Mac defends concessions
(CNS): Reacting to questions raised in the community over government’s decision to offer duty concessions to Dr Devi Shetty, the premier said today that the benefits of the project to Cayman would far outweigh any perceived losses. McKeeva Bush said that most countries give concessions to investors, especially when they are investing billions of dollars, as is the case with Shetty, because of the expected long term benefits. The premier explained that government was offering around $160 million in concessions over the first two years on medical equipment only but it would receive literally millions of dollars in duties, fees and benefits as a result of the development of the hospital. (Photo by Dennie Warren Jr)
Speaking at a press briefing on Thursday morning (15 April), Bush defended the initiative and suggested people had been deliberately trying to undermine the project, despite the fact that government had been open and transparent and it was a very positive move for Cayman and the start of a new pillar to the economy.
“I believe this will be good for this country, but there will be those who will continue to contaminate what we propose to do,” he said. “But if Dr Shetty only does one quarter of what he plans it will be good for this country.”
Bush laid out a huge list of benefits to government and the people that he expected to come from the investment by Dr Devi Shetty in the proposed Narayana Cayman University Medical Center. The premier said that over the next 13 years Dr Shetty would be investing more than $2 billion, generating thousands of jobs and significant revenues to government as well as the local economy, which would benefit indirectly. He said government would receive millions in duties, fees and room taxes and there were no concessions on construction materials or land purchases.
The project, he said, would generate millions, not just for government but for local business. Bush pointed out there would be opportunities for spin-off business, and tourism related businesses would also benefit as a result of the demand for rooms and return business; the real estate sector would grow and new career opportunities in medicine would be created for Caymanians through the university; jobs would be generated through construction, and once the project was completed, other jobs would be generated as a result of the support services the hospital would need.
“Yes we have to give some concessions,” said Bush. “But there are tremendous benefits. You can’t make an omelette without breaking some eggs.”
He noted that most hotel developers in Cayman, over the years, had received significant concessions, which had continued under the PPM when they gave concessions to the Ritz developer Michael Ryan for his Dragon Bay residential development, but he said that, unlike his administration, the PPM had kept the concessions hidden.
The premier said that all the other countries that were courting Dr Shetty’s project had offered concessions and what Cayman was offering was not unusual. “All the people who are saying we are not getting anything out of it are talking nonsense,” he said.
Last week the MOU was signed with the internationally renowned cardiac surgeon, Dr Shetty, who has now committed to build a state-of-the-,art world class medical complex on the island. His representatives are currently seeking a suitable site for the project and Mark Scotland the health minister, said that in his recent conversations with Dr Shetty he had learned that more than 40 different offers had been made to the doctor regarding a potential site for the medical complex.
Category: Headline News
On second thought…
Although most what you said makes logical sense – again, we are talking about the USA.
Logic and truth has no influence when it comes to them employing its centralised and agenda-holding media powerhouses to discredit the brand and reputation of its foreign competitors.
Many Americans, and this applies to other nationals as well, are not free or self thinking individuals and fail to see the Jedi mind tricks that are administered onto them via their television screens on a daily basis. For example, we areseeing this right now with the Toyota fiasco.
Toyota got its reputation by its longstanding production of high quality and reasonably priced vehicles and it thoroughly kicked the American carmakers’ butts. So much so that when their domestic industry failed and required a multi-hundred billion dollar bailout – Toyota sailed through without even a hiccup.
However, with government / banking (one and the same in USA today) – now think recent Healthcare reform – intervention and investment comes ridiculously high stakes. Hence the recall news blitz, morning specials, midday updates, and prime time features all dedicated to the attempted massacre of the Toyota brand. (Mind you, USA auto makers have had by far the highest number of multi-millionunit recalls due to actual fatalities!)
My point is that whether or not Dr. Shetty’s hospitals have better results, better trained doctors, or Krishna himself as its Chief Surgeon – if he stands in the way of the mighty, arrogant USA and the economic success of its healthcare industry – then rest assured…they will come down on him / us like a ton of bricks! They will ponce at every opportunity (and we know there will be many in the particular industry in question) to discredit and ruin his / our reputation – at least in the minds of its citizens…and that’s all that really matters, isn’t it?
Truth, logic, statistics?! Ha! Not when there is money to be made in the great lobby-crammed U.S. of A. – in any event, they still couldn’t sell me Chevrolet Aveo over a Toyota Corolla … not even on their best day!
Sorry – posted above comment in the wrong place – blame it on the early Monday morning blues.
You noise makers, how are we going to compete if we don’t become competive? Our fore fathers developed these islands thru giving concessions. Even the banks today that we do business with are giving concessions? Don’t you see/hear them advertising get a loan today to buy a car and get $1000 off etc. What do you think this is? A concession of the sort. Read the rental adverts… take a1 year lease and get 1 month free. That is a concession!
Concessions are meant to attract investors and buyers, that is the way to do business, especially during a slow economy as we are in now.
Give the man a break he is working hard and trying to revive a dead economy that the PPM left for him. He has to be creative the economy is dead and the government is broke.
Here it is Sparky:
Hotel Operations:
Work permits : +/- 600 @300 (average) = $180.000 Yearly
Through puts/ consumables +/- turnover $35.000.000.00 Yearly – import duty @20% (average) = $7.000.000.00 Yearly
Tourist accommodation bed tax: at recorded occupancy around 35.000.000.00 per year – Tax at 10% = $3.500.000.00 Yearly
Yearly direct Tax payments : $11.680.000.00
That’s just direct tax contributions from Hotel operations…
Don’t forget the 7-10 Million in Stamp Duties raised from this project, the infrastructure application fund fee and building permit fees(in the millions)
So even without talking about the exemptions for building the ritz it’s contributions are huge…
On an economic impact basis, spin off trickle down, the Ritz probably contributes around 120 million a year in economic activity on island…
"Don’t forget the 7-10 Million in Stamp Duties raised from this project, the infrastructure application fund fee and building permit fees(in the millions)"
So with all this inward investment and on-going revenue from the RC and Camana bay projects, tell me: Why are the government coffers empty?
Because the Government spent more money than it had. Because we have more civil servants per Capita than any other country in the world and twice as many as any other Caribbean Island. Because we took on more capital projects than necessary. Because we have no set of Government accounts for the last 6 years. Because we have incredibly high civil service salaries. Because the Civil Service pays no medical and pension contributions – Government foots that bill…Because the Government plows money into non viable and loss making business’s like Boatswains Beach and Cayman Airways…Revenues have increased substantially over the last 8 years in Cayman but expenditure has completely overtaken revenues…Bad financial governance…You cannot spend more than you earn…
We are in the position we are in not because we don’t have revenue coming in – just read the Miller report…We are in this position because we spend too much…
" Work permits : +/- 600 @300 (average) = $180.000 Yearly
Through puts/ consumables +/- turnover $35.000.000.00 Yearly – import duty @20% (average) = $7.000.000.00 Yearly
Tourist accommodation bed tax: at recorded occupancy around 35.000.000.00 per year – Tax at 10% = $3.500.000.00 Yearly
Yearly direct Tax payments : $11.680.000.00
That’s just direct tax contributions from Hotel operations…
Don’t forget the 7-10 Million in Stamp Duties raised from this project, the infrastructure application fund fee and building permit fees(in the millions)
So even without talking about the exemptions for building the ritz it’s contributions are huge…
On an economic impact basis, spin off trickle down, the Ritz probably contributes around 120 million a year in economic activity on island…"
Who told you these were being paid?
Well how did that bottle of wine get on the table at the Ritz – ohh by magic…
Import duties are paid in order to release goods/ consumables…
Property stamp duties are paid otherwise the real estate transfers cannot tale place by law…and owners would not have their title deed.
Work permit fees are paid, otherwise they would not be here working
They are being paid Sparky…The only concessions granted by law fall under the Hotel Aids Act 2005 – these are import duty concessions based on construction materials…Nothing else.
The Hotel rooms tax is paid directly by Hotel and checked by DOT, if it is not paid then they lose their Hotel License.
They are being paid, otherwise members of the LA would have made an issue of it, besides the concessions are always one off and based on building costs not operational…
Cayman’s prosperity is built on “Concessions.”
Our Offshore Finance industry would not exist if we taxed either the flow of capital through Cayman or the profit earned by: Hedge Funds, Mutual Funds, Insurance Companies, International Banks, Family Wealth Offices, Offshore Corporations and a endless stream of special purpose entities that are domiciled in Cayman. Cayman is and has always beenin the concession business.
At the local level neither Caymanian companies nor employees pay Income Tax. Property speculators and developers don’t pay Property Tax, consumers don’t pay Sales Tax or VAT, Investors don’t pay Capital Gains Tax and when we die our children get to keep our estate.
These benefits exist because of a successful tax concession model that was established 40 years ago. Who would have imagined that a business model based on tax concessions would propel Cayman to the front ranks of Offshore Finance and the highest level of prosperity in the Caribbean?
A concession based business model was the smartest business decision that Cayman made. It generates fees and indirect revenue from the consumption that prosperity generates. With this understanding of how our national profit is made our goal should be focused on generating greater prosperity. Concessions are the most powerful tool that we have to attract inward investment and new employment opportunities.
In a competitive world the only way for a country to grow its foreign earnings is to offer a value proposition that is better than anyone else’s and it is getting increasingly difficult to do so. Every country now has economic free zones and attractive legislation for foreign investment, making Cayman’s once unique tax-free value proposition less competitive and exclusive every year.
Cayman has very few other competitive tools to work with. It doesn’t have a large, well skilled, educated and dedicated labour force, abundant natural resources or productive clusters of technological and innovative brilliance. Its offshore finance model is constantly being attached and emulated and both its tourism product and property development model are driven by the flush success of offshore finance that is increasingly being drained away by competitors.
Cayman is in desperate need of more economic diversity and new growth opportunities.
What does it have to work with, white sand beaches, friendly people and an attractive reputation for prosperity, safety and an easy-going lifestyle? None of these attributes by themselves will generate more employment, tourism or beneficial investment. Cayman needs something else, not just to solve the government revenue problem of today or next year, but something more inclusive and strategic that will provide employment and entrepreneurial opportunities for all in the foreseeable future.
The rest of the Caribbean has mountains, lush tropical beauty and new foreign investment opportunities that are just beginning to open up to outside development and ownership. These countries have been looking at Cayman’s success with envy for years and now they are responding. Look at all the beautiful homes and developments that are showing up everywhere in the Bahamas, Caribbean and Central America. How does Cayman compete, how will it prosper in the future?
Concerns about lost concessions and duty are backward thinking. How can you lose something that you never had? Its much more important to think about how to attract more good, new industries.
I suspect that the reason why big projects like this get criticized is not because they are not good for Cayman but because they appear to benefit someone else. There is an immediate assumption in the minds of most if not all Caymanians that someone is going to make a lot of money out of the deal. In some ways Caymanians are like a large family fighting for scraps from the same bowl. Instead of complaining about who got the bigger piece we should be more concerned about putting a lot more food on the table.
People will make a lot of money out of this deal and hopefully so will the investors that are involved in any other new industry that we attract to Cayman. Pioneering a whole new industry in Cayman is very expensive, complex and difficult. If these bold entrepreneurs didn’t expect an exceptional return on their investment they wouldn’t be able to justify the risk, development cost and highly specialized fixed investments involved.
Unlike offshore finance, businesses with specialized fixed investments can’t be moved at the stroke of a pen to another financial center nor can they move their business by simply opening a new office and transferring staff to Singapore or Dubai. If they don’t succeed here they lose their entire investment and possibly the trust of their backers.
It is the value proposition that attracts them to Cayman and with all the risk and uncertainty involved they need as many guarantees and as much protection as possible. We need them to be successful. Like offshore finance, success attracts success, and this shift in our economic development model could be the beginning of a new more diversified economy for Cayman.
Very well said.
Those complaining about concessions are obviously those greedy ones who want everything but is not prepared to give anything in return.
As long as those in authority understand the situation like you have expressed it and will work toward real solutions, who the hell cares what the greedy has to say about it.
re the history of concessions on the Cayman Islands….
Please check on Page 283 of the Cayman Islands History book by Michael Craton :
Under Commissioner Cardinall, the first law to encourage hotel development was passed.This was a "visionary" action that anticipated later tourism. The Cayman Islands Hotel law, 1937, allowed anyone building or extending hotel accommodation to import essential materials duty-free….
we are looking now to attract a different market for the Islands….and execute once again what is needed….concessions!
I agree, we have always tried to encourage foreign investment by giving some concessions, but never have we given so much. What is in it for Cayman? What do we stand to gain? A massive hospital that will probably make the shareholders even more wealthy, but what wealth will Cayman gain? The most important thing is to look to make money for our country, not private investors & their political friends. Do you understand the concerns now?
I recall that in the 60/70s there was also a Pioneer Industries Law that gave concessions but I have no idea why it was revoked.Perhaps it should be reinstated.
The PPM gave out concessions to the Ritz as well. The PPM gave out thousands of residencies which will lead to status. The PPM filled the Boards with their own people.
The PPM’s tactic is to point their fingers at the UDP knowing most voters will focus on the "wrongdoings" of the UDP and not see that the PPM aren’t much different.
Just to clarify, I did not vote UDP. But, for God sake PPM voters, enough of our blindly following the PPM. This only hurts our country. Doesn’t the very Bible say "Do not put your trust in princes, in mortal men, who cannot save you."?
We go on like Mac is the Devil and the PPM Godly. We are making fools of ourselves. Lets question everyone. Lets stop the hatred and division.
You so fool-fool Anon 10:25! This has nothing to do with the PPM because as far as I have heard from them on the radio & other news outlets the PPM supports this project. So get off your rants against the PPM because this has nothing to do with them, it is about the peoples concerns about the large concessions being given to UDP supporter Thompson & his foreign partner Shetty. Take a break, ok?
So the UDP and PPM agree with the hospital, but the people don’t? Interesting. Therefore one can safely conclude, from your writings, that neither party represents the people? Interesting.
Forgive me, but if you can’t understand that without concessions you would get nothing at all, then perhaps you really shouldn’t be calling anyone fool-fool.
What happened to the concessions for other medical professionals who have brought their services to Cayman – like KY-Imaging? I don’t have a problem giving medical professionals concessions on equipment if our people will benefit but it should be across the board.
Even bigger than the concessions though is the INFRASTRUCTURE aspect of this facility….think about the amount of workers that will be brought in to work on this project (which a MINIMAL amount will be Caymanian which is mind-blowing to me, with the amount of local construction workers, plumbers etc. on island). After that think about the staff that will be needed for this facility – for a 2,000 bed facility you have to factor in a minimum of 6,000 staff PLUS their families.
Can the following things handle that amount of people on island:
– are the grocery stores sufficient to meet the needs of these peoples
– do we have enough land mass to facilitate adequate housing for these individuals?
– are our roads sufficient enough to handle 6,000-10,000 more cars on the road (factoring in that some families may have more than one vehicle).
– do we have enough room in our schools – both public and private – for the children of these individuals
– can CUC accomodate this facility and will it result in HIGHER rates due to their needing to expand their facilities (we all know CUC passes their costs directly to us)
In addition to all of this, what is government going to do to ensure that we have as many Caymanians employed at this facility as possible?
– will there be nursing drives in the high schools to encourage more Caymanians to get into nursing
– will there be special scholarships available for Caymanians who want to study medicine
– will there be more education in the schools about other medical jobs i.e. radiologists etc.
– will Dr. Shetty be required to provide a minimum amount of medical scholarships to local children?
Nothing comes for free – and I certainly hope this government factored in the costs to THEM for having a larger resident population. Do we want Cayman to be even more overcrowded?
I do feel that this facility is a good idea but 2,000 beds is way too ambitious for an island this small. Perhaps a smaller facility would be best suited for our island and will result in a more harmonious ending for all…
CTMH PAID DUTY ON EVERY PIECE OF MEDICAL EQUIPMENT AS DID KY IMAGING AND THE HEART HEALTH CENTRE
Over 600 American medical professionals have already applied to work at this facility and trust me… they’ll be getting more than $2-$4 an hour…
Once the location is revealed, I assure you that local Caymanians will snap up the surrounding land because once this hospital is built there will be a great need for surrounding specialists offices… just like there is surrounding GT hospital.
This is a great project… and as for a concession on medical equipment. Does the Government owned hospital pay them? Most likely not. Did Thomlison? Most likely not…
Would you want there to be duty on a device that can save your life?
Yes i am sure the medical "professionals" (ie doctors) will be making good money. But what about the other 90% of people that work in the hospital and keep it running every day? Nurses, nurses aid, cleaners, cooks, kitchen staff, receptionist, maintenance men etc.
Also, in reality – you should realize that the bulk of staff for this hospital will be coming from India – not the US. Because the labour is cheaper.
Will government be instituting a minimum wage?
Let’s underestimate and say Dr. Shetty’s project brings 10,000 souls to the island.
So we lose $160 mill in concessions and gain millions in duties, fees and benefits. Sounds like we are losing out unless he meant to say we gain hundreds of millions…. i’m not an accountant but appears to be a loss to the island to me. overall I like the initiative but let’s make sure the figures add up before any "bull in a china shop" approach is taken
HISTORY IS ONLY REPEATING ITSELF
Remember when the building of Ritz carlton was just a proposal?
Remember who took the licks for this project (McKeeva)? Remember the mountains he had to climb and the bumps and hurdles along the way? Remember the rumours spread on the developers? Folks, stop and reflect for a moment and be thankful that we have a few visionaries amongst us, and we have investors with this amount of capital to invest.
What a mess we would have TODAY if the Ritz was not here, we would probably be a forgotten island like the past, shops and banks closed and everyone gone except ……Caymanians would have no way to run and got to stay here and beat sand flies and mosquitoes.
Be careful what you wish for Cayman!
Are we fully appreciating the mission of this development?
Dr. Shetty is hoping to take on the health care industry of the United States of America! Do we understand how powerful and even sinister this arm of America can be?
Cayman is already poised against the USA in other areas today – this hospital will place us further in a combative stance against the USA.
When, and it is guaranteed to happen, a procedure or a few procedures are botched at Dr. Shetty’s hospital the U.S. and international media powerhouses will come down on us like a ton of bricks! The healthy industry lobbyists of the USA are not to be taken lightly! Are we willing to accept this further risk to our already precarious place in this world?
Not a great post… Competition drives economic growth, I bet the insurance companies forced to pay for all the operations under the new Obama Healthcare Plan, (treatment can’t be denied anymore because of pre existing condition) will be lining up to fill Shetty’s beds so they can pay a lower surgical cost and turn a profit…
Shetty is a smart guy and he has some very smart people complete a very thorough feasibility analysis before putting pen to paper…The US healthcare system created this opportunity and they will have no one to blame but themselves if clients go elsewhere…
US patients are already going to India in the thousands…Also on a side note Shetty’s hospitals have a better safety record and higher surgical success rate then the US hospitals…
The US is not the be all and the end all, it has too many of its own problems to worry about…
Fair enough.
I do hope you’re right … guess we will all have to wait and see.
Me too
A good decision Mr Premier. In few years time, history will show that you did the right thing.
Concessions are given by many states in the USa or even countries to attract business. What is so new about that !
As to the stess on our infrastructure, this development is not being set up overnight , but rather a phased one. The infrastructure etc will grow along with that progress.
Lastly,only vested groups will grumble or complain about this new development . If the citizens or residentsof these islands can also get good healthcare at cheaper rates than what they pay, tough luck to the obstructionists.
Health costs per individual will soar unless innovation and competition comes in
Dred I agree with much of what you said in your post.
The question is, when Cuba opens up what will happen to Dr. Shetty’s Cayman medical facility? Cuba also has world class health care at a fraction of the cost of the USA and happens to be closer to the USA than we are.
Also, we have discussed changing the standard to accept previously unacceptable medical qualifications just to faclilitate this development.
We must not reduce quality simply to maximise profit, especially when it comes to health care.
When it comes to health care, which works to improve, preserve or prolong life, people want the best, not the cheapest. That is why you never see a 50% off banner in front of a hospital or Dr.’s office.
The idea that Cuba has world class health care is a fiction with no basis in reality for 30 years. They have some world class doctors (many who will probably want to come work for Dr. Shetty) – but their health system has been in decline since the 70s and collapsed after the fall of the Soviet Union.
And 90% Americans will not go to Cuba for medical care – end of story. They will not go to India, Thailand or Costa Rica.
However, they will come to Cayman if the economics and hospital reputation are in alignment.
Slightly off topic, but do you think that Dr. Shetty could get approval for medical marijuana?
In fact, I think Cayman should lead the global community and legalize marijuana. I have never smoked a joint in my life, but all of the crime and social problems associated with trying to keep this natural substance illegal seems like a huge waste of time and resources.
Most of the crime here is associated with the criminal rackets fighting over the ganja trade. Legalize and tax it – solves two problems at once.
Sometimes I read comments on this website and I’m amazed at how dim some people are.
All over the world Governments fight to bolster their economies by attracting investments and businesses from which they will benefit. It is common to rediuce fees, taxes, duties all kinds of things.
If you offer a concession of $1,000,000 it is not "costing" us anything. Without it the business would go elsewhere so there would be no $1000,000 coming in.
While this is one project I agree with, why does Mac waste his time getting up to talk to "the people." He’s not acting out of our interests, he doesn’t actually listen to us, he doesn’t actually have logical answers, he’s the worst public speaker and is therefore not comforting to the people, the investors or those on the outside looking in. Let’s just let him go off on his own agenda, then blog about how better (or worse) off these islands are once he’s through. Truce??
complain complain complain…
"complain complain complain"!!! That sounds like the pitiful UDP for many years, complain complain complain oppose oppose oppose! Take unna licks now!
Mr. Premier, I agree that appropriate concessions is the usual norm to attract desired developers. XXXXXX
Additionally, please do not continue to take all the credit for the introduction of this devlopment as it was apparently Mr. Thompson that brought this to the table. Give the credit where it is due. The Government then took the introduction and worked with it, as they should have done.
If this development comes to fruition and the impact on our society can be managed properly, it does have the potential to be a large bone to our ongoing economy. Only time (20+ years?) will tell the size of the bone and if it has any smell or not. Success cannot be determined in advance.
Is there any idea the area this thing is going to be built that same to be the best kept secert on this island theses days.
No doubt certain real-estate companies (who of course will make a large amount of money) are looking for a place where their "clients" can sell the land (no doubt government subsidized) at an inflated rate. Remember Boatswain Beach?
Only after the UDP Cronies have bought up all the land around it will they tell the minions
How about reading the article:
"40 different offers had been made to the doctor regarding a potential site for the medical complex"
"The premier explained that government was offering around $160 million in concessions over the first two years on medical equipment only…" So much for the die hard UDP supporters who have previously been suggesting that this project will not cost the Cayman Islands Government a single dollar!! Anyways, I do hope that it turns out to be a successful project for the Country.
The duty concession is only a duty loss if the project would go ahead without the concession, and we know it wouldn’t.
You offer concessions when a project offers wide community benefits that are significantly greater than the sum of the potential duty concession.
Remember if the project does not go ahead you are not getting the duty anyway.
Pray do tell, how much the Government gets if investment is not attracted to Cayman ? So how will this cost the Government anything ? Every country in the world offers incentives to attract inward investment…
Maybe that"s why we do not have any big inward investment, because we scare people away with our entitlement mentality
This will NOT cost the government anything. The concessions are not revenue or cash. They are theoretical “taxes’ from money that would not be here in the first place if the project did not come!
The spin off of the inward investment is so significant that it is usually considered in most countries as multiples of the actual investment.
This is a big deal for the country if it happens as claimed.
Hope so as well. However, not sure I follow your logic regarding the "cost" to government. If for some reason government were to be offering Dr.Shetty the opportunity to build here (along with the stated duty concessions) ahead of other contenders (who would be prepared to build without the concessions or at a reduced level) this would indeed result in government missing out on some duty revenue. But if no one builds, there’s no duty to give a concession on to begin with, surely? Are you saying that there are persons prepared to build without such concessions or at a reduced rate? Please explain.
I agree!
People, life is simple; to get something you have to give something up period. There are no free lunches unless you are living on that socalled Island on stilts….Utopia
But $160million ?
I want something in life too, just my house but will I get concessions on my materials that I import and a concession on the work permit for my helper – NO!
Oh yea, I forgot, I am just a poor Caymanian.
Yes Anon 13:19, I agree that "to get something you have to give up something period" but do we have to give up everything? The CI Government is giving up over $160 million in concessions (in the first 2 years alone)! What are we putting in government coffers? Very little in comparrison! Does that make sense?
Give up something, but not everything!
Speaking of logical arguements : Something was created out of nothing.
100 % duty on nothing is nothing, and 100 % concession on something is still nothing.
So which is greater the nothing on the concession or the nothing on the Duty ?
So in exchange for nothing we get a billion dollars of something …
I think this is the deal of century..I got nothing else to say.
Where you went to school Star? (Anon 13.07)
Not one thing you wrote there makes sense but if you are trying to say that the duty fees Government would have received on all the Hospital equipment is $0.00, well I am glad I didn’t go to the same school you did.
And can you explain to us, who are not in the know, how "we" will be getting a billion dollars, as this is a private venture and where Government (if that’s what you meant when you used "we") would have received funds was on import duty and work permit fees – but no longer, but you seem ok with that.
Maybe you are one of the cronies ("we") and will be part of the billion dollars you talked about.
My point is unless this deal was made there would be no income, as for my billion dollar comment..I meant the industry and the opportunity to be part of it.
As for being a "cronie" the answer is no…the only persons that I am "in league with" is the "we" I referred to.
Point your gun else where my brother.
"Where you went to school Star ?" dat just some mean crap…added nothing to discussion.
Forget the concessions… my biggest concern is the importation of 10,000- 20,000 manual workers with no minimum wage regulations on the island. Government again just turned down another proposal for minimum wage. If these workers only make $ 2-4 dollars an hour… How will these people make ends meet ? Will we be supporting them ? Social services?
If this is the case it will be a huge strain on the country and our government. Translating to higher cost of living increases for everyone else.
Ok some reality for you : Firstly a 200 room hospital will not have more than 500 workers to build it, as this will be a staged development over 10 years…
Secondly the Cayman Government does not pay for medical or housing, so how will this be a burden on the Government?
Thirdly, I do not know one major contractor on this island that does and or would employ people at that low wage…It will be a major contractor that builds the hospital…
Your worries are totally unfounded
I believe you missed the point on this. When referring to manual labour they meant the hospital workers (cleaning, admin, nurses aids etc.) after it is built – not the construction people building it.
And it is a very valid point. If there is no minimum wage can they apply at social services for assistance and will we be supporting them too ?
Everyone seems to have asked the questions about the lack of infrastructure (roads, housing etc) but what I am not seeing being asked or considered is the social impact of bringing over such a large Indian population to the island. Will we eventually ending up like the USA and be taking Christianity out of our schools, government, etc as it may become an issue with the large population of Hindu and Muslim religion on the island? Will the schools eventually have to have a room/mosque set up so they can pray several times a day?Say 10 years from now, will we still legally be able to put up the three wise men, Mary, Joseph and baby Jesus on public property over the Christmas holidays?
Now, don’t miss understand – there is the freedom of religion and I am all for that. But what I am wondering is will government put steps in place to preserve OUR Heritage and our religion, especially in the schools?
I guess we all got scared when the Pakistani Muslim built the Hyatt and helped create a tourism boom…The fear of losing ones religion was too much…
The point is simple, in Asia people work harder and are more efficient. eg: a hospital in Miami requires 10 service providers per bed and in India a top of the line hospital gets the job done with 3 – 4 service providers per bed…
I believe most of the lower wage personnel will be sourced from this region and if there is a migrant worker population why the fear and worry , you have a xenophobic immigration rollover policy to protect you…
Understand that teaching your children religion and tradition is the parents responsibility and not the schools…The schools have failed miserably on many fronts where passing children for attendance leads to graduates who cannot read and write properly…I would not try to protect them…I would try to expose and fix them, your children deserve better…
A lot of people here should take a long hard look at a mixed culture, mixed religious country like Singapore, that has a migrant labor population and has one of the highest GDP’S and education standard in the world…
It can be done, but fear and trepidation will not help Cayman grow, you cannot hide from progress and the world…Cayman needs to embrace the future …
You will never be able to please us Caymanians, even if Christ came and laid it all out with his scarred hands to prove it, there will be a doubting Thomas in our midst. Idont always agree with the premier, but you all know that he has some very good folks local and foreign advising him, so come on PPM, just because you didnt pull this one off doesnt mean that its not a good thing, you all feel that what ever you did was right and we had to accept it, remember the schools, " only God can stop me" how quickly we forget and forgive.
Give this one a chance, you have to give to get, and remember "what goes around comes around" why cant Cayman not benefit from all of the world medical tourism, look at Miami, where we and all the other Carribean countries have to flock to, why not here. Caymanians open your eyes and pray for harmony and success andstop trying to tear down every thing.
Congrats Mr. Bush. Thinking outside the box and being a leader is your strength and we hope you can just bear the constant and unfounded bashing by those who left us in this mess. You have foresight and I am sure that you will get us back on track.
Thining outside the box comes easily to those who can’t even describe the box let alone find it.
Cautious optimism would be my take on the proposal, once everything is "above the table" and fully thought through. It will be interesting to see the plans, in due course, for the infrastructure developments that will be needed.
Concessions made to large business projects is a standard governmental practice throughout the world and is a standard practice in 1st world jurisdictions.
I heard Ezzard Miller state on the radio that he would offer zero concessions to prospective business projects considering location or relocation to the Cayman Islands. What a huge mistake. These large businesses provide a ripple effect to the local economy.
The cooperation between business and government is vital to remaining competitive on the world stage. To think that Cayman is unique to be able to host these businesses is myopic and short sighted.
Now why would Ezzard say such things out of one side of his mouth and then want the Hospital built in his constituency??. Hmmmmmmmmmmmmmm.
Great job MAC!!!
This is a fab idea Cayman, for once I agree with not so "big Mac"…we have to think long term, short sightedness is what got us into this mess!
Cayman is precieved to be a safe,stable and secure English speaking country, this is huge for those who would want an operation performed when they are at the weakest. If you are low on cash and need a life saving operation would you prefer to go to India or come here?
Ah, I see, we are so broke that we are actively seeking to cut jobs and wages of Caymanians within the civil service but we can afford to offer deep concessions to millionaires who can afford to invest here. Interesting!
CNS, can you find out also if concessions to the Ritz Carlton were also re-instated?
If you want CNS to find about concessions which the Premier is being upfront about, then at least also talk about those secret concessions by the PPM to Michael Ryan’s Dragon Bay project in 2009. Those were major concessions but naturally, the always open and honest PPM made sure that was kept totally secret just in case people didn’t like it before the elections. I really hate it when people claim to be all that when they are secretly being more dirty than anyone they accuse. Total hypocrisy.
Interesting comment – worth looking into to see who is really benefiting
i think Dr Shettys hospital is tad bit over ambitious, 2000 bed hospital 60% below US costs, and the high cost of living in the Cayman Islands..yikes! does not sound too realistic to me, further more this is too grand for such a small island..and talk about the all the people that this country will be opened up to HELLO Cayman can only hold so much people it is very over crowded right now!
As Cayman is changing with all these cultures, i hope the don’t expect to come in here and ever expect us to change our Christian beliefs, I am so happy that we can worship God in an open enviroment, we can pray and read our bible and attend Church without some religious extremist killing us! There is only one God and he’s in heaven! Look at countries like Haiti, Indonesia, China countries that don’t believe in God they get a whipping because the first commandement is thou shl have no other God’s before me! Cayman has to keep Christianity as our main religion, and keep believing and trusting God, he has been so merciful to us!
And where were you during Ivan and Paloma? They were a pretty good whipping…
What about the whipping we got in 2004? Where was God then? It’s because of people like you, making comments like that, that Christianity is becoming so easy to mock. fool.
You have serious issues and are clearly a racist, not something that supposed Christians are, then again, most of you go to church once a week to cleanse your souls / sins commtitted…
And again like most other comments from "chrisitans", yours has nothing to do with the stroy here.
what a disgusting, disgusting, disgusting attitude you have. If you are a christian then i no longer want to call myself a christian. Incase you didn’t understand – i find your understanding of christianity disgusting.I am sickened to my soul at the thought that someone living on this island would say that the Haitians deserved the earthquake. DISGUSTING
Luckily i am pretty darn sure Jesus doesn’t have the same views as you and it seems highly unlikely i will be seeing someone as cruel as you in heaven.
This post is an absolute outrage :
Church without some religious extremist killing us! There is only oneGod and he’s in heaven! Look at countries like Haiti, Indonesia, China countries that don’t believe in God
Have you ever been to Indonesia , China or Haiti ? No you have not , because if you had you would not have posted such an ignorant comment.
China and Indonesia’s people celebrate many religions and believe in God, they have thousands of years of culture and are a peace loving people, having lived in both countries for many years I never heard any of them say, oh we can’t have Christians come here because we are xenophobic, intolerant, bigoted, small minded people that do not respect other peoples beliefs…Imagine the shoe was on the other foot before makingsuch a dumb post…
Get over yourself we all came from the same place, we all believe in god and we all follow different paths, none has claim over the other…Unless I am wrong Jesus preached tolerance and understanding…
So true!
Over the decades God has blessed us with the ill gained proceeds of:
– Drug trafficking
– Money laundering
– Embezzlement
– Insider trading
– International money market manipulaiton
– Illegal global ponzi schemes
– Robbery of national economies worldwide
– Lost international retirement funds
– Lost international pension funds
– Forced home / business mortgage repossessions
– Proceeds of human trafficking
– Insane levels of tax evasion reeking havoc on people everywhere
– Corruption proceeds all over the third world
– Illegal and predatory hedge fund practices
… should I go on?
Honestly, I don’t know where Caymanians get off with that "God has blessed us" garbage!
Stop looking at the end result alone – what about the actual process?
Still feel "God-blessed"?
Can CNS block these kind of posts ?
We look like idiots to the rest of the world.
Please shut up you nut bag.
I’m sure our Christian beliefs will soon be offensive to the many non Christians and we have to be careful to preserve the freedom to worship. In England the Govt. are bending over backwards not to upset non-Chirstians and in doing so, they are taking away the rights of Christians to wear crosses, disolay bibles in a store at eye level, etc., etc.
The concessions are based on a Business Model only which was put forth and if the model is correct, the concessions do make some financial sense. But if the business model for what ever reason turns out to be incorrect, we have sold the farm one more time. The Ritz was given concessions also. And it still has not been made clear, ignoring the rosy speeches, what concessions DECCO has received. Also, removing ourselves from the Gray List involved many concessions. So far, wehave an excellent track record at concessions.
Giving concessions only make senses if what was given… outweighs what is received. Otherwise, they are not concessions. It’s called being taken advantage of under pressure.
Any concession to whatever entity, must have the people of the Cayman Islands at heart. The Caymanian laborer must have some fair and decent share in this too. Time will tell
Please stop the propaganda, the undermining, the sabotaging.
Right now, what is good for Cayman is good for everyone.
Let’s get the economy going, get everyone employed and then duke out the finer points before the next election.
If the Premier keeps this up I will hold my nose firmly and vote for him.
not only hold your nose Anon 02:43, you will also have to clean the brown off of it.
This hospital is by far the best thing to happen to these Islands in a long long time. This has the potential to be as huge a step as those taken by Sir Vassel Johnson and our other Heroes in the sixties and seventies when the foundations for the financial industry were laid.
It’s sad, but not surprising, to see that people are sniping for no reason other than the fact the current Government made the deal. I can almost guarantee that there will not be a single reasonable, logical argument against this project in any of the 100+ comments this article will do doubt produce.
In all fairness, though, the deal was not available for the previous administration to make.
Incidentally I dealt with the last Government and they where very bad at offering concessions or supporting foreign investment…I know of one large project that almost left the island…
Lets talk in 5 years about your predictions pal. Based on the scanty information provided it is difficult to assess the benefits or pitfalls of this project.
Perhaps if the government had offered more explanations to us the public about this project, including location, (incidentally whose money it is that is being lost in concessions) there would be less speculation and more support.
Let’s compare how much much money is lost if we did not get the project,because every country in the world offers investor incentives or concessions. 100% of nothing is nothing…We really do not have too many bright economic minds on this forum
"…..people are sniping for no reason other than the fact the current Government made the deal." Wake up please!
durrr,
You got serious issue, I am lost for words that you would actually agree with this "Buffoonery" from McKeeva. None of these goals are realistic, many people will be disappointed, because this one needs for time to weigh the risks and benefits, but it’s rushed.
I honest believe you don’t appreciate and understand the amount of planning that actually goes into building a hospital!
How can you accept a leader who talk about consulting the people, how can one sign a deal before even consulting with the planning department on such an important project, who can he give the go ahead for this project when people haven’t had an opportunity to object or the least, see some plans.
Kudos to Mr. Bush for creating a lot of "uncertainty" with this latest blunder, I hope you are aware there are procedures and timeframe for how projects get approved in the Cayman Islands. Are planning going to be forced to approve this one through? Is this the rightway to do things, Hell NO! This Buffoon of a premier has to be stopped now, 160MM over two years?
I can also predict with a fair amount of accuracy the planning and introduction of the infrastructure that will be require for this project has already set them back by 2 years, it doesn’t matter where it’s built, their already 2 years behind.
Mark it down on your calendar.
P.S. This site would be selected in a "few days" w as the Doctor’s words. Is the site coming on the "Old Cimboco"
Your thumb-rating shows the Caymanian support for the UDP. I am glad that Dan Duguay and Governor Jack did not stall this project – where would we be if this project was stall for next year??? So, we must now move forward and put first the Caymanian people. This like the hospital will help our economy. Everyone, PPM and Indepedents – WE HAVE ONE THING IN COMMON – WE ARE ALL CAYMANIANS. LET US GIVE THIS PROJECT OUR 100% SUPPORT!
The Emperor had no clothes also, sounds familiar?
Wonder which figure will be the greater, the concessions or the duties. Bet the Premier wont answer that one.
I think if you are not seeing the bigger picture on this you are just incapable of it.
I don’t like Big Mac and I make no bones about that but this is something we need not just for now but for years to come. Our Tourism business is slipping andhas been for years. When Cuba opens and some day it will we are in deep deep well you know what comes next. Cuba has everything we need and don’t have. Sites, lower prices, beaches.
We need this 3rd leg and it could become our 2nd leg if you are able to segregate the two. If you look at what it will inject the numbers could be mind boggling. You need to get up off your brain and try to see this from all angles. I have. I fear some aspects but in truth if you do the pros and cons the pros and cons are not even in the same ballpark. In short you are looking at 160-200 mil on one hand and billions on the other
Lets put this another way. This could become a recession breaker for us. We could "feel" like we are out of the recession while the rest of the world is struggling still because of the impact this could have on us.
Construction industry will boom again not just from building the hospital but other investors will consider building more apartments to house the doctors coming in to man it. All the home and garden stores, lighting and others tied to construction will boom.
Real Estate could also see increased activity as doctors tend to have good money and might want to buy property here.
Grocery stores will see significant increased activity. People need to eat and 5K to 10K more people means a hell of a lot more food being consumed.
This list will go on and on and let’s not forget Cayman Airways, hotels, car rentals and taxis all will see significant upswing.
YES CIG is giving up a bit but this is the game. Any business person can tell you that to make money you have to spend money. This is CIG version of spending money. This is in essence an investment by the CIG into this project with the thought that it will input far more back into the economy and the beauty of it is this it’s not like real money. All you are saying you are not going to get as much as you would normally. Almost like giving a volume discount to a preferred client.
This is BIG for us and if you don’t see that you may as well give up on understanding business because you don’t have the brain for it. Period.
This is probably one of teh few things during his tenure as Premier I will agree with him on.
Does itmatter which is greater?
If there are $X concessions and $Y duty that is still $Y for the Cayman economy….
COMING UP:
Numerous rants about how this will increase the number of expats and how the hospital should be staffed entirely by Caymanian heart surgeons.
Who cares? The comparision between the amount of concessions given and duties received is irrelevant.
I wonder which will be greater 100% full duties on zero projects or part duties on many projects – again not many economic genius’s on this forum