Budget finally gets UK OK
(CNS): The UK has finally given the nod to the Cayman Islands government for its 2014/15 spending plan, which the finance minister said does not include any new revenue raising measures. With approval for the budget coming from the FCO on Wednesday Marco Archer, the finance and economics minister, can now deliver the budget Monday at the State Opening of the LA as planned. Describing the spending plan as a business-friendly budget, he said it would positively impact the business community and households as well as various sectors of the economy, with no inflationary triggers, yet controlling costs through prudent spending. “This budget is a good package,” Archer said Thursday.
The minister said the preparation for what will be his second budget began in February and his boss, Premier Alden McLaughlin, recently revealed that the government had not had an easy time as the personnel cost for the civil service had blown the operating expense side of the ledger.
Nevertheless, Archer has now balanced the books to the liking of the UK, and although he is promising no new taxes, there are no indications that there will be any cuts to the fees implemented by the previous administration, such as the duty on fuel, and civil servants will see another year go by where their cost of living allowance continues to be withheld.
The first sitting of the LA’s 2014-2015 meeting will open with the governor’s Throne Speech, when Helen Kilpatrick will outline broad government goals for the coming fiscal year, after which there will be a presentation given by McLaughlin detailing policy plans, followed by Archer’s Budget Address. The opposition leader’s response and the debate by MLAs on the three presentations is expected to start on Thursday, 29 May.
Following that the members will examine the budget in detail in Finance Committee, and once passed by the parliament, the budget has to be gazetted before 30 June 2014 in order for government to carry on functioning on 1 July.
Category: Politics
In the budget for ‘diplomatic trips’ I hope the CI officials can fit in a Jamaica visit ro renegotiate the visa agreement.
We removed Visa requirements for their students+elderly Jamaicans – but they have not reciprocated, resulting in wasted money + time by travellers!!
There is no "visa agreement". Jamaica arbitrarily imposed a visa on Caymanians as an act of spite because, like most other countries, Cayman had imposed a visa on Jamaicans, and now will not back down.
Yes man -we gave in here – why they have to be so craven like dat!!
Let's not waste money on any such issue.
Many non-solutions!
Eg instead of removng the import duty from school uniforms, why not encourage local business by removing duty from sewing machoines+ cloth..
The unemployed may find a few bucks in this as a cottage industry!
But then, has any government asked the public for budget input??
You Know Who writes that, “the hardest thing to find in many parts of the UK today is a British face behind a counter, bar or cash register. If it is not a machine then it is aperson with an Eastern European accent. Yet so many young and unskilled Brits claim they CANNOT FIND A JOB!! Clearly the jobs exist.
How much are those people being paid? Often it is less than the minimum wage. There are many reasons why people voted UKIP and this is just one:
I have a friend in North London who is a skilled, qualified electrician and also a general handyman. He will quote for elecrtical, plumbing, joinery, and building jobs. When there is a big job requiring multi skilled workers, he asks trusted associates to join him in making the bid. He sets the price offered so that all of them (usually 4) earn £110 a day. He and two others did some work for me two years ago and including materials, charged me £4500. I thought that it was extremely good value.
A month ago he bid for a loft conversion and quoted £27,000. He was oubid by a team of Poles who bid £12,500. He cannot compete with that and cannot see a future for him or other skilled British workers while recent European immigrants are being organised to work for less than half the minimum wage. The east European gang masters are acting illegally and getting away with it. That’s why people voted UKIP!
I am on no one’s side in this debate. As I do not work I am a disinterested observer.
What is happening in The UK with regards to immigration bears no relation at all to Cayman. The expats in Cayman are mostly doing jobs that either Caymanians are incapable of doing or won’t do.
There is no shortage of skilled tradesmen in the UK but they are losing out to groups of recent immigrant workers who are willing to be paid less than half the going rate than that expected by a British worker. That is the cause of resentment.
There is also no shortage of skilled British bar workers and shop assistants but they don’t live 10 to a room and won’t accept pay that is half the legal minimum wage. If immigrants were not there undercutting the indigenous population, the work would still get done but at a higher cost. That is not the case in Cayman.
Take the expats away from Cayman and what would be the result? Chaos!
I was talking to a Caymanian (Paper) yesterday who told me that he views the future with the utmost trepidation. He tells me that the anti-expat sentiment is boiling up and he foresees real trouble within 10 years.
Realistically, how can an island with an indigenous population of less than 30,000 provide the necessary numbers of lawyers, accountants, electrician, doctors, nurses, teachers and plumbers? Cayman is no bigger than a small British town and it cannot produce enough of those professionals, especially as both John Gray and Clifton Hunter would be regarded as “Requiring Improvement” if inspected by OFSTED.
I listened to the Finance Minister make a speech this afternoon. I don’t know him at all but listening to him, it sounded on the radio as though the man is barely literate, stumbling as he did at least once in every sentence.
If he is representative of the cream that has risen to the top of Cayman society, then God help you!
Re:
"There is no shortage of skilled tradesmen in the UK but they are losing out to groups of recent immigrant workers who are willing to be paid less than half the going rate than that expected by a British worker. That is the cause of resentment.
There is also no shortage of skilled British bar workers and shop assistants but they don’t live 10 to a room and won’t accept pay that is half the legal minimum wage. If immigrants were not there undercutting the indigenous population, the work would still get done but at a higher cost."
Yet you say "What is happening in The UK with regards to immigration bears no relation at all to Cayman."??
Upon further inspection and an honest assessment you will find that the highlighted bits of your post above are exactly what is taking place in Cayman today as well.
Anyway, speaking of "cream that has risen to the top" … umm, Nigel Farage??
In any event, I don't see many of our resident Brits in any hurry to leave Cayman and return home. Therefore we must be doing something right, right?
I am happy with anything that stops people getting fleeced by London electricians. I am all too aware of how much London based tradesman ripped off people as I keep a couple of places there. The Londoners' inflated prices are an indirect function of rampant house price inflation in the region. Every Tom, Dick and Electrician wants to fund a £500,000 house. Poles don't. Neither do Northerners. That is why Northerners are coming down for the week to work in London. They are cheaper. Just as good, but cheaper. Probably better. Are you going to stop Northerners coming South too? People vote UKIP because they are narrow minded, angry and stupid.
So 30% of the British are stupid are they? That must be some kind of record,
In Cayman it's only 29%,
Always so many mad people on CNS and Cayman is typically the same. Lots of people got their face made up like the world is out to get them. Sit back smile and relax man!
As far as personal (financial problems) are concerned the Government could do a lot to ease them but that would require a over haul of the way business is done in Cayman.
They got this place backwards bad….Land is not an investment (unless it is a farm) but contrary to that notion the Cayman Financial Institutions and Government will tell you it is.
The use of land as collateral (or rampant use) needs to stop! It promoting a broken cycle!
I remeber the Gov't one Mac Bush use to tell people we need expats so that they can rent our places and we can live off them…I bet that didn't work out that well for lots of folks.
If Macbush would have said stick your money in some corporate bonds yielding 5% and get yourself a decent job we would have been much better off.
I can't wait until the day that the banks around here are compelled to accept corporate bonds and stocks in highly rated companies (Coca Cola- I bet that didn't crash in a recession) as collateral on loans. Instead they have hundred and hundreds of Condo's sitting empty with new ones being built each and every day. People just skip on to the next new thing leaving high to heavan strata fees and mounting foreclosures. And…wait for the solution…bring more expats but don't think about how your going to create more jobs..and hold on..wait for it…lets build new houses cause I am to good to live and fix up someones old house.
Serious structural problems on the economic front encouraged by this policy and merry go round that even the banks can't come off of because..They are tied to the wheel like everyone else…its a joke..just like this unfunded pension,,,lets keep the merry go round going because someone will get bit if it stops and we should know it will be the banks and to a lesser extent contractors..special interest shame shame shame
We should be very happy that we have an investor of Dart's calibre here in Cayman that is helping the economy, instead of going against what he is trying to do here in relation to inwards investments. This article shows just how rich and open he is in his business affairs even when countries are trying to get him on thrump up charges. We in Cayman had better realise the man will all of his money have other options. I don't believe our options are as great as his.
http://www.bloomberg.com/news/2013-05-21/billionaire-dart-s-argentine-foam-cup-unit-raided-by-tax-agents.html
Oh it was so funny to see Suze Ormon making fun of certain government officials for being absent from her show after purportedly having agreed to attend. She alluded to them needing to attend so they can get some needed advice and said that if they cannot keep such a small promise the they are likely not going to keep any other promises. She kept looking for the minister of finance over and over but alas, he was too busy for that too. Even she could see why we are in such bad shape. Cayman we are doomed!
Just like the Fidelity CEO conference in February (and that offered world class think tank speakers who actually KNEW something about global Economics!) it was a disgrace to see our Government officials walk out before the first coffee break… arggghhhh, the entire front row! What a slap in the face for the 450 top financial business decision makers….our elected officials have lost the ploit once again. You work for US and should not sneal in and out of presentations, period.
Now, if each and every one of them had a degree in politcal science and a PHD in economics, then I'd say okay…skip listening to the experts, but this is embarassing!
Out politicians egos have gotten oin the way of actually learning from the experts. If anything they should have been able to add up that the Westin had 500 citizens there yesterday and it was their duty to attend as promised.
Free advice? Attend when and where you say you will.
By the way, the other story about the Housing and no politicians showed up? If you are a MLA and cannot attend, send a person from your Ministry, just dont show up!!
Geeez
If they stayed for the whole conference then you would argue that they were lolly-gagging all day when they should have been back at their Ministry's desk doing some work.
It's a no brainer !!!!!!!!!!!!! If there are no audit accounts for 10 years or more this year's budget- 2014 to 2015 is equivalent to toilet PAPER. I know enough to know that a disclaimer audit opinion is worth less than the paper it is written on. SO WHAT'S THE TRUE PICTURE, I SAY TRUE PICTURE OF CAYMAN without no audited financials for 10 years or more- true consolidated financials for all core government and authorities. I pray each day for the UK- who will inherit a ripe mess when the true numbers are revealed and the TWO likkle pillars we have drop down – when USA gone bust and Cuba open up. No more revenue, music stops and WHAT then brothers and sisters??
Budgets are plans.
What I want to know before I praise or pan the current budget, is how well did the government do in implementing its previous budgets?
The true financial picture is unknown becasue the government accounts are still not auditable.
I dont understand why the little people of Cayman must get SCREWED. Is anyone in the kitchen? Does anyone care what happens to little people or do you want us to get mad and start road blocks and burn tires and cars like in Africa and South America ???????????????????????????????????????????? You leaders better wake up. There is a SILENT attack on the poor people of dis ya here country. Books to churches used to be free – now dem charging the church and trying to regulate charities. Government school halls used to be FREE and now mi poor mother had to pay to rent gov hall for school program just 3 weeks ago. Lord God help us please lord help the poor people. And dont talk about CUC, high cost of living, food, rent, interest on mortgages, cost of doing business- I going get a drink now- I cant take tings living in dis ya place and no one cares about us POOR people,
Please, Caymanians don't have the guts to do anything like you threat.
Caymanians have the guts yow, it's just that the fire is not hot enough yet beast! You don't want to be around wid dat temper rise.
08:33.Caymanians have the good sense not to take you up on your stupid dare.
These road blocks. When do they start, will we get paid and is there going to be free food?
"Burn cars and tires like in Africa and South America"?
Please …. Nobody here has ever worked that hard doing anything.
Mr Archer have you accounted for repaying 400 million dollars of loans due 2019? How about this $ 2 billion dollar hole C4C was talking about- including the underfunded pension liability, and debts of just not core government but statutory bodies which they trying to cut loose to make a profit in a hostile business climate. How about rolling back some fees? Have you accounted for the potential drop in banking and financial services revenue – which is 50 percent or more of GDP? How about real drop in tourism as well- both events to take place when the good old USA falls off the cliff. CIMA completed the 2012 funds and stats report- should have been 2013- but the 2012 report showing most funds coming from US fund managers- so Cayman's fate very much tied to the USA and dont get me started on the funny duddy accounting going behind the scenes which account for the big capital transfers in and out of di place. Better buckle up- 100 million SURPLUS (yes we all beleive it- wink wink wink) may evaporate sooner than you can say Cat in the Hat.
I'm very disappointed Mr Bredin's posting.
On the vry fist point he mentions about $400mllion of loans, the answer is yes the loans have ALWAYS been accounted for. Why don't you see the financial statements that are included in Govt's budget document. Make sure you do on Monday. Very easy to start writing without having the discipline of doing proper research first.
Same thing with the second point you make on unfunded pension liability: it is inluded on Govt Balance Sheet. Again, do research before writing. Do you know by placing the unfunded liability squarely on the face of its Balance Sheet, Cayman Govt is ahead of most major countries who either ignore the matter or bury it as footnote 121 deep in its accounts?
Research before writing.
That pension scheme and health plan the politicians put in place for their own benifits will broke this country very soon.
If there are no tax or fee reductions in this budget then this economy will further stagnate and I for one will lose ALL CONFIDENCE IN THE PPM…
So Mr Smart lets get this right You want the Government to
cut spending
Cut the civil service
Cut the cost of living
Good luck with that
You do realize that for the government to get anything done it has to have money right.
Ansd don't forget, cut the debt too. Some people are so selfish they can't see further than the ends of their noses.
What I would like to see happen is for one of the members of the chamber of commerce to choose a section of Government that is not making too much money and find a way to privatise it and take it away from Government.
It will be easy for the chamber to say lets take the Water Authority or customs or airports authority but take something like Cayman Airways or the Turtle Farm or Prison.
And please stop the stupid comments on the Compass website.
The reality is quite different.
You see today' budget news.. It can and will be done…
You have no clue what you are talking about – do you?…
In times of national economic hardships, it is best for Government(s) to spend more money in order to keep the economy moving, as, in such times, the private sector usually begin trimming their "fat" by cutting jobs, reducing payrolls, shorter hours, etc. and people always look to their Government for relief.
If you disagree with that, you do not live on Earth.
Minister archer poor people fed up and hungry. How can you design a budget for business people in mind? What are you trying to sayingmore concessions to the big rich companies whilst the poor family man starve?
its only a matter of time before this country becomes like neighboring jurisdictions! Poor people need to eat and live too.
Sad choice people chose ppm and have to pay for it ….god help the poor under this gov ….
it shame what the do to caymanian people ….
amjed
Well roared, lion. I couldn't have put it better.
Well well, a "business friendly " budget and then everyone else. Let us pray for these Cayman Islands people.
Nothing wrong with having a business-friendly budget provided thatt consideration of the consumer is also involved in the budget planning process. The Hon. Marco Archer is doing a ly good job except that the Progressives have not "made good" on their promise to roll back the taxes on diesel fuel used by the electric company in generating electricity, a "commodity" used by all of the populace. In addition the amount paid about to the two former civil servants seems to be quite a hefty amount which will negatively affect Government's coffers.
Thank you Minister Archer for the excellent job that you are doing in government, also thank you for appearing on the radio show on The Rooster although I wish that you would have been able to speak with the public more. I guess the host of the radio show has his own format in that he is always the one to speak while the guests and general public are forced to listen to his rambling most of the time, making participation with guest like yourself very limited. I do appreciate your explanations to the public and know that these islands are in good hands. I dolook forward to you being on the show next friday. I will not call in but I will listen and do hope that you will be given time to speak with the general public who knows how busy you are and would like to have an opportunity to speak one on one with you without interruption and literally being chased off the radio show by the moderator.
Business friendly of course. It's business that controls governments everywhere.
The ordinary people have no voice and no choice, they will have to finance the greed of the wealthy.
"Business Friendly" means all expat work permits approved even if a suitably qualified Caymanian applies. We need the WP revenue right? $$$$
A fellow in my church has gone out and accomplished post-graduate industry certifications above and beyond his qualified years of experience. Add glowing references: and has been turned down for every single job applied for. All expats approved without question in these roles. In these cases, the local WAS the better choice, but the expat was already recruited before the newspaper advertisements came out so HR works their magic and local applications disappear. Economy is happy with new fees, Recruiters happy with new fees, but?
I only mention church to note that this hard working family man is no slacker and is held in high esteem within the community. His finance company relocated to Bermuda and he is doing his best to make ends meet, but do not come back and say this person is entitled, "business friendly" is short sighted. When this family loses their home (soon) and becomes a burden to social services, we will all pay.
Yes, we need to keep business happy,but the money and favors we give them should really be spent making our children ready to enter the private sector business industry (and welcomed instead of turned away.) if the only jobs available are in civil service and blue collar we will never get out of this economic cycle. Fix the long term problem, not just one budget please.
Da PPM hooked up and Boat is sinking Tighten Her UP! What a mess??
Dat you Foolio!
I wonder if Archer asked them for their thoughts on the historic UKIP election victory today?
😉
Whodatis – everytone knows UKIP is a flash in the pan – and will not seriously come of anything. Each country has its exterme minority (think tea party in the US, Golden Dawn in Greece). They hold a miniscule portion of the votes, reflecting their small supporter base. The majority will always ensure that these extremists views never enter mainstream.
Ok. I hear you.
However, there also exists the possibility that the British government and poilitical class do not fully appreciate the feeling on the ground in regards to certain issues.
Historically many Brits, namely those in the lower socioeconomic sectors, never bothered to vote because the result had little to no effect on their daily lives.
However, the issues facing the country today are unique in nature. Moreover, it is typically those outside the political, upper and middle classes that are seeing and feeling the brunt of these changes first-hand. (E.g. Milliband and his alleged £80 weekly family shopping bill.) Not to mention the jobs situation. The hardest thing to find in many parts of the UK today is a British face behind a counter, bar or cash register. If it is not a machine then it is a person with an Eastern European accent. (Yet so many young and unskilled Brits claim they CANNOT FIND A JOB!! Clearly the jobs exist.)
The people of the UK and Europe are waking up to the politics-media-money game and are saying "No More".
The upcoming MEP elections will be quite interesting, I'm sure of it.
So said so transpired.
Relevance to the budget Whodatis?? oh..none, what a surprise. But if we are on the case 150 council seats in UK is nothing. That would equate to 17% of the vote in a general election. Plus Council elections and European elections are traditionally the "protest vote" time for Brits. When we get to general elections we generally try to choose people who can do the job. You should try it sometime.
Eh?!!
Re: "When we get to general elections we generally try to choose people who can do the job."
Umm, excuse me but – is "the job" getting done in the UK?? I must have missed that memo.
In any event, I hear your words but I am wondering why you are here in the Cayman Islands and or so interested in our domestic affairs if your beloved UK is doing such a great job?
FOH!!
You want to compare the UK government to what we have here? Unlike here the UK government has to perform because the electorate and free press will not tolerate anything else..now lets think how that works here shall we? Whodatis, always the first to criticise Mother, and the last to do something real about Cayman's issues…which is why this place is indeed a mess.
Yes, that is exactly why this place is indeed a mess … because of Whodatis.
Lol! Dude, are you serious?!
Anyway, I only have 4 letters for you right now;
U-K-I-P
😉
I should have known you would be watching the UKIP Election…
Its about time the Uk get a party that understands what the poor people are going through. I hope the first thing Farage does is to stop that exodus of Eastern Europeans storming their country.
Of course!
I always keep my eye on my actual government (the UK) and its relevant politics. 🙂
Many Brits share your sentiments regarding the mass immigration of Eastern Europeans into their country. I wonder if they accept the labels of "xenophobic" and "racist" as many Caymanians are branded for their concerns regarding a now 50/50 existence in their own country.
As long as you accept the premise that both responses are xenophobic and racist, I'm with you.
Actually, I believe any jursidcition that experiences a doubling of its population within less time than a generation has every reason to be concerned.
To outrightly and immediately brandish them as "xenophobic" is over-simplistic, manipulative and downright lazy. Moreso if the people were known for being "warm and friendly".
However, somehow I doubt you will agree … and that's fine.
Everyone is as warm as each other. About 98.6F in fact.
Eastern Europeans can only come to the UK because Brits dont want to do certain jobs any more. In that way it is similar to Cayman. The big difference is that most Brits do other work and realise they do not have the skills to be an MD every time and dmeand big wages for no qualifications.
You mean like the millions of Brits that are "on the dole" (benefits)?
Or were you referring to the multi-generational homes in the stagnant parts of the country in which 3 generations of a family have NEVER held a full-time job?
Yes, all Brits are hard-working and upstanding members of society – not an ounce of laziness to be found in ol' Blighty.
FOH!!
Good try..what percentage of Caymanians recieve hand out? A much higher percentage than the UK will ever…Whodatis, you seem like a man with much energy, could you please do something useful for Cayman for once instead of commenting on issues you know very little about, but think you do? It is really quite tedious..
On a different note whodatis… I liked your suggestion on crosstalk to get rid of the car disposal charge, keep pushing with that please. That needs to be abolished
I didn't realize it actually received a mention on the show. I posted it on their Facebook wall but had to get back to work.
Did Archer address the issue at all? What was said?
Thanks in advance.
The Vote the instrument and symbol of a freeman's power to make a FOOL of himself and wreck of his own country….. Same old PPM What a mess? The UDP turn upside down!
Being that the UDP were utter greedy fools when in office, would the complete opposite of them be unselfish geniuses?
Yes Cayman the prize for selling this lickle place out the old NOD an a Wink! for the idiots who did it .For the lack of wisdom our people shall surely perish……. nah true Al Wayne???
A confident social life and happy families brings forth a better economy.
07;35
That comes with jobs for the locals.
Have you seen how many foreign builders on these development?? And i dont mean the slave labourers.
We would like to get back to the way these Islands were ran by Mr. Benson, Mr. Truman, Mr. Norman, Mr. Vassell Mr. Kirkconnell ( even though he did nothing) Mr. Miller ( even though he had a little contraversy ) Mr. Heigh, Mr. Jim. They would never let the foreigners take over these Industry.
Those were the good old days friend but they are long gone. Generational Caymanians both in high and low places need to understanding that they no longer control the money and politics of these islands. We don't have the number pure and simple and we are much too divided to effect change. We always worry about what is in it for me and I can't speak out because I might lose my job, or be ostracized, guess what all this is happening anyway. Caymanians are so naive just look at Bermuda and see how the native of that country is given preference over any other. In Cayman the locals cannot get a job now unless they go thru an employment agency and government don't have the guts to put a stop to this and make directives like those of Bermuda. The only job in which it is exempted for a Caymanian is a politician so everyone should go figure. Caymanians are in for a hard time, to open and operate a business is like a christmas present tied up in red tape, building a house is even more. Government need to take a look around this country and see what we have become. There are road side vendors popping up all over the island, it reminds me so much now of neighbouring countries. People are selling all over the islands and I remember when this practice was frowned upon and now is has become GAP (General Accepted Practice). Cayman is fast becoming third world yes I said it, "Third World". All the signs are around us but far too many of us have on those rose coloured glass or have buried our heads in the sand. People cannot find employment yet the Development bank is only giving scholarships for young people to attend universities to pursue further education and when they return home they are unable to find jobs, if these young people then try to get funding to open a business from the same Development bank they are told that government is not lending money to open/operate business. I still have faith and believe in miracles, one day things will change in favour of Caymanians even if I am not around to see those changes I have faith that they will happen.
Mr. Jim? Is someone extolling the virtue of Jim "corrupt" Bodden?