Laws pave way for water sale
(CNS): With government having put out the country’s sewage project for tender last year, the deputy premier brought three bills to the Legislative Assembly this week that pave the way not just for privatisation of the Water Authority’s wastewater management system but the entire authority. The combination of new laws and amendments which deal with the production of water and concessions to provide it, wastewater collection and the management of the system were, Juliana O’Connor-Connolly said, “crafted with care” and allowed government to move to the “implementation mode of its wider policy for divestment of these assets.” Later in the debate, the premier revealed that his intention was to lease the water authority but offered no details of the plan.
The new laws brought by the minister with responsibility for the authority, Juliana O’Connor-Connolly, will ultimately mean an increase in costs for most people in the Cayman Islands. Everyone will be charged not just for the water they use in future but for the treatment of sewage as well. Under the new Wastewater Collection and Treatment Bill (2010), all buildings must be connected to the wastewater system, under whichever private organisation is eventually selected.
The three bills have been crafted to facilitate the sale of the government’s water company but during the debate on the legislation, which spanned across two days in the country’s parliament, the government did not reveal any of the details of how it intended to privatise or lease the Water Authority itself and to whom.
As he contributed to the debate on the third law, the Water Authority Amendment bill, the premier lashed out at the opposition for asking government to spell out those plans and said he needed money to run the country because of the previous administration’s mismanagement. He described the opposition as “evil” and said they were deliberately misinforming the country that there was something “nefarious” going on when he was trying to do something to improve the financial position of government.
Bush indirectly implied that civil servants had been leaking information to the opposition when he said they “knew too much” and accused people at “authorities”, whom he later said he had assisted to get their doctorates, as impeding government’s intention to realize the assets it had at a time when the country needed money.
Giving little away with regard to the plans for the actual authority itself, the premier was furious as he struck out at the opposition over their questions to government about the bills when he said people had been waste deep in sewage in Hurricane Ivan. He warned that if a visiting tourist were to catch any kind of gastric condition from swimming in Cayman waters, the country would seriously suffer.
During his attack on the opposition, which began on Monday evening and recommenced on Wednesday afternoon, the premier went no further in revealing what he intended to do with the authority other than saying it would be leased, not sold.
Alden McLaughlin had raised the point that the legislation seemed to be what he said was “purchaser-specific”, as though it had all been drawn from an existing checklist, and wondered if government already had someone in mind. “This is not being developed in a vacuum, with government looking to find the best possible arrangement,” he said, adding that he believed the laws were prepared in such a way to allow the purchaser to sign on the dotted line.
The opposition and Ezzard Miller, the independent member for North Side, who said he was against the privatisation, also raised the question of why the usual requirement under the law for Caymanians to have a 60/40 split with foreign entities for local companies was being waived, suggesting that Caymanians would be denied the opportunity to be involved.
Arden Mclean, the member for East End who was the former minister with responsibility for the authority, pointed out that the Water Authority was a profitable entity and he did not support its privatisation. He said that in 2008 it was valued at over $61 million.
“All I want to know is, if the people’s money is going to be used to make someone else money or are we getting that $61 million back right now?” he asked. McLean pointed out that over the years the government had reinvested the profits of the authority back in, so it was the people’s money which was used to allow the authority to be self-sufficient and keep the people’s water safe. “All of a sudden the Johnny-come-latelies are going to ride on their white horse and they are going to use the country’s money to make their own profit.”
The three bills were passed through a second reading and following a committee stage for any amendments to the legislation, which is expected to be passed in full by Friday.
Category: Headline News
We have all been sold to the cheapest bidder, so what’s all the fuss about?
Shut up and go get your slave number from your new masters.
While you are at it kiss the Premier’s ring on they way and thank him for selling you again and again.
I live in a country where every one has gone mad, and are all high on prescription prozac.
Awww shucks, let me shut up, pop a pill and get to work!!
Selling profitable assetts are "short term gain for long term pain". It amounts to any of us say selling our house, paying off the 15 year mortgage and then renting one.
Sure it will provide a lump sum upon sale, but then where will we be in say 6 to 12 months….that’s right….money done, assett gone and rent still due. And the landlord can then increase the rent to any level.
Govt. needs to decrease it’s expenses/expenditures….not it’s assetts/revenues!
Mac: concentrate on divesting the Turtle Farm (which YOU indebted) by making it into "Boatswains Beach" against good business advice. And while you’re at it, try divest Pedro Castle also….even if it means giving them up for peppercorn leases.
Leave Govt. assetts such as the new Govt. Admin Bldg and Water Authority alone.
Have some National Pride man. And try listen without hollering and blaming everyone else!
The premier is 100% pro-Caymanian. He will consider Caymanians in the sale of government assets. Im so sure that any foreign company without Caymanian investors will not be considered. This will be a win win for the country
Whats this about locals not being able to buy into the water authority or sewage deal? Thats rubish!!!! If Caymanians are not considered during the divestment of these assets as investors then I for one will personally petetion the government. I would like to give the government the benifit of the doubt because they were not the legal drafts men they were not aware of this. Since when has it been acceptable to disguard Caymanians as suitable investors. Mr. Preimer the country is watching!
Just a couple of quick comments re the Premiers tongue lashing that he gave the opposition in the house yesterday.Mr.Premier when are you going to stop your ranting and raving and try to get on with everyone for a change.Did you not make any new years resolutions???To hear you on the radio last nite was a disgrace to this country.Madame speaker tried her best to get you to tone down at least by the sound of it but yet you continued to berate the other side of the aisle.We will never solve our countries problems with that type of goings on and again I ask you to stop and get on with the business at hand.There may be some who love to hear this type of stuff from you but even in West Bay people are wondering what has made you act like this in the house.Seems like no one else on the govt side is willing to get up and say something as you seem to have the House to yourself.Must be very stressful being in that place so no wonder the House only sits for so many sessions each year.
What bothers me is that with every "tongue lashing" he delivers a load of false statements and he is still in office.
One example that comes to mind is his assertion that the recent RFP for financing included a proposal for financing for Cayman Airways. It did not.
In his recent "debate", for lack of a better word, he again repeated his claim that raw sewage was leaking into George Town harbour, despite being told many times by DOE scientist that it is not raw sewage.
If working as a messenger for a major bank 40 years ago qualifies one for the post of Minister of Finance, then I’m sure he knows more than the scientist at DOE who only had the benefit of a few years of study at the university level.
It is only natural for those in the opposition and the private sector to be very suspect of the Premier and Deputy Premier when they will not disclose details of the privitization or to whom they have been speaking to and to have the 60/40 policy waved. For Mr. Bush to become angry and bring up Ivan and tourists getting gastric illnesses is humous at best. If some one takes the time to peel back the layers of onion they will discover the true motivation behind this sale or lease or whatever it is.
Bullying and blaming. Mr. Bush, your tactics to deflect well-deserved criticism got stale ages ago. You are beginning to sound remarkably like Hugo Chavez. Is he your role model, your hero? Seems so. At one time I thought better of you but by your antics you have placed yourself even lower than your most base opponents.
Mr. Bush, Is being bellicose the only mode of conflict resolution you know? Is ridiculing your opposition the only way you can make yourself look good? Seems so.
Is mudslinging using dirt from the past the way you intend to lead this country forward, Mr. Bush? Seems so.
Mr. Bush, your belligerent demeanor does not become your office. Is your aim to make this once tranquil and proud country look like a banana republic in the the eyes of the world? If so you seem to be on the path of success in that endeavour.
You do not have the class to pull off a combative attitude and make it seem statesman-like. Trust me when I say this, of late you come across more like Ahmedinejad of Iran than Sir Winston Churchill.
The Cayman Islands deserve better than this.
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"A fanatic is one who can’t change his mind and won’t change the subject." Sir Winston Churchill
why he don’t rid of the nusiance of Boatswains Beach that he wsted millions and millions on and continue to do so, all it does is suck the money from this country
This government is destroying this country even more… that’s all Mac has ever done is destroy us check his record
Why would anyone buy it if it loses so much money? think about it slowly
Give it away and we will save money! think about it slowly.
Who to? even giving it away it still comes with it’s debts and with those debts will be lose making for ever more? why do you think they have to charge so much money
Or are you offering to take it and all it’s obligations on for free?
Cassius Dio, paying off the debt is a lot cheaper than sinking $9Million dollars annually into this venture for the next 10 years. I am sure this debt is not at $90million at this point, so we would save. Any astute businessman would have cut their losses before or at the current level Boatswain Beach has cost this country.
Oh and by the way, the current amount of money being charge still does not cover the operational cost of the business; we would need to increase these charges to a level where no sensible person would pay. This is just not a viable business.
Please help us understand your financial suggestion/plan for making this a viable operation?
lol….Just sell the whole Island…..and call it quits….Really…what is Cayman coming to? Or what has it become?
If islands are that bad then maybe it is good idea to sell them?? logical?
Can we see if we can get anything for the Brac? Budgetary easing and the end of Juliana’s power trip. What is the downside?