UK gives conditional nod
CNS): Updated full story — The UK has finally given its approval to the government's controversial 2012/13 budget but not without strict conditions. Sources tell CNS that the government have been given the much awaited nod from the FCO overseas territories minister, Henry Bellingham, on the basis that the premier agrees to pass the agreement he signed in November into law. The UK has also stipulated that for the next three years government will not be able to appropriate any more funds to any budget once passed, that it create a budget board headed by the deputy governor and that the CIG facilitate reviews of the budget by the FCO's economic adviser up to four times throughout the year.
The premier recently complained vociferously about the level of interference the UK now had over the Cayman Islands government's budget but with these conditions that is likely to increase and continue until the government returns to compliance with the Public Management and Finance Law.
Sources have revealed that Bellingham is pressing for the Framework for Fiscal Responsibility (FFR) agreement he signed with Bush last year to be brought to the Legislative Assembly as quickly as possible and made into law, a move Bush was hoping to avoid.
The appointment of a budget board headed by the deputy governor will also ensure the UK has greater oversight via the Governor's Office, and the requirement to allow the economic adviser full and unfettered access to the government's financial situation throughout the year will ensure that the FCO can step in and head off any potential financial disasters before they occur.
With the stringent conditions imposed by the UK, and in particular the requirement to make the fiscal agreement a law, the hands of the UDP administration will be increasingly tied during the next nine months, forcing government to follow due process when it comes to financial issues.
The passage of the FFR into law will also threaten the proposed deal with CHEC in its current form for the George Town Cruise Port and may also affect the ForCayman Alliance deal with Dart.
Category: Politics
Cheezz people!
Some things are starting to really burn me, in relation the wastage of our money & country:
1. If the local Churchs were doing what they shoudl to keep and develop their flocks they should not need the support of the government – but instead should be helping, espec by guiding our teens/young adults.
2. The UKs nod may be fine, but many low-earnign relatives are miffed about the civil service deal!
We can see by the names that those who choose the 3.2% cut solution were the 'top brass' – why didnt they do a graduated cut and take a slightly larger cut themselves, and scale downwards for the middle-earners.
Those making less that $3000/month should not have even been cut.
3. Any why do they continue to fiil top positions bakign nega salaries (at the excuse of 'these were pre-approved' before the budget)?
4. And why is the Civil Service Assoc only giving weak 'rubber stamp' comments after government cuts are made – why not negotiate and inform the wider membership (again) in the solutions.. as was the case in the past of the many (ignored) solutions for cost-savings?
5. What became of these many solutions to save/cut expenses?
Eg – private businesss often benefit from govt services at no cost, as they profit. Eg – why is there no tippage fee charged, even though the private container/skiff rentals charge $100-200plus/day?
6. And does govt think it can meet the recurrent expenses of the new big schools if it has a hard time servicing the interest on the loans now?
Why not lease them on a peppercorn lease to the private schools to manage? The quality would improve Im sure – and of corse subsidise (but charge a nominal amount) for all students — there no such thing as a FREE Education!
6. Not to mention the Social services dole.. why support teen/adult mothers of multiple children who refuse to name the fathers, so they can be forced to support the kids?
It is also a disgrace to have kids born with "NO DAD" names on their birth certificates.
7. Why target the good newcomers who are making positive differences in our economy and culture? Why are we intent on only keeping and protecting/supporting these who have little to offer our country?
My poor Cayman… Ahhy – no Papa!
"My poor Cayman… Ahhy – no Papa!"
Well said. A very good perspective.
I heard on Rooster this morning that there is an appointed financial advisory Board headed up by the Deputy Governor. This board is unknown and the public is awaiting to see the names of these individuals to ensure they are properly vetted publicly. Those who continue to abuse the work permit system keeping Caymanians unemployed while employing cheap labor, continuing to disenfranchise our people are NOT QUALIFIED TO ADVISE GOVERNMENT ON FISCAL MATTERS!
As Deputy Governor it is his responsibility to gradually reduce and make extinct work permit grants inorder to create those jobs for Caymanians. The current system granting of work permits barring our people from rightful employment in their own country is not only a human rights violation but is in itself a 21st century model of Apartheid at the highest level.
We await anxiously to see just how Caymanians will benefit from these changes recommended by the UK as they have not renounced the excessive abuse of work permit grants permit grants that have devastated the Caymanian people.
It's a vicious circle. The country relies on work permit fees to fill the government's coffers. If you "gradually reduce and make extinct work permit grants", you will need to find another way to create revenue for the government — which, if it continues to exist in its current bloated form, will require a great deal of revenue indeed. It is telling that Mac has managed to avoid more hard-hitting cuts in the civil service only by *raising* work permit and related fees. I can't see them being made extinct anytime soon.
Welcome to the Ezzardian parallel universe of zero sum economics. Posters like this do not realise that the presence of many businesses which would not operate or operate on the scale they do without improted labour increase the size of the Cayman economy and provides greater employment opportunities for Caymanians. I would like to see someone explain why employing someone on a work permit constitutes breach of the human rights of someone local who does not have a job, especially since that job would be given to the local if they applied and were merely suitably qualified, ie not even the best candidate. It is the deluded, angry, entitlement brigade of which posters like this are a prime example who give a bad and undeserved reputation to Caymanians.
"…especially since that job would be given to the local if they applied and were merely suitably qualified, ie not even the best candidate".
That is just not true in practice, Pit Bull. Suitably qualified Caymanian applicants are often not even given an interview let alone the job. Sometimes the job is re-advertised with different qualifications if a suitably qualified Caymanian applies for it (of course ensuring that, having seen the CV of the Caymanian, this time the ad contains qualifications that the Caymanian does not have). Sometimes employers fail to acknowledge to the Board that there were any suitable Caymanian applicants because they know it will then be difficult to justify the work permit. Often times employers see the ad process as a bothersome formality to comply with the law and have no real intention of hiring anyone other than the person who is currently sitting in the job on a temporary permit.
BTW this is not some personal gripe, nor do I believe that this applies to all employers. There are some very good employers out there. Personally, I have never applied for a job for which I did not receive an offer.
Perhaps you don't realize that the Deputy Governor is FRANZ MANDERSON. I'd say if anyone is going to help keep this board logical and on track, it's him.
The board is unknown because it was only established 2 days ago!
Get a grip buddy, Sheesh! I'd like to know how people applying for a job are "abusing the work permit system" when permit approval is at the mercy of the work permit board run by who?? CAYMANIANS!
(And I whole heartedly agree with the other 2 comments as well.)
Wait for it now!!! you know he is going to blame the PPM once again!
What’s the point of additional laws when Mckeeva don’t follow none of the ones we have already??
Indeed. An what are the sanctions? What happens if the government continues to ignore its own financial laws?
Can we add a condition that Mac needs to resign immediately and never run again?
The UK govt have a responsibility to oversee good governance of this territory.
They would appear to be failing their responsibility if they approve a budget that incudes a nation building fund which has been used in an untransparent way to buy votes.
Where is the good governance?
Where is the oversight?
While we all wait with bated breath for the UK to please wake up and stop the madness we must realise that we are awake, on the ground and have the most to lose.
Caymanians, it is time to rise up and stop this carnival of mismanagement.
Fees and duties constantly being hiked up, gas taxes increased which lead to an major increase in the overall cost of living.
We are all worse off as the cost of living keeps rising while wages stay the same.
All because the government insists on wasting millions of our dollars for their slush fund which is used to campaign against the people and buy votes.
This is not a bad dream my friends, this is our reality.
The UK is not coming to save us but i bet my bottom dollar they are hoping we are strong enough as a people to rise up and save ourselves.
What if he DOESN’T bring in the new law? Which he won’t. This is bonkers. Just kicking the can down the road again unless there is some sort of sanction
Also. Unless there are strict sanctions in the new law prison. They will just say the law is a non binding guideline. Absolute carp. As UK citizen v disappointed in the FCO
All I have to say is "McKeeva Take That and put it in your pipe and smoke it. You too out of order."
Mr. Bellingham, "Thank you." My only complaint is that you didn't get rid of the Nation Building Fund. Why should government offer scholarships to people that aren't making good grades? If they can't get a scholarship from the Education Council, then they can't cut it at college. We have had many students go to school overseas and couldn't make it and had to come home. It's just vote buying. That Home Repair Fund thing is another vote buying gimmick. I know some people who have businesses and plenty money that applied for that.
I think we have to give credit where credit is due. It is obvious that the Premier made the right call. Congrats to him.
I also listened to the Depity Premier on her last appearance on Rooster. I think she did a great job of explaining what went on behind the scenes. I think the party should put her out there more often.
And by the way, I don’t often compliment the Premier, but this time he did the smart thing.
The Premier, watching events on Cayman from a distance on his latest excursion said he is appalled at the oversight. The FCO, watching events on Cayman from the U.K. has said they will continue the oversight of his government. Meanwhile, on Cayman the public is watching the watchers and wondering.
What is the status of the in estimations into the Premier??
How long does it take?
Are the dragging their feet on purpose?
Is "investigations" the word you're searching for?
This in an effective piece of Macproofing. Effectively he is on "Strike Two" and has been prevented from making any financial decisions during the rest of this parliament with the UK's approval. If he is replaced in 2013 then the UK will no doubt work with the new government but if, heaven forbid, Mac is re-elected then he will not be able to do as much damage. My only thought is that it would have been better to require Mac to incorporate the Framework Agreement before approving the budget, but if Mac tries any funny games it will be "Strike Three". The UK has firmly put Mac in his place regardless of how he tries to explain it to the WestBay automatons.
Looking forward to the Macspin in the next speech.
Better start the non conforming process. No way Bush and CIG turn into responsible and competent leaders. Three years of incompetence and broken promises should be enough proof for anyone. (with an education)
Keke you are a puppet! youwant people to think you a shot caller but you’re not! Sit down little boy like what you like to call people “little girl”!
Caymanian
Thank you Jesus!
I prayed and prayed and knew the lord our saviour would strike down the evil heathens and bald heads dem!
Well…time to get dressed up in my most expensive looking clothes and go judge people in church and wipe away the sins for this week…
Amen.
Yabba dabba do!
“Ensure it is an intelligent customer” and this Government. That is going to happen.
What’s the use of promulgating this “framework” into Law? After all, we already have the PMFL and it’s subsidiary Financial Regulations and this administration has flagrantly breached that legislation already. It’s not that we need more Laws. We need more compliance. And we need at least a handful of folks in Government that understands basic economics and respects the rule of law, who actually comprehends the concept of good governance. And we need a system that holds these politicians responsible for their failings, and, where appropriate, prosecute them for abuse of office and official corruption. Is THAT too much to ask?
Anyone who thinks Keke going to turn into the Virgin Mary because of what the FCO said must still believe in the tooth fairy. Keke just finished presenting a budget that wasn't a budget, without the FCO's approval, and gets rewarded for it. Call me crazy, but I just don't think he gives a hoot what the FCO tells him. Oh, but wait! Keke is now going to be bound by the Framework for Fiscal Responsibility. Ha ha ha ha ha! Do you people realize how ridiculous that sounds? The only framework for fiscal responsibility that Keke going to abide by is his own. And who could blame him? Even a three year old can tell an an empty threat from a real one. Bound by the Framework for Fiscal Responsibility – ha ha ha ha ha Good one.
The Beaver
Goos!!! that's puts a stop to the 9 Month kick start for May 2013 money give aways.
The opening speech for the budget by Mac earlier this week left me in stitches. I learned more gossip, old time Caymanian expressions and sounds than one would expected during a serious financial address by the Premier. My personal favorite is “Phew-Phew music”!!
I have to say he is quite the entertainer. He speaks from the heart with passion, anger, or humor in the language of the lay person. He knows how to fire up the masses, evoke sympathy or leave you laughing. But a government leader? A financial leader?? We all love the “star boy” or “star girl” in a good movie but let us not forget they are actors and do not achieve those amazing feats in real life.
He sings well, acts, dances, loves money and the attention of the masses. He needs to harness his talents and follow his heart into the entertainment industry. He could be a real “Star Boy” in the right environment.
Mac will most likely never earn my vote, but I would pay to see his show!
Ummm yeah – pay too see his show – PASS
Good idea. I picture him playing attention starved 10 year olds. I can also see him in the lead of Home Alone, tucking it up
Sadly, you already are.
As a born and bred Caymanian, I'm happy to see that Bellingham has applied logic and brakes to the financial fiasco our current Government has been engaged in.
It is a disgrace that our Government, the Government of a world class financial center, has forced its mother country to bring back the "training pants" due to the childish way in which our finances have been handled by a careless few.
I’m thankful that someone with financial sense is above our local government and trying to help us before we completely lose control of the run-away train our current Government has become.
This coming election, let us have MORE ethics and brains and LESS ego and greed.
CNS- What was the agreement signed in November?
CNS: The Framework for Fiscal Responsibility
Oh, you don't need to tell him to watch Jamaican politics; he and Ellio have been enrolled in a distance learning course for 3 years. And by all accounts, they're doing exceptionally well.
Tell me that isnt true, elsewhere in this issue there is a story of corruption in Jamaican politics. Surely you dont suggest that this lot is involved in any of that?
keke sounds like you are under the microscope now, you better watch what you do lamo!
caymanian
It looks as if the FCO is trying for a " TCI Lite" solution – taking more control without having to suspend the government and the constitution.
Hope the Auditor General keep in close contact with the FCO and the UK Adviser.
A subtle but small step towards TCI takeover. Thanks Mac! Add this to your list of efforts to boost investor confidence as you continue to show the world Cayman incompetence and inability to manage its own finances on its own.
This is great news, any oversight of government spending is excellent news for the country. I do wonder what the UK will actually review each quarter though since there are no accounts? Or maybe….just maybe…the CIG will actually have to keep track of its spending??
At least they are making it harder for him to dip into the cookie jar… mind you that won't stop him, like i have said all along, they keep feeding him more and more rope………..
Good UK. I know that you would not let us down. Hope that you protect the West Bay Road as well. You can see that something is wrong. The Dart Agreement has fallen short that is why they now want to give us part of the Victoria property.
"…agreement he signed with Bush…made into law…
It seems that the premier does not like to deliver what he has promised.
No wonder that the Cayman Islands Government has been sued for millions because of the Premier's broken promises. The man is not a man of his word or his signature.
And what will happen when the CIG and Bush specifically still fail to follow the rules? Everyone knows that it will happen. No way Bush just grows a new brain now. Plan accordingly UK. Lots of yelling and blameing coming up.
Let Cayman self fail. It is well deserved. Unless the UK takes over (and who would want to?) then it is only the Caymanian people and the civil service tribe that will ultimately pay the price. Everyone else can take their time and money elsewhere until Cayman gets its head above water if ever. Some things can not be saved, and should just be left to the inevitable. After the fall everything will be cheap including land to all those who still have a job and savings. The UK has tried to do its part but thats all it can do.
i wish the uk were more insistant on spending cuts and reducing the civil service…..
as it stands the government has cobbled together another pretend budget which is again based upon increasing fees on business…… the cayman economy cannot bear more fees and indirect taxes at this time….
i fear more than ever for the future of these islands
I have an idea on saving a few bucks Big Mac; "Separation of Church and State" It works well in other countries…..Just saying….
This budget is set to kill the financial services industry in Cayman. According to the buget address, this Government is targeting $58.9m more revenue from exempt companies, partnerships, bank, trusts and directors – this is excluding the work permit fee increases that are principally targeted at the financial service providers. When will the current layer of politicians (and it is not all Mr Bush – UDP MLA's have the power to stop this apparent dictatorship) realise that a strong and sustainable private sector is the only way that Cayman's economic model really works.
When? Never! the Current layer is what it is. Maybe the next layer if they have anything left.
can you publish the Fiscal Framework for Responsibility so that we all can know what it is he is SUPPOSED to follow and the next elected government as well?? PLEASE.
CNS: There are now links in the article.
This feels like handcuffs to me and not neccessary at this stage. if we end up having to put this into the law i will forever blame mac for getting us into this position in the first place.
More discipline is good. but lets look at this FFR deal because it may contain things that just wont work for us. just because it addresses some of the key issues does not mean it won't create very serious problems. putting this into law is going to restrict the country even more and future policymakers will end up with little of no flexibility.
Some of you will say thats ok because the FCO will ensure improved governance. but lets be objective here for a miniute. Regardless of which governemnt is in power if they are forced to make the wrong decisions because of an agreement with the FCO that is detached from the cayman reality depending on the circumstances we face at that time it would prove disastrous for us.
This is as close to a takeover of ourfinances as we are going to get barring a Turks situation taking place.
Did any of you write/email Mr Belingham with your views in time for him to fully understand what's going on here and be able to make a more informed decision?
You could start a petition on the UK Govenment website. Go to http://www.direct.gov.uk/petitions Although we could never hope to get the 100,000 sigatures required for a parliamentary debate, we could get someones attention by pursuading all like minded Expat, Caymanian, present and former residents to sign up.
The Premier and his yes men has unceremoniously handed our finances back to the UK to the way it was before the new consititution. At this stage,due to the havoc they have made of our funds, I do believe it is the only thing they could do to curb their incessant wasting and give-aways. The sad thing about this is that it will also hamper the next government (whoever they might be). Two years and three months after they took over the government he is still blaming the PPM. Mr. Bush it is your budget, you screwed it up due to your philandering ways as well as you being so inept. Why you did not realise that you were never suited to be The Minister of Finance is beyond me. You are not qualified, you do not understand proper accounting and was in way over your head. Rolston, you are an accountant, did'nt you see this coming? Why would you go to bat for the Premier, if you wanted to be his friend that is your business, but man you are playing with our money, our budget. I just hope that you guys spend the next nine months soul searching!! You are going down in history as the worse government these islands have had. WHAT A LEGACY!!
i think i am going to move westbay, maybe i can get some free stuff like the Crack Heads get free keke lmao!
i hope the uk put that no more free travel unless it is for govt buisness and they keep an eye on the govt books that way no one can take or waste our $$!
The budget was challenging but the Premier has delivered again. He the man!
Can we???? Dare we???? Should we???? Hope, that is, that it is conditionally approved as long as someone sensible, mentally stable and with at least some IQ becomes premier??? Shurely shome mishtake.
WOW!! They sure reeled him in, or as my mother would say"he got his wings clipped"
It is under such economically conditions, that government has to be very careful on making deals with the FCO. Remember some may mean us well, but others may think that because we are now desperate, we would sign to anything. The UDP administration has to slow down, and I suggest the other MLA's join their side and work with them to what's best for the people of these islands. I would hate that government sign or endorse a document or an agreement that ends up biting us. Slow down and tread carefully… that's my advice.
Libertarian, like err,…how much slower do you want??? Its already 3 months late…Do you like watching paint dry by any chance??
Thank you Lib. Don't mind the ratings, this is good advice. Unfortunately the UK has already approved the budget, so I would like to know the details.
Fool, you don't have a choice.
You know Mr Mckeeva Bush is the man. You are the leader, lead and that is what you are doing. Don’t let UK depicts when you do things. If you are in an emergency situation, you make the most effective decision and what you did to go ahead and present your budget because of the 31st deadline, is a good and strategic decision. Congratulations. I know you were always a true leader. Now you need to stop pay attention to Cayman Compass, CNS, opposition et al because they will be there to criticize you at all times. That you can’t stop. Their job is to see things as they happen. It’s up to you to respond or not respond. And if you do respond always keep it diplomatic.
I don’t think they are against you; they are just doing what Journalist does bring out the worst in people. They like the paparazzi. And people are also entitled to their opinions; you can’t change that as well. If they are getting disrespectful then a line will have to be drawn. Just focused on the task you have to do and the country you have to lead right now. Forget about the distracters, they won’t go away.
Take a look at Jamaica politics it happens every day with critics and opposition. But they don’t pay them any mind, they have a country to lead until their time is up.
This is axactly the type of moron that is going to think that the expat tax was the best invention since sliced bread.
Just a little side note for the future…ending any argument with a comparison to Jamaica, its politics and their economic situation as justification and validation of your point is only going to make you look like the ignorant, uneducated retard that you are.
Seriously Keewaaa sorry, I mean Anonymous , Jamaica? Go back to the home page and read 5 stories down, then resign.
Elio has been at the internet in Cafe del Sol again.
You are one forgiving person! I like the UDP but Mr. Bush needs to step aside and let somebody else leads. You have to draw a line somewhere!
and what a country it is!
Wtf you talkin bout willis?!
You should take a closer look at WHERE they are leading that country.
If you like the Jamaican style of leadership, I strongly recommend you go there to live.
"There are no details yet on what those conditions are but it is understood that they relate to the parameters … signed by the premier in November last year."
Did the FCO not read the detail or look at the numbers?! Or they're playing the long-game & are waiting for Bush to completely ruin this place & have 10 investigations (what's another 7)!
Ok, so, no change then. That framework agreement was last year. Bush will announce he was right all along & say general remarks to keep the FCO quiet, & then do whatever he sees fit & there will end up being a deficit with unaudited accounts next year & the money gone. There will still be outrageous giving away off money to voters & the lazy, & reliefs to billionaires, raised taxes, & Govt wasting vast amounts of cash. This place; such as shame.
This is great news if you are: in line for a nation building check; in line for some solar panels; in line for some "home repairs"; the owner of a Gasboy card; a civil servant sitting at home getting paid or sitting at work on BBM all day; an employee or customer of CINICO; an employee of the turtle farm; one of the official entourage that flies around the world 1st class or a double-dipping MLA.
It's a disaster if you are in business on the island and trying to make a profit or get new customers, or an employee on a work permit.
Could not agree with you more. I am also a business owner and started cutting back my expenses, advertising and funds to anything that is not considered absolutely core.
This means less spending with other local busniesses, magazines, newspapers, radio stations and the downard cycle begins.
Finally Big Mac will have to make good the FFA signed with the FCO. This is actually great news if you are a PPM member but maybe not as it could be a double edged sword politically.
On one hand, PPM should be rejoicing when Mac is forced does things by the books as they wanted all along and will be able to say I told you so. On the other hand it will be pity though as they will have to find something else to holler about just when they were gathering momentum for the election year.
Guess they're all off to see the Whittaker fight next month then, while the solar panels are being fitted. The band plays on for another year!
The solar panels were cut from the budget.
He still has the Nation Building Fund so I'm sure he'll take the Solar Panels from that.
Caymanians too negative and always tearing down each other; that's why every nationality that come here can prosper over the Caymanian.
If he goes to see Whittaker fight, he better pay for his own flight, hotel room, meals and gambling expenses.