Deficit reaches $75.9M
(CNS): With the preliminary year end figures for 2008/09 now in, Leader of Government Business McKeeva Bush revealed that the government deficit is even worse than predicted at almost $76 million. Speaking at the Chamber’s Legislative Lunch on Thursday (23 July) he said central government had finished the year with a shortfall of $64.5 million, which when combined with the losses of around $11.5 million from statutory authorities, expenditure versus revenue was out by $75.9million.
The LoGB also confirmed that total government debt including statutory authority borrowing was at an all time high of $590.4 million. However, Bush promised the lunch guests from the business sector that his government would put things right. “We stand by our pledge to rebuild our economy until it is again on a sound footing. We were elected to act and we are taking action,” he said adding that while there were no quick fixes his government aimed to reduce the deficit within the next two years and return it to a surplus as well as addressing the record borrowing.
Giving an overview of a number of initiatives as well as plans that his government was embarking on he asked the business community to come up with ideas to raise revenue as he said he intended to keep the election promise not to create new taxes or increase any fees. He said he wanted to work with the Chamber as there was a need for everyone to work together to come out of what he called the economic “mess”.
He lamented the growth of divisions and disharmony in the community over the last few years, which he said had been to the detriment of Cayman and he could not stress enough the need for harmony at this time. He also noted that the country’s dependence on the finance and tourism industries as they were could not continue and that there was a desperate need for diversification. He revealed plans to attract inward investment and the expansion of the financial sector into new areas. He also warned that things needed to change, including the immigration policy.
“We have toprotect our own but we must attract people who will spend money.” Bush stated. “In the last few years we have driven people away and that is why we are suffering.”
He said he was well aware that some people would not like it but he said the need to bring in investment was crucial as once poverty took hold it was impossible to stop it. He warned of further increases in crime and that the country would self destruct if we could not attract new money. “We went from poverty to wealth because people came to Cayman and spent their money here, and we stand to lose it if we don’t change,” he added.
Speaking about tourism, Bush said the industry lacked a cohesive vision, stating that some in the industry say we should go after dive tourism, others high end, yet others family holidays, and everyone had their own opinion. But there was a need to create one shared vision, which his ministry was now working hard to achieve in order to push up visitors by 20,000 in the next year.
On the issue of cruise tourism, he promised a berthing facility as soon as possible and said the country was in discussion with the FCCA. He also noted that to get cruise ships to stay longer they would want to keep open what he termed their “services”, a reference to the on-board gambling which currently closes down when ships dock in Cayman. He also spoke about a cargo operation and said Cayman could develop a real commercial port that could become a third leg to the economy, but he said that it would have to be developed in the eastern districts. “This will be a real ‘Go East’ initiative,” he said.
He also acknowledged the issue of crime, which he said was something he would be working with the commissioner of police on, but that no matter how much money you throw at the police the community needed to speak out against the criminals in order to address the problem. He did say, however, that he was particularly concerned over the number of guns coming into the islands and that there was a need for some form of official coast guard and marine protection agency.
The leader of government business also talked about unemployment, training, the UCCI, cuts in government spending, refining the civil service and the work of the newly formed Immigration Review Team. He also spoke about the latest developments for the revived Cayman Islands Investment Bureau (See Cayman eyes Gulf wealth) as well as the government’s efforts to remove Cayman from the OECD grey list. He confirmed that the 12th bi-lateral Tax Information Exchange Agreement was set to be signed in Washington with the New Zealand government next month.
Category: Headline News
Ok, let me ask the question another way… Which extraordinary expenses contributed to the Core Gov’t part of the deficit and what were the amounts?
Wow Anonymous 23:31 (that looks klike a biblical quote!), I think all the poster was saying was that the early post seemed to not quite add up and that Liverpool is not one of the UK’s great universities – both of which seem fair points, albeit they were made in an inflammatory way. I don’t see any comment on the wider isses in that post.
"I did not receive any financial assistance from either the Caymanian or British government." Aside from being eligible for heavily subsidised "Home" tutition fees (the UK only charges fees that are about 20% of the cost of tuition)
PR from the top of the social strata to the bottom. Oh, and the Arabs from Dubai… cos if you Google the state of that place you will find out how they are borrowing from Abu Dhabi and there is concern as to whether they can even repay this.
I am still waiting to know the makeup of the Core Gov’t deficit. CNS, can you please obtain this?
"Young Caymanian" I think I met you in a bar once, out with your friends the tooth fairy and Santa Clause. Really I know people make stuff up on this site, but you have to do better than this. Your story does not really make sense unless you have lost a job you once held, which if you are good enough is unlikely.
Called to the Bar in England? Where did you do you training in England? Called to the bar in Cayman? Which firm were you called with and then sacked from, or left (which is your problem). And yes, sorry to say it, but Liverpool is second tier. I know that there are reallimitations of choice if you are Caymanian, but you asked.
I am quoting the entire post from "Anonymous" below.
""Young Caymanian" I think I met you in a bar once, out with your friends the tooth fairy and Santa Clause. Really I know people make stuff up on this site, but you have to do better than this. Your story does not really make sense unless you have lost a job you once held, which if you are good enough is unlikely.
Called to the Bar in England? Where did you do you training in England? Called to the bar in Cayman? Which firm were you called with and then sacked from, or left (which is your problem). And yes, sorry to say it, but Liverpool is second tier. I know that there are real limitations of choice if you are Caymanian, but you asked."
Many Caymanians, including "Young Caymanian" I am sure, and yes some of us British too, have met the person responsible for writing that disgusting post. And, oh yes the encounter was most likely in a bar because you see that small minded little person comes in so many forms, full of hate and jealousy towards the natives of this country that the choice way of coping is to live drunk. You see, to return home would most likely mean living in a "third tier" community, where every one is drunk and broke. Living in the lovely Cayman Islands gives a false sense of "prestige" that could not be had where they come from and talking down to others is a means of pretending and hoping to show how "first tier" they are. Oh my; sadly the dream will not become reality anytime soon but alas they ponder and loathe and roll in frustration, knowing deep down who they really are. One must exercise sympathy …
I am quoting from the news story:
He lamented the growth of divisions and disharmony in the community over the last few years, which he said had been to the detriment of Cayman and he could not stress enough the need for harmony at this time.
So now, let me see if I can understand what is going on here and somehow grasp the wisdom of exactly how the proposed bestowing of permanent residence on expatriates as an incentive to invest here will bring social harmony? Has it not registered with the UDP that part of what is still rattling the social fabric of this country is the anger Caymanians feel about their wholesale Caymanian Status give away of approximately 6 years ago? That is when the social disharmony gave became alive in the Cayman Islands.
Giving away permanent residence would amount to the same thing. It is only another method of doing so! Go and read the Immigration law Caymanians and understand how long it will take a person with permanent residence to receive Caymanian status. And, no matter how the government sugar coats it and what safeguards they claim will be inserted, such people will seek to obtain Caymanian Status through a court of law. Just remember that little "human rights" detail they all use. It is no wonder they laugh at us and label our leaders foolish.
" … how can these companies truly expect to conduct their business here without seeking to share the wealth or improve the life of the Caymanians amongst whom they operate? It is situations like these that the work permit board need to step in and say: no more work permits until you hire a Caymanian or at the very least provide scholarships for deserving Caymanian young people." Let us hope that the newly appointed IRT will tighten the law and give strict directives to the Work Permit Board and Business Staffing Plan Board to force some of these corporations to do just that! As was rightly said the kind of exploitation that is happening here could not possibly happen in any other jurisdiction. Caymanians have been more than tolerant and because of our peaceful personalities we are often viewed as fools who can be insulted and walked over just as the expat poster here has displayed. However, times are a changing …
…I could sit through a speech from Mr. Bush, I’ve tried and I just cant both over the airwaves and in person.
I tuned in on the radio yesterday to listen to the live broadcast, and when I heard the LOGB opening remarks in response to the CC president’s greeting and the whole " you love your girlfriend and she love you but you know she seeing someone esle" analogy I had to turn to another station to spend my lunch hour listening to something more pleasant because I knew that was just a snippit of what was to come with other colorful catch phrases coined by Mr. Bush, my 2 personal favorites "fop" and "2 bit Huslter":). I’m just glad a CNS reporter was present and able ot summarize this speech for me to skim through the rhetoric.
And wait until Mac is through with the Immigration review…..if unna think Caymanians can’t get a job now wait till he finish with this round of madness!!
PPM should be ashamed of themselves!
Look what they have brought the country to.
The LOG is committed to doing whatever his administration can do to get Caymanians back into jobs which they lost under the PPM who did nothing to shore up our economy our stimulate our islands. For all those hard core supporters who refuse to lay blame where it honestly lies: at the helm of the PPM; I say, despite your deep seated hatred for Mr. Bush, try and put that behind you and work with him to get us back on track. Caymanians, we are our own worst enemies, and that’s why the foreigners can come into our country, form their cliques and look out for each other. Caymanians would do well to study that behaviour and emulate it. Caymanians, PPM, and UDP, let us unite. As you can see, divided is destroying our efforts and our futures.
In response to ‘Say what you want about this Submitted by Anonymous (not verified) on Thu, 07/23/2009 – 20:10.’ and others of you out there with similar views……do you all really listen and think critically about what comes out of McKeeva’s mouth? For goodness sake….wake up! He is Cayman’s doom and gloom….there is no other road to head down with him at the helm! Listen to him at yesterday’s Press Briefing….it was an embarassment to say the least….wake up Cayman!!
Deluded sounds like you need to be precluded from living ya to an island with no inhabitants just bunch a Mosies and birds we will call it Honkay cays
Revenue ideas?
Who is the bully? Who is behaving like a child if i do not get my way i am going to leave. The golden goose and eggs are simply not benefiting the territory she is laying and eating well and living in and swiming around in quite safely and is protecting the golden eggs.
The people of the territory don’t even get to see the Golden eggs as a matter of fact.Two bit degrees must be talking about some of these folks who have no qualifications other than relatives/friends in some of these Business firms who get them choice positions over qualified Caymanians.
As far as the passport and sense of entitlement please do some research and find out who put that foolish idea their heads? Influential parents well i will say this some of you don’t seem to have a problem hob nobbing around them seeking to get yourselves situated or its to your advantage in the Territory of the Golden eggs.
"Caymanians are becoming angry, and rightly so, at the present shameful state of affairs affecting them in the labour market, and otherwise." Far from "rightly so" much of the source of the local disaffectation has been the atrocious sense of entitlement endemic in this territory. Most of the troublemakers here think a passport and a two bit degree from a third rate Floridian university passport is a guarantee to a multi-million dollar degree in international finance. It isn’t. Caymanians are at risk of killing the goose that is laying their golden eggs.
Roll-over is not just a question of nipping away for a year. It costs money, a lot of money, to the person and to the business, large in business disruption and lot time. Especially to the business. And while the very senior can divert their work through a PC to a desk in Toronto or London, it is the roll-over of mid-level professionals who came here when they were young that is doing terrible damage, paraticularly in accounting.
I have happily employed many Caymanians who are termendous at what they do. But I am not going to be bullied into employing someone who is just not up to the job anywhere other than in their own deluded mind, or the deluded mind of their allegedly influential parent.
Its so sad the financial crisis that the PPM has left the Cayman Islands in.
The PPM members should all donate their monthly salaries until the deficit has been repaid, in full.
"much of the source of the local disafectation has been the atrocious sense of entitlement in this terrirory" …???? Your words are quite accurate but not in the sense that you have written! The "atrocious sense of entitlement in this territory" is bred by persons like yourself who come here believing that you are entitled to remain and ostracise Caymanians in the process.
Your sense of greed and hate towards Caymanians is very transparent in your post and I will put it to you that of far greater concern to Caymanians is the loss of money, yes "a lot of money" to our Caymanian people who you dare to attack, by having undesirables of of your kind here bleeding the system for personal gain and definately not for the good of this our country.
For your information expatriate, many Caymanians are well educated individuals from the same "first rate" universities that your kind has come from. The goose that laid the golden egg here has not been greedy individuals like yoruself but our hardworking forefathers and good foreign persons who truly loved this country and worked with our people to build and protect it.
It would in fact be a good thing if persons of your kind would close your business and return with your PC to Toronto or London – or wherever you came from – and remove this type of hatred towards Caymanians from our society. I hope and trust that our legislators are reading these posts and understand the kinds of individuals that they will be cementing into our society if they are foolish enough to start peddling PR to your kind in exchange for some sort of percieved investment, which will be of little assistance to Caymanians.
This divide between Caymanians and expats are not imaginary and is caused by some expats themselves. There are actually corporations who do not want to hire Caymanians simply because they want their own kind or nationality on board.
My question to that would be: how can these companies truly expect to conduct their business here without seeking to share the wealth or improve the life of the Caymanians amongst whom they operate? It is situations like these that the work permit board need to step in and say: no more work permits until you hire a Caymanian or at the very least provide scholarships for deserving Caymanian young people.
There need to be some sort of tangible contribution to the Caymanian society by these employers. I can tell you one thing; this attitude of not hiring some local staff would not be tolerated in the Bahamas. Their government ensures that any companies coming into their jurisdiction MUST provided jobs for Bahamians and not just for expats.
Bear in mind that these same companies try to blackmail the work permit board by saying that if they don’t get who the want from overseas to work for them, then they will considere moving out of the jurisdiction. To that threat I say: good riddance bobo!!
"Far from "rightly so" much of the source of the local disaffectation has been the atrocious sense of entitlement endemic in this territory."
I agree that no one is ‘owed a job’ but if you can’t a get a job in your own country because the majority of decent (better paying) jobs are going to foreigners, then you’re asking for trouble. The irony of this whole Foreigner/Caymanian issue is that, most foreigners have a far better quality of life here in Cayman than they would in their own country. Otherwise, they wouldn’t be here.
I have paid my dues as a young Caymanian, I have attended university and have a Honors Degree in Law, which I feel counts for a lot, unless of course you consider the University of Liverpool a "two bit" University, I am also a Member of the Inner Temple, and sat my Bar Exam at the Inns of Court School of Law in London, and am now called to the Bar of England and Wales, and to the Caymanian Bar.
However, when I come back to my own country, with a Honors Degree in Law, and having sat the Bar exam, and cannot get a job, yet see foreigners admitted to the Bar here in Cayman every week and getting jobs that I was not even given an opportunity to interview for, then guess what? This is a problem.
If I do not have right to get a job in my own country, after gaining the necessary qualifications, then when do I have any rights? Because, believe me, I could NEVER go to another country and be allowed to exploit that country and its people the way it is being done every day here in Cayman.
So, yes, when I have paid my dues and gotten an education as have many many young Caymanians and am willing to work, I have the right to expect to find a job a work towards a successful career in my own country.
Hi Young Caymanian,
This is a serious question – please do not take me wrong – note I have placed my full name above and not a pseudonym. When you attended university in Great Britain – did you pay for it? This is not a trick question. I am genuinely interested in what Caymanians are allowed to do in Britain. ( I have been informed they can use our NHS and schools – is this true?) I have heard from young Caymanians that you receive travel passes and other things at the expense of the British taxpayer. Could you expand please?
If you got NOTHING from the British taxpayer then I admire your decision to go to Liverpool. Like I said – serious question. Don’t shout if I got it wrong. Just put me right (I know you will)
Neil
Hello Mr. Townson,
I worked and paid for my own tuition though law school and the Bar exam. I am a British Citizen by virtue of my father, and a status holder for 22 years (my mother is a born Caymanian), I have lived in Cayman since I was 5 years old. I did not receive any financial assistance from either the Caymanian or British government.
For far too long on many of these Blog sites these people try to run down Cayman and Caymanians the minute we speak out or try to assert ourselves. Something we would not attempt in their countries or infact would not be tolerated by them.
You are correct many of these supposed rollover candidates have used all means to remain here for example key employee status and now are applying and applied for pernanent Residence and got it. Witnessed it personally and also saw the repercussion against Cayman and Caymanians.
And on the other hand decent and hardworking long time Caymanian residents who have invested and contributed are turn down and refused PR many times. This is what needs to be reviewed instead of trying to find more ways to give people like this guy more ways to disenfranchise Cayman. As for those other option naysayers try it in jurisdiction if ya think ya bad?
Expat – let me specifically reply to your words quoted below:
"Thank you too for leaving no stone unturned – even the dreaded (damaging) immigration policies are being reviewed. The current policies drive wealthy professional people away to the detriment of Cayman."
First of all the greatest damage that has been done, and continues to be done to the Cayman Islands and our people is having too lax an immigration law which has catered to persons of your mindset. Many of the squealers on this topic are those who have obviously been allowed to remain here way beyond their welcome. The so called "roll over" policy is working as it should and statistics will show that many professionals (and yes, dare I say wealthy ones) have happily taken a one year break in another jurisdiction and have already returned here for another 7 years. Those are the good persons we are happy to welcome here; who have come without self centered expectations knowing that they are guest workers in this country and not belongers. Caymanians are becoming angry, and rightly so, at the present shameful state of affairs affecting them in the labour market, and otherwise. The government would do well to connect and listen to their own Caymanian people rather than hearing the noise of disgruntled foreigners who are simply being asked to return to their own country for one year. What will be most damaging is civil unrest which will undoubtedly come if the labour market trends in this country continue unabated to the detriment of Caymanians.
Good report CNS. The consensus at our table after listening to MAC at lunch time was that most of the things he was talking about seemed reasonable even though the detail was limited.
There were only 2 areas that people were somewhat concerned about. The first was the paying of commissions to people who are supposed to represent Cayman in Dubai. That sounds very strange and like a conflict of interests in the making.
The other area was the tax agreements. While getting off the grey list is probably good for Cayman’s hedge fund sector, we were all concerned that the agreements that Cayman is getting are not nearly as good as those that our competitors are getting.Apparently the joke going around is that what distinguishes Cayman from the rest is that our reps show up in a limousine and sign with a crayon.
Someone suggested that maybe Cayman can make a second attempt later on to get the benefits that our competitors are getting now, but as another person pointed out, that has never happened in history so it is probably foolish to count on that. When you think about it, why would the OECD countries give Cayman more later when they already have what they want and they think that they can get anything else they want from Cayman by making up another list. Let’s hope the agreement next month will not be as bad as the last one.
Hey AnExPat before you get too excited this is the same person who was the father of the roll over policy to begin with. Funny how he blames the last government for this and Boatswain’s Beach. Give it a few years and I am sure we’ll all regret some of these new ideas too.
Tell us exactly what the central gov’t bit comprised of, please. It’s our money and we have a right to know.
I CAN’T BELIEVE THIS GUY……this is beyond double-standards. Did he not say today in his broadcasted speech that he "is pleased that we now two new High Schools built"????? How the hell did you think we got them?????? Mac do you NOT realise that ‘building this country" is basically the same as how many of us Caymanian citizen have BUILT our homes. Let me tell you since your ‘common sense’ way of running our country cannot figure it our. WE BORROWED MONEY FROM THE BANK AND WE NOW HAVE WHAT YOU CALL ‘A MORTGAGE’. Same difference!!!!!!!! Go do the math! Oooops maybe that’s the problem!!!!!!! Yup, yup…same guy.
Say what you want about this man, the Premiere designate, but, Mr. Bush sure has a vision that no other leader has ever exhibited in the Cayman Islands. I do beleive him when he says that his administration will get us back on the long road of recovery. Cayman, put your trust in him as he is the only person at this time who has the courage, and the wisdon to do what has to be done in order to rectify the mess that the previous administration has left us in, what with a deficit of $76M so glaringly hanging around our necks. Mr. Bush easily outshines the previous LOG by a mile.
Another thing, the honor of being the first ever, Premiere of the Cayman Islands could not have been conferred to a more deserving and worthy person. Me and many more are so proud of you Mr. Bush.
It would have been an insult and a slap in the face for the title to have gone to anyone else, including the last LOG. Mr. Bush is a visionary, a leader like no other and we could all learn a thing or two from him when it come to being all that you can be. Our yound people would do well to emulate his effort, talents and love for the Cayman Islands and its people.
For those of you who would seek to dimish his contributions, I say, whether you like him or not, stop the hating and join us in steering the good ship Cayman back on course. We love you Mr. Bush and may God forever hold you safe in the palm of His hand. And so it is.
Mr. Bush, you are to be appluded Sir.
Thank you for tackling the problems and working hard to find solutions. It gives renewed confidence in this country. Confidence in the leadership of the country will bring in new investment.
Thank you too for leaving no stone unturned – even the dreaded (damaging) Immigration policies are being reviewed. The current policies drive wealthy professional people away to the detriment of Cayman.
AnExpat, I am ACaymanian, and I hope that Mr. Bush and other legislators take note that in attempting to please self centered expatriates like you by changing our current immigraton policies -which incidentally were put in place by him and his former UDP government – they will be adding more fuel to the anger burning in Caymanians who are carefully monitoring their actions and are ready to take matters in our own hands if it is made necessary. Just listen to the talk shows and more importantly, to private discussions …