EPF misused as tax goes up
(CNS): Government will soon be increasing the tax it collects from people departing the islands as part of its revenue raising measures for this year’s budget. Some of those tax dollars should be earmarked for environmental protection but they are being used instead to help government remain compliant with the Public Management and Finance Law and not for conservation. Ever since the Environmental Protection Fund, drawn from departure taxes, was established in the 1990s, government has misused the fund by dipping into it for road maintenance or post hurricane clean-ups and more recently as a way of maintaining the necessary bank balance to meet its own public finance parameters.
With the exception of $200,000 spent on the Brac Parrot reserve some time ago, the more than $43 million that currently sits in government accounts, accoording tot he latest budget documents, has never be used as it was intended — to buy land that can be used to protect some of Cayman’s unique but endangered habitat.
As Cayman faces multiple environmental problems and more and more land is cleared in the face of relentless development, the money that should be accessible to address problems such as the critically endangered ghost orchid, the declining parrot population and the desperate need to protect certain habitats from the bulldozer is cut off from the purpose for which it was intended and tied up in government’s reserves.
Although government will be increasing the money it takes from those passing through the airport and those travelling to Cayman by boat, other than on a cruise ship, it is very unlikely that the new cash will be channelled into the EPF.
Government is expected to steer the bill to amend the Travel (Departure Tax and Environmental Protection Fee) Law (2003 Revision) when it returns to the Legislative Assembly next month. The fee increase of $10 is part of a number of increases to various revenue measures which formed part of the delayed 2011/12 budget in order for government to gain UK approval for its spending plans for this financial year. This increase, together with an increase on the tourism accommodation tax from 10% to 13% is expected to generate over $3.1 million
Government currently takes $3.20 from air passengers and $1.60 from each cruise passenger from the departure fees for the Environmental Protection Fund. It is not clear yet if any of the new revenue generated from the departure tax increase of $10 will be directed to the fund. Even if it is, there is no indication that environmental protection issues are set to improve.
Currently, most of the environmental projects that are undertaken by the Department of the Environment or the National Trust are either funded through the private sector, individual donations, or grants from international organisations and transnational bodies and NGOs.
However, in the wake of the planning department’s decision to allow a developer to rip out mangroves that had been part of a replenishment project in South Sound, funded by an outside international grant, Cayman’s applications for future funding may well be viewed more sceptically on the international stage. With government appearing tobe contradicting itself when it comes to its position on protecting the environment, access to grants in a competitive world are likely to dwindle.
The failure of government to pass the National Conservation Law has already seen Cayman lose out on some international awards for conservation regarding parrots, because the government is not seen as being committed to environmental protection and because it appears to already have $40 million earmarked for such projects that it is not properly utilizing.
The original intention of the fund, which was set up in 1997, was to acquire land for conservation purposes but it has been used instead to pad out the public purse and allow government to meet obligations in the PMFL that require a certain level of funds to cover 90 days of the costs of government at any given time.
The DoE has persistently taken the position that the money is meant to be used to buy land identified as critical habitat for conservation. The sentiments were echoed by National Trust chair Carla Reid recently when she spoke to CNS about the challenges faced by the Trust in its goal to increase the percentage of land currently protected in Cayman from a meagre 5% to 10% before 2020. She, too, said that with millions of dollars sitting in the fund government could help conservation efforts by buying up land and giving it to the Trust to protect.
The DoE director has also noted that her department cannot plan with any confidence what land it should be seeking to purchase because it does not know to what extent the fund is going to be tied up helping government comply with its financial legal requirements.
With the NCL still gathering dust after numerous consultations over the last few years and little political will for the law to be steered through the Legislative Assembly, the problem of the fund being diverted from the environment is compounded. The current environmental minister has proved to have very little interest in that part of his ministerial responsibilities and while, like his predecessor, he has said on many occasions that the government is committed to the bill, there is zero evidence of that claim.
With no comprehensive law to protect the natural environment, a minister with little interest, other arms of government undermining the work of the DoE, the National Trust funding cut and fundraising becoming ever more competitive, the diversion of the Environmental Protection Fund is just one more nail in the coffin, many conservation experts now believe, for Cayman’s natural resources.
Category: Science and Nature
In other words the Caymanians in government are not following the rules and laws. What a surprise! Who would have thought? And they get payed sooo much to do so. This is what Caymankind is all about.
Give the EPF money to the National Trust so Carla can save some of the mangroves and other precious areas we have at this moment because they are going fast.
What an absolute crying shame yet I'm not at all shocked by this news as I've stated before that the UDP or PPM don't care about protecting our natural habitat. The Auditor General need to release the $43million to the DOE and so that we can pass the National Conservation Bill and start purchasing land that will be created for National Parks and green areas. This money could also be used to invest in a Solar or Wind farm that would hopefully put an end to CUC ripping off residents and be a cleaner source of energy. The DOE and the National Trust should merge to become The National Environmental & Conservation Authority who would be able to save important heritage sights and land from destruction and over development.
The NECA would also have a much needed City Planner who would set out a plan for vision 2025 that would place environment & conservation at the forefront and quit playing politics. The UDP has misused the Environmetal Fund by using $5million for the "so called nation building fund" and Juli's private parking lot deals. I say its high time that we demend more from our leaders and should make them more accountable for abusing their powers.
All the best
Surprised.. not really.
Forget about the Conservation Law – it's simply not gonna happen under this regime because too many noses are in the trough. Whether it will happen under a new Government remains to me seen but given the lack of vocal oppositon to anything this Gvt does by the PPM (excepting of course Oppostion Wednesday on Rooster) when they do finally air a voice …
Nobody stands up to anything on this rock, no one wants their head above the parapet. Caymanians can bitch all day and night about how this place is going downhill, calling out DART and Stand Thomas and Michael Ryan. how you birthright is being sold out.
Think back as few years first.- think how the Marriots and Hyatts and Ritzs and other 'eyesore developments ' were built. All those condo on 7MB interupting the view from the WB Road. Think who sold those properties and land to DART and Thomas, Hyatt , Marriott at al.. Think back – some families made some nice coin selling out their birthright. So don't come crying wolf now you have shit all left and the place is turning into a concrete jungle with no charm. character or much of anything left to make people want to live, invest or vacation here.
We are living in the (supoposed) tail end of a recession – global recession. Surprise Cayman is not recession proof – smell the coffeee. The only way this place will see the 'glory days' of the late 80's early 90's again is to stand up and be counted – make this island a premium destination again. That means growing a pair and finding leaders who actually give a toss about the island and it's people – native and expat alike. If that means voting for youth and untried people then so be 'cos I dont see a great change coming in either partty right now.
I fear that whatever the limitations of the Governor’s powers to actively address issues such as this, eventually the historical perception of his term will be that he turned a blind eye to anything which was contentious. A sad legacy.
The fund is not in an Al Gore "lock box" and never has been. It is just a line on the balance sheet. If you turn it into land it will still be a line on the balance sheet but will no longer be in the category of "cash on hand."
Seriously, Cayman needs a national park on land, about 2 by 5 miles, vicinity of the Mastic trail. It's now or never. Where is your Teddy Roosevelt?
Another National park that can be given to Dart like the West Bay one?
Mr Swarbrick, I believe this is another one for your team to look into. In fact just look into everything. Open the can and let us see the worms.
Desperate times call for desperate measures.
If you take the case of the Stingrays being STOLEN from the Sand Bar, of which some are still being held prisoner and nothing was done about it (from a legal perspective) we should no longer be surprised that our incompitent circus of clowns has been partaking in such unethical behavior. If it was a little man who had taken a lobster, or conch he would have been slapped with a massive fine or imprisoned! its obviously not " what you know, but who you know" in Cayman. This is why the average foreigner can laugh at us as we seem hopeless to oppose such things in our own country. All my countrymen have become is winers who are not willing to take any significant action against the misdeeds being done to us. Cayman is free for the taking and it is being gobbled up day in day out. When we go to the polls this comming election PLEASE PLEASE REMEMBER all of the headlines that sadden us and those responsible, do not smile with them when they arrive at your front door as they surely will, but instead, stand up for once and let them know "I wouldn't vote for you for all the gold in the world, in this life or the next" AMEN!
The government should be ashammed as this is equal to fraud…fraudulently collecting funds that they divert to their own use and to buy votes. where is the department of enviroment in all of this, are they sitting idly by and watching this happen? this is another stupid idea, levy more taxes because they refuse to give up their body guards, drivers, and other luxuries. it is too expensive to live or to visit here, we are killing our industries and driving well meaning people away.
Isn't this misappropriation of public funds?
How many Governments are guilty of leaving the money there, not trying to protect our natural environment! This is one case where one can’t blame the other.
How can the FCO allow the CI Government to use these funds for this purpose!!!! ????
Its ridiculous – fees, fees and more fees. You're pricing us out of the market and off of the island. I wouldn't mind so much if the fees were used for what they are supposed to be – but we all know its to finance further incompetence. Its a disgrace. I hope after the election the new government reverses some of these fees and just starts cutting expenditure.
The headline below reads, 'woman stabbed for groceries.' This story of the misuse of funds from the EPF should carry the headline,'public defrauded in $40 million government EPF heist.'
the incompetence and economic mismanagement of cig is never ending….
any comment mr governor???….you know the guy who is supposed to be ensuring good governance…………….zzzzzzzzzzzzzz
They can't even pass the conservation law yet they blatantly steal from the fund!! Honestly it really doesn't come as a surprise….lol. God knows what else has gone on along the way & he's still in power & still under investigation….only in Cayman.
They should give the parrots the right to vote. Then Mac might fund some money in one of his slush funds to look after them.
Again I will bring this to the attention of the public.This money is NOT to be used for anything else but to protect and maintain our natural environment and any programs etc associated with said protection.A proper committee should be set up to oversee this fund and then and only then should those funds be used for what it was specifically intended for.If you look at it in the right context we are stealing from this fund and are misleading the tourists who are being charged this fee on their tickets and also the tourists arriving by cruise ship.If our local govt was being run in the manner it should be IE like a business we should not have to use or to "Steal"from this fund.Maybe our leaders could refrain from taking such exotic trips to broaden their knowledge of the outside world.
Oi, no disrespect to the tourists, but its stealing from us too since everyone who travels, including we, you, me, pay the Env Fee.
Sorry just forgot and lets hope these clowns will leave well enough alone
"…protect and maintain our natural environment…"
Why are you complaining? Our leaders are, in fact, protecting and maintaining their natural environment. Their natural environment is in posh bars, posh condos in the Ritz-Carleton,and in posh 1st class airplane seats.
It is all a matter of perspective.
Exactly. They are defrauding us and the tourists. Remember we rent cars and go on vacations too. Many people take staycations between the islands.
In the old days we just called it fraud; nothing more, nothing less.