Range of fees to plug budget
(CNS): The financial services sector will bear the brunt of the fee increases that government will impose to replace the controversial expat tax. However, ordinary businesses will also face increases in work permit fees, starting at 5% on permits between $1,000 and $3,000 and 10% on those in the next category, increasing gradually to 20% on the most expensive management permits. Premier Mckeeva Bush said Wednesday that he hoped to raise over $44.3 million from a combination of fees with $7.8 million coming from the permit increases. Bush announced a list of fee increases, from tourism room taxes to licence fees for boats over 30 feet, to plug the budget but most of the revenue will come from the finance industry.
Speaking at a public meeting on Wednesday evening at the Mary Miller Hall for more than two hours, the premier waited until the last moment to reveal the package of new revenue measures he hopes will satisfy the UK's demand for a "sustainable and credible" budget for the 2012/13 fiscal year.
These include an increase in tourism room taxes from 10% to 13%, a departure tax increase of $10, a rise in stamp duty on some insurance policies, as well as stamp duty increase on real estate, new traffic fees, licences for boats over 30 feet that will increase incrementally on the size of vessels, fees on tobacco products and ten cents on beer bottles and cans. He said the details of the measures would all be revealed when the budget was approved by the overseas territories minister and presented to the Legislative Assembly.
The majority of the new revenue in the revised budget will come from increases on the finance industry, which Bush described as a national asset. There will be director fees, fees on master-funds, which he said would raise over $2.3 million, and an increase in the fees of limited partnerships, which should bring in around $9 million.
Together the fees will mean that the so-called 'community enhancement fee', which was a proposed tax on the earnings of work permit holders, would be scrapped. The u-turn on the contentious proposal came as a result of various groups approaching government with alternative suggestions and members of the business community making a commitment to take on more fees.
Bush said he was against taxation and that fee would have been a last resort. He said he had no intention of introducing taxes on profits, incomes, property, death or inheritance and that he had fought hard not to introduce direct taxation.
It was, he said, his intention to present the revised budget to the UK shortly and he hoped to have a favourable response next week, which would allow him to present the budget on Monday 20 August.
Although cutting things fine, this would allow the legislators ten days to debate the budget, scrutinize the spending plans and cuts in public spending and pass the appropriations bill before the government's stop-gap budget passed in June expires on 31 August .
During Wednesday night's public meeting Bush did not allow a question and answer session and there was no debate or discussion. He received some applause at times but the presentation, which was a rehash of his speech at the West Bay meeting last week, was made before a smaller and more subdued audience. Although he railed against the opposition and the press, the premier reigned in his criticisms of the governor and other public officials.
He did, however, accuse CNS and The Caymanian Compass of creating an international media feeding frenzy with their 'hysterical headlines'. Bush seemed to think that it was not the proposals to introduce a form of direct taxation to the jurisdiction that had attracted the international attention but rather the “irresponsibility” of the local media.
Although the premier was as scathing as ever about CNS, which he described in an email earlier this week as a "wutless scandal sheet", he also took aim Wednesday night at the owner of the Compass. Being the only print media, the owner was abusing his position and being irresponsible, Bush said, adding that he would be writing to the paper in response to the "licks” the local newspaper had given him this week.
Bush denied the accusations made against him of vote buying and said what he did was because he had apassion to do good. “I am trying to help people at a time when businesses are not concerned and don't understand that there are people who can't pay their electrical bill,” he said, adding that these people end up on the doorstep of every politician, including the opposition.
Given the difficult times, Bush appealed to employers to take on Caymanians and told them not to refuse people because they were over qualified. He pointed to the local unemployment problem and asked how there could be 20,000 work permits and an unemployment rate of over 8% among Caymanians.
Bush said he was introducing an additional fee that employers would pay on certain categories of work permits that were for jobs that could be taken by Caymanians and hoped this would encourage people to take on local painters, among other similar categories of workers.
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Category: Politics
Why not sell the Hospital to the Private Sector? sell Boatswaine Beach to Scientists and reintroduce the annual $25 Head Tax to all 18 and over Males living on the Islands? This should help Revenue. On the other hand start looking into those annual unit costs and if they are not using their allotments, then redeposit it back into the Treasury. All those former employees and their famililies needs to pay FULL Airfares on Cayman Airways. Semi Retired and retired able bodied Government Employees, should be rehired to dispatch passengers through our borders and also to guard any of our Government entities. Too much money being wasted to Companies, who has pure foreign Nationals doing these jobs that can be of high risk, to these Islands and to National Security.
XXX, 16:08, why XXX in 2012 should the poll tax (that's what it is) you suggest be just for males? Just because that was what it was 40 years ago doesn't mean we need to stick with such outdated attitudes. That is a problem with Cayman – it wants things to be "as in the good old days". Wake up. They are gone.
How about privatising Garbage company and get recycling in this frsidt class counrty! Let them offer 3 pales free with ID numbers to every household and most important the bars and restaurants with all those glass bottles.
What private sector company would take on garbage? There is no profit. Caymanians think they should not have to pay a garbage fee. My neighbor – an ignorant 50 year old Caymanian – has been proudly throwing his garbage in "holes" in his land for at least 25 years because "no gernment is going to force me to pay fees for something I don't want-that's communism".
Does anyone have any sensible recommendations as to how we can get this guy out of office… his stupidity is second to none if this is the best he can come up with.
I thought the objective was not to increase the cost of doing business in Cayman. Work permit fees in Cayman are already significantly higher than similar juridictions in the world, this will turn off Companies from operating here because itstoo expensive. Short term fixes create long term problems!!!
Case and point a local hedge fund manager moved operations to Canada this year because it was cheaper to operate there than here?
Think, Cayman does not have the capacity to sustain huge losses if these businesses pull out and with the limited population of people with applicable skills the demand for a work force can't be met!
I agree ????? 09.28: I have lost my job to redunancy at no less than 4 Offshore Banks because they relocated the Operations to other jurisdictions due to the escalating costs of doing business in Cayman…this will only continue to happen.
BUSH, Rolston, CG, Mario, and Kerry are the only ones talking about cutting 500 CS jobs as the ONLY remedy to balancing the budget. The wider, sensible community is talking about cutting government spending overall, which includes cuts to:
Official Travel
Social Service vote-buying fund
Salaries to MLAs
Boatswain's Beach subsidy (by selling some of it)
Cayman Airways subsidy (by selling some of it)
Premier's household items (cook, utilities, security), by rights, shouldn't the Leader of Opp be entitled to the same? (not saying he should take it)
Gasboy Allowances
Government vehicle usage after hours and weekends
Health Insurance premiums paid by Govt
Cayman, we do not have a revenue generating problem, WE HAVE A POLITICAL SPENDING PROBLEM!!!
Although a proper analysis/adjustment of CIG's expenditures/revenues is desperately needed, there is another component here that is an integral part of any long term solution to CIG's budget woes. That is the health of the private sector. CIG must realize that there is a limit to what the private sector can currently bear before the negative effects of fee increases begin to slow and ultimately reverse our local economy.
However, there are two desperately needed things that can be done to offset the negative effects of these proposed additional fee increases(and if CIG can keep its spending under control, may even allow us to lower fees in the long run). I will list these two items that I feel will not only instantly help our economy, but will also give the UK confidence in us for the long term(then maybe the UK will be willing to cut us some "slack" with regards to budget/borrowing). They are as follows:
1)AIRPORT EXPANSION
2)CRUISE BERTHING FACILITY
Our tourism sector has far more potential for growth and would be able to contribute more to CIG's revenues if it was healthier, and CIG cannot continuously rely on the financial sector for additional revenues.
The only thing required for these projects to get underway is for CIG to be willing to follow proper procurement procedures and international best practice standards as publicly stated by the FCO. Instead, it seems as if CIG is stubbornly refusing to initiate these projects according to these guidelines. Guidlines that have been developed to protect us and ensure that The Cayman Islands get value for money from these major infrastructure projects.
CIG, can you please proceed according to these guidelines and do what is best for Cayman.
Breaking News!! Canada July Employment falls by 30,400!!!!
Anyone notce MLA's inflated salaries will not bt touched…?
Christian Heritage Park…another $3million to be wasted. Why can't that be turned into a paying car park badly needed for GT…?
Mac also is sticking with his vote buying fund…disgraceful, c'mon UDP save your country from this madman.
Bush is a Fool. Proof: (as if you needed more) "…the majority of the new revenue in the revised budget will come from increases on the finance industry, which Bush described as a national asset."
Translation: The finance industry is a Golden Goose so let's kill it so we can eat today. WHAT AN IDIOT !!!! I feel like an idiot too as I actually defended this gent in the past.
Country, meet toilet.
The obvious solution – the one that seems most "painful", requires nothing more than the courage of a leap of faith. CUT THE CS! For the love of your Country.. stop supporting the vibe that we can't cut CS. The pain later will be so much more terrible.
Don't let your leaders burn this great land and the industry that Vassel Johsnon built to the ground because they are too cowardly to face the reality of our times. LEADERSHIP is what is missing here.. VISION is what is missing here. "C O U R A G E" is what IS MISSING HERE ! ! !!
PROTOCOL, the new Tahoes, the government license plates, the walls around your home, the private staff, the first-class and private travel.. those are the problems in this great land. The culture of "Government First and above all else" needs to stop. The idea that a small band of entrepreneuirs and global businesses can be bled dry to support the unsustainable – that WILL ABSOLUTELY stop.. as sure as not paying your credit card bill will get you cut off.
The decline will be quicker and much more sudden in a small Country like this, than it will in the States or Europe.
Stop the madness and see your fortunes reverse Cayman.
Dear Mr. Premier,
You must act to reduce government spending and balance the budget.
You were told to make these hard decisions when you came to office but you chose not to heed good advice.
If you cannot or will not cut the civil service then I urge you to immediately enact a 4 day work week and a subsequent reduction in pay (20%) until things get better and then reinstate a full 5 day work week and full pay.
This is a shrewd way of reducing not only salary costs, still keeping those civil servents in their jobs whilst enjoying a reduction in government utility costs as well.
I think the civil service and the general population will appreciate you being honest with them. This way no one loses their job, they simply take a tempory pay cut to get us through this situation. It's better to work 4 days than be unemployed.
I am moving back to Jamaica. Too much confusion here. And guess what? I do not have to pay any work permit fees. By the way, are Cashiers work permit fees below $1000.00? I noticed that those permit fees were not increased that are in the one thousand bracket.
Bring back the tax! 🙂
The Great Premier says the following about the owner of the Compass –
"Being the only print media, the owner was abusing his position and being irresponsible"
I'm going to go with –
Being the Islands only Premier, Mckeeva Bush is abusing his position and is being irresponsible with our Islands future.
There, all better.
I haven't had much in the way of paid work in weeks. I pick up what I can and so does the rest of my family. We survive. I have turned my efforts toward gardening. I will continue to grow foodstuffs for my family until the point which that becomes untenable, and then I am done.
I cannot spend that which I do not have. Why is government allowed to do so? Listen up, Mr. Premier et al……… the monies that you fritter away on intangible things comes from MY pocket. I am NOT represented. If I were, my representative would note that I am living hand-to-mouth, and struggling. I don't require any entitlement or vote-influencing goodies. I just want to not have to pay for duties and services from which the fees are wasted.
I am a conservative. Conservatives want less government, not more pie-in-the-sky processess to waste our hard earned dollars. Government should be responsible for safety and infrastructure, for which we have historically overpaid you for performing. I am Caymanian, and I have no voice, other than that which is read here.
I have never before in my life been afraid of my government. Lord let us survive until the next election. Amen.
Good Points NeoSurvivor, I am in a similar position and please God we avoid any Hurricanes this year as I certainly have not had the income to affordt the $ 500-700 per month Insurance Premium required…….. – I worked hard all my life to build and pay for a house and now I can barely manage to scrape the light bill together each month let alone anything else – but I refuse to put a further burden on my Countryman by applying for Indigent Status whilst I can do what I can for myself (even though I am qualified and still cannot get a job -not for the want of repeatedly trying).
Also, please God I do not become incapacitated or ill – because I am offered NO conciliatory Health Rates or treatment without being declared 'indigent'., which, by the time I have been assessed may leave the 'approved' slip nailed to my coffin at the Hospital door. So much for every citizen having Insurance……………
I am surprised (but maybe should not be) at some of the stories I hear from people trying to get me to apply for assistance (a lot who do not even need it – ……..how in the good Lord's name they manage to pass the assessment test beats me)…..the comment is 'well 'so and so' does it and she's getting money from a,b,and c, apartment rentals etc… so she doesn't even need it !!! Let's review this system as a means of expenditure reductions so that only the really needy are assisted.
I WANT to help myself, but just give 'us unemployed' a break when we can prove that we have done what we can to get a job and are still striving to help ourselves without asking for undue assistance.
Perhaps DES could have some kind of card system which is stamped to prove our attendance and efforts at employment – oh no, I guess this would come under increased Government Expenditure ?
And before I hear one of those ignorant fools with no actual experience of it…. sitting in their comfortable jobs saying 'stop whinging' or 'Unemployment is a Myth' – please quit your job, join the unemployment line and try to get re-employed…….yes, Self-Employment as Neo-Survivor describes IS an answer, but not always the true meaning of Employment as a substantial and regular means of Survival.
I didn't attend the meeting on Wednesday night, but I listened to the 6.00 p.m. news on Cayman 27.
The Premier said, "he will not cut scholarships", he rememberswhen only a chosen few received scholarships. This hasn't changed very much.
In respect to the YNBP (Young National Builders Programme) funding that is distrubed from his office, the Premier needs to ensure that the scholars that need this assistance get it!! The chosen few receive, and I guess it is who you fa or who you know!!
There are those scholars that are getting the "huge scholarships" from the private sector and are still going to the Education Council and YNBP and are still receiving funds from these Government entities as well.
Scholarships will always be given to a chosen few. The private sector and Education Department choose their few based on merit, while the Premier chooses his few based on political affiliation.
Or they could just stop wasting, spending and stealing sooo much and still have enough for a real (see the money) surplus.
So I just heard Mac's voice on the news and had to turn off the TV. I cannot possibly listen to any more of his crap. I'd rather read about it later.
Nice pic of Mac with the cracks and bandaids lookin all beat up !
So all of us hard working professionals must work harder so the CS voter block can continue to plunder the purse??????? No I think not. Sorry Boss. Hope you can find a Caymanian to do my job because I no longer want to. Bye Cayman. and Good luck. Really.
UDP
#worstgovntever
Governments are not in existance to make profit, or massive surplus whatever you want to call it. They are not a retail business. If there is a major excess then they are either collecting too much money or not spending enough. So what's it to be Mac?
The businesses that appealed to government on not taxing the employees, the majority of their workers are "work permit holders", store clerks, clerks, etc…does that mean thoses businesses will be paying a fee cause they should be hiring Caymanians? Can't have it both ways!!!
Anon 1706 the fact that we have a deficit indicates that the Government is not making a profit. Gee we would all love that problem.
Mac would be a national hero.
It greatly saddens me to stand bye and watch this tick suck the blood life out of Cayman. He has spent so exhorbetantly and now he has pulled out his abacus to see how it is that he can squeeze us for money to plug the huge gap that he has left. I cannot believe that the rest of his party can even show their faces in public. I hope that the UK tells him to take his budget and shove it. When the money runs out he should have to pay from all of the millions that he has sucked out of us to keep the country running. Is there really no way to get rid of this *******?? I really hope that the UK steps in and dethrones him soon. Oh and by the way Mac you can vote yourself honourable until kingdom come but we will always see you for what you are. A blood sucking tick!! Nuf said!!!!
Did you hear that?…..Sounds like Mac is hammering in the nails on Cayman's coffin!
I didn't know they held elections again? Seems certain businesses can sway someone!
We no longer use nails in coffins. We use screws. The noise you hear if the hammer drill driving in the screws.
Why blame the Compass and CNS, it’s not their fault he’s an idiot!
Shoot the messenger. It keeps them quiet.
Lets start with the Premiers words to us some time ago that he would lead the way in salary cuts.More empty promises but now he expects the rest of us to tighten our belts.What a joke this Govt has become.Full of empty promises and frivolous spending.Does anyone in Govt even know how to run a business?I doubt that very much from what I am seeing now.and the beat goes on.
There's not much point in raising more revenue if the civil servants and politicians are just going to flush it all down the nearest toilet.
Raising more money doesn't solve anything if the public sector gravy train is going to go merrily rolling on down the tracks.
Mr Premier, the FCO are not going to even look at this unless you include substantial cutbacks in outgoings and that, whether you like it or not, means cutting the dead wood out of the civil service.
Right now the way the civil service runs is that essential services such as the Information Commissioner's Office are kept short of staff while non-essential departments with low workloads enjoy a 10-20% (and a lot more in some cases) staff surplus. I know that, the FCO knows that and you need to both accept it and get a grip on it if you want the Cayman Islands to remain under Caymanian control.
More taxes will NOT help Cayman. Less spending by the dumba$$ Government is the only answer/solution to this problem. The Cayman Islands Govt makes enough money to have a mega surplus every year if it were not for the fact that MacDumba$$ and his colleagues think those funds are ALL for them to do with as they wish. DROP the tax talk and make the Minister of FINANCE pay for his unchecked rampant spending, especailly on himself….He needs to be held personally accountabe for the mess he single handedly has created…It is not our problem to fix and we should not be punished for his crimes, not Caymanians nor Expats. The more he gets the more he will spend and you all know that so quit feeding his greed and hold him accountable for his incompetence. And then jail him for life.
so if the direct taxation was a last resort – why would he come out with it w/out consulting anyone?? Not even the police about the helicopter? It sounds to me he is scrambling and looking for excuses as he is at the end of his knowledge. Please get some sensible people into government who understand simple math and economics! And why has the "Casino Option' not come up as yet? no one in Cayman would have to suffer!!!! it creates employment, more tourists and tax income all at the same time. I know there are a few investors out there who would love to come in (before Cuba allows them to…) … a win win situation in my opinion!!!
No DIrect taxes??? LOL
If you are lost in a Jungle the first step is to find North, if your family is in debt the first step is to find out how deep. Cayman needs to BALANCE THE BOOKS AND PRODUCE AUDITED ACCOUNTS. With a proper diagnonsis in hand we can move forward. Any other course is foolish. Like Columbus we do not know where we are, and sure as hell do not where we have been. Bush sure as hell has no clue where he is taking Cayman.
Columbus? Think you went to my favorite Whitesnake song, "Here I go again".
This is becoming crazy and I feel like I live in yoyo. When you think you've heard it all, there comes another curve ball right after and again & again. On the contrary, now mr. bush finds himself as a clown not only in the eyes of the world but specially with the UK after attaking the Governorin a language of bad taste while dividing all residents. I won't be surprised if the FCO and UK govt. refuse to cooperate with him anymore. How can anyone in their right mind believe what this man is saying .You are out of your league sir, and if you Love the Cayman Islands and it's people just step aside and realize that it's YOU that is the problem and as long as you keep opening your mouth before thinking you are doing all us a lot of damage. You are blinded by your power and I often wonder how you can sleep at night with all the ghosts in your closet. yes, I am Caymanian (bye) the way.
The bottom line is that the UDP wants the status quo to continue. Caymanians pay for nothing, not even the fees required by law, while expats fund their entitlement.
There’s nothing wrong with that, just admit it.
CNS is it true Dart has brought CITN and Cayman Airways?
Thank you.
They are no where near that dumb. A business that actually cost a lot of money to run and comes with a huge debt. Only a fool would have a business like that. Like CIG.
Well Evryone got what they wanted. NO INCOME TAX (which i was not in favor of either).
As of this morning due to the increase in WP fees, i have had to notify three of my staff that i will not be renewing thier permits. This does not just effect these three staff members but their families, the schools they attend, rental units etc…
All I can say is thank you to our Business advisors… whom i didn notice had no taxes on their businesses..
I have been sayig from the beginning Government need to look at themselves first, go out and collect all the out standing fees.
Then they need to look at the civil service, if they request a budget of 100 million give them only 80 million and make that work, even if salaries or layoffs have to happen.. this is all we can afford…. if these guys can't work with this well your FIRED!!!
I have had to make cuts in our business over the last few years, not give salary increases etc. Why can't the CS do the same?
I see on the blogs alot of great ideas and do not beleive i need to add any other solutions as it appears to go on deaf ears…
Yup. I've been told the same thing. The cost of my work permit tripled last time around and now its going up again. My employer says he can't afford it and will not be renewing again. The lovely young Caymanian girl I am training into my role for when I was going to be rolled over will also have to go, because there's nobody else here to train her to do my job now that I will be leaving prematurely. The only good thing for her is through her own dedication and work ethic, she has picked up some valuable skills. I have offered to be her referee (and she will have an excellent reference), and I will do whatever I can to help her find new employment before I go. Young people like her don't deserve to end up unemployed. She is a human who had a contract too, but unfortunately in the private sector, unlike the CS, cuts will be made when money runs short, even if it goes against moral principles.
These are not sustainable revenue measures. They cannot be used to be the basis for further borrowing. The UK has no option but to reject this and require sustainable measures. This defiance cannot go on. I will be contacting my MP today.
Please do. And while you are at it pack you bags. STOP DITACTING TO US, we are not going to allow it to happen anymore. Where in that you do not understand. You do not want Expat Tax, You do not want to pay more work permit fees. What is it that you want cool Britania. Get with the flow, the budget has to be passed.
The only 'DITACTING' is the 'ditactor'. What are you willing to pay extra? What are you willing to do?
By all means go independent. We will all pack our bags then too. We will check in on how you are doing in a few years time. We will doing the checking online because it will be too dangerous and depressing to visit in person.
Wait, someone explain something to me. A few businesses who we didn't vote in as representatives of our country and the Premier is going torun with their suggestions? Is he out of his mind? First of all Work Permits were increased about 2 years ago? Didn't that cripple a few companies? Isn't that why the pension was suspended for two years? Is he going to get rid of pension now to help companies pay the increase in work permits? What is on his mind? Does he not see the effect this is going to happen to the country? What about the 100's of other businesses on the Island, don't they have a say in anything?
"Bush did not allow a question and answer session and there was nodebate or discussion"
No shit.
What kind of a public meeting is that? Or is that what's in the famous "laws" on public meetings that only McKeeva knows about.
Get this disgraceful fool OUT
The government should have consulted with all the leading stakeholders here, particularly the Financial Services, Real Estate and Tourism sectors, rather than taking the advice of a select few and applying it against others without prior consultation. So now he hits yet again the same sectors as he hit before, being the same sectors that already contribute the most.
Doesn't anybody in government have any logic? Oh, no, of course not, otherwise they wouldn't have gotten us into the position we are in now where everyone is having to pay for their mistakes and incompetence, letting it continue rather than nipping it in the bud as needs to be done.
what more do you want? expat tax????
You (and too many others) would blindly accept that we are broke without any idea what the spending is wasted on? Screw your head on and ask for the Balance Sheet.
No. I want the government to stop wasting money, make the cuts that need to be made, centralise their operations, carry out efficiency audits, implement the changes needed to be more efficient and cost-effective and make the CS employees pay their 5% towards healthcare and pensions just like everyone else.
I agree to legalising gambling – both casinos and lottery.
I agree to registering boats over 30 feet, I agree to the suggested Directors Tax, and I agree with the majority of other sensible suggestions that have been put forward by the business community, Cayman and ExPats United and the general public.
There is plenty that can be done without applying the expat tax or fee hikes to the same industries (the ones that already contribute the most to Cayman's economy) thus discouraging further interest in these sectors (as opposed to encouraging new business).
Not UDP, and proud not to be affiliated with any of our political parties (waiting for someone worth putting my faith in and voting for).
Fine! It’s an expat fine.
It what do we want less off, not more of – less nation building funds, less handouts to those in favour, less projects designed to win votes, less gratuitous international travel, less mysterious deals, less free gas , less paying pay rises to the CS based on a supposed surplus that doesnt actually exist, etc etc. What we would like more of is a government that behaves in a fiscally responsible manner wihout having to have its wrist slapped by the FCO like a naughty child. Not sure what you are so proud of.
Hey UDP (and proud to be)! – how about get rid of the nation building slush fund and cut expenditure like you agreed to from 2009? Then again, you are probably a recipient of the nation building scam….. SMH….
Right on the money buddy, the initial euphoria about a possible solution to the problem by these Cayman Business men has been well and truly extinguished. If this is the best that they can come up then we are well and truly screwed. Rather then increase work permit fees they should have provided incentives to the private sector to employ Caymanians and sop up some of the public service jobs that we all know need to be cut. What about a 30% discount on work permit fees if you employ more then 50% Caymanians?
The current plan only provides incentive to move your business to another jurisdiction.
The government is to money what a pack of labradors is to roast chicken. Someone has to smack their behinds and put em back on the leash or they won't stop until there isn't a chicken left in the world.
90 minutes of UDP meeting followed by no intention to decrease spending as recommended in the Miller Shaw report.
Paid for by all of us.
So he's going to replace the expat tax with another expat tax? Brilliant, Mac, brilliant!
Here's a thought……… if you want to cut unemployment and stem the exodus from finance industry why not reverse the work permit fee scales? Make a bar tender, cleaner, laborer fees $20,000.00 per year and keep the specialist ones at a resonable level.
This is a $50 million dollar question. I’m surprised more attention hasn’t been given to it. Seems it solves all of Cayman’s problems in one swoop. Perhaps it’d too logical.
Unless he gives up his slush, …err nation-building fund, and reduce expenses in general, I can safely predict that the FCO will reject his budget more times than the Bodden Town voters rejected Mary Lawrence.
What is Mary Lawrence doing to you why you have to bring her into this. I am a Bodden Towner and you could never be the Lady that Mary Lawrence is. Check your family tree and you will find that you cannot say one word about Mary Lawrence. It is a good thing that Memories don't leave like people do.
Miss Mary was wonderful when she was opposing our National Hero, Jim Bodden, all those years ago. Mr. Jim was a modern day pirate, if ever there was one. But since she was made Speaker by the Premiere, Miss Mary has lost all of the XXXX and vinegar that made her what she was.
Look deep into your soul Miss Mary, find your inner compass, and bring control to those who are out of control in the allegedly honourable house.
If only she hadn't been rejected so often, the nation might have had a competent speaker (i.e. a different one).
We've spent all your money, and of course haven't been able to tell you where a lot of it went. Now that all of that money is gone and unaccounted for we're going to need more. Which, of course,we will be very careful with. Here are new and improved fees which members and managers of the vast civil service have devised because the old fees didn't give us enough of your money to unaccount for.
Not the civil service mate. He's been very proud that these came from the bussiness community ourselves.
If the new revenue measures are targeted towards the cost of work permits why would Mr. Bush want to see a reduction in the numbers issued? It seems like an oxymoron. Increase work permit fees to help offset infrastructure costs but aim to reduce work permits which will ultimately reduce the revenue resource. Am I missing something?
Maconomics 101.
Obeah Economics.
A civil servant moving into a role previously held by a WP holder, will mean no WP fee, but will also mean one less CS to pay,who'll have probably been paid around 4-5 times as much as the WP fee and then there are the CS inefficencies thrown in as well.
sounds great on paper, but as a business owner, I don't want the civil service ineffiencies in my office.
Quick note to Kurt Tibbets and the Constitution Team.
Why did you not set the voting system up where there are two elections/ballots: 1 ballot to vote for the premier and 1 ballot to vote for the rest of the representatives.
Every other democratic country is set up like this, you vote for a president/premier and then there is a second ballot for the house/senate/legilative assembly.
None of us that voted actually said we wanted Mac to be the Premier, but he gets it by default by being the big bully in UDP. This is WAY more important of an issue than OMOV
As far as I know all of the other Commonwealth countries with parliamentary systems of government and are still colonies or independent and retain the Queen as Head of State, one does not directly vote for the Prime Minister/Premier but the person who becomes Prime Minister/Premier is the Leader of the Party who wins the most parliamentary seats at a general election.
As a FYI, the UK is not like you say above, the leader of the winning party is the Prime Minister (assuming that he gets voted into his consituency)
Actually, the UK isn't like that. I guess it depends on your definition of democratic.
"Every other democratic country is set up like this, you vote for a president/premier and then there is a second ballot for the house/senate/legilative assembly".
That is absolutely untrue. The Westminster system which covers most Commonwealth countries and includes the UK, Canada, Australia, Jamaica etc. does not operate in that way at all. Instead, the leader of the party which wins the most seats is the prime minister.
You are really describing the U.S. electoral system where there is a complete separation between the executive and legislative branches of government. The last thing I would want is McKeeva Bush being able to hand pick an unelected cabinet. Each system has its merits and demerits but please don't make false statements about what "every other democratic country" does.
http://en.wikipedia.org/wiki/Westminster_system
Difficult times, my a$$. Politicians (controlled by money) are wholly responsible for leading this country into the mess that it is in.
The civil service is like a bloodthirsty vampire forever lusting the cash of the private sector so it can continue its parasitical existence.
The reason why the government is the size it is and consumes the cash that it does is because it suits the interest of the devious, hidden and very rich few.
If it did not suit them, the problem would not exist. People, people, when will we wake up, grow up and stop believing fairy tales?
Here's a fairy tale that you can read to your children tonight before you put them to bed.
"Once upon a time in a far away country, there lived a benevolent king with benevolent advisors. Every day, they met to see how they could improve the lives of the citizens.
They passed helpful laws, made positive recommendations, kept their country clean and all the people were happy and praised the king because they all lived together in peace. There was little or no sickness, everyone was fed, clothed and housed and every so often, the king would have a great feast and he invited everyone. The kingdom thrived and they all lived happily ever after."
If any of our kids have attended school or watched TV, we know none of them will believe this ridiculous story, so then why the hell do we?
It's time we started holding our leaders accountable for this dunghole that we have found ourselves in. Oh sorry, it's our fault. We'll just have to get in some more police to crack down on us. Sounds like fun.
I draw comfort from the words of David in Psalm 27:13
"I am still confident of this: I will see the goodness of the LORD in the land of the living."
Wake up Cayman. All this really means is that he is making us all pay for his ability to buy votes.
Why was the "Nationa Building" aka "money to give to his own church" fund not the first thing to be cut?
He is a waste and he is still pushing this island to extinction.
Those work permit fees he plans to increase….they were already doubled 2 years ago. There are islands that are willing to cut fees to get the finacial sector in.
He should be looking to raise revenue and cut expenses. This way he would only need half of the additional funds and on the flip side only have to make half of the cuts he should.
This is better news than the Expat tax, but it still VERY bad news for Cayman.
Just for the record I am Caymanian and I don't work in the finance sector. Vote this guy out in May 2013!
All of this carnage for that? What a shame. Hurricane Ivan and the Global Financial Crisis were out of our hands but to recklessly inflict this on your country when it was so avoidable is unforgivable. It will take some time to put this behind me but I hope that eventually what I remember most is that so many individuals and groups came together for the common good of Cayman.
Why just boats over 30 feet? Why notALL boats, personal watercraft included. Registration numbers on both sides at the front and a differently colored tag each year to show fees paid up – just like Florida etc. Easy to set up and police.
Do you know how many sisters Foolio has? or how many boats Capt. Sleeping has?
I think 'tree' is the answer to both questions?
But I would not gamble on that number…
Gambling is illegal unless you buy a ticket from a West Bay church.
Sorry – it is already in place through the Port Authority and applies to all boats over 18 feet. Problem is, as the results show, it is clearly a lot harder to police than you imagine. Although, in fairness, they don't issue stickers, so who knows who has paid up. On the same note, take a walk around the supermarket parking lot today and check the tags on cars. If you find less then 10% out of date, I will eat my hat. That system is also easy to police, but not being done effectively!!!
If the Government continues to bite the hand that feeds then it will drive the financial services business to other, more welcoming locations.
There will always be Death and Taxes…
but at least Death doesn't get worse every year!
Speaking of death, I was looking at somebody's hands waving back and forth last night, and I swear that those hands must either be bleached then manicured then bleached again – or dead…
Well, expats were crying against expat tax, now it looks like they got what they wanted, increased fees that will hurt the employer. I guess they will need another fb page or group.
Or maybe we need YOU to pay some taxes
So as usual, more fee increases, more increases on the cost of living and no cuts whatsoever in expenditure.
Pure genius Mr. Bush. It must be great raping our country for your $20k a month. Glad to know you can get by.
Any money given to this government will just be pissed away by this honorable idiot, it is the worst government in the history of these islands, it is hard to stomach the fact the next election is 9 months away.
"the owner was abusing his position and being irresponsible".
Talk about calling the kettle black.
So you are going to increase fees you only introduced at the beginnig of the year i.e. Master Funds? More work permit fee increases? You are actually going to enforce the law i.e. licensing fees on boats?
"He did, however, accuse CNS and The Caymanian Compass of creating an international media feeding frenzy with their 'hysterical headlines'. Bush seemed to think that it was not the proposals to introduce a form of direct taxation to the jurisdiction that had attracted the international attention but rather the “irresponsibility” of the local media."
Are you smoking crack Mr. Bush? You and only you were the one that announced to the world that you were going to tax expats, no one else. It was you. The press reports what coes out your mouth.
"wutless scandal sheet"?
Yup, thats Mac in a nutshell.
Of course the Media' Frenzy' was the blame of someone else….Premier Bush NEVER takes responsibility…first it was PPM's fault that our islands are in the financial mess it has become over the past 4 years, (though HE did not cut spending), then it was FCO's fault that Premier Bush proposed the ExPat Tax (LOL), then it is the Governor's responsibility to let go 500-700 civil servants, and now, naturally, CNS created the 'media frrenzy'.and don't forget, of course he had NO intention of introducing DIRECT taxation……sad!! And even sadder that the majority will fall for that bull!
The Cayman Islands: half reasonably sophisticated financial centre/holiday destination, half banana republic without the bananas. One half is dragging the other to the bottom…
Bush needs to start taking his advice from 'Offshore Alert', which has the interest of every Caymanian at heart.
This is more or less what everyone was expecting. Since he can't tax the expats and he won't tax the voters and he is committed to his lavish spending/ vote buying plan he has to squeeze business by hiking the fees.
The question is whether it will raise any more money or whether the business Cayman loses to other offshore jurisdictions will offset the increased fees. Some of our business costs are already obscenely high. The increase in work permit fees is going to mean less work permits which means more empty houses etc.
Since this volte face has only happened in the last few days no analysis can have been done into the amount of revenue generated or the impact on business or the local economy. Those revenue estimates must be back of a beer mat calculations. Will be interesting to see what the UK says. I predict they will question his figures and say no, again.
Each time that happens Mad Mac has less room to maneuver. Hopefully in the end the only option he will have left is to cut spending. And that doesn't mean 500-700 civil servants out of work. He could easily save millions upon millions by cutting only the most grossly unproductive public employees and the most wasteful spending programmes.
My question is – will I still get my solar panel?
And does anyone know whether the fee on boats and the increased penalties for traffic offences will bring enough funds to cover our Premier's travels?
No it won't, but the sale of the helicopter will.
Good idea but the sale of the helicopter will be at a loss which would be an expense in the current budget. Mac will have to fund his first class travel some other way. Maybe Dart can buy Cayman Airways.
LOL "was made before a smaller and more subdued audience" cns, I was there last night. I about 180 people. I don't think I was "subdued" either 🙂
I think small business owners care a lot more than the Premier does that some people cannot pay their electric bill. If he cared he would be publicly pledging that he would lead by example and stop his wasteful, frivolous spending. Also, shame on CNS for your online poll…”Who would you like to see as Cayman’s next premier? McKeeva Bush, Alden McLaughlin, Ezzard Miller or a UK takeover.” Are you implying that only these three men should be considered for the job. How about a Jennifer Dilbert or a Brian Tomlinson? Your poll shoud be adjusted.
If he cared about anyones electric bill then he wouldn't be claiming the cost of his own electric from the public purse… christmas lights ring any bells?
These knee jerk measures are not stimulative, rather they constrain and impair growth. We've done this before and can measure what happened. We saw that the financial services sector can very easily redeploy to more amenable shores, and more will as they are repelled. As they leave, Caymanian jobs are lost permanently, putting further downward pressure on local employment, real estate, and the viability of Grand Cayman's local service industries. We also saw this affects the Tourism product. Just show us the Balance Sheet and we will walk you through some temporary spending cuts to get where we need to go. Why is that so hard?
Balance sheet?….wha dah is?
We nah need no sheet feh balancin!…we jus raise tax..er a meen fees!
It doesn't surprise me at all that Mac and UDP are completely out to lunch.
And from what we saw with PPM and the "Constitutional Committee" (chuches) 08-09…remember Kurt espousing that "half a loaf betta den no loaf" and "the Global Economic Crises will only affect Cayman by about $250,000" (apparently calculating only the few Financial Services Companies that had then announced moving their business).
ALL of the aforementioned gave unconstrained power to premier….looky how dah turn out!
What is of great concern is that two of the cayman business men who suggested raising work permit fees in the financial sector outsource a growing amount of their work that should be done in Cayman to other countries, hence they avoid this increase (I am talking about the audit firms). These two individuals will go down in history as conspiring to kill off our financial services by making them uncompetitive yet immunising themselves from it!! Where is the research which showed that another round of work permit fees wouldn't kill of the industry or reduce it even further? I am guessing that there isn't any!!. Just look what happened to the fund administration business last time fees were increased. RIP Cayman Financial Service Industry! At least we know who to blame when this happens.
This was a compromise solution, the lesser of two evils if you will, in response to a 10% expat payroll tax. Work permit fees will be harmful, but not as harmful as a payroll tax. Im sure Dan and Roy's most preferred solution was not additional fees or taxes, but when faced with a choice, they appropriately chose the lesser ot two evils.
Indeed, I raised that exact point more than once this week, I am still trying to figure out DS and RM's reasoning.
To plug the budget…on a Balance Sheet he won't show us. Caymanians: please be smarter than this.