Archive for June, 2012
Budget not balanced
(CNS): Despite being only two weeks away from the end of the financial year, the government is struggling to balance the budget and may face a shut-down from midnight on 30 June unless it enacts some form of emergency legislation to enable it to pay bills. Government’s earning and spending plans should go to the UK three weeks before they are presented to the public and the Legislative Assembly. However, the 2012/13 budget has not yet gone to FCO officials, and despite claims by the premier that he will deliver the budget next week, sources tell CNS this will not be possible as the UK is unlikely to approve the current financial projections.
According to the three year plan, which McKeeva Bush signed with the UK in 2010 in order to gain approval for borrowing after the government fell afoul of the public finance law, it was forecast to have reached a surplus this year of $60 million. Instead, the Cayman government is facing yet another deficit of significant proportions. Bush, in his capacity as finance minister, has spoken about the need to cut $130 million from the first budget requests submitted by government departments.
As this financial year ends it is estimated that government is facing a deficit of over $40 million, despite having predicted a surplus when the budget was presented in June last year. Now the UDP administration is facing the prospect of significant cuts to public spending as it moves into its last fiscal year before a general election.
It is not year clear how large a deficit Bush intends to put to the UK but sources have confirmed that the budget does not balance.
With the year-end deadline just two weeks away, there is not enough time for government to gain approval from the UK and pass the appropriations law. According to the Financial Framework Agreement signed by Bush and the OT minister last year, the FCO must see the Cayman government’s budget at least three weeks before the minister of finance is due to present it to the country. With the UK minister, Henry Bellingham, now travelling overseas and the likelihood of the budget being rejected by the FCO technocrats, Bush could be facing a serious fiscal crisis.
Even when London is finally satisfied, government still needs time to present the approved budget documents for debate in the Legislative Assembly and the public arena, allow Finance Committee to examine the proposed spending plans, make necessary amendments to the bill and then pass the appropriations law — all before midnight on 30 June. If that does not happen, government will have no legal authority to spend any money, pay salaries or meet any financial obligations. As a result, it will need to pass new or change existing laws relating to financial management to enable government to appropriate funds to keep the public sector going.
The member for North Side told CNS that this was an appalling state of affairs for the country and was down to the incompetence of the government, as he made the point that the most important thing the elected government must do every year, if it does nothing else at all, is put together the budget.
“This is an unbelievable way to run a country that claims to be the fifth largest financial services centre in the world,” Ezzard Miller said. “A little less travelling and a little more at home time for the finance minister may have helped. After all, he is the one who must present the budget to the public and the LA but that is hard to do from Honduras, Panama or London,” the independent member said as he pointed to the extensive travelling the premier has undertaken over the last few weeks when the budget should have been his priority.
Miller said he believed that because of theway Bush runs the government nothing gets done without his OK, so the civil servants who have been trying to pull government’s spending plans together have been stalled in his absence.
“As minister of finance he should realise the budget requires a lot more from him than a couple of days to just sign off,” Miller told CNS. He said he expected civil servants would be blamed for the difficulties ahead when it should be squarely placed at the feet of the premier.
Miller explained that there is no legislation at present that can allow government to spend money if it does not pass the appropriations law before the year end during an existing term of office. He said that while provision exists for a new government to appropriate a three month spending plan in the wake of an election based solely on the previous year, this does not extend to an existing administration.
“Government will need to pass a law or amend the PMFL. We know this administration has had no problem amending laws to suit it but it will still need some legislation otherwise it will not have the legal authority to spend a signal dime come midnight June 30th,” the independent member warned.
Miller said he understood that the budget was still, at the eleventh hour, a complete disaster, having gone before Cabinet on Tuesday, but government had little chance of gaining approval from the FCO. This, he said, meant that there was probably still weeks of work to do to try and balance the books, placing government in an untenable position and making a mockery of claims by the UDP administration of success with the management of public finances.
See original three year plan proposed by the UDP in 2010 and agreed with the FCO as a way forward to address public finances here.
Ministry stalled by traffic law
(CNS): The works ministry has said that a number of what it described as “very complex legal issues” are behind the delay in the implementation of the new traffic law and in particular access to the highway for electric cars. In a press release Wednesday ministry officials said that the risk of electric shock to emergency services personnel at a traffic accident involving electric cars, how to categorise the low speed electric vehicles and other issues have delayed the regulations which are required to accompany the law before it can be implemented. More than seven months after the bill was passed the ministry is still wrestling with the rules to go with it.
The Ministry of District Administration, Works, Lands and Agriculture (DAWL&A) said that writing the regulations involved “a multi-department approach” that has included the attorney general, the legal department, the Department of Vehicle and Drivers' Licensing (DVDL) and the DAWL&A ministry. In addition, the ministry claimed the regulations had to be researched by looking at other jurisdictions, such as United States of America, Canada, New Zealand, the United Kingdom and the Caribbean, to examine electric vehicle legislation.
“The Regulations are a complex set of documents consisting of 12 separate sections on the protocols and procedures that interpret the law,” said the minister with responsibility, Juliana O’Connor-Connolly. “These range from fines, speed limits, testing of drivers and vehicles and the road code.”
Officials claimed that registration and licensing of electric vehicles was an intricate process and required extensive research on many issues, including the proper classification of vehicles and arriving at a universal, scientific formula to accurately record the kilowatts per hour for the engine output, rather than the usual recording in horse power or cubic centimeters for combustible engines.
Director of DVDL David Dixon said proper classification was just one of the issues as public safety has also been of concern.
“Some electric cars have a different mechanical architecture to the typical vehicle with a combustion engine; therefore, a new protocol by our first responders had to take into consideration when dealing with accident,” he added. “Electric shock is an area of particular concern for responders. Today’s popular hybrids include batteries that surge with 500 volts of electricity, which is enough to cause serious injury or death.
“Though most cabling for such systems is colored orange for easy discovery, the practice isn’t followed by all manufacturers. The batteries’ location, typically in the trunk, might also be unknown to responders. Another area of concern is fire. So while the demand for hybridand electric vehicles continues to grow, it’s important for first responders to understand what informational resources are available to us and it is our job to ensure that everything falls in line,” the department official explained.
There is, however, no evidence of research showing emergency personnel have ever been seriously injured or electrocuted at a crash site and most research points to electric vehicles being no more dangerous than regular cars and even likely to be safer. Car manufacturers generally protect batteries from becoming breached by a collision by putting them near, under or behind rear seat areas, enclosed in tough metal boxes. Packs are designed to automatically disconnect the battery if a collision is severe enough to deploy the airbags or trip the crash sensor. The high voltage is also shut down as soon as the ignition is turned off.
The ministry said that aside from the new safety issues the categories of electric vehicles have also posed challenges for officials in the regulations, which will allow electric vehicles capable of exceeding 30 miles per hour to be registered and licensed alongside regular vehicles but those not capable of that speed classified as "special electric vehicle".
Under Part 5 of the law, these special electric vehicles (SEVs) can only be used in school zones or where the speed zone is less than 30 miles per hour. This is because neighborhood electric vehicles, as they are also known, were not designed for highway use but for campuses, communities and neighbourhoods where the speed limit is less than 30 miles per hour. Some of these types of cars do not have crash protection or side impact bars and in some instances do not have doors.
SEVs operating in speed zones of 40 or 50 miles per hour may be committing an offence of obstructing traffic as the law states that it is the duty of every driver to avoid obstructing others if they are allowed on the highway.
The minister said the department was aware that some members of the public are “anxious to purchase” electrical cars and as a result the “technocrats are working hard to ensure that all of the regulations are done properly and in a timely manner.”
O’Connor-Connolly said the ministry had communicated over the years to various car dealers in Cayman that a fully electric vehicle could not be registered and licensed due to the technical components of the vehicles.
“Both the ministry and department have periodically issued updates on the progress of the legislation so that no one would prematurely import the vehicles that could not be licensed as yet,” she said, taking aim at a local dealer who has been campaigning for the use of electric cars in Cayman for almost a decade and who has already imported several vehicles.
John Felder, who is the islands' exclusive electric car dealer, has a list of clients anticipating the implementation of the law and is ready to install solar powered charging stations but it has been a long wait. Felder told CNS recently that he continues to live in hope that eventually Cayman will being driving towards a greener lifestyle. He currently has invested more than $100,000 in cars that he cannot yet sell.
Felder may have to wait several more weeks for the regulations, as the minister confirmed there is still more work to do on one of the 12 sections of the regulations and the new road code has not yet been completed. “My team and I are striving for the implementation of the law and regulations as soon as possible. I am committed to see this project through,” O’Connor Connolly promised.
The Motor Vehicle Insurance law has already been amended to accommodate insurance for electric vehicles but commencement of the actual traffic law can only be issued after the Traffic Regulations have been completed and then considered and approved by Cabinet.
Once in place, however, government was planning a law to reduce import duties on hybrid and fully electric vehicles in an effort to promote lower gas costs and a greener, cleaner environment, the minister said.
The decision was made to completely overhaul the traffic law to facilitate electric cars and a number of other updates. A long time in the works, it was eventually passed in the Legislative Assembly in November and contains other new provisions, such as a ban on car clampers and using cell phones without a hands free device while driving.
Settlement reached in Grand Island Funds collapse
(CNS Business): In the latest report to the Grand Court on the collapsed Grand Island Funds, the joint official liquidators (JOLs) said that final distributions to shareholders should be around 60 cents on the dollar. The funds collapsed in 2008 when it became apparent that US $19 million had been misappropriated, for which the fund manager, the only person who has been charged in connection to the fraud, was later convicted and sent to jail for eight years. The JOLs had commenced legal action against the Funds' broker, ScotiaMcLeod; its administrator, Close Brothers (Cayman) Limited; the auditor, KPMG; and director John Sutlic to seek the recovery of money lost as a result of what the JOLs alleged were failures to undertake their duties. Read more on CNS Business
Young footballer’s tragic death remains a mystery
(CNS): A promising young footballer died suddenly during practice on Tuesday evening in Grand Cayman. Gerome Graham, who was only 20 years old and had no known health condition, collapsed at the Haig Bodden football field in Bodden Town last night, where the local club trains, at around 7:40pm. Although his team mates attempted to revive Graham, the young man was pronounced dead on arrival at the Cayman Islands Hospital, George Town. Police said there appeared to be no suspicious circumstances surrounding the death. His club colleagues, friends and relatives were said to be devastated by the young man's sudden and unexpected death.
In Cayman 27's news reports on Tuesday evening the CIFA General Secretary Bruce Blake spoke about the need to have training sessions for physios and basic CPR to get people certified at the clubs. He said CIFA needs to help the clubs address issues like fitness checks of all players.
See Cayman27 video here
TCI in battle over introduction of VAT
(CNS): Officials from the Turks and Caicos Islands government are defending the proposed introduction of VAT in the face of local opposition to the sales tax. The interim British administration currently running the island, after the country’s constitution was suspended amongst a major corruption scandal, says it needs the purchase tax to help it plug the hole created by the previous government’s alleged corruption and mismanagement of public money. Chief Financial Officer Hugh McGarel-Groves said Introducing VAT would strengthen the country’s fragile recovery with a simpler, equitable and stable source of government revenue.
Hitting out against those opposing the tax McGarel-Groves asked this week what alternatives there were to the benefits of VAT and suggested the opposition to it was from those who are currently paying no tax at all.
“Given the difficulties endured by the TCI economy since the collapse of the last government, it is in the best interests of the entire community to ensure that government finances are secure and that it can continue to develop expenditure plans in line with local peoples’ priorities,” the chief financial officer said.
He added that VAT was a proven system across the Caribbean and would be straightforward to administer as a single form of taxation replacing the five different sets that are currently levied in the UK territory.
During Cayman’s own budget difficulties in the wake of the 2009 election, the then Labour government in the UK had suggested that the government here consider the implementation of a tax and the premier had originally indicated his preference for VAT over income or property tax but in the end opted for increasing existing fees.
Speaking in April 2010 during efforts to borrow some $300 million to help balance the budget, plug a government deficit and pay for capital projects, McKeeva Bush was forced to seek permission from the UK, which was pointing towards the need for Cayman to widen the tax base.
Bush said if he had to choose he would introduce a “value added fee” and had indicated that Cayman would eventually be forced to implement some form of taxation. Bush said VAT was fairer because rich people spend more so they will put in more.
The TCI government said it is suggesting VAT not to increase revenue but to simplify the local taxation system. It said the VAT is not an additional tax but will replace several other complicated taxes, such as the Hotel & Restaurant Accommodation Tax, Vehicle Hire Stamp Duty, Domestic Financial Service Tax, Telecommunications Tax and Insurance Premium Tax. The introduction of VAT will also partly replace import duty and start to address what the government said were excessive and unfair benefits some businesses receive via import duty concessions.
“VAT is a broad based tax and will spread the burden across a larger portion of the economy, including the service sectors, which currently pay no sales-related tax,” the government has claimed.
The government in TCI denies that VAT will make the islands less competitive as the proposed rate of VAT will be between 8.5% and 12%, no higher than the majority of regional countries that have rates between 15% and 17.5%. Some four studies have been conducted over the last seven years comparing TCI’s existing tax system with alternatives and they conclude that VAT is the most appropriate type of tax for the country.
Blood donors celebrated on annual world day
(CNS): The HSA is celebrating everyone who participates in saving lives as blood donors this week to mark World Blood Donor Day on Thursday. This year blood donors throughout the world are being honoured, with the World Health Organisation theme highlighting the fact that ‘Every blood donor is a hero’. “Celebrating the act of blood donation is important because, put simply, it saves lives,” says H.S.A. CEO Lizzette Yearwood. “Around the world there is a critical need for blood donation…This is certainly true for us in Cayman where our hospitals rely on blood donation to assist in their daily practice of saving lives.”
Throughout the world various countries will be organising a variety of events and activities to celebrate this important day, from football matches to free concerts, when blood donors will be recognised for their vital contribution.
Yearwood added that people who give blood are heroes.
“Blood donors come from all walks of life, all ethnicities, religions and ages. It is through their selfless donation that the lives of countless patients have been saved. We believe that the theme of this year’s campaign by WHO isextremely fitting because in our minds, as medical practitioners, every blood donor is indeed a hero and we sincerely thank them,” she said.
The HSA encourages all Cayman residents who are able, to give blood at the Cayman Islands Hospital. “We are sincerely grateful to our regular donors who may donate dozens of times in their lifetime and we especially encourage young people to come and donate for the first time,” Yearwood added.
Officials keen to get radar operational
(CNS): Work on the Cayman Islands Doppler weather radar tower in East End is on schedule according to government officials who expect the new radar antenna and dome to be completed and operational well before the end of this year. Presently under construction by Island Builders Ltd, the tower for the radar antenna is now at more than 41 feet high. Once the radar and dome housing arrive on island in August the German radar provider SELEX S.I. will winch them into position atop the tower, set up, testing, calibration and training will then commence. Officials are all keen to see the project come to fruition as it is important to both aviation and weather services.
Director General of the National Weather Service, Fred Sambula explained what the new system will offer. “The radar will be operated by trained in-house meteorological staff and technicians, who will ensure that the radar is functional at all times,’ he said. “A powerful, high-precision Doppler radar is particularly suited to the extremely heavy rainfall and thunderstorm activity in the tropical oceanic regions and we are really looking forward to it becoming fully operational in time for next year’s hurricane season.”
The radar will have a range of about 400 km (250 miles) and it will provide weather surveillance over all three islands and the surrounding maritime areas.
Officials claim the technology will improve weather forecasting and allow local meteorologists to easily observe, track and study heavy rainfall events, waterspouts and so-called “freak storms”. The Doppler will also issue information to the National Hurricane Centre in Miami, from which that organisation will create a composite of radar information from the whole Caribbean.
The radar will also allow meteorological staff the ability to accurately warn of wind shear problems hazardous to aircraft on landing and takeoff, which is very important to the aviation industry.
Once operational, the National Weather Service will also share its interpretation of data from the radar feed with the public, the media, and the emergency agencies such as Hazard Management of the Cayman Islands (HMCI). This will be particularly useful not only to HMCI and the aviation industry but also to cruise ships, the boating fraternity, fishermen and local farmers. The radar feed will be accessible to the general public in real time via the internet.
The Cayman Islands Airports Authority is responsible for overseeing the project and CEO Jeremy Jackson said it would be a welcome addition to the arsenal of the NWS in its service to aviation.
“Such a tool will help us tremendously, especially in times of severe weather for flights into and out of the Cayman Islands,” he added.
The deputy premier and minister responsible said the project is a key component of the European Commission’s strategy for supporting disaster risk reduction.
“The establishment of the early warning system in Grand Cayman will boost the region's ability to prepare for natural disasters and adverse weather. In addition, it will save lives and property and by extension promote the social welfare of the people of the region.
"After the weather we have just experienced, I am sure everyone can appreciate just how important having our own Doppler radar is,” she added.
The European Commission approved a grant of €4.16 million (approximately CI$4.23 million at current exchange rates) in funding towards the project in order to improve both local and regional disaster preparedness. The Cayman Islands qualified for grant funding as an Overseas Territory of the United Kingdom. The Cayman Islands Government has also committed over CI$750,000 to the project.
Despite the importance of the project to the weather services the selected location was not without controversy as the East End site was also picked by CUC as one of the few locations on Grand Cayman that could house a wind farm. Despite being ideal for the alternative energy solution CUC lost out to the radar.
Driving While Dumb
In my opinion we need to go a bit further in making our roads safer than just reducing drink driving. While DWI is a quite widely-touted risk factor relative to fatal accidents, it is a fact worth serious consideration that DWD (Driving While Dumb) is a very major risk factor relating to fatal traffic accidents. We need to get dumb drivers off Cayman's roads!
According to scientific research, there is an undisputed correlation between low intelligence and fatal automobile accident rates. Australian psychologist Brian O'Toole's research reveals that those who had scores in the Army General Classification Test manifesting IQs of between 80-85 had almost three times the death rate due to motor vehicle accidents than those who scored in the 100-115 range. The mortality figures were even more significant for lower IQ levels. Several other studies on the matter report similar results: dumb drivers are deadly drivers!
Now, if this is not a pressing mandate for making our land safer by ridding the roads of dumb drivers, I do not know what is!
It is just not safe to allow dumb people behind the wheel of a motor vehicle. Period! We all know that there are lots of dumb drivers roun' yah. If you have any doubts, consider this: How many times while you are driving do you think to yourself, or even say out loud, "What the hell is that dumba$$ doing?" Or, you watch the antics of a particularly mentally deficient driver and blurt out, "Damn! Look at that fool! How stupid can you get? Jesus, there are a lot of idiots on the roads!" Case closed.
Yup! Lots of really dumb drivers here in Cayman. I would surmise that there are far more dumb drivers than drink drivers on our roads. Dumb drivers pose at least as great a risk as drinking drivers. I for one am tired of them. Tired, tired, tired. They have got to go! (Jeeze! I don't even want to think about the accident risk associated with dumb drinking drivers!)
Because of their sheer numbers, dumb drivers pose a far greater risk than do drink drivers. Here is a final bit of very compellling evidence that we have a huge number of dumb drivers amongst us: only a country with lots and lots and lots of very dumb people would see a maroon like MacBush elected as a leader.
A significant percentage of dullards in a given population makes for a correspondingly large number of idiots behind the wheel. With anti driving while dumb laws in place at least these imbeciles would not be able to drive themselves to the polls come election day. And no intelligent person would give 'em a ride to the voting station. I do not know about you, but I would feel a lot safer anyway.
Home-schoolers get down to life saving training
(CNS): A group of home schooled students were learning about first aid and emergencies when they attended a training course at the Cayman Islands Red Cross (CIRC) last month. First Aid Training Manager, Peter Hughes explained that despite being aged between 11-15 years old no one is too young to learn the basics. Throughout the world parents, teachers and community group leaders introduce children as young as 10 to these courses, though there is usually no need for the course to be certified by a training provider.
“It is never too early to start first aid training and these young people have surely shown an aptitude for it,” he said. “They’ve all passed the course with flying colours….When we are teaching youth this young it is usually more about raising awareness and laying the foundation for further training down the line,”
Certified courses become a necessity for young people once they are ready to leave high school to enter college or the workplace. However, this group of students took the full First Aid and CPR course and, having passed the examination required of all persons who take this course, received a full 2 year certification.
The Red Cross sets no lower age limit for attendance. However, to receive certification the student must participate in all class activities, demonstrate competency in all the required skills and successfully complete an end-of-course scenario.
For more information about training opportunities with the Red Cross, contact 949 6785 ext. 30 or email firstaid@redcross.org.ky.
Teen arrested in West Bay grocery shop robbery
(CNS): Police arrested a nineteen year old man Tuesday, in the immediate wake of a robbery at a West Bay convenience store. The teenager is currently in police custody following the armed hold up at Hills Grocery and More store on Stadium Drive, at lunchtime today. Police received a report at 11.47am that an lone gunman had entered the shop armed with what appeared to be a handgun. He threatened staff before making off from the premises with a small sum of cash. The suspect, who was described as being dressed all in black, was last seen running towards the Ed Bush Stadium. Police made their way to the area and a short time later arrested the local teen on suspicion of robbery.
Anyone who was in the area at the time of the incident and has any information which could assist police should call West Bay police station on 949-3999, the RCIPS tip-line on 949-7777 or Crime Stoppers on 800-8477 (TIPS).
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