Spending to be cut by $89M

| 10/08/2009

(CNS): The government has identified around $89.2 million worth of cuts it can make to public spending to reduce the next financial year’s projected operating deficit down to around $30million. This 60% reduction on the $75 million plus deficit incurred during 2008/09 was announced by Leader of Government Business McKeeva Bush on Monday morning at the government press briefing, where he said the majority of the savings would come from a freeze of government pension payments.

He said that for the last few weeks government had been working assiduously to address the operating deficit, and although tough decisions have been made, his government had managed to avoid Caymanian job losses. Bush said that the full details of where the $89.2 million spending cuts would be made will be revealed in full when government brings the 2009/10 budget to the Legislative Assembly before the end of September, but he said that the bulk of savings — around $49.4 million would come from a “pension holiday”.

Bush explained that some $17.4 million would be saved through cutting overtime and recruitment costs and some $10.9 million would be shaved from the supplies and consumables purchased across the various departments.  A further $12.7 million is to be cut, he said, from statutory authorities with regard to pension and HR costs.

The LoGB said the budget was not finished but in due course full details could be unveiled.  “It is important to recognise that next year’s budget is not yet prepared but these cost savings are based on agreed expenditure cuts,” added Bush.

Although Bush said that the sums not paid into civil servants’ pensions over thefreeze period would all be paid back at a future date, for now he said the holiday would be anything from six to twelve months.

Bush also stated that legislation is being drawn up to introduce a pensions holiday for the private sector as well, giving small businesses and employees a temporary break from the compulsory payments to stimulate the economy. He did note, however, only those employers who have complied with the pensions law and are up to date with their payments would be given the chance to take advantage of the holiday.

He said that the approach to dealing with the current deficit and public finances would be conservative but it was essential that the government finances were reinstated. The LoGB said that government fiscal management was a key indicator of the health of the country’s wider economy. “Prudent government financial management sends a signal to the private sector and the world economy that it is safe and wise for investors to still come here,” he said.

Aside from the deficit, he explained that government would be forced to borrow around $203 million for 2009/10, but most of that was to meet the ongoing projects left by the previous government and that only around $21 million could be borrowed for road maintenance and new projects – which he said as a matter of priority was the new building for the Sunrise Centre.

He said many of the major projects started by the previous PPM administration such as the schools and the new Government Admin Building were significantly advance and couldn’t be left partially built so the new government must do what it could to minimize new expenditure while still forced to borrow some $189 million for the ongoing projects.

“We will have to bring a bare bones budget,” said Bush, who added that government would be seeking ways of consolidating and refinancing the existing government debt with more favourable interest rates and lower principle payments

“Government is seeking indications of interest from local markets for this re-financing and we will have to speak to the Foreign and Commonwealth Office and the UK government to seek approval first time for the Cayman Islands government to borrow money.

Government is currently working under a temporary budget which was approved a few days after the election but which was based on previous spending levels. The full financial plan for 2009/10 will be brought to the Legislative Assembly in September.

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Comments (43)

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  1. Anonymous says:

    Cut out the unnecessary money being paid to Pilar Bush, Kathy Jackson & AtWater Consulting…..save us plenty money right there….yes sir e bob !!!

  2. Anonymous says:

    Government Accounting System

    The Government accounting system is not a “New Zealand” accounting system; it is the centuries old accrual accounting system devised by a Monk in Spain (I believe).  Now can it take some fine tuning, yes anything can always be improved.

    Many in Government do not want the accrual accounting system to work, why, because it eventually exposes their inefficiency and trickery if not downright crookery!

    My Pension

    Now Mac and Company, you know that there is no such thing as a “Pension Holiday”. 

    Pensions are simply funds accrued we accumulate to be income replacement funds when the person dies (to go to the persons dependants), becomes disabled prior to retirement and for income after the person reaches retirement age.  There is never a “Holiday” in these liabilities, the increase liabilities is unstoppable – the need to accumulate income replacement funds continues as time continues – no man or politician can stop time, even if they sometimes think that they are all powerful. 

    Stop fooling yourselves, the correct term is “Pension Loss”, the retirees will be the poorer and future politicians will “Buy Votes” by “Helping their unfortunate constituents” all funded at the expense of future unborn workers paying taxes for these payments.

    “Pension Holiday”, what nonsense.

    Caymanians and fellow Cayman Brackers stop being fooled by UDP Mac!

    That’s the way I see it from Cayman Brac’s Bluff.

    Old but not done for yet!

     

  3. Stayed at a Holiday Inn Express last night says:

    Hey, I think HSBC is offering a payment holiday on mortgages. Maybe Mac daddy should go talk to them to see if he can’t get a little break to pay off some bills for a month or two

  4. Anonymous says:

    Tell us MAC what is the total cost of those contracts you are giving to your buddies/cronies/advisors/consultants? Hundreds of thousands right. What about the hundreds  of thousands that are being paid by government for all those cronies of yours that go on holiday with you? What about the cost of your fancy new trucks and police driver? Another hundred thousand just in one year right. Some of us are not as stupid as some of your advisors.

    The pension holiday for civil servants is a stupid attempt at an accounting trick. It wil save the government nothing in the long run but will have a significant negative impact on the retirement incomes of those civil servants affected even if the "holiday" money is eventually paid into the pension plans. This is so simply because the income on that money will never accrue year after year until the affected civil servants retire. Younger civil servants who have actually studied business and accounting know this and are letting all of our colleagues know 

  5. Wes'Bay-a says:

    “You can fool some of the people, some of the time”!

     

    Is the 2009 LoGB fi-real????   Is he suffering from Alzheimer’s?????

     

    When this island was devastated from the disaster of Hurricane Ivan in 2004, the LoGB of 2004, Mr. Bush, and his cronies flew CAL to Boston to party!!!!  All expenses paid out of this country’s purse.  Now he’s black-gadding Clifford ???

     

    Read and verify it for yourself, just don’t take my word for it.

    http://media.caymanislands.ky/news/details.asp?id=1146&site=3

     

    Now let’s do the math.

     

    Mr. Bush says that Clifford spent $250,000 during his service.

     

    4 yrs of Clifford’s service = 48 mths

     

    $250,000 / 48 = $5,208.33 per month

     

    $5,208.33 x 2.5 mths (since Swearing-In ceremony 27 May 09) = $13,020.25

     

    Clifford’s 2.5 months equals $13,020.25 vs the 2009 LoGB travel expense of  $22,171.

    How do these two amounts differ?????  By a lot!!!   Almost twice the amount!!

     

    Verdict: Guilty. No reasonable justification found for excessive spending!.

     

    As before, he’s eager to spend and appears to have no consideration or care of the financial impact or to whose detriment, as long as he has someone to blame. He’s of the same action….he hasn’t change and never will……a leopard never changes its spots.

     

    Not only is he jet-setting again, but he also wants to spend money on building a NEW DOCK when we already have one that’s operating  and accommodating our needs today; AND, he also wants to build a NEW AIRPORT, which the current one is operating  and accommodating our needs today.  His reasons for these expenditures are:  “the money was set aside for it by the PPM govt”.   Huuuuuh??????  Just because the money was set aside doesn’t mean you have to spent it particularly not at a time like this when the GLOBAL economy is on a down-turn & not when you’re jumping up-and-down about the country is broke & not when it’s the first time that we have to go begging the UK to borrow money.

     

    Apparently what Mr. Bush fails to understand is this.  Money was set aside by the previous govt when the our financial situation (or the economy) was profitable. It now appears that Mr. Bush has NO CLUE what to do when this country is being affected by the global financial crisis or how it is impacting our financial industry and our economy.  His resolution was to cut the salaries of his own people to afford him his spending spree.  This is one time I thank God for Governor Jack!!  Many Civil Servants would have become impoverished or homeless if he hadn’t stepped in and put our people FIRST!!

     

    Here’s another excuse he’s using to spend money while we are well aware of the fact that he & the governor have the power to delay this section of the Constitution (if he chooses) and such expenses until our economy is in a better financial situation……….“The LoGB noted ironically that it was the introduction of the new constitution that would require the protocol office and he admitted for the first time, that he had voted against the constitution during the referendum, which he said would now usher in some expensive changes because of the creation of a Premier”

     

    I’m calling on Govenor Jack to have our Constitution brought into effect as soon as possible.  We need to initiate Referendum!!!!!!!

     

  6. Anonymous says:

    This is a horrible idea. The LOGB should listen to the experts on this issue. I would be shocked if Rolston agrees with this as well as the Superintendent of Pensions. This is a superficial quick "fix". Isnt the pension plan already underfunded?? I am not even sure that the accounting is up to date. When wasthe last time civil servants received their statements with their balances and what period were those statements reflecting?

    We are in this mess because of a lack of foresight and planning by the previous government let us not continue along the same path. Do we have accurate forecasts detailing the number of civil servants nearing retirement  and the projected payouts over the next 10 years, are we able to pay these amounts?

    Civil servants will have to contribute their 5% to their pension and that would be a true cost savings of appx $25M and it would be back to the drawing board for more effective ways of saving on the other $25M.

    A true leader is someone who can admit when they are wrong and that they don’t have all the answers. This is not an issue to take lightly because the long term consequences are severely detrimental.

  7. Anonymous says:

    It would also help if the present government took the same pay cut or freeze the salaries where they were instead of raising their own pay and sacrificing their employees. What kind of Governement is me first? Is everyone sleeping- can’t anyone see what is happening? The present government has no cares for Cayman. It has it’s own agenda.  Poor us.

  8. Anonymous says:

    This is a *terrible* idea. It doesn’t solve the problem. It only delays it to the detriment of the pensioners would would forego the potential earnings.

    It would be a far better idea to look for other ways to cut costs:

    1) defer non-critical projects

    2) curb excessive spending

    3) cut wasteful spending (enact stricter controls on spending on consumables, non-official use of govt property and equipment)

    4) salary freezes

    5) temporary ban on non-essential travel

    And yes, cut non-producing staff if required.

    • If Only... says:

      Great ideas! A few I thought of, I think we need to start ringing the phones off in the Admin Building and talk to our elected representatives with such. It’s clear the current ideas have not been thought out and are just being made based on looking at a few bottom line figures instead of the whole statement and bringing in a practice of proper fiscal management. A quick fix is just that, and doesn’t guarentee longevity. Whatever is done needs to be a new policy to ensure reduction of the deficit on a constant and guarentee growth of government revenues.

  9. Anonymous says:

    eliminate portfolio and ministry  human reource  positions

    decentalisation of civil service responsibilites  to portfolios and ministries has created redundant positions. Considering the hiring freeze, and dimunition of advertising and recruitment budgets it certainly appears that the civil service should once again handle human resources in a centralised manner.

  10. Anonymous says:

    Come on guys, post solutions and stop the UDP and PPM thing. 

    • M McLaughlin says:

      It may be wise and prudent for the government to request that the Fund Managers move ALL government pension funds during this propose holiday to "cash or cash equivalent investments" in order to minimize any further loss that maybe over the horizon.

  11. Anonymous says:

    This is a terrible idea for a pension holiday. I hope the let the "average" person know how much this will affect their ending balance.  According to Sandy Chapell about three weeks ago, a six month holiday on pensions would cost the average person around $10,000 of their money.  How you ask, because your money won’t be compounding the interest.  So your little "holiday" is going to cost many MORE millions than just what it costs up front, and in the end everyone will not benefit and in fact be hurt more.  Explain that to the people. 

    I personally like the picture, as he looks like a deer caught in the headlights, dazed and confused.

  12. Anonymous says:

    Pension "Holiday" thats one trip I for one, do not want!

    When all of these "Holiday" participants are 65 and only have enough funds to over the first X amount of years of thier "golden years", I bet they will be wishing the didnt take that trip!

    No thanks Big Mac, work hard now, play later! Not work hard now get a few extra pennies now and PAY later!

    What a joker.

  13. Anonymous says:

    To "I really hate to hear" 18:07.

    I am really glad you show your true colours. Hatefullness and an inability to distinguish between seeing and hearing. My point was that the LOGB must lead from up front if he believes that the Civil Service should bear the brunt of the expense reductions. Because of people like you we have many people looking the other way, not calling a spade a spade. The LOGB is the single person most responsible for all the problems Cayman has. However the present economic crisis will get worse with all the poor mangement he is doing now. Suspending civil servants benefits is the worst idea. What we need to do is cut back on non essential items like the Tahoe no matter who bought it. Two chief officers in one Ministry yet again shows how ill ready the LOGB is to manage this country. We are headed into a serious an prolonged era of fiscal mismangement. But I Really Hate to Hear can not recognize this, You only recoignize Alden and Kurt and want to smack them. You should smack you own blasted head! You may get some sense in it! 

    How can the LOGB say that the PPM was responsible for Grandoise projects, Schools and Government Admin building yet 60 days after he has been in power  he is proposing a humongous cruise facility and a dock in East End,  these two items alone will exceed $800,000,000. Just to be sure the dock in East End will take abount 5 years to build so we do not know the exact cost that this will run to. And when it is finished the cost to transport the cargo to Town will be 500% more than it is now.  The LOGB speaks out of both sides of his mouth and his supporters seem to be able to see what the want to see.

  14. Anonymous says:

    Can I just ask one question…

     

    Everything Cayman got  schools..roads..post offices..new govt admin building..libaries etc.. does any of needed?

     

    I ask becos we are upset with PPM for doing all of this?

  15. Johnny Cake wid a cup of coffey(e) says:

    cup of coffey anyone?  wha a mess.

  16. noname says:

    Under New Zealand modeled Government accrual accounting system all pension obligations has to be included in government expenditure and it is still a part of deficit.  You cannot escape from this. However, since government accouts have not been done for last 4-5 years, we do not have to worry about this issue as 2009/10 accounts may be done in year 2015 and by that time we may not be around to see the real deficit. 

    Mr. McCarthy is the person behind to bring this white elephant on this tiny islands.  We are like a small town in New Zealand.  Why should we need a decentalised accounting system.  This is bull **** and costing us a lot of money. This created high paying chief officers, chief financial officers and Human Resource managers and most of these new posts are manned by foreigners. We can cut this deficit further if abolish some features of this public finance initiatives copied from New Zealand. Also, there are retired civil servants who are appointed to various government units as consultants and other key positions such as CIMA Chairman who receive government pension and salary for the new position. We need to stop paying pension for these people until they hold the new position !!!!!!!!!!!!!!!  . 

    Also, we need to charge a salary tax on foreign employees in both government and public sector who are earning more than annual salary (including bonuses) of $50,000.  We all are paying – in fact our future generation is mortgaged as well – for roads, hospitals and schools and we allow foreigners come here to enjoy all these facilities and they do not pay a fair share for using these.  So it is very fair for these foreigners receiving high salaries, huge bonuses+profit shares to pay their share. We caymanians cannot take the full burden forever and at the same time some foreigners come here and enjoy luxury life at our cost !!!!!!!!!!  Remember, when our future generation starts paying these debts, those who made millions by way of salaries, bonuses and profit shares now, would have gone back home already.

    • Anonymous says:

      To the poster of "Under New Zealand modeled etc"

      Precisely what is wrong with a government recognizing (through the acrual accounting system) that it will have liabilities down the road? Do you think if you don’t account for them they go away? Obviously you practise the once noble art of "Trumanomics".

      In your own personal accounting, if you have $40k in the bank and you commit to buy and sign a post dated check for a Tahoe for $30k, what do you think your net worth in REAL ie ACTUAL terms is? $40k? Or $10k?

      I hope you get the correct answer.

       

      • Anonymous says:

        Accrual accounting is the only good thing you can get from this infamous New Zeland system.  However, I do not know who is advising the LOGB to give a pension holiday to reduce the deficit.  Not sure whether he is getting this great ides from Mr. McCarthy who burden this little island with this white elephant.  These politicians still think we Caymanians eat grass and follow them all the way.

  17. Anonymous says:

    IT IS A HUGH LIE TO SAY THAT THE PPM GOVERNMENT PURCHASED THE SUV !!! DO YOUR RESEARCH AND YOU WILL FIND OUT FROM WHENCE IT CAME.

  18. Anonymous says:

    $250/month would be the maximum per the Law.

    http://www.npo.ky

    The employee must contribute a maximum of 5% of their earnings up to the annual maximum contributions of $3000.

    The maximum annual pensionable earnings subject to contributions is $60,000.

  19. Anonymous says:

    Fact is: Mack designed and implemented the present pension plan on his last round of government, not considering that one day all the resources would be tied up in a Pension Fund that only makes money for the people who play with stocks.

    Just look at how much of the Pension Fund has been lost, and will possibly never be recovered.

    Seems a good idea at the moment to stop throwing money away by putting pension payments on vacation.

  20. Anonymous says:

    Last poster, how do you know it would be $250.00 a month?

    • Anonymous says:

      If there is one thing I must give the PPM and their supporters credit for is their ability to be hateful and bitter.

      The country is struggling and the only meaningful contribution that can be made is to speak about a SUV. Why not ask us civil servants if we would prefer to be laid off or if we would rather a pension holiday?

      All of you people who can spend time writing garbage clearly is not worrying about losing your job. Well, I was until this announcement was made. Whatis even more hurtful is that when the last government was spending like there was no tomorrow where were your complaints? All I can say is that God truly blessed us last May in getting rid of the PPM and the likes of Alden, Arden, Chuckie, and drunk-already Kurt. You guys have no idea how much damage they did and I am sorry that the accounts are not there for all of you to see so you can shut your dumb stupid mouths.

      Typical of the PPM. Talk. Talk. Talk. Spend. Spend. Spend. Hate. Hate. Hate. Well add this one to your list of things to do…Git. Git. Git.

  21. Anonymous says:

    I really hate to hear people criticize the LOGB for having 2 chief officers an advisor, a driver and an expensive Tahoe, etc.  It is my understanding that the PPM purchased that Tahoe in anticipation that they would be in power riding around in it so set that one straight.  Do you expect Mr. Bush to deal with everything himself?  No, he needs all the help he can get given the disaster that the PPM created for Cayman.  Had we not beensmart enough to vote them out they would have just continued running the country into the ground as we can recall that Alden McLaughlin said that only God would stop him from doing what he wanted to do.  SUCH ARROGANCE.  When I see any of them out and about I just want to go smack them!

    • Anonymous says:

      This exercise is about cutting costs not laying blame.  Just because the previous Gov bought it doesn’t mean this one needs to continue using it.  Are you going to blame the previous gov for buy the plane tickets that Mac and his entourage now flying around the world on?  You can’t tell me all of those trips are necessary, especially for all the people going! If we are trying to cut costs it doesn’t matter what PPM used to do, it matters what is costs can be cut now. These expenses may sound minor in the grand scheme of things but I’m sure cutting these costs could easily pay for some civil service salaries.

    • Anonymous says:

      :|…OK why talk about the expense that the PPM cause the country and then continue to use and seem to benefit from and try to justify your hypocricy is what I hate to hear. Fact is the LOGB stated that he is only doing what the PPM would have been doing witht he suv/driver if they were in office and the constitution which HE didnt vote for come into effect and talk about the previous government’s spending only to turn around to benefit from the purchase and new constitution. Well Mr. Fiscal Responsibility, how about actually doing something but blaming the PPM, to show us you opposed the consitition (which UPD did already) how about giving up the suv and personal driver to help cut cost as well, they say change starts with yourself, how are you different from Kurt if you doing what your saying he would do if he was in office? How about selling those government assets to someone with the right size pocket book. No one knows what PPM would have done when the got back in to office and for that matter no one knows what Mr. Bush will either as he’s proven many many times now. So spare me the violin playing for our LOGB, he wanted the job and with such choices you take the good with the bad, he’s rule just liek the last LOGB has to do with public approval, so learn to get use to the critism, when it stops that means he’s doing a good job, lucky for him the good comes with a personal driver.

  22. Anonymous says:

     The liability will still remain but your cash flow would not be affected. You are simply deferring your liability to a later stage. To effect true savings civil servants have tocontribute to their pensions. You just cannot please people and we are so selfish we just cannot continue keep borrowing money to pay ourselves-it makes no sense. The mindset has to change, civil servants must pay their fair share of the pension costs needed to secure their future. We are talking about a maximum of $250/mth. The costs both hidden and real assocated with implementing this holiday and the confusion that will ensue will not be worth it. Civil servants paying their own way is better for the country in the long run!!!!

    I always get annoyed when I think of the absolutely wreckless way in which the PPM government spent our money during their reign. What is even scarier is if they were reelected we would have never known the true extent of the problem and they would have continued with their rampant spending to cover the real problem. Really makes me angry!

    • Anonymous says:

      Messing with defined contribution or "money purchase" pensions is VERY dangerous as it in effect means Government or private sector employers are giving their employees an IOU. They will save XXmillion$ now but how are they going to pay back this liability in the future?

      Will all employees realise the full negative repercussions of this madness or will they think that because it isn’t coming out of their paypackets it will be ok in the end of the day? What a truly terribl bacward step! We need other measures that cause pain in everyone from the Governor, Chief Justice etc downwards, namely a salary cut. For defined contribution people, what is being proposed can result in a pension cut later on, much worse than a salary cut now.

    • Anonymous says:

      Really? You are entitled to your opinion and so am I ! Please give us substantiated examples of the "absolutely [w]reckless way in which the PPM government spent our money during their reign". Certainly they were not giving it away to their cronies and all of us, including you are benefiting and will continue to benefit from the visionary long term investments that were made in the future of our country  by the Elected Members of Goverment  between May 2005 – April 2009.

      Everytime you or your kids are at a sporting event with proper facilities, yes thats an example of reckless spending; everytime you get to anf from work without spending hours in traffic that’s also an example of reckless spending.  When the current LOGB opens the new government administration that will save the country millions of dollar in rent and the High School at Frank Sound that the UDP talked about for years and did noting — please do repeat its "[w]reckless spending"!

      Have a great day and God help us all!

    • Anonymous says:

      If civil servants are going to have to pay their part of pension contribution, their part in health, dental and optical care then their wages are going to have to increase to reflect this. The whole point of civil servants receiving these benefits along with their wages is because they have always received less wages than their counterparts in the private sector. It has always been hard to attract people to the civil service because of the disparity in the wages between government and the private sector but the arguing factor has always been that the benefits are better and there is supposedly job security. That does not mean that civil servants should not work for what they get – thats a whole different matter. Heads of departments in government are just not accountable – I know civil servants who have worked for over 11 years and have never ever had an appraisal done. There are still – up to two weeks ago government departments who are changing out their desk top computers for lap top computers for all employees – there is nothing wrong with the desk tops – but they want lap tops so they get lap tops – what happens to the good desk tops – who knows. The argument is that they money was in the budget for the new lap top computers so they have to spend it or give it back to government – WHAT??????????????? I thought this is what they are being asked/told to do. NO ACCOUNTABLITY – It should not be too hard to figure out which departments are doing what with their funds.

  23. Penny Pincher says:

    Two questions;

    Could  this affect pension payments to those currently receiving them in any way?

    Does this mean we won’t be getting the so many times promised, never delivered reinstatement of increments again this year?

    The good news is I guess we don’t have to waste valuable man hours completing Performance Agreements and Evaluations! P.T.L!

     

    • Anonymous says:

      To "Two Questions"

      I guess you don’t understand that performance appraisals MAY-repeat MAY- be about you getting an increment, but that is not what they are all about, here or anywhere else. They are-or should be (Caymanians hate being appraised) precursors to increases, bonuses etc but that’s only part of it. They should also be important feedback on how you are doing and of course if you are not doing well what you have to do to improve and keep your job.

      But I forgot, if you are a Caymanian civil servant, you don’t have to worry about such things.

      • Penny Pincher says:

        I understand a lot of things Anonymous at 17:51 (By the way CNS, should the semi colon be there given the use of 24 hour clock?)

        The point you miss is that by offering no incentive to do ones job to the best of ones ability, they have created the monster that now is the Civil Service. A lot of extremely intelligent, once hardworking people sitting on their hands doing as little as is humanly possible. Why? Because they can!

        I don’t mind being appraised, just give me a reason for it first. I have no fear of keeping my job but wouldn’t mind a small incentive to do it better. Human nature is a bitch.

         

  24. Anonymous says:

     

    EMPLOYMENT AGREEMENTS???????

    Part of a contracted civil servant’s Employee Agreement includes a pension contribution as part of their benefit package. Is the newly elected Government going to force violation of  the terms of such Employment Agreements? What if the contracted civil servant wants to have their contributions continued?  Will they be allowed?  If so, will they be blacklisted (marked for termination at end of contract).

    If the newly elected Government is going to force the violation of Employee Agreements then why don’t they also provide a "holiday" for  the over-priced fees charged by CINICO?

    Sign Me,

    Employee Agreement –  not even as useful as toilet paper (cause it is hard on the bunky and won’t flush well).

  25. Anonymous says:

    The PPM obstruction machine clearly at work already.

    Millions upon millions in debt from wreckless and irrespnsible spending and all they got to talk about is an SUV?

    The pension holiday would not even be a factor had it not been for the PPM’s idiotic management of finances!

  26. Only A Question says:

    I have no accounting training so this is a genuine question.   if the pensions are still due to be paid at a later date would you not have to accrue for the future payments? you may not have to fork out the cash but it still affects your bottom line.  Does this not still create additonal liability?

    To the contrary — cutting back on necessary travel would be a true savings with no future liability.

    What’s the true plan here?

  27. Anonymous says:

    Don’t you all get it ? Mac is setting the stage for legalisation of gambling…casinos, lottery etc. He will say that this is the only thing that will save the country. TCI has been shut down so operations must now move to Cayman.

  28. Anonymous says:

    To stop the pensions is a sad poor reflection of management and is illegal, Although this is what we expect from the UDP. Does the LOGB need 2 chief officers, a political advisor a driver a $65,000 Tahoe and all these fun business trips?

    Get real. He needs to take business 101.

  29. Anonymous says:

    Can you give a "pension holiday" to the private sector – you cant take away a benefit from an employee without their permission and would this also have to be repaid to the employee at a later date.

    • Anonymous says:

      CNS – Misleading Headline and Spin. This is not an expenditure Cut. It is at best an expenditure deferral with Civil Servants left paying the interest. Come on UDP – grow a pair and make some real cuts. Free education to non- Caymanians would be a good place to start. Why do we spend 15K per foreign national per year to educate them? This is millions and millions…