Law makers start work to increase fees

(CNS): Legislators have begun the long process of adjusting legislation to pave the way for the fee increases provided for in the government’s2009/10 budget. On Monday morning government amended two laws and revised a third to increase fees for patents and trademarks, securities and investment fees as well as licences for insurance firms. According to the revisions and amendments trademark and patent fees will increase from $150 up to $200 while the securities and investment fees will increase from $1000 to $3500. The revision to the insurance law provides for a schedule of varying fees for insurance licenses.

During the short debate on the legislative changes, all presented by the Leader of Government Business, McKeeva Bush, the independent MLA for North Side, Ezzard Miller was the only other member to speak. Although he and all the other opposition members supported the changes and amendments, Miller queried why the patent increase was so small. He noted that the amount of work undertaken by the office seemed considerable for such a low fee and he said he believed government could have increased the fee to at least $1000 to reflect the amount of work that goes into providing the service.

“I believe that government should at the very least cover its costs for providing these services, if not be looking to make a small profit and I suspect the costs for providing the service at this office are considerably more than $200,” Miller observed, adding that he was concerned fees were not being properly evaluated to determine if they were at the right level to adequately cover the work.

Bush told the member that all the fee increases introduced in this year’s budget were done so in careful consultation with the financial services sector. He said that this was the increase which the industry said it could absorb without becoming uncompetitive.

“We have to be conservative with fee increases and we have consulted widely on the budget to get the private sector on board to assist us. As the minister of finance of cause I’d like to charge more but we must be cautious,” Bush warned, adding that many other jurisdictions across the Caribbean were now offering financial services and while Cayman remained the best it was necessary to pay attention to competition.

Over the coming weeks several more changes are expected to existing laws to enable government to increase a range of fees from work permits to import duty, as well as laws to implement new fees.  The LA resumes this week on Wednesday morning when, among a number of legislative changes to be made, the house will also debate the legal practitioner’s bill.