Archive for January, 2011
OECD calls for abolition of stamp duty
(FTAdviser): OECD economists speaking at the launch of the OECD’s report, Housing and the Economy: Policies for the Renovation, said the abolition of stamp duty would reduce barriers to entry in the housing market. Asa Johansson, OECD economist, said stamp duty should be replaced with an increased council tax where part of the funds went to local councils and part to the Treasury. She said: "I think stamp duty should be removed and replaced with a property tax based on the value on the house. It adds on costs for people entering the market." Johansson proposed replacing stamp duty with a yearly tax, similar to council tax but with part of the funds going to the council and part to the Treasury.
She acknowledged such a tax would have the most impact on those home owners who are asset rich and cash poor but said a revised taxation system would be fairer as it would not penalise those who engaged in property transactions.
Documents reveal US- Swiss political deal over UBS
(Swiss info): A document revealed by whistleblowing internet site WikiLeaks appears to show that Switzerland struck a deal with the United States in 2009 to help embattled bank UBS. A “secret” US dispatch published by Norway’s Aftenposten newspaper alleged that the Swiss government had said it would shut down the activities of the Swedish firm Colenco which was believed to be violating sanctions in Iran. Last year’s Swiss president, Doris Leuthard, had also reaffirmed to the US that Switzerland was prepared to accept “several detainees” from the US prison at Guantanamo Bay. Leuthard is said to have linked both to the achievement of a political settlement in the case of Swiss banking giant UBS. The minister denied the claims on Thursday.
“There is no direct connection between the UBS dossier and the acceptance of detainees from Guantanamo as well as the activities of the Colenco company in Switzerland,” she told journalists.
“As you know, the government mentioned its willingness to accept Guantanamo detainees on January 21, 2009 after US President Barack Obama had announced the closure of the base.”
Burns presses on with history book
(Jamaican Gleaner): Cayman architect and developer Burns Conolly, has been doing some hunting for information in a quest to finish a book his father started before passing away in Jamaica. Conolly has turned to The Gleaner’s archives for the information he needs. "The working title of the book is The Cayman Century and it is his account of the changes in the Cayman Islands from 1900-2000 in the social, economic and political arena," Conolly explained. "My dad spent years in the House representing our region. He was in Government when our 1972 constitution came in, which for the first time gave Caymanians direct responsibility for areas of government. My dad was responsible for tourism, planning, agriculture, lands and survey, environment and natural resources."
Conolly’s father, William, passed away in 2008. Father and son had completed the first three chapters of the book together, but now it is left to the son to finish the book.
"This is the first that I’m writing a book of this nature and using my knowledge to actually complete my dad’s goal. I really do not do research of this nature. In the past, this type of research would have meant an expensive trip to Kingston," said Conolly.
Murder retrial adjourned after closed door hearings
(CNS): Following a week of closed door hearings before the second trail of William McLaughlin- Martinez for the murder of Brian Rankine-Carter was even started the hearing has now been adjourned for three months until 4 April. Although CNS is unable to report on the issues in question for legal reasons the presiding judge revealed on Thursday that the matters in dispute between the prosecuting and defence attorneys had finally been resolved. The actual trial itself however, could no longer continue because of timetabling problems. Martinez remains on remand at Northward after his murder conviction was quashed by the court of appeal.
The twelve man jury which had been selected to try Martinez was dismissed by Justice Charles Quin and a new panel will now be selected in April for the rail which is expected to take at least two weeks. Martinez (34) was first convicted of killing Brian Rankine Carter (20) 2009 and sentenced to life imprisonment in July 2009. A retrial was ordered by the court of appeal in August last year
During the trial the crown had relied upon forensic evidence and a key witness who was later convicted as an accessory to the murder. Jason Hinds who testified that he was with McLaughlin-Martinez on the night of the killing and saw him attack Rankine-Carter, is a Jamaican national who was deported by authorities here after he had served his sentence.
The murder was described by the police at the time as particularly brutal as the young male victim has sustained more than 48 wounds during what appeared to be a frenzied attack.
Free healthcare for CS no longer an option
(CNS): A clear message was sent out at a conference geared at turning around Cayman’s healthcare system, with high level officials calling for a change in the way civil servants, who currently receive all their healthcare premium costs paid for by government, receive their healthcare benefits. Canover Watson, Chairman of the Health Services Authority, called for the “entitlement behaviour” of civil servants to end. “This entitlement culture has to be addressed. Until there is shared participation in healthcare there is no incentive to change,” Watson said. (Left: James Watler – Photo by Dennie Warren Jr)
The HSA chair was speaking at the Cayman Islands Healthcare Thought Leaders Forum held at The Ritz-Carlton, where the controversial issue was raised. Watson said a sacrifice for the greater good was needed. “The civil service is a large voting block for government, so it will take political risk to make the change … Whatever plans we implement, however they are structured, there needs to be change,” he added.
The health minister also said that, given the country’s growing and aging civil service, the unlimited medical plan for civil servants could not continue. “I don’t know of any other organisation in the world that pays 100 per cent medical coverage. It is unsustainable,” he said. “We have no tax base and our revenue is declining … We need all the different groups on board to address the issue.”
However, James Watler, President of the Cayman Islands Civil Service Association, (above) vociferously defended the civil service and said that his association had tried many times “to conduct dialogue with the government in this respect."
Lizzette Yearwood, the Health Services Authority’s CEO, said the HSA wanted to keep that dialogue going as she believes that the momentum for change had already begun and that Cayman could not continue where it was. She pointed out the recent steps to change the health insurance legislation to ensure that more people were effectively covered and the evolvement of CayHealth, the initiative designed to take the pressure off emergency and acute care services using preventative healthcare measures and providing primary healthcare.
Kenneth L. Di Bella, President & CEO of CBCA Administrators, Inc, which works with the Cayman Islands National Insurance Co (CINICO), organised the event in a bid to address the issue of Cayman taking responsibility for directly contracting health care providers instead of using a third party or “middleman” at great expense.
Di Bella also presented the idea of introducing wellness and disease management programmes into Cayman in a bid to encourage people to take responsibility for their health and stem the rise in chronic conditions and thus reduce healthcare costs.
After it was pointed out that there was no reason to try and incentivise individuals to look after their health when they already received 100% free health insurance coverage, Di Bella said that the system would have to look internally to see whether it could continue.
“I suggest a system that gives free healthcare cannot continue,” he said. “But you need the political will to make the change.”
Chinese to build North Sound channel
(CNS): The idea of a channel in the North Sound to facilitate mega yachts is back on government’s agenda following the premier’s announcement on Thursday that there is interest from a group of Chinese developers to construct it. McKeeva Bush made a number of announcements about potential development projects, including a pier at the Turtle Farm, a dock in Cayman Brac, new roads in the eastern districts, enhancements at the airport and the channel, which the group of Asian investors may be involved with. Bush said the channel was “absolutely necessary” and would allow the large vessels to dock in Cayman. (Photo Dennie Warren Jr)
Speaking at the CBO conference at the Ritz-Carlton on his birthday, the premier explained that the motivation for the channel was the growth in mega and super yacht registration and in particular with Cayman’s own maritime authority.
“At the end of 2010, the Maritime Authority of the Cayman Islands had 1,870 vessels on their George Town Registry – a 3% increase from last year. Notably in this economic climate, it was the second best year ever in terms of new units registered,” Bush revealed in a presentation full of announcements. “We are also a world leader in super-yacht registration, with 85% of vessels registered as pleasure vessels and 15% as commercial ships.”
He said he was optimistic that, based on the 2010 figures, the next few years would continue to be as successful and Cayman needed to provide the facilities for the yachts to come to the islands, in turn offering new local opportunities. “I believe that the new North Sound channel will not only provide the potential for recreation, habitat preservation and development, but also offer integration opportunities for local hotels and residents. Rest assured, these projects will provide numerous benefits to residents and visitors alike.”
Bush asked the audience why he should not build the channel as the Sound was already suffering because it had become so shallow the water was no longer as clear as it once was. Warning the “naysayers” to come up with better ideas, he said, “If you are going to object tell me what you would do.”
The North Sound, he said, was an asset that the country should use but his government was not seeking to impact the entire area.
“We are simply turning our thoughts to the smallest but most practical channel being developed within the North Sound – leaving the vast remainder of the Sound untouched,” the premier stressed. “Thus far, we have had major investment interest from a Chinese company, which we are currently exploring, to provide the necessary infrastructure to take full advantage of the channel from an economic perspective while mitigating any potential adverse impacts on the environment.”
Although he did not name the Chinese company with which the government has been discussing potential projects, he said the development of a pier and related facilities near to the Cayman Turtle Farm in West Bay; development of a cruise pier and related facilities in Cayman Brac; major road works in the eastern districts of Grand Cayman; and enhancements to the airports both in Grand Cayman and Cayman Brac.
“I have high expectations that we will sign a memorandum of understanding in the near future in order to commence definitive work on these projects,” the premier added.
He also said that if the issues surrounding the cruise berthing facilities in George Town continued to cause problems, the Chinese stood ready to build those facilities as well. Bush lamented the fact that government has been in talks with various people over the cruise facilities but the government has still not got anywhere and he had run out of excuses as to why the project was not underway.
“I am not prepared to wait any longer. If this particular company wants to develop it, I am prepared to go with them.”
Berating the bureaucracy in general, he made pointed remarks to the governor, who was present in the audience, about stumbling blocks and having to do things in certain ways because the country was a democracy.
“If I was still chairing my boards it would have been done by now, but people would say I was up to my old tricks” he said to the audience, adding that people call him a dictator and he wasn’t a dictator but he wished sometimes he was.
He pointed to a pressing need to improve the airport, especially with the increase of private jet arrivals. “We need new facilities at the airport if we are going to improve our position and want wealth to rise above poverty. We need people with private jets to come here, even if they do offer me a lift,” he said to wide amusement from the audience as he referred to his own return on a private jet on New Year’s Eve.
Dart to get dump after all
(CNS):Although the Central Tender’s Committee recently announced that the contract to tackle the country’s landfill (a.k.a. Mount Trashmore) had been awarded to a US firm, the premier made a surprise announcement at the Cayman Business Outlook on Thursday morning that the Dart Group would be taking on the existing landfill after all. Although the Dart bid had been rejected during the CTC process, the premier revealed to the conference audience thatthe developer of Camana Bay would be taking the dump, capping and remediating it, and then giving the government another piece of land, probably in the Bodden Town area, for a new landfill to be sited.
The premier gave no details of how the new arrangement will work, given that the US firm Wheelabrator won the contract based on a request for proposal that required them to manage, operate and deal with the existing landfill in George Town. The premier spoke about the creation of a new eco-park but did not say whether that would be managed by Dart or with Wheelabrator.
Dart has made no secret of its desire to own the land at the George Town landfill as a result of its close proximity to Camana Bay. The group did submit a tender in response to the request for proposal put out by government last year, but sources close to the technical committee that reviewed the ten requests said that Dart’s bid came in 7th and was considered unsuitable, not least because the proposal included moving the dump to the Midland Acres area on the edge of the Bodden Town district.
Speaking after the premier’s announcement, Dart Managing Director Jim Lammers said that they did not know which land the group would swap with government for the property where the dump is currently located but the remediation and capping of Mount Trashmore could not begin until a new site was identified and set up to deal with the country’s on-going generation of waste. He said, however, that once the land was settled and the new waste-management system in place, Dart would begin work on tackling the remediation and capping at its expense.
Lammers said he did not know where that left the company which had been awarded the contract by the CTC just before Christmas as he said the method for dealing with garbage in future was up to government. He said that since the Dart was now absorbing the cost of dealing with the existing dump, the people of the Cayman islands would not have to pay as much in either tipping fees or government subsidies to cover the cost of dealing with the dump as those costs would now be borne by the Dart organisation.
If Wheelabrator decides it no longer wishes to continue, given the project changes, the technical committee will probably move to negotiations with the company which came in second to take the contract for the future waste management of the dump. CNS understands that WRR, which scored the second highest amount of points, is owned by the same people who were involved in MC Restoration, the controversial company which was given the post-Ivan clean up contract.
Mac signs ‘nerd’ zone deal
(CNS):The premier has signed an MOU to pave the way for the development of a unique science and technology economic zone that will create thousands of jobs and bring new investment. The specialist park will be developed by Hon Cayman Properties Ltd and provide facilities for IT, research and development, bio-technology, new media, further education, global commodities and other intelligence led business in a specially designated tax-free zone. McKeeva Bush signed the deal with the Hon family during the CBO conference at the Ritz-Carlton on Thursday, saying it would bring a whole new aspect of business to diversify Cayman’s economy.
He explained that government would be passing specific legislation that would facilitate the creation of the commercial area focusing entirely on future science, technology and intelligence led industries. Bush said the establishment of the economic zone, which will be the first and only in the Caribbean region, would be developed over 300 acres encompassing six different campuses focusing on specialist areas. He promised that thousands of well paid jobs would be created, and while the developer and the subsequent investors would have work permit needs, facilitated positions would be earmarked for Caymanians.
“We are going to be successful if we cooperate with our investors, work with them, show them kindness instead of digging pits for people to fall into,” said Bush as he warned people not to tear down the project, which he said would be very good for the country.
“When you tear down me or speak bad about government you are talking bad about yourselves,” he warned people as he asked the country to embrace this new proposed development.
Although the premier and the developers did not reveal the names of the leading global technology, research and pharmaceutical firms that they said would be coming to the zone, they said that there was significant interest from major companies.
The premier also promised that there would be some benefit extended to the Sister Islands as partof the technology zone, though he did not go into specific details.
The premier pointed out that the MOU was the first step in the negotiations and the issue would be discussed in Cabinet.
Jason Blake, CEO of Hon Cayman Properties Ltd, said it was the most exciting initiative to happen in the Cayman Islands for many years. Hon is not new to the Cayman Islands as the developers were responsible for the HSBC centre on the West Bay Road. Blake gave an approximate timeline for the development of the campuses as around 18 months but said the first business licenses for these new technology companies would be awarded before the end of this year.
Visitor assaulted on 7MB
(CNS): While details are sparse, the RCIPS has said it is investigating a report of an assault on a visitor that occurred just before midnight last night (Wednesday 19 January) on Seven Mile Beach adjacent to Calico Jacks. Police say that a 21-year-old man from the US was conveyed to George Town Hospital where he is being treated for his injuries, which are not thought to be life threatening. Police are asking anyone who was in the area or at Calico Jacks at the time is asked to contact the CID at George Town.
CNS will update when more details are known.
45% of US students don’t learn much in college
(Huffington Post): A new study provides disturbing answers to questions about how much students actually learn in college – for many, not much – and has inflamed a debate about the value of an American higher education. The research of more than 2,300 undergraduates found 45 percent of students show no significant improvement in the key measures of critical thinking, complex reasoning and writing by the end of their sophomore years. One problem is that students just aren’t asked to do much, according to findings in a new book, "Academically Adrift: Limited Learning on College Campuses." Half of students did not take a single course requiring 20 pages of writing during their prior semester, and one-third did not take a single course requiring even 40 pages of reading per week.