attendants. This is economic opportunity? 

  5. Anonymous says:

    Why all the secrecy about CEC and its owners?

    Why must the KPMG report be kept secret from the Caymanian people?

    If the benefits of this zone are so great, then why not extend those same benefits to the whole country? Most if not all of these benefits have been requested by business owners for years.

    Is it not even a little surprising that the location and boundaries of the zone are not public information?

  6. Anonymous says:

    Huge subsidies for tenants with no obligation to employ local people?  One has to ask for whom the gowerment is developing the Cayman Islands – certainly not for Caymanians it seems.

    • JTB says:

      No there are no subsidies at all. A subsidy is a payment, Government is paying nothing. There are concessions however, where the Government agrees to take a smaller amount than usual from companies who would otherwise not be there at all.

  7. Anonymous says:

    So if a politician enhances his personal situation would that be a direct or an indirect benefit? Or would it be a direct benefit to the politician and the developer and an indirect benefit to the people that get new appliances every 4 years?

  8. Anonymous says:

    This is so sad. They can come here and get a dream deal like this then basically tell you suck it up Caymanians, just take the scraps that drop off the table! Jason you are brave.

    I hope I live long enough to see Caymanians revolt and take back their country!!!!

    • Yep says:

      Keep on calling for a revolution to take the country back on a forum that has international readers and you might just get your wish sooner than you think. Of course, Cayman would find itself like Cuba very quickly and then it will be Caymanians hopping on boats to find a better life in Honduras.

  9. Anonymous says:

    so i want a spot in tthe outsource camus so I can ousource every part of my law firm to my new ousorse law firm in the park.

    That way I only need my secretarty to have a work permit.

    The rest will be outsourced to my other company which you guessed it pays nothing.

    Where do I sign up.

  10. JTB says:

    I have read all the comments on this article and can only draw the conclusion that there is something seriously deficient with the Cayman education system. Never have I read such a collection of ill-informed, prejudiced, reactionary, stupid drivel.

     

    CEC will, by definition and by law, bring in new businesses, which are not already here and would not come here without a project such as this. It is bringing new pillars to the Cayman economy. It costs the Cayman Government nothing. It brings in new money. Yes, the businesses moving here will pay less than normal but:

     

    (a) they would not move here otherwise; and

    (b) they cannot compete with any existing business.

     

    This is a genuine win-win for everyone concerned. Obviously it's no surprise to see CNS spin it in the most negative way possible, but it's depressing to see how many Caymanians would rather see their country decline back to a third-world back-water rather than allow a developer with some drive and vision create something (and, whisper it, make a profit in the process).

     

    What is wrong with you people?

    • Anonymous says:

      You misunderstand Cayman Law. These companies could and did come here already. The main contribution is that the zone is advertising internationally in a way government was incapable of doing and thereby bringing great attantion to Cayman.

      • JTB says:

        Yes they could come here, but they didn't for commercial reasons. The SEZ is about changing the commercial circumstances to encourage them. The law I was talking about is that the only companies CEC may recruit are those of a kind which were not here previously, and may not compete with those already on island

  11. Harry B says:

    Seems fair to me. And for those saying there is nothing in it for Caymanians – it is true there isn't if you have no qualifications and little work ethic. Now is the chance to encourage your children to keep up higher education , and instill a good work ethic in them, then the opportunties will be theirs. Why aren't more Caymanian students working part time jobs at restaurants etc, or doing paper runs etc etc whilst studying…I know a few that are and their future is bright, as for the rest….what you up to? 

  12. Confused, and more confused says:

    Why do I feel that our Government is "the little boy who cried Wolf"?? One of these days the people will not believe them and all the tricks will stop! that time is coming soon cause we're all tired of this crap of being kept in the dark and having to deal with the change-good or bad.. and as for the CEC project… I hope it does well for our country and future generations. And as for Mckeeva Bush-I would love to see a more mature leader in his spot right about now.. He is an embarrassment to the Cayman Islands with his childish words and tantrums.. We need a true leader who fights for his people.. Mckeeva had such great potential but of course when greed comes into the picture and doesn't want to leave-Every thing goes down hill!

     

  13. Anonymous says:

    According to their figures, CEC have hired 11 Caymanians in the last year.  How many companies have hired 11 Caymanians in the past year?  How many of you negative posters have hired 11 Caymanians in the past 5 or 10 years?

    They are showing a commitment to hiring Caymanians, so I say chill out and give them a chance.

  14. Knot S Smart says:

    Mac and the UDP have stabbed us in the heart!

    First they increased the import duties, work permit fees, fuel tax, and almost every other fee, thereby killing us economically.

    Now they are waiving every fee for strangers and telling us nonsense that crumbs will fall from the rich man's table, for us the long suffering taxpayers?

    And to think we are who elected them and are paying for their lavish lifestyle!

     

     

    • Anonymous says:

      It proves every election, how naive the people are when they vote for those same people who keep giving hand outs to blind fold them every time around.  Stand up and be counted, accept the envelopes and make your X on the ballot for a candidate who at least has character.  Weed them out come 2013, and make a difference in West Bay.   B. Town has to clean house as well.  The 2 stoogies are completely out of their depths, and could only accept the dump for Bodden Towners, that is true representation.  What else could we expect? 

  15. Anonymous says:

    What is this?  I thought this country was all about finding jobs forunemployed Caymanians.  Might I add there is a A LOT out there! This people are going to be offering positions to foreigners again?  What is this place coming to? Anyone interested in doing a Take Back Cayman.  I am gamed and willing to start just come to Newlands.  I will provide the materials we can camp out in CountrySide or on this proposed new site. I say burn this idea there is nothing in it for our Caymanian children!!!.  This country is at the point of no return – what are we all going to do about it?  It is such a sad feeling to have no voice in your own country. I say we claim it back take back what is righfully ours for the sake of our children!!!!

    Redsack

     

     

    • Anonymous says:

      Why theparanoia?  I don't understand how a project that will put contractors to work very soon, and offer career opportuntities to young Caymanians be so threatening to the country.  Are there other projects out there offering hope?

      • Anonymous says:

        My friend, can you not appreciate the short-term nature of infrastructure projects of this kind?   A few contractors (probably friends of the Premier — call me a cynic if you must, but let's wait and see) will be busy for a few years and then we'll back to square one!

         

        Look back:  Built on promises of fiscal benefits for gowerment and jobs for Caymanians, Camana Bay (still expanding) was a huge build project  and so was the Ritz Carlton, AND YET the country finds itself in financial difficulties and with the largest youth unemployment problem for many years.  Plus, many of the proposed projects will received such generous tax and duty concessions that they will not help the gowerment's fiscal position in any way. 

         

        The CIG is a one-trick pony: Inward investment at ALL and ANY cost, driven purely by political expediency; by a desperate need to pull something (anything) out of the hat before the next general election.  However, to bring Cayman out of recession for the long-term will take more than just a few inward investment projects.  To begin with, it will take a government who:

         

        1) Believes in the the power of the LOCAL people and the power of the LOCAL economy to stage a recovery.  It's clear Bush has lost faith in Caymanians. In his mind, only rich ex-pats can help Cayman out of it's economic woes.

         

         2) Will concentrate on stregthening the main pillars of the Cayman economy and not go chasing around the world to find supposed new pillars to prop up the Cayman economy.  By the way: although much has been said about the Shetty Hospital creating Medical Toursim as a new PILLAR of the economy?  A couple of weeks ago Shetty finally told the truth that it will mainly be a hospital serving the local community!

         

        3) Has Ministers with a proper education and understanding of how to create joined up policies to start a long-term recovery and to make a real difference to the lives of all Caymanian's, and not just a few in selected demographic groups, e.g. Ministers of Religion, and those priviledged enough to have mortgages and who complain they cannot afford the repayments.

      • Anonymous says:

        What contractors? What opportunities? Retread the article! There are zero

    • anonymous says:

      Claim it back?

      We sold our lands and took our money and went to Miami, bought airconditioning for our new big houses, got a big SUV and want government to give us everything free now you want "it" back? it does not work like that.

      If you want to get it back, stop relying on government hand outs, stop requiring government to provide first world services without us having to paying direct taxes and then they will not need to rely on investors to fill the treasury. Then you will have it back. Not sure you will want it then but your choice. In the meantime, chill alittle.

      A fellow Caymanian.

  16. Anonymous says:

    KFJ – "Ask not what you can do for your country, but what your country can do for you."

    KFJ – Kaymanian From Jamaica.

  17. Anonymous says:

    Another lame attempt to disguise favors given to a few – I can already see that a lot of people will receive laptops as a "gift" since the techo park people will bring them in duty free and of course nobody will monitor whether the laptops are indeed used a the techo park or if it has gone for personal use……..

    Same government – same old crap! When are people going to take a stand? Oh I forgot – why should me care if me can get a cheap laptop!

  18. Anonymous says:

    Pardon my ignorance but would someone please spell out the benefits from this scheme to these Islands and the Caymanian people? After reading this article I could not help but feel reminded of the story of "The Emperor's New Clothes". In this instance the government is the Emperor me thinks.

    • Captain Obvious says:

      Do you really not understand the concept of indirect benefits?

      Ok… follow me now. Read very slowly:

      CEC will build a lot of buildingsfor its tenants over a period of 5-7 years.  Local contractors will build these buildings. They will hire local people to work for them.  This is what is called an indirect benefit because the economic activity created by the construction is not CEC's core business.

      In addition, CEC will bring companies and people to the Cayman Islands. These people will spend money by renting apartments, buying gas and groceries, going out to eat, etc.  This creates economic activity and leads to more indirect jobs.  The loss of a lot of expatriate workers over the past four years has hurt the economy badly.  If you'll notice, as the expats left, unemployment of Caymanians went up (Look it up).

      CEC will also lead to employment for some Caymanians (like a good portion of its current staff), and will lead to some additional fees. But the indirect economic benefits will be more than the direct benefits.  This is often the case with development. Don't be misled by the slanted approach of this article.

      If CEC takes off – and note that I do say IF because I really don't know enough about the business model – it will be a very, very good thing for the Cayman Islands.

      • Harry B says:

        Well said – but good luck trying to convince the anti everything lot – they all no better apparently, even though they don't understand the concept. 

      • Anonymous says:

        They can build their own apartments, remember they don't need to pay work permit fees.  Plus this might be the Chinese.  All they need is a trailer on the property, their own workers, and there you go.  They don't need Caymanians.  They can bring in their own food too.  They can provide their own electricity and water as well.

  19. Anonymous says:

    If Mac has a piece of this puppy, its a sweet retirement deal.

  20. Gold Digger says:

    This is basically commerical concessions being given by Mac to one private landlord.

  21. Anonymous Fox says:

    If there are concessions on everything the public has the right to know who are the Partners are involved in the Economic Zone. This is a fundamental disclosure to ensure the integrity of the project.  We certainly would not want to bring the integrity of the project or the company into question. Considering they claim to bring great benefit to the country. We must be wary of sellers who claim magical deeds by their products. Same thing goes for this.

    The title for this article should be Jason Blick Fools The Cayman Government. All aspects of historical economic development have been circumvented by this new economic zone. There is no longer a level playing field for companies in Cayman.

    Indirect Investment – do the banks, law firms, hotels, and construction companies not produce indirect investment? All the while paying all duties, fees, and other charges levied on them? If these companies are so wealthy and mighty they should be able to handle this as well.
     

    This venture raises a lot of questions and I think we need to start asking them.  As the Premier would say, we are not the only girl on the block, (however ever girl on the block knows you do not want to be the cheapest girl on the block).

  22. Anonymously IRON CLAD says:

    Besides the revelation that any benefits derived from the CEC would be INDIRECT, this dude is telling us that these benefits would come from the 'Imported Labor' and I quote "…he admitted there was no obligation under the law created to ring-fence the zone for any of CEC’s tenants to employ any Caymanians. Nor will employers in the park be required to advertise any of the posts locally and they will be free to bring staff from overseas".

    In addidtion to all the other negatives that could be derived from this potential sector of our economy, our Political Representatives are not going to ensure that any such "inderect benefits to Govt coffers" will not be evaded through the use of 'TELECOMMUTING' or Work-At-Home employees.

    A Typical 'Premier' Deal and a bleeeeeeeeping MESS!!!

    Caymanians… WTFU and Revolt!

  23. Anonymous says:

    The city of smoke and mirrors……..
    Construction to start first quarter of 2012?????……..that means by the end of march…….. I will bet everything i have that this timeframe will not be met

    • noname says:

      You're on. I say they break ground before March 31st.  What's your name so I can collect?

      • Anonymous says:

        how can they buy the land…complete design, submit to planning and breakground before 31st mar????……. unless you are counting on a mackeeva bush breaking ground photo op……

  24. Anonymous says:

    Conflict of interest=CEC promoter on special economic authority board ?

  25. Anonymous says:

    Clearly someone is benefitting from this and there is no evidence that it is the country as a whole. Certain politicians were tripping over themselves to bring in the legislation? Makes you wonder, who benefits?

  26. village idiot of absurdistan says:

    It appears CEC is one of the building blocks for Mac's desire for larger population base in Cayman.  

    Through my tinted glasses (they used to be rose coloured) the CEC appears like it could become an EC (expat city), further segregatingthe island and its people which is not ideal at this time in history.

    As an expat I find it unbelievable that there is no requirement to hire Caymanians- I can't imagine how Caymanians feel.

    I also agree with an earlier post- won't every Class B bank that has no Cayman customers relocate to CEC?

    Say what we like about Caymana Bay and Dart- at least they hire Caymanians and contribute a lot of money and land to the local economy. 

    I am eager to watch this one unfold and see the impact it has 1, 3, and 5 years from now. 

  27. Like It Is says:

    "Local firms will now be able to service their clients here on island, he explained, suggesting that the zone could act as a magnet for the elusive but much wanted physical presence."  Not really, the complete lack of culture is always going to be an issue.

  28. Anonymous says:

    You have got to be kidding me…How in the HELL is any part of this of any benefit to Cayman or Caymanians???  This has to be the most nonsensical, irrational and one sided arrangement I have ever heard of.  Thanks for nothing once again UDP……I am even more convinced now that you all are definitely out of this zone. 

  29. Cayman Real Estate Agent says:

    Once again we have proof of another poorly negotiated deal by the UDP. Is this a coincidence?

    It is obvious that this UDP Government and the people of Cayman have been beguiled by flashy talkers with foreign accents who are promising to save Cayman, the world and create a new economic pillar. When will we ever learn?

    CEC is nothing more than a REAL ESTATE deal where they will get all the concessions, discounts and Immigration waivers whilst established businesses will have to pay the "full monty" to facilitate a landlords dream. How is that fair?

    There is nothing in this project that truly represents cutting edge, it's a flashy business park situated in Savannah nothing more; so why all the Govt giveaways and concessions when nothing is guaranteed for the public coffers?

    In short, CEC is an attempt by a landlord and his marketing dream team to bring a few thousand extra persons who do not view the Cayman Islands as a cutting edge jurisdiction like Silicon Valley or Dubai. The real question is how can you have a tax free zone within a tax neutral jurisdiction?

    The Directors and Owners of CEC will get all the financial benefits while the desperate and poorly equipped Cayman Govt have once again negotiated a terrible deal with a used car sales man. I swear the man must think we all have courgetts growing out of our head.

    Sadly, other tax payers will have to subsidize the CEC whilst XXXXX will be laughing all the way to the bank.

    "Bollocks wrapped in a pretty bow is still Bollocks"

  30. Anonymous says:

    Yes CEC will provide indirect benefits to the same handful of Caymanian oligarchs that have been running the not so free market economy here for the past eight decades…….zzzzzzzz

    It's a shame the public does not finally take a stand against this type of governance for a select few.

  31. UDP Truthalizer says:

    "Indirect" = "non-existent"

    • Anonymous says:

      Yes Truthalizer, just like the Maritime Authority. Always we hear about the vast sums that "trickle down" from that but I doubt if these vast sums even cover the rent in the building they are in or the air fares of management to Greece and all these other nice spots in the world where they have to go to "look at yachts".

  32. Anonymous says:

    Now you wonder why the youth DONT WANT to work or DONT CARE and just take to crime. Blame the Government for allowing these type of decisions and investments to just cater to a few who will benefit. 

  33. Chris says:

    Ezzard is right again….the benefit from the CEC will be indirect and vague paid over time, however the costs for the CEC infrastructure will be direct and up front costs that will have to be paid for by the poor taxpayers of this country…not the rich tax exempt developers.

    What is this government thinking….or are they?

  34. Anonymous says:

    So whats to stop a bank or law firm that does no local buisness from moving into the "zone"

     

    • Adam Smith says:

      And a business moving here that would not be here otherwise would be a bad thing because?  Jobs and economic growth would help everyone even.

    • Anonymous says:

      Absolutely Nothing!..  you will be suprised at the number of existing companies in Cayman  that will be jumping ship and moving to CEC soley for the immigration benefits. Want to see a big drop in gov't revenues…….its coming.

    • Anonymous says:

      Nothing. The sucking sound from the wider economy may be significant.

    • Big Ben says:

      I believe the CEC is restricted to businesses from 6 defined business sectors, which don't include the majority of the financial services sector in Cayman such as banking, accounting, legal, and other professional services. The information is on their website.

      The six sectors are Internet, media, biotech, commodities &derivatives, outsourcing, and academic. To my knowledge none of these have a large footprint in the Cayman Islands (excepting the presence of UCCI and ICCI). It doesn't look too threatening to any local businesses IMHO.

       

       

      • Anonymous says:

        Yeah right, just like the Shetty hospital was a 2000 bed, solely medical tourism facility.

  35. Whodatis says:

    … for the majority – but direct for a minority?

    (Just thought I would complete the headline for you there CNS.)

    🙂

  36. Anonymous says:

    Yet another project trumpeted by McKeeva Bush as some sort of economic progress for Caymanians.  Yet another project revealed to provide nothing to anyone.  Unbelievable.

  37. Anonymous says:

    Umm yeah – so indirect that I can't see any…..

  38. Anonymous says:

    Funny, how everything is happening in the district of Bodden Town, and Mark Scottland and Dwayne Seymour, representing Bodden Town are no where to be found.

    • Anonymous says:

      You have spoken for the Bodden Towners, thanks to  this Poster.  We do not know what is happening in tthe district .  This is not good enough for the people of  Bodden Town who have elected them to  be their watch dogs and speak out on their behalf – we are not being informed  through meetings nor any other means.  Please be aware that Bodden towners are sitting on the side lines and watching their actions.    

  39. Anonymous says:

    If I understand this correctly, this project will bring:

    1. businesses to Cayman.  businesses who will spend money here (on everything from groceries to legal services) yet not be able to sell there own products and services here (and so pose no threat to local businesses)

    2. more people to Cayman.  people who, once again, will need to spend money on island (for housing to entertainment to transportation)

    3. new career possibilities for Caymanians.  okay lets say that Caymanians are not given preferential treatment as in the current economy (outside the zone).  there must still be a few Caymanians who will get jobs anyway just by virture of the fact that they have the skill and are here so don't need to be transferred from elsewhere.

    4. stimulus for the real estate and construction industry, thus jobs for Caymanians and business for Caymanian enrepreneurs.

    5. a free career development board for Caymanians.  even if it isn't great, its free and is more than what is avaialble now.

    What will this project take?

    1. well it won't exactly take government direct revenue because that revenue isn't there now. but the government wil not get much direct revenue.

    and that's all i can think of.

    the five "gets" seem to far outweigh the one "lose".  what's the big risk?  if these guys succeed we get all the good things in spades.  if it fails…..well so what?  they get away with paying no direct revenue to government…..but the government isn't getting that now.

    seems logical to me, but CNS bloggers have never been accused of being logical people so I guess there's some crazy ass conspiracy theories that will be bandied about.  Bring them on!  While you're wasting your time with that I'm going to work on ensuring my busines benefits from ths project!

    • Adam Smith says:

      While you are right, your arguments will not be understand by the complainers who cannot get past "zero sum game" economics.

    • Anonymous says:

      Exactly; you are one of the few people that seem to understand this. Well done.

      I'm not normally happy about most news items & new projects, & think corruptuion is widespread within deals (dump, road-move, port), but this deal does have many benefits. It is NEW jobs & Cayman needs to incentivise these big businesses to come here; we're competing on the global stage. Well done to CEC; they aren't just looking to build empty buildings (like other developers), but they work hard to BRING PEOPLE HERE who will then spend money.

      Sure, there may be some drawbacks, but nothing is perfect. The rich backers will get richer, but so will most of the rest of us benefit. And if you don't like it, get up from your computer & develop Cayman yourself, or go & live in North Korea where there isn't the free market economy.

    • Anonymous says:

      Once again i dont think i understand this poster.  Whilst i understand that the persons working in the zone will buy groceries from the store and that will be the indirect benefit to the country, those businesses in the zone however will not be able to trade with businesses outside of the zone (this is specifically mentioned in the compass a few days ago).  I also dont understand why for a private business that has received so much in concessions from the government, they are so tightlipped about who owns the CEC?  In the compass this week the Hons were prominently featured in the announcement about the location of the zone now they refuse to discuss who actually owns it. what is going on exactly? sounds like a ponzi scheme in the making.

      • Anonymous says:

        I think I understand your confusion.  Let me try to explain for you: Zone companies CAN BUY from local businesses, they however may NOT SELL to local businesses.  So that's a good thing for Caymanian business owners.  New customers but no competition.

        As to ownership, its a private business so I'm fine with it being confidential.  I assume (maybe I shouldn't but hey) that the Government (meaning Legal Department and senior Civil Service NOT politicians) have vetted the owners.

  40. Anonymous says:

    Can I move my business there..sounds like utopia..no fees, no permits, no licences…yes!! only in Cayman

  41. Anonnymous says:

    Have we entered the twilight zone?

    Since they are not subject to work permits, of course they don't have to advertise locally. We know that the "advertise locally for two consecutive weeks (or whatever)" requirement is a farce anyway but this beats all!!!

  42. Anonymous says:

    "CEC will, officials say, provide more indirect benefits to the public purse than direct fees."

    "it will pay government a flat fee of $1500…No other fees, duties or taxes will be collected by government from the tenants of the zone"

    "no company registration fees, trade and business license or duty on the equipment that the companies in the zone will import for use in their business"

    "there would be a career bureau on the site but he admitted there was no obligation under the law created to ring-fence the zone for any of CEC’s tenants to employ any Caymanians."

    "Nor will employers in the park be required to advertise any of the posts locally and they will be free to bring staff from overseas."

    "the zone was welcomed by the private sector as well as government as it would create jobs even though there was no obligation on the part of the zone tenants to employ local people."

    So…why? this development benefits no one other than the landlord, who can offer free concessions to tenants that other landlords and commercial developments cannot.

    Stupid Stupid UDP!

     

    • R.U. Kidden says:

      Anonymous, You don't have enough "Stupids" in your comment,  Also I think you could have added "Greedy" somewhere.

      Quote from article:  "He said the returns to the Cayman purse, which had been calculated by KPMG in a report commissioned by CEC, would be significant but he said that report would not be a public document."

      Returns to the public purse won't be made public?  Why not?  Isn't that OUR money you're jacking around with?

      Quote from article:  "the zone could act as a magnet for the elusive but much wanted physical presence."

      I wonder what physical presence we're talking about……. certainly not physical Caymanians!

  43. Anonymous says:

    Once again we have more not beig told than being divulged.  If this is such a great thing why not tell all the details?

    We are suposed to believe their statements but they will not make public the report that they come from!  Sounds shady to me.

  44. Anonymous says:

    Who owns it is not relevant?

    • Anonymous says:

      Apparently because transparency and due diligence is not something the public is privy

  45. Anonymous says:

    This is just a rotten deal.  Basically they now have a monopoly on all commercial real estate in Cayman.  No permits, no duty, wtf?

    • Anonymous says:

      This is a con!!!!! So why do other company have to pay all the fee and permits.

      • Anonymous says:

        You miss the point of what a Special Economic Zone is.  If the United Arab Emerites can successfully establish a zone that is thriving and contributing to their economies, why can't Cayman? What is wrong with success?

        • Anonymous says:

          No. You miss the point. Cayman always was a special economic zone. Now the wider economy will be excluded from direct benefit. It would have been easy to accomplish what the zone does for everyone, but we know how Mac works. Such a shame. All we had to do was lower permit fees for categories of foreign business we were trying to attract and provide guarantees. We would then all have benefitted.

          • Anonymous says:

            I like this. Now all you have to do is get your point accross to the powers that be and shut this foolishness down.  Actually I like CEC because they are providing free advertising to Cayman, but they should not be the only ones allowed to benefit.  Have them build their pretty building and allow for the tech companies to come on island with free choice of where to rent commercial property.

    • Anonymous says:

      where are you getting your information from?  certainly not the above article.  i don't see anything about a commercial real estate monopoly.

    • Anonymous says:

      I know, disgusting isn't it.  Gowerment short-term and short-sighted policies, driven by political expediency and not ecomonic policy to improve the lives of Caymanians in sight.  Oh but wait!  The Caymanian menials who work for the ex-pat masters with businesses at Enterprise City will be spend more money and prop up the economy. As you say 13:55, WTF?

      Mr. Bush you have truely forgotten when you came from. 

    • Anonymous says:

      So true!!  This is just another blindfold project placed on the Government andits people, Let's hope they recognise caymanians need to be hired in their country before looking to overseas unless there are cases where there are no caymanians to fill these positions, and hopefully they are trained to be successors of such positions, and not to employ overseas labour for a lifetime which seems to be the trend of the majority of businesses.