Archive for August, 2012
Gambling returns to table
(CNS): Although it has not yet been confirmed, the issue of legalised gambling, including the introduction of casinos, was under discussion during the recent meeting with the premier and leading members of the business community in the search for alternatives to direct taxation. It is understood that casinos and other forms of gambling do not yet have the support of the wider community but the proposal is still on the table. The issue is one that the opposition says needs to go to a referendum, while Ezzaard Miller says legalising the existing numbers game immediately could generate several million dollars for this budget.
Miller said he believes Cayman has to consider introducing casinos but in the first instance, he said, it would be easier and simpler to legalise the numbers game and charge a 25% fee on the lottery sellers.
“The business is estimated to be worth around $1 million per week, even though it is illegal,” Miller told CNS, adding that once it was legalised it would probably attract even more players and would be relatively easy to collect.
Although the police were unable to give an estimate of the number of players and sellers involved in the illegal lottery, a spokesperson confirmed that the figure of $1 million being spent on the numbers in Cayman was a reasonable estimate.
The debate about gambling in all forms, from a national legal lottery to full scale gaming and casinos, has been raging in Cayman for many years. A number of developers and those in the tourism market are in support of casinos, even if they were for the exclusive use of visitors and out of bounds for locals. A number of private sector bodies, such as CITA, some members of the Chamber of Commerce, CIREBA and Cayman Finance, as well as a various private sector individuals have supported past proposals to overturn the gambling laws and introduce a national lottery or limited gaming licences as a way of addressing government’s budget difficulties.
Premier McKeeva Bush indicated that he was willing to hold a referendum on the subject when he first took office and faced his first budget crisis but shelved the idea in favour of increasing fees to help balance the public books. A petition was started by radio host and former Cabinet minister, Gilbert McLean, in an effort to trigger a people-initiated referendum in 2010 but he was only able to gather around 500 signatures in support. Meanwhile, a petition against gambling started by the Cayman Ministers Association was able to attract over 1,200 signatures in a matter of days.
The subject continues to divide the community, with those who say it is an easy way of raising revenue for government pointing to the access people already have to the illegal local lottery and on-line gambling, which makes a mockery of the prohibition, versus those who are concerned about lotteries being a tax on the poor and the vice and crime that is associated with gaming and casinos.
With the churches opposed to gambling, successive governments had been hesitant to push ahead with legalising it but each and every time government faces a revenue problem the subject returns to the table.
The opposition leader said that while the PPM is against the legalisation of gambling, he would support a referendum on the subject. “We have always taken a position against legalised gambling and there has been no reason presented to change that but we do support a referendum,” he said. “Following a referendum, despite the party’s position, whatever the outcome we would be duty bound by that democratic decision.”
Although the premier has never come out and publicly supported the concept of a legalised lottery or casinos, sources close to him say that he is in favour. But given that may of his own supporters are against the idea, he would be unlikely to declare his hand.
Immigration policies support an increasing unemployment rate
“I am pleased that the labour market has improved last year, and I expect it to further make progress this year,” Premier McKeeva Bush said recently. After reading the recently released Labour Force Survey Report (Fall 2011) I do not share the premier’s optimistic outlook for the local economy.
In fact, I am increasingly concerned that the actions taken by the government and the lack of any real visible economic recovery policies and plans has resulted in a bleak outlook for these islands and has created a situation which becomes increasingly difficult to remedy if the current approach to managing the economy is not addressed immediately.
Simply put, a high level of unemployment signals that the economy is operating beneath the production possibilities curve and the economy is not performing at full capacity. This is significant, as suggested by Okuns law, because for every 1% increase in unemployment, real GDP decreases by 2%.
Cayman’s unemployment is largely structural in nature and some local employers are not able to source specific skillsets, training and experience from within the local unemployed labour pool, leaving them with no alternative but to turn to foreign labour in order to meet the demand for labour generated by their individual businesses. In addition to the almost 10% overall unemployment rate, perhaps the most startling statistic revealed in the report is the fact that the unemployment rate for individuals between the ages of 15 and 24 is currently around 20%.
This is alarming, to say the least, because individuals from this group represent high school and university graduates who are the future of these islands and the statistics indicate that for whatever reasons these young people are facing increasing obstacles finding employment. It is also concerning that a significant number of these individuals are ending up in the court system. Twenty years ago high school graduates in Cayman were faced with a multitude of employment and/or educational opportunities to choose from, but the situation today is dramatically different and it is obvious from the survey results that many are graduating with no opportunities ahead of them.
There are also much wider concerns that cannot be ignored. Cayman is in the rather unique position of being able to import labour from outside the country with little difficulty, mainly because work permit fees are a major contributor to government revenues. This imported labour serves to effectively replace, and causes employers to ignore, the local unemployed labour pool, i.e. the approximately 10% overall unemployed Caymanians, allowing the economy to continue to operate boosted by the external labour supply. The 10% unemployed Caymanians then become a cost to the country as they have to rely on government funded social programs to survive and as the importation of labour continues to proceed unchecked, the unemployment rate can only continue to increase.
The irony in this situation is that as government revenues increase from work permit fees, the increased demands on social welfare caused by unemployment will drive up costs faced by the government. The net effect may well be that government revenues are not being effectively channeled into the most appropriate and constructive initiatives. This creates a vicious cycle which becomes increasingly difficult to reverse. Recent examples of where government has spent public funds assisting the unemployed are numerous but unfortunately become increasingly necessary as more Caymanians encounter difficulty obtaining employment.
Ideally government should direct its economic policies towards keeping unemployment amongst Caymanians around 3% or less, and because we are in the unique situation where the majority of our employment force is non-Caymanian, immigration policies play an important role in controlling the rate of unemployment. The ideal strategy therefore would be to tie our immigration policies to our economic policies in order to effectively regulate the supply of non-Caymanian labour. By doing this we will be effectively controlling the level of unemployment. Left unchecked, our rather generous work permit policies will continue to cause an upsurge in local unemployment as the labour force survey has confirmed is the case today.
It is critical that our education efforts and focus for both local and overseas students be crafted to ensure that these missing skills are being addressed via formal education programs and initiatives. It should also be a clear policy that when these skills are available via the local labour supply, priority will be given to sourcing employment for these individuals, and government must be willing to halt or slow the grant of work permits within these specific areas until the local labour pool has been exhausted or the 3% or less limit has been achieved.
The University College must continue to adopt the highest possible standards and begin to offer a diverse curriculum which is crafted based on the needs highlighted by the local labour market and this can be easily achieved by adopting a consultative and cooperative approach with the private sector. It is therefore more effective to offer educational opportunities to prepare students for careers that are in highest demand. For example if the top 5 careers within the private sector are lawyers, accountants, technology engineers, corporate administrators and fund administrators, these need to become the top 5 educational opportunities available to our students. By taking this approach we align the local labour supply with the local demand for labour.
There is some degree of cyclical unemployment, or not enough jobs to go around, which is partly due to the current recessionary conditions, and in many instances a high level of skill and or training is not required for these positions. Government reaction to this must be to seek to reduce the number of work permits within the relevant areas, allowing the local unemployed labour force to become employed and productive. Cyclical unemployment is perhaps the easiest to address, and least costly, and only requires a clear policy and direction when it comes to the granting of work permits in areas where there are qualified but unemployed Caymanians.
Looking forward, Caymanians must accept that for the foreseeable future there will always be a need to hire foreign labour and that we cannot expect to find sufficient Caymanian labour to operate the economy at full capacity given our indigent population level. It is also clear, however, that there is a direct relationship between the level of unemployment and the subsequent negative effect on government costs and the negative impact on the local economy this creates.
Carefully balanced economic and immigration policies can be utilized to achieve the perfect balance between foreign labour and Caymanian labour. What is required, however, is sensible and responsible management, clear tertiary educational objectives, less pandering to one group of individuals over the other and adopting a more scientific and analytical approach to managing the economy.
The end result will be a reduced local unemployment rate, higher education and training standards among Caymanians, a stable and united workforce and a much stronger economy and government.
This is not a quick fix approach and the benefits will only become evident in a few years, but it is clear that taking proactive steps now will prevent further increases in unemployment, reduce the burden on government to “look after” unemployed Caymanians, reduce the divide between expats and Caymanians, both socially and economically, and stimulate the local economy by putting disposable income into the hands ofCaymanians without taking it from the government coffers.
Young cops complete assignments
(RCIPS): Thirteen young Caymanians completed their summer internships with the RCIPS last Friday. During the four-week programme the students worked in a variety of departments including Financial Crime, Process, Scenes of Crime, Fleet Management and the Joint Marine Unit. In all cases they were matched with departments and roles which complemented their chosen areas of study and their future career aspirations. All of the students had an opportunity to visit an array of departments within the Service to allow them to gain a better understanding of the wide-ranging roles carried out by officers and police staff.
Deion Williams, who worked with the Financial Crime Unit ,said: “I learned that the FCU deal with any type of crime that involved money and will investigate forensics to find evidence. My experience was great and I had a lot of fun learning something new every day. If I have the chance I would love to go back one day.”
“This experience has been educating and challenging,” said Tevin Vernon of his time with the Security and Firearms Licensing Dept. “I learned the importance of filing and processing documents. I was able to rotate to a few different sections and saw a lot about RCIPS operations that I was not aware of. I believe that I am now more comfortable in dealing with people and better able to keep a positive mind.”
Reymon Rodriquez found his attachment to Fleet Management extremely rewarding. “Working in fleet allowed me the opportunity to learn a lot about cars and the various parts,” he said. “I was able to help check when the cars were due for service based on mileage and I learned how to use some of the special tools and equipment.”
Deandra Ebanks hopes to pursue a career in Psychology. She feels that her attachment to the Family Support Unit, where officers work with people who are dealing with sensitive family issues, has helped her more clearly define her career path.
Commissioner David Baines was delighted with the commitment and work ethic demonstrated by the interns throughout their time with the Service. “Every one of the students threw themselves into their respective roles,” he said. “It was important for us to use the opportunity to showcase what we do and what we can offer the future Caymanian workforce. But we also wanted to ensure that the students enjoyed their attachments while gaining valuable work-based experience. I hope that they found the experience as rewarding as we did and that they may consider becoming permanent members of the RCIPS in the years to come.”
Climate change real says leading scientist
(Washington Post): The relentless, weather-gone-crazy type of heat that has blistered the United States and other parts of the world in recent years is so rare that it can’tbe anything but man-made global warming, says a new statistical analysis from a top government scientist. The research by a man often called the “godfather of global warming” says that the likelihood of such temperatures occurring from the 1950s through the 1980s was rarer than 1 in 300. Now, the odds are closer to 1 in 10, according to the study by NASA scientist James Hansen. He says that statistically what’s happening is not random or normal, but pure and simple climate change.
“This is not some scientific theory. We are now experiencing scientific fact,” Hansen told The Associated Press in an interview.
Hansen is a scientist at NASA’s Goddard Institute for Space Studies in New York and a professor at Columbia University. But he is also a strident activist who has called for government action to curb greenhouse gases for years. While his study was published online Saturday in the Proceedings of the National Academy of Science, it is unlikely to sway opinion among the remaining climate change skeptics.
Cayman tops offshore mergers & acquisitions
(CNS Business): The Cayman Islands took the top spot in the second quarter 2012 as the most popular destination for investors doing deals involving offshore targets, completing 104 deals worth a combined value of US$19bn, according to Appleby’s latest edition of Offshore-i. The second edition of the firm’s quarterly report, which provides data and insight on merger and acquisition activity in major offshore financial centres, found that the offshore M&A market increased in value at twice the worldwide average last quarter, compared to the previous quarter. The Cayman Islands experienced significant growth in the second quarter with deal value and volume up 323% and 17% respectively from the first quarter. Read More on CNS Business
Murderer won’t face second trial
(CNS): One of the men convicted of the murder of Estella Scott-Roberts will not face a second trial for the robbery and abduction of the Cable and Wireless executive, the courts have confirmed. Scott-Roberts was found dead in her burnt out car in a remote spot in Barkers in October 2008. Larry Ricketts and Kirkland Henry, both Jamaican nationals, were convicted of her murder after a trial in February 2010, but the crown has stated that it will no longer pursue further charges against Ricketts after his appeal to the Privy Council for his murder conviction was denied. He will serve the rest of his life in jail and public prosecutors have said there is nothing to be gained by putting the family through another trial. (Photo Dennie Warren Jr)
Both the convicted men had faced further charges relating to the crime but these could not be tried alongside the murder as legislation at the time required cases of murder to be tried separately from any other offence.
Although Henry pleaded guilty to rape, robbery and abduction, Ricketts, his co-conspirator in the murder, denied all charges against him and had pursued an appeal against his conviction to the UK’s high court. The recent refusal by the Privy Council to hear the appeal and the upholding of the conviction allowed the public prosecutor to decide the way forward with the outstanding charges.
Speaking on behalf of the DPP’s office on Friday, crown counsel Elizabeth Lees confirmed that a number of issues had been taken into account, not least the potential trauma for the family to sit through another painful trial, and there was no public interest in trying Ricketts, who was given a life sentence. She said that this complied with the wishes of the victim’s family that were seeking closure and there would be no practical gain for justice for Ricketts to be tried and if found guilty given sentences that could only be served concurrently.
As a result, Justice Williams advised that the family should be formerly notified of the decision as he dismissed the outstanding indictment.
Law proposed to tackle sexual harassment
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CNS): Seven years after a local task group revealed that sexual harassment was a pervasive problem in the Cayman Islands the Law Reform Commission has drafted legislation to tackle the issue. Following on from the recently enacted Gender Equality Law, this proposed bill seeks to address the issue formally rather than relying on voluntary codes. “Cultural perceptions, attitudes and justifications for sexual harassment, in the view of the LRC, have contributed to a failure to understand and adequately respond to the problem,” the commission stated last week as it released the proposed law for consultation that will force the community to deal with it.
“Many persons do not know how to report sexual harassment or from whom to seek assistance. As a result, the problem is usually ignored and not enough is done to address it, primarily because there is no comprehensive legislation or policyto respond to the issues,” it added.
Sexual harassment refers to unwanted and unwelcome conduct of a sexual nature engaged in by a person who directs that conduct to another person. The Young Business and Professional Women’s Club (YBPW), which established a taskforce in 2005 to investigate, assess and provide legislative recommendations, to the then government concluded that sexual harassment is a serious problem in the Cayman Islands that required legislative intervention.
The government passed the Gender Equality Law in 2011 but this law only deals with sexual harassment as it relates to gender discrimination within employment and occupational contexts. The commission said it is restrictive and presents limitations on the sexual harassment issue.
“The LRC is of the view that there is a need for legislation which mandates the formulation of a sexual harassment policy and expands the contexts in which the conduct can occur to include, among other things, educational and other institutions, associations and accommodations.”
Although some organisations and institutions have in place a code or a policy to combat sexual harassment, without a national sexual harassment policy or legislation requiring a policy, there is no obligation on the part of organisations or institutions to put policies in place or enforce them.
“Sexual harassment has long been recognised internationally and is increasingly viewed as a major international human rights problem,” the LRC said adding that it was necessary it on a holistic statutory basis.
The bill identifies the types of conduct that may constitute sexual harassment; it also requires the formulation of policies in professional relationship settings, provides for a Sexual Harassment Tribunal to deal with complaints and protective remedies for victims or potential victims.
The commission is seeking input from the public on the bill and asks people to submit comments and suggestions by 27 September in writing to the Director of the Law Reform Commission, Ground Floor – dms House, 20 Genesis Close, George Town, Grand Cayman, P.O. Box 907, Grand Cayman KY1-1103 or email cheryl.neblett@gov.ky.
Unless marked to the contrary, the LRC will assume that comments received are not confidential, and that respondents consent to our quoting from, or referring to, their comments and attributing their comments to them, and to the release or publication of their submissions. Requests for confidentiality or anonymity will be respected to the extent permitted by the Freedom of Information Law, 2007.
See notes and draft bill below.
Bush lauds Jamaicans for benefit to Cayman
(CNS): Cayman has “benefitted greatly” from the contributions Jamaicans have made in its development, the premier said this weekend while visiting the country for the 50th anniversary of its independence. According to the Jamaican government’s information service, McKeeva Bush said Jamaicans have influenced “many areas of life” in the Cayman Islands. Speaking at last weekend’s 60th staging of Jamaica's agricultural show, he said there was a long association spanning some 350 years between the two countries, which is expected to continue into the future.
“You have contributed to our growth, as a nation and as a people. I am thankful … that Jamaican teachers, Jamaican tradesmen, Jamaican educators of all kinds, legal brains of all kinds, right down to those who take care of our children, have done Cayman well. For this, I will always be thankful,” he said.
“Our (association) is an enduring legacy for both our nations. Our relationship, as neighbours, has not been circumscribed by the individual political paths that we chose. Our bonds are deep and robust. Our shared past experiences have allowed us to remain close, despite diverging paths, and as such, it is on an important occasion, such as this (Jubilee anniversary), that we acknowledge the contribution of Jamaica, and the Jamaican people to our Cayman Islands,” the premier said.
He lauded the accomplishments of many Jamaicans in sports, music, culture and education and said the country was blessed with some of the nicest people in the world.
“Jamaica is truly a jewel of the Caribbean,” he said.
JIS said that Bush had headed a government and agricultural sector delegation from Cayman while in Jamaica but the size of the group was not stated. Bush faced significant criticism at home about the trip against the backdrop of a major financial crisis at home over the budget and the contentious proposal to introduce direct taxation to Cayman.
Calls for moderator rejected
(CNS): The premier has rejected calls from the founders of the social media site opposing direct taxation on work permit holders to have an independent person moderate tonight’s public meeting at Mary Miller Hall. Eden Hurlston told CNS that he and many people from the Facebook group wanted the premier to use a moderator to ensure the public would be able to participate in tonight’s meeting about the budget, ask questions and offer solutions. However, he says that the premier has rejected the suggestion and the group fears a repeat of the West Bay meeting where people did not get answers to their questions and where too much time was wasted by the premier attacking his opponents.
Hurlston, a local musician and entertainer, said he and members of Caymanians and Expats United Against Taxation want to hear the proposals that McKeeva Bush is expected to present to solve the budget problem; they do not want him to spend two hours berating others for the problems the country now faces.
“In the interest of a truly productive discussion on these issues, which are extremely important to all of us, we proposed that tonight's meeting be moderated by a neutral party,” Hurlston said. “We hoped to have an allotted time for government’s presentation and then a set time for questions and comments. This would have helped to maintain civility during the discussion, give everyone a chance to express themselves and get their questions answered. If this truly is a public meeting that would have been a sensible way to proceed, but the premier has declined.”
He said that the group had received a response to an email they sent to the premier yesterday in which Bush said neither he nor Cabinet was interested in a neutral professional moderator.
“Unfortunately, he refused to entertain it, and said that there were laws guiding the procedure of public meetings, which we're unable to find,” Hurlston noted. He pointed to the bill of rights which will come into effect in November and the rights of the people to be treated fairly in their dealings with government, which extends to any decision government makes in relation to the people.
“It also seems that the Cabinet sees public meetings as an obligation, leaving us wondering if they really are interested in what the people have to say,” Hurlston added.
According to the last public statement from Bush on the issue, he will be using the meeting scheduled for 7:30 Wednesday evening at the Mary Miller Hall to inform the public about the revenue raising measures he proposes to introduce into the 2012/13 budget to replace the now rejected expat tax.
At the last meeting Hurlston and others had questioned the premier about the alternatives to the discriminatory proposal, which they believe would have seen guests in their country forced to foot the bill for ongoing over-spending by governments elected by Caymanians, not foreign workers.
He was disappointed that there were no answers that night and is concerned that there will not be full and transparent answers this evening either. The group is also worried about the intimidation of those who are asking questions and the rude way people were treated at the last meeting.
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“Bush said that he will personally supervise the meeting and use of the microphone,” he added. “We did ask him to ensure adequate time for the public to speak and we intend to hold him to this. After West Bay meeting, we can only hope the Red Bay meeting will be more productive and that everyone will be peaceful, respectful and focused on the common good of Cayman.”
The exact nature of the new revenue raising measures has not yet been outlined but it is understood that they are focused on the financial services sector and the high-end condo market. Bush said Monday evening that if alternative revenue raising measures could be found that did not impact poorer Caymanians, he would pull the contentious expat tax, which he had dubbed the 'community enhancement fee'.
After some confusion over the weekend about proposals by the business community being accepted and then rejected, Bush confirmed Monday that the tax was off the table. He said he had a commitment from the private sector to support other measures that could replace the controversial fee.
Whatever new fees or taxes the government proposes will need to meet the approval of the Foreign and Commonwealth Office, which is pressing government to produce a surplus budget with sustainable and credible revenue-raising measures, as well as significant spending cuts.
Cops make murder arrest
(CNS): The police have arrested a 27-year-old West Bay man on suspicion of murder. The arrest is in connection with the murder of Robert Mackford Bush (left) in West Bay almost one year ago. The arrest took place during a police operation in the district on Tuesday 7 August. The man is currently detained in police custody in connection with the killing which triggered a series of tit-for-tat gang-related murders last September in which five young men lost their lives and a sixth was severely injured. Bush was shot multiple times in the head and body as he was sitting in his car at the junction of Capt Joe and Osbert Road and Birch Tree Hill.
Police believed at least two gunmen were involved in the shooting of the 28-year-old man, who they said was a victim of the feud between the Logswood and Birch Tree Hill gangs in West Bay.