Archive for June 26th, 2010
Fuel duty increase too much, says Chamber
(CNS): Although the Cayman Islands Chamber of commerce has offered its support to government for its key strategies in its three year plan it has raised concerns over this year’s budget. The business body said the 25 cent import duty adjustment on a gallon of fuel was a significant burden and was disappointed that MLAs had rejected the 20% pay cut. The chamber said its council was still reviewing this year’s budget and will release its full findings to the community when the assessment was complete. The chamber called on government to create a favourable environment for business and address ineffective and outdated bureaucracy. (Photo Dennie Warren Jr)
Based on a preliminaryreview, the Chamber said it supported the five key strategies that the Government has committed to implementing over the medium term — public sector reform, limits on new borrowing, broadening the revenue base of government, reducing operating expenditures and creating public/private finance initiatives.
The Chamber said it recommended and supported these strategies during talks with the Premier in September and pointed out that the private sector has already begun cost cutting in order to endure the economic difficulties.
“Our country is facing the kind of challenges that it has never faced before,” said Stuart Bostock, Chmaber President. “Although the Budget Address looks at many necessary issues, we must not lose sight of the long term economic strategy that must create a business welcoming environment for our future prosperity. One or two years from now when the world is once again looking to invest we have to be ready.
“We must put the necessary legislation in place that will give us a competitive advantage in what will be a very hungry market, and we must make sure inward and internal investment is encouraged and not hindered with ineffective and outdated bureaucracy We must remove the uncertainty from investors’ minds and present ourselves as a viable and stable option for global business,” he added.
The Chamber said the cut to public sector salaries by 3.2% and the 10% cut to the premier and opposition leader’s salary was a step in the right direction but the failure to extend "greater reduction in salaries across the elected government is very disappointing," it added.
Offering its support to the completion of the ongoing reviews of government departments which it has assisted, the Chamber said it hoped these efforts were not in vain.
“We look forward to learning whether any of the recommendations have been accepted by Cabinet and are incorporated in the 2010/11 Budget for implementation,” the Chamber said.
Opposing any additional revenue measures increasing the cost of doing business, the Chamber raised the fear that with so many increases in place, in particular, work permit fees, port fees and import duties that the impact on many small businesses has been too severe and these businesses need immediate relief from these recently imposed costs.
“The import duty adjustment on fuel of 25 cents per gallon, whilst generating an estimated CI$10.3 million in additional revenue for Government, is another significant burden that will drain the resources of many local businesses and the community at large,” the Chamber added.
The majority of Chamber members are small businesses and a recent survey as well as its Be Informed series has revealed very real concerns among them. “Medium and long term plans are absolutely necessary but we know that many of our members are looking for some immediate reprieve,” the chamber stated.
The business lobbying group also said it supported the development of cruise berthing and despsite its claim to environmental credentials the chamber is supporting the development of a mega yacht facility which will require extensive dredging of the North Sound and the relocation of the cargo dock.
“We welcome the news that the Memorandum of Understanding between the Cayman Islands Government, the Port Authority and DECCO was signed for the construction of two cruise ship berthing finger piers. The Chamber continues to urge Government to consider the relocation of the cargo facilities, medical tourism development, convention facilities, waterfront redevelopment in George Town and the attraction of the reinsurance and captive insurance sectors and additional private trust businesses as additional long-term revenue opportunities,” it stated.
The Chamber also announced that in support of government initiatives, it had begun work on the development of a Future of Cayman Forum; an economic development initiative that will bring together key industry associations, businesses, public sector representatives and government leaders. Forum participants would identify key drivers considered to be essential to build a sustainable economy.
Developers offered use of public land
(CNS): Changes to the Development and Planning Regulations 2006 to allow developers to pay to use parcels designated Lands for Public Purposes are now in effect. One of a number of amendments to the planning regulations this gives developers of subdivisions the option of using the five percent of the site that they were previously required to set aside for public purposes such as parks, playgrounds and, importantly, rights of way. The regulation changes have also significantly increased fees for after-the-fact planning applications to deter people from building without planning permission,government officials said.
Land parcels that would have been designated LPP can now be built on as a result of this change. A release from the premier’s office, as planning and development now falls under his ministry, said the changes were as a result of the failure of LPP to be managed.
“While LPP sites remained in the name of the developer, the law did not speak to who was responsible for the building and maintenance of such facilities. As a result, the vast majority of LPP parcels were left undeveloped and became overgrown,” the release sated. “Some LPP parcels have become havens for rodents and illegal activity.”
“While LPP sites remained in the name of the developer, the law did not speak to who was responsible for the building and maintenance of such facilities. As a result, the vast majority of LPP parcels were left undeveloped and became overgrown,” the release sated. “Some LPP parcels have become havens for rodents and illegal activity.”
The recent amendment to Section 28 of the Development and Planning Law now gives subdivision developers the option of paying government a fee equal to the value of the LPP parcel which can then be utilized commercially. There is an application process that includes a valuation of the property and the release said the revenue from the “buy back” of LPP property is earmarked for the development of parks, playgrounds, sports fields and public rights of way.
The statement did not reveal however, how rights of way will now be guaranteed on sites where a developer builds on LPP that is also an access way for other land.
Another amendment in the regulations addresses the construction of buildings or other structures started or completed without planning permission, increasing fees by ten times.
“One of the problems with projects that are built without planning permission is that they often violate some aspect of the regulations or code,” the release stated. “When an after-the-fact application is made and the CPA requires a change, the owner then claims undue hardship, creating a dilemma for planning regulators. The after-the-fact application fee is increased from two times the regular fee to ten times the regular fee. The aim of the increase is to act as a deterrent to building without planning permission.”
The new fee only applies to buildings started after the amendment came in to effect.
Other amendments establish an Elevator Certification Permit, fees for repetitious submissions, an administrative fee for submissions withdrawn before a decision is taken and fees for electrical modification and customized reports.
(CNS): Despite the fact that no one won the big $1m prize a good time was had by all at this year’s Cayman Crime Stoppers golf fundraiser. The Cayman National Million Dollar Shootout Golf Tournament helped boost funds for Cayman’s crime fighting volunteers. With crime on the increase the NGO said it was crucial to raise cash for and the profile of the organisaiton. The event took place on Friday 4th June at the North Sound Golf Club and was supported once again by long time partner, Cayman National, which was the platinum sponsor of the event.
(CNS): The Cayman Islands Amateur Swimming Association’s (CIASA) has broken the Guinness World Record for a Bikini Parade. The event held on 17 June attracted more than 331 women in bikinis beating the record of 323 set by a team in Japan. CIASA flawed the record of 250 for a swimwear parade with 385 men and women in total. Starting the journey at Tiki Beach the bikini-clad woman and men made the one-mile trek along Seven Mile Beach. The parade also raised funds for swimming association. (Photo by Dennie Warren)
(Swissinfo): Spanish tax authorities are investigating 3,000 accounts at HSBC bank in Switzerland over possible unpaid taxes, the Spanish finance minister has confirmed. Swiss authorities say they were investigating the information published this week by Spanish newspapers El País and Expansion about up to €6 billion hidden in Swiss accounts. Spanish Finance Minister Elena Salgado said owners of the accounts had been notified to clarify whether they had declared the money in the accounts. "The account holders have been advised. They have to put the accounts in order with the Treasury and of course they will receive the corresponding sanctions and penalties," Salgado said.
(CNS): GIS Marketing and Communications (GIS) has launched a Cayman Islands Gazette website that it says simplifies and modernizes access to the official government publication. The government department said the new site is practical and user friendly. The GIS boss Angela Piercy said not only did the site break new ground this first phase was completed ahead of schedule. The site it’s expected to provide the Cayman public with direct access to all the country’s new bills and laws once they are gazetted.
(CNS): With the tourism market still a tough one the news that the Cayman Islands has entered the top ten list in several categories by Trip Advisor’s 2010 Travellers Choice Awards has been welcomed by the country’s tourism department. Cayman scored high in Best Beaches, Relaxation & Spa, Outdoor & Adventure, and Romance destinations. TripAdvisor.com represents the world’s largest travel community and its awards are based on over 10 million unbiased and honest traveller reviews. In its second time on the list Cayman was praised for its pristine beaches, unique attractions, affordable accommodation, dining and more.
(CNS): The Cayman Islands has now entered into its nineteenth tax deal following a new tax information exchange agreement (TIEA) with Canada this week. The country’s premier, McKeeva Bush signed the agreement with Canada’s HighCommissioner to Jamaica, Stephen Hallihan in George Town on Thursday. Bush pointed out the long and deep relationship between the two countries and that the new TIEA would have benefits for both Canada and the Cayman Islands. (Photo by Dennie Warren Jr)
(CNS): The Cayman Islands will be marking HIV Testing Day on Monday, 28 June focusing on the importance of knowing ones HIV status. The Health Services Authority (HSA) is offering free testing at all clinics throughout the morning. No appointment is necessary and waiting time is around ten minutes. People wanting a test or counselling need to indicate to the registration clerks that they would like to register for free HIV screening. The results will be available in three working days. HIV is no longer a death sentence and officials say learning one’s status can help infected people to live long healthy lives.
(CNS): One of Cayman’s big four accounting firms has partnered with Junior Achievement to establish a new business ethics programme for high school students, which will be available in schools during the next academic year. JA said the inaugural programme aims to address what it described as a troubling contradiction regarding what behaviour is appropriate in order to succeed in business. Many teens driven by the pursuit of success resort to cheating, while others feel that physical violence is acceptable — a disturbing picture for their future employers. JA Business Ethics, an in-classroom ethics programme will be offered in high schools in the upcoming school year, 2010-2011.