Archive for February, 2013

Local activist plans to fight for West Bay seat

(CNS): One of the leading campaigners against the ForCayman Investment Alliance and an outspoken opponent of what he says has been the poor representation of the United Democratic Party MLAs in his district has revealed his intention to fight for one of the four seats up for grabs in West Bay. Local plumber, Mervin Smith, has declared as an independent but he has confirmed that he is seeking the endorsement of the Coalition for Cayman. Focusing on the district’s unemployment problem, Smith said he would also be campaigning on the need to promote development that genuinely benefits Caymanians.

“Over the years I have watched our community deteriorate to a level that is no longer acceptable to me. We have gone from a prosperous, relatively crime free country to a country on the precipice of serious social and economic decay,” said Smith, who has been a regular on the local political scene for some time.

A founding member of Truly4Cayman, an organisation for the preservation of the West Bay Road, which is facing imminent closure, Smith said the country needed to engage in development that promotes long-term social and economic benefits for the future generations of the Cayman Islands. 

“We must diversify our economy and promote sustainable development that creates reliable results over the long term,” he added. “We can no longer afford to promote development that only provides short-sighted gains for the country. This economic model is outdated and has left our country requiring continual quick fix solutions for our employment needs.”

With the unemployment rate in his district higher than anywhere else on Grand Cayman, Smith said he plans to work to create more jobs for Caymanians if elected.

“All of our people deserve to earn a liveable wage. Unemployment is a serious problem in West Bay. I want to work with other like-minded representatives to create a more equitable employment system where all citizens have an equal opportunity to the jobs available in our country.”

Pointing to the government’s procurement process, Smith said the system did not currently allow for collective bargaining and so government paid too much for goods and services.

“I want to promote a system of governance that is in keeping with the best practice standards as suggested by the Auditor General’s Office and achieve true accountability within the public sector,” he said. “If the procurement process is not carefully managed it will continue to increase government spending, which creates the knock on effect of higher taxes and a higher cost of living.”

The third child of John and Charity Smith, Mervin Smith grew up in Birch Tree Hill and has been active in his community for the past 16 years. He was the founder of the West Bay Sports Foundation, an organization that looks to provide young Caymanians opportunities through sport and offers them financial assistance when they compete overseas in tournaments and camps. Smith currently lives in West Bay with his family and is the owner of MJS Plumbing Ltd.

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Constitution threat to election

(CNS): Warnings by  North Side MLA Ezzard Miller that the results of the next general election could be challenged because of the language of the constitution as well as the bill of rights may be valid. Attorney General Samuel Bulgin wants to amend the constitution to prevent a possible upset, further undermining the campaign for one man-one vote, and to this end has sent a memo to members of the Legislative Assembly asking for their support to amend section 92 pluralizing the language and making the constitution support the current election system of multi-member constituencies. However, Miller has said he will not support the move and believes it will not prevent election challenges.

The request by the attorney general for the support of members to amend the constitution in section 92, part I, by inserting the words “or elected members” after the words “an elected member” is more than a minor change, Miller said. The North side MLA said it goes to the very heart of the one man-one vote campaign and the inequality of the current system, which was already the subject of a referendum, and as a result it should not be the case that the amendment could be made by way of an order in council.

In addition, Miller said, the addition of “or elected members” cannot change the fact that voters in single member constituencies with one vote are being discriminated against when compared to those voting in George Town, where they will have six.

The independent member stated that the only way to address this sticky problem is to have all voters at the next election cast just one vote. Miller explained that, because there was no time to address the multi-member constituency problem, the top six candidates in George Town would be elected and the top four in Bodden Town and West Bay. He said the elections law needs to be amended accordingly.

“It will be a lot easier for Election Office officials and candidates to teach people in the capital that they have just one vote rather than six," he said. “The inequality issue will not be addressed by altering this clause, as section 16 of the Bill of Rights is still an issue regarding equality. The attorney general’s proposal won’t prevent challenges under the Bill of Rights. This is a Band-Aid approach.”

Miller also noted that this move would “enhance the current situation” when the majority of people had voted against the status quo during the July referendum, which lost because of the artificially high bar set by the former UDP government.

“I do not think this is a minor amendment,” Miller said. “Especially as this was the subject of a referendum. I disagree entirely with this proposition,” he said.

Although the AG states in his memo that he believes that the existing language in the constitution would withstand a challenge, he said it was more advisable “to proactively seek to avert any potential which could conceivably be protracted and expensive.” Bulgin points out that to make a change to the constitution by order in council, the UK would require wide support from all elected members, which is not the case.

While the minority government has confirmed that its members agree and the UDP members are also believed to be in support of the AG’s suggestion, Miller is not alone in his opposition to the move. Arden McLean also opposes the amendment and Opposition Leader Alden McLaughlin stated that the PPM would not support such a constitutional change so close to the election.

“The optics of this are all bad,” McLaughlin said, adding that it was inappropriate to make such a move at such a late stage.

See memo from the AG below.

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UK expert to help with revenue forecasting

(CNS): As the Cayman government continues its struggle to balance the public books, another technocrat has arrived from the UK to assist. The latest British consultant is an expert in cash revenue forecasting, which has been one of the government’s main problems. Since the economic downturn began in 2008, budget predictions made locally have proved to be completely inaccurate and hampered both the PPM and UDP administrations’ ability to manage the public purse. The finance consultant arrived on Thursday and will be on Island for two weeks. According to the minutes from the deputy governor’s 11 February meeting, he will be assisting with forecasting.

The visit by the consultant, who was not named, has been paid for by the UK and is another element of the efforts by the FCO to keep Cayman on its budget track. This year there can be no additional appropriations to the government’s budget, and although the interim government managed to secure a short-term extension to the overdraft facility, there can be no further borrowing.

Revenue expectations for this budget are extremely high, but if the track record of poor forecasting continues, the government could find itself in difficult circumstances as the year end approaches, at a time when the interim government will be facing a general election from what is already a position of weakness. A poor showing in the budget will further undermine the former UDP members' chances of re-election, as well as that of their former UDP colleagues.

According to the latest minutes released by the governor’s office for the 11 February meeting with civil service heads, the Expenditure Review Committee has also submitted recommendations on the budget, which have been accepted by Cabinet, though the details were not revealed.

Meanwhile, a draft policy on voluntary redundancies in the civil service has now been drawn up in consultation with CICSA and the Public Service Pensions Board. Chief officers have been asked to review the draft and provide feedback in two weeks.

An update on Phase IV of the Public Service Review and potential spending cuts is also expected at the next deputy governor’s meeting.

Cutting spending and managing revenue will be crucial to the next administration as the global economy shows no sign of any significant upturn. With all of the candidates campaigning against any kind of new or increased taxes, cuts in public services and public jobs wil be the only way government will be able to stick within the extremely tight parameters set by the UK to reduce Cayman’s debt over the next three years. To do that, politicians will need the support and cooperation of a more able civil service and will need much more accurate predictions when it comes to calculating how much revenue government is likely to raise in a given year .

See deputy governor’s meeting minutes from 11 Feb below.

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Road deal concerns mount

(CNS): Campaigners trying to keep the West Bay Road open have voiced their concern that the imminent closure will set a very dangerous precedent for Cayman and the entire community. Despite the opposition to it, with more than 4000 people signing a petition against the closure, the new government has refused to meet with protestors to review the information they have gathered. While the interim government and the UDP candidates are backing the closure, North Side MLA Ezzard Miller is far from being alone in his political opposition. Along with the PPM candidates, two of the independent candidates in George Town have also voiced their concerns over the value and process of the deal.

The ForCayman Investment Alliance deal is likely to be an important campaign issue, but when contacted by CNS about their position on the issue, many of the independent candidates remained silent. However, Jude Scott, who is running on the C4C platform in George Town, expressed his concern about the lack of transparency surrounding the deal and the expected closure. 

“Government has failed to provide the necessary transparency to demonstrate to the people of the Cayman Islands that the government has gone through due process, made a proper analysis of value for money, or provided tangible and sustainable benefits to Cayman and Caymanians to support that the transaction is in the best interest of the Country,” Scott said. Saying that it’s too late was unacceptable, he added.

“A good government should at all times understand what exit strategies and remedies are available to it regarding all significant transactions and should never proceed past 'the point of no return' until the government has sufficient evidence to satisfy itself, and can demonstrate to the people of the country, that to proceed is in the best interest of the country,” he said.

For some time now, independent MLAs Ezzard Miller and Arden McLean have been vocal about their significant concerns about the process and the closure. Miller said this week that the size of the road being closed and the importance of the road makes it very different from the usual road closures which were used as illustrations recently by the current Cabinet members. Miller has stated that after the May election he will do all he can to overturn the NRA deal with Dart and re-open the road as he believes the agreement is not legally binding.

Although a former member of the UDP, the party that orchestrated the deal, Matthew Leslie, who has announced his intention to now run as an independent in George Town, said he did not believe the deal provided good value for money either, pointing to some questionable issues surrounding the FCIA.

“The fact that the people were misled on the actual length of road being given up is of concern to me,” he said, adding that it made sense for Dart as the highway extension was is in the interests of their development but he believed it could have been accomplished without sacrificing the beach land.

Leslie said government had been “too quick to jump” at any offer that came its way. He said, “There must come a point where government must ask, 'Is this good for the people? I only hope that Dart will show good faith in allowing this land that went from being crown property to now being 'corporate property' to be used for the good of the people as promised,” he said.

Meanwhile, both of the PPM candidates running in West Bay said their party position was that there needs to be two roads running from the district, not least because of its significance to the tourism product. Woody DaCosta pointed to the days when traveling to and from West Bay took at least one hour, which was behind the former PPM administration’s move to start the EsterleyTibbetts Highway.

“The Progressives maintain that this second thoroughfare laid the foundation for the new tourism products that came online, such as but not limited to the Dolphin Attractions and Camana Bay, and now a marked increase in stay over tourism in almost one decade,” DaCosta said, noting that visitors do not like traffic jams. “This closure takes us back several steps,” he said, warning that "the Bridge" will become a bottle neck.

“The simple fact is that the UDP government failed on all fronts to adequately and satisfactorily negotiate an agreement that offers the people of the Cayman Islands equally long term benefits as it does Dart Realty and the Progressives have questioned the legality and validity of such an agreement,” he added.

DaCosta’s West Bay PPM running mate, Ray Farrington, said he failed to see the need to close any of the road.

“With the intended speed limit reduction and the installation of traffic calming measures to automatically enforce the limit, the entire 'old' road would become the visitor friendly, safer thoroughfare our tourist product needs,” he said. “Future beautification would only make it more pleasant, enhance the use of all of the beach area amenities and promote other future developments. I fail to see how this scenario prevents or detracts from any proposed development. Once a section is closed, we lose this opportunity forever.”

Farrington also raised concerns that the public has not seen the details of the arrangement before what could be irreversible action is taken.

Paul Rivers, one of the main activists in the campaign to keep the road open, said that the various groups opposing the closure are meeting to coordinate their next move in the face of the imminent closure.

“We are very disappointed that the new government has been unable or unwilling to renegotiate this very mysterious and questionable deal,” he said, adding that the Cabinet members have refused to meet with the protest groups. “This is a very serious precedent that is being set. If this closure goes through, then there is nothing that cannot be taken from the Caymanian people.”

Rivers accused Dart of “blatantly” disregarding the views of a significant number of people affected by what the activists refer to as a “steal” and not a deal.

“Money talks and roads get closed, thanks entirely to the UDP and all who support them.  With the closure of this section of the road, it’s a dark indictment on the government’s lack of foresight for the safety of the West Bay people, should an accident or natural disaster make that one exit from the district impassable. One way in, one way out … over a bridge that is not impervious,” he warned. “We will continue to speak out about this and future initiatives by the Dart Group as we scrutinize every deal to ensure that Caymanians and our country are not taken advantage of once again.”

However, he said it wasn’t just the campaigners that had to keep speaking out; the Cayman people need to wake up and educate themselves on every deal that affects the country. “We cannot be so complacent to think that our government or especially the developers are here for our betterment and future,” he added.

Len Layman, another member of the campaign, raised his continued fears that the rush to close the road before the people see the results of the independent review, illustrate how poor the deal really is.

“They know the longer they put it off the more likely the truth will come out and the people will see how much Dart benefits and the people lose,” he said. “They feel they need to get it closed now or lose the ‘steal’. If they were comfortable that what they are doing is correct they would not have to push it through like this.”

Meanwhile, Alice Mae Coe, a leader of the Truly4Cayman group, said that the minority government was not being 'transparent', as they claim. “It is crystal clear that they are following the same agenda as their predecessor, who loudly stated in a public meeting promoting and supporting the whole FCIA package deal as far back as August/Sept 2011 that,'The road is going to be closed, you're not going to stop it!' she said, referring to comments made by McKeeva Bush, the former premier.

The minority government of former UDP members is still backing the Dart deal and has stated that the first part of the proposed section of the West Bay Road which it has swapped with Dart as part of the ForCayman Investment Alliance will close in a matter of days but no date has yet been given. The rest of the road is expected to close in the next few weeks as Dart continues work on the new section of the Esterley Tibbetts by-pass, including the bridge.

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