EY points to major sell-off
(CNS): The premier has released the report by Ernst and Young into the rationalization of government and the potential sale of public services. Announcing the arrival of the completed 260-plus page report, Alden McLaughlin said that government had received it Monday afternoon and had made no decisions on the recommendations contained in it. The report makes far reaching radical recommendations for a sell off of government and if implemented would place significant public services into the hands of the private sector, from education and healthcare to the airport and port. The document recommends the sale and outsourcing of dozens of government assets and services.
Promising that the government would be examining the entire thing very carefully, McLaughlin refused to commit to a single recommendation as he said the decisions would be made by the entire caucus. He said the report was being released to the public in the interests of transparency but the process of deciding what could be achieved would now begin as the PPM government will be examining the findings and looking at what it can support.
Although McLaughlin made no mention of a public consultation process, there is no doubt that the report's recommendations will stir up major public opinion on both sides. While some people will support the myriad sell-off suggestion, others may find the recommendations unpalatable and too great a departure from the accepted roles and responsibilities that government, as the collective representative of the people, should deliver.
The recent public debate that has emerged regarding the privatization of education, which has not won the hearts and minds of the broader public, is a clear indication that if government intends to implement the early priority recommendations in the report it is unlikely to get wide public backing for some of the more radical proposals.
The report is extensive andcomplex but it suggests the sale of public owned land, the Turtle Farm, Radio Cayman, the stock exchange and the Water Authority, the outsourcing of the entire hospital services and local clinics, privatizing CINICO and an increase in the fees the insured pay, increasing the fares on Cayman Airways to reflect the true costs, moving and selling off the airport, merging of some of CIMA’s services with the General Registry, abolishing the development bank, GIS, the Housing Development Trust and the National Drug Council. Recommendations include the introduction of charter schools with private sector entities running them as well as merging the primary schools on Cayman Brac.
The report also points to centralization of certain government elements, such as finances, HR, procurement, IT, revenue collection. It points to merging the National Gallery, the museum and the CNCF. The report also talks about merging support staff for the auditor general, the information and complaints commissioners, cutting security jobs and clarifying who does what at District Administration in Cayman Brac, with a view to cutting some of the jobs and centralising the services.
McLaughlin told the press Tuesday that he would not sell off government assets to get cold hard cash in the short term if his government felt it was not in the long term interests of the country but he refused to say where he believed the PPM government might start with the recommendations in the report.
The premier made a commitment, however, to keep the public updated throughout the process and wold announce as soon as any decision would be made about the implementation of any of the reports recommendations.
The deputy governor also assured civil servants that no one would be shown the door tomorrow and everyone in the service would be treated fairly during the transition.
See the full document below.
Category: Politics
The report is lacking in analysis and detail.
Nicky/Wendy: Why can you not solve the terrible problems of some of us trying to post on this site? I am a former civil servant with views I think might add positively to the debate but when I try to post, if I make ONE error the site goes crazy and if for example I want to say Wendy it will come out wdy or Nicky…iky
Nicky: Apologies for the inconvenience. You can always email the comment to me and I'll post it for you info@caymannewsservice.com. The current site desperately needs a complete upgrade which we're working on and will be in place the 1 January 2015, so if you could bear with us until then hopefully all the problems will be eliminated. I'm trying out the Disqus comment system (which I notice Cayman 27 also uses) on CNS Business. You can still post anonymously but it does require an email address – though it doesn't check to see if it's real or not. In the meantime, it's probably futile and not worth the time and money to try and fix this site.
Thanks for taking the trouble to reply! Looking forward to improvements ahead.
When I read the would be serious threat to these islands just contemplating selling their assets I get goose bumps. One got to wonder what is next? Your assets are your backup, who sells their backup funds? yet can just imagine they foolishly cram up every government card, gave away monies to every organisation, not only in Cayman but overseas, lay our red carpet for status holders and turn around and put them on Social Services list, program the Immigration board to issue work permits to every Tom, Dick and Harry in order to publicly deprive the locals of work, pack the police force, Prison and the Hospital with foreign nationals (and by the way the criteria to join these institutions now do not require a certain height or weight as before) once you have a permit, status or a relative who resides here you are cool! It is so plain the politicians just do not have the locals at heart, once they can drain each entity to pay their bills and live an upscale life they don't care how we suffer to meet ends each month. The HSBC bank is closing its doors in a few months and many Caymanians are losing their jobs, and not one of those politicians have even spoken to one of them and not even a speech on the difficulties this closure causes. I frankly hope they will all step over their pride and happly join the The (International) All-National Social Services list found in the Cayman Islands. They have set the system to take care of them each month and on right through retirement, pension and burial. Fellow Caymanians, God has said in his words, He will not give unto any greater burden than we can bear. So, each and everyone of us pray, and pray harder for God to intervene in this unfair and unjust government we have to deal with.
I read CNS a lot and also read a lot of poorly spelt, inaccurate and unjust comments. I am Caymanian before anyone says I am not and a few things I have to add. One – yes I am Caymanian. Two – Dan Scott was not commissioned to do this report. His job is Managing Partner of a company. This report would have been produced by a team at E&Y not just one individual (in all reality Dan Scott may not have even been the lead Partner on this as I'm sure various other clients are probably higher priority for a Big 4 than a failing Government). So I don't understand why Dan Scott is being blasted on here, If you are going to comment on an individual for the profession they do and their job title you might as well comment on the latest Caymanian joining E&Y's Graduate Scheme. Three – This is a report, it will be unbias and accurate. If it is not then there will be one hell of a professional liability case in the future. E&Y is a professional services firm. They deliver professional work without having an opinion. That is why they are hired, paid and one of the largest companies in the world. Four – Be proactive! If you think there is a better way to move your beloved country forward then get off your butt and do something about it. I say this because if you can put yourself infront of a computer to read or comment on this then you are not that bad off and can go get a pen and paper write to whoever you deem appropriate for change to occur and send them a letter. Also if the Government has so many shortcomings why not run for a position yourself. If you were born a Caymanian you are in the mix so what is stopping you? With all that said I do not have an opinion on this report as I have not personally read it so how can I draw conclusions. Cayman needs change and no one every said change was easy.
I like the way you express such strong opinions on a report that you admit to not having read. No wonder Caymanians can't get a break.
If you actually read what I had writter I did not comment on the content of the report.
You speculated on Dan Scott's role. His signature is on the document and his role clearly stated, but instead of reading it you went ahead and speculated. Like many others, you just don't want to be bother with facts once you have already formed your opinion.
I'm an expat and it's a BAD idea to privatise government.
Majority of Caymanians are employed by government. It is better to make the civil service more efficient overall with proper reconstructuring.
Do NOT sit back and let wealthy people take over your country. The average expat is here to work and make a better life because in some instances it's harder to do the same in their own country. Yet they get a bad rap about taking jobs from Caymanians.
While focusing on these harmless people the country will be "sold" right before your very eyes by the "real" people who want to take over. Please see the bigger picture and be smart.
Monopoly is never a good thing! No matter how pretty the wrapping looks. Keep something for yourselves aka the Government!
Sell it all to the Dart organization they know how to run a country well. See who successful they are everyone wants to go to Camana Bay everyone will have to pay their bills if they want to or not. Dart don't need votes so we can't refuse to pay him or threathen not to vote for him if he cut off our light and water or we don't pay our garbage fee or pay our hospital bill. I say sell it all to Dart and let him run the country then we won't need some of those useless politicians.
I like the way you think. I'm looking for a house-boy. Would you be interested in applying?
What would we rather a modern airport and hospital or modern govt admin building. CIG take your pic on which assets you want to invest in and improve?
Sometimes it is cheaper to buy a return ticket from Cayman to Miami, then buy a discount ticket from Miami to Jamaica, than it is to buy a direct ticket from Cayman to Jamaica. Now this is a bumer as Jamaica is just 45 mins away.
If Cayman needs real reform they should implement some of the E&Y report and follow some examples of the rulers of Dubai. Dubai in their transformation process did not forget to raise the standard of their people. Cayman found the golden goose too but they became greedy and only wanted to see a few get to the top instead of lifting all. Instead of taking Dubai's approach they took the example of every third world country that sit on a deposit of oil, do the research. Don't fall victim to tug of war between the rich and poor. Do what is right for all citizens, Cayman used to be such a wonderful society prior to massive corruption and handouts.
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axmdijbZMi5k
Is that supposed to be an intelligent unbiased report?
Would following it really help the Governent and people of the Cayman Islands?
Or would it do more harm than good?
Yes. Yes. And good for the Cayman islands, Bad for the ones not pulling their own weight.
Cayman needs the great equalizer TAXES.
What it needs is Leaders who can lead. It needs leaders that do not bow to every single phone call. It needs leaders who do not have self interest at heart. It needs leaders who look to progressive and socially cohesive societies and not the likes of USA or UK, it needs leaders who insist that those on the lowest rung of the ladder get half a chance to get out of their miserable existence. It needs leaders without friends in big business who are intent on privatising the island. It needed a leader that would have realised that Ernest and Young were too socially aligned to C4C to be able to provide a truly unbiased overview of the state of the nation's finances. A leader with vision, integrity, analyetical skills which he surely does not have. It is I know a waste of time to comment because no one in government is listening because they are so hell bent on pursuing C4C's agenda.
It is ludricous to suggest that Cayman Airways should increase its airfares to cover the cost of its operation. This underscores the lack of kowledge of the consultants in this field. Have they not seen what the current level of airfares are, especially on the Miami and Kingston routes?
For years foreign airlines have filed lower airfares to which Cayman Airways has objected, and which has resulted in the high levels being maintained. Any further increases will have an adverse effect on our stayover visitor arrivals, which are at long last seeing some improvement.
Cayman Airways needs to cut is expenditure, like all other Government agencies. Cuts in the number of staff and the high salaries of senor managemnt and pilots should be the first to be examined.
Governmrnts are ment to Govern.
Not to do business.
GOVERNENT=0
Local business = 100
EY should have given us a spreadsheet to run the hospital. Look across the rows to find your symptoms and then down the columns for suggested treatment. That could save a lot of money on medical staff.
Er, you thumbs downers, that wasn't a real suggestion, okay?
I did not realise that C4C won the election. In case you have not been paying attention they are behind all the policies put forward by Tara rivers, winston Connolly and Aulden McLaughlin. For all we know C4C have also infiltrated EY since the report reflects C4C beliefs almost to the letter.
I cannot state that the report is a reflection of C4C beliefs but Daniel Scott, Managing Partner at Ernst & Young (EY) is brother to Jude Scott, unsuccessful candidate backed by C4C and former partner at EY. Emiel Scott, another brother, is/was a member of the Executive of C4C.
Cayman is a tribal society. Always has been, always will be. Everybody, even the expats, are part of a tribe in the minds of most Caymanians. Get used to it.
What i can say about the Scotts, they got what most of you hypocrires dont have, balls!
I don't know the Scott's, but Winston & Roy have PROVEN to be wolves in sheep's clothing and I am very sad that I voted for them! I expected more from highly educated white collar businessmen that were not career politicians, but Winston hides under Tara's skirt and Roy is silence to his constituents – one term for sure! Gentlemen, you forgot WHO voted you "in"
A glaring absence in this report is tthe absence of the waste in such a small country of having a ministry of education and a department of education. Is it that Ernest and young were told hands off?
I don't want to make you any more paranoid than you are already, but didn't you notice we also have a Minister of Tourism and a Department of Tourism, a Minister for Agriculture and a Department of Agriculture, a Minister for Environment and a Department of Environment, etc. etc. etc?
Same is true for those departments also. Yes I noticed. Paranoia has nothing to do with it. I may not agree with the Earnest and Young report, but that does not mean that savings could not be made overnight by realising where the quick wins are and surely they could be in admitting that such a tiny country does not need the lairs of bureauracy it currently has.
If the E&Y recommendations were executed in their entirety, neither Caymanians nor "non-wealth" industry Ex-Pats could afford to live here – simple as that. However, don't panic – these are recommendations and as such, we have to determine what is good for both the people and commerce. Neither can exist without the other. Peace to all.
Is this the E&Y version of the report or the Mary version?
Could be either hence the date of the report being "September 2014", who knows how many edits have taken place.
Considering the graveness of the situation for at least some civil servants I do wish certain of our senior civil servants, in particular those given towards feelings of "excitement" and other foolishness, would take a decidedly less upbeat approach. Grinning faces is entirely inappropriate and speaks to a shocking lack of empathy towards those families facing an uncertain future. If made redundant due to a private company merging, for example, they could lose their homes. This is deadly serious stuff.
I sure as hell hope this government does what they demanded the previous do when they (the UDP) wanted to sell off all of our (Caymans) assets. The PPM protested against the UDP when they talked about selling out, now I demand that thePPM will stand by theirbeliefs of the past & not sell out.
The report is very thorough and not only makes recommendations but also provides a list of options for government to consider. EY has performed what Government has asked them to do for a small fee. Instead of critizing the report, we should be evaluating the list of options and embrace change. If we do the same thing and don't implement any of the recommended changes we will have the same outcome tomorrow.
The report is not thorough at all. It does not adequately look at Government's social responsibility to he vulnerable costs-accountants who are always personally well off are not good at that. It's difficult for them to think about the road workers or the garbage man when they are themselves living in gated communities.
sweeping statement, I am a chartered accountant and when I was layed off in the Arthur Anderson debacle, I took a jobs as street sweeper, garbage man and factory worker for close to 2 years until I could find a job in accounting again. So it is not difficult to think about the lower skill jobs as many of us used to do them.
You are really expecting accountants to look at social issues? LOL
This report is about change. Change means making or becoming different. Some people will continue to be resistant and it is easy to shelf this report. We need to consider Cayman's future for us and the next generation, not the present nor the past. What will our future hold if we keep travelling down the current road ? Now is the opportunity to take a turn. Will there be road bumps along the way? Will there be some traffic lights? Sure but at least we are travelling down a road which is strategic with a clear destination in mind. Currently we are driving sporatically with no destination. While it is difficult for some to accept the ramifications and the consequences, ultimately to better our nation we have to accept change.
Yes, but it all hinges on what you are driving towards, not merely that you are on the road driving forward. And have you any idea what exact road you are on? Is it this fuzzy notion of "downsizing government", perhaps? Have you considered all the ramifications? No, really considered them? For example, you'd really want an accountant to decide if your sick kid receives treatment at the now privatized GTH? You really want to have to rely on a privatized Radio Cayman for credible government communication before, during and after a natural disaster? This is reality, friend, not flowery thinking about our need to "change".
Who is us?
Tut tut 12.42…English! "Who am us?" is the most appropriate inaccuracy.
Change is always seen as a threat in this place, rather than progress. You can bet your last $ that the people trashing the report on here are the same ones complaining about inefficient CIG and CS.
Wrong!
Yes, I know what you mean but it doesn't absolve E&Y from having come up with some "recommendations" that are pretty extreme, and speak to a really limited understanding, even indifferentce, of their ramifications for our society as whole. Government has a fundamental role in providing our essential services and to ensure that these are not denied us due to "market forces". To even suggest the sale of Radio Cayman is an example of this limited thinking. Do we really want to rely on a privately owned radio station to be in a postion to provide us with credible information and instructions before, during and after a natural disaster? For all we know they might have made economies in regard to equipment and staff that has rendered them basically useless. What are they going to do, apply for a government grant after a hurricane to rebuild their dilapitated transmission tower? The handing over of our public health system is another example of irresponsible thinking. Every fully developed country in the world has government run universal health care (usually along with private health care, which is fine). It provides the most cost-effective method of ensuring everyone has access to top rate health care and treatment regardless of income level. Do we really want to step backwards and adopt a failed (and horrendously expensive) system such as currently exists in the U.S.? Even they are being dragged (kicking and screaming) towards universal health care. Now if E&Y had suggested that government adopts a government run model THAT would have been responsible thinking. (Oh, anyone a big fan of the U.S. system of healthcare, please look up/watch Michael Moore's "Sicko"!)
When if ever has Caymanian leadership taken good advice and followed it? The smart money is on them saying yes and doing no. Again.
Lots of new trucks on the road these last few days. Public Works (nice paint job), Department of Sports, etc. Much needed I'm sure.
i haven't seen any evidence of activity by those who are, I would suppose, there to represent the rank and file of the civil service i.e. those who may well be impacted by these recommendations. Does the Cayman Islands Civil Service have a union? if so, why is it thus far silent? All I've seen is the business community, politicians and handsomely paid civil service bosses (who most certainly will NOT be affected). This all seems rather peculiar in this day and age. Where's the voice for the little man?
The poor old leader of CICSA, who is beyond retirement age and mysteriously is being kept on, could NEVER understand this report. I am a civil servant and am hugely frustrated by this.
Why are people surprised? C4C managed to get PPM to become their puppets along with Roy, Winston and Tara and if you review their goals especially re schools this report should not be a surprise.
On another C4C note, Winston with all kindness in the world, did you really leave a successful career to run for politics? Wasn't it part of your plan and Freemasons? Didn't you plan to run from the time you started ads on cover of Lime directory and before you started law school? Can you really say/prove you had a 'successful' career as a lawyer before election? Come on, showing dimples and empty speeches will not be enough to fool everyone in GT. You want to be impressive? Address real issues that affect real people for eg CUC, mortgage foreclosures
I could not agree more. I voted for Winston and am sad he has lost his way! I've served with him in charity and now see him turning his back on hard working families that seek his help and with all his education and election promises, he and Roy have been the most quiet and biggest disappointment.
Wasted a vote on one term politicians like Winston Roy Tara Joey Ossie they need to go in 2017
The man with the money behind c4c wrote the report. What did you expect it to say!
Some confused thinkling there. First you suggest that he was a fool to leave a successful career to run for office and then you suggest that he didn't have a successful before running for office. Which is it, or are you just being nasty?
Government need to cut the CS by half and then go back do another review and cut work permit holders with the exception of needed medical and education employeesby 80%. This would be value for money and real cost saving.
Great so who will you get to do your work for you?
What a sad state of affairs.
All you see is the money it takes to run Government not what they do.
The private sector can say all they want but unless they step forward and run one of these non profit type.
Then you have stupid suggestions like you just made.
This country is about to go rich and very poor.
But if no one will feed and change our diapers we will come and steal from you. Again.
The E&Y report predictably has parts that will please some and appall others. The net result will sadly be a draw, and thus the likelihood of any significant results is pretty remote. This is underscored by the track record of useful but unused reports gathering dust in various Goverment offices. We score highly on reports obtained and poorly on implementation.
The greatest challenge for our elected officials (on all sides of the aisle) is to show real leadership and make the hard but right decisions today that will lead Cayman to a better tomorrow. This requires stepping out from behind the ever increasing stack of expert reports. And actually making decisions and executing them in a timely and effective manner.
Tim Ridley
Why don'[t you weigh on on which of them you think are good ideas, Tim? Clearly, some of them are really bad ones.
Well said Tim Could not have said it any better at least today.This I have been saying for years and yet the beat goes on.Its all about protecting the VOTES in most cases and will not stop til voters put people in place that put CAYMAN FIRST.
Complete waste of time and not to mention money. We have paid E&Y to tell us what we already know but that which this government and others before do not have the "balls" to do. Also our dear Franz Manderson has announced that we need to downsize the civil service and once that is done he can authorize long overdue wage/salary increases to those civil servants who escape the cut. Say what? So we down size to reduce expenses then we increase the payroll and we are back to square one. Where the hell do we get these bright sparks in government from?
The only one to benefit from the grossly expensive exercise would be E&Y. They are laughing all the way to the bank.
TO: 13:28
Your reasoning is seriously flawed, before you speak think. As an example if you have 200 employees that you have to pay pension, insurance and other cost for per month then you decide to get rid of half of the people by way of lay offs. This reduction will decrease your expenses even if you choose to increase salaries at 3% it will result in a cost savings.
Government need to trim the civil service no doubt about that, non performing employees have to go first, second would be duplicated positions, far too many HR managers reinstate the public service commission board (government was more efficient and more cost effective then), get rid of all the accounts managers send centralised accounting back to the treasury department (audits were completed on time). Reduce the amount of non Caymanian staff in all branch of government. Just too many non Caymanian staff in unskilled positions in government. Government need to get its own house in order before they try togive incentives to the public sector.
6:57, your quote "government was more "efficient and cost effective then" demonstrates that you had/have no idea how really inefficient and cost ineffecrive they were so we can safely ignore your suggestions. And by the way, the Public Service Commission was not a "board"; it was a "commission". Geddit?
Some people like to add "board" after everything: commissions, tribunals etc.
Cull and sell. As much as possible.
The arrogance of this government and the rookies they have brought in knows no bounds!
How is this any different than what the former premier suggested about privatizing certain govt assets.
What a joke it wasn't good when he suggested it but its good now. Caymanians are so easliy mislead.
Why do you say it wasn't good then but it's good now. You're just saying stuff. Misleading stuff.
Who said that it is good? The Government has not made any comment on the report or what it intends to do. You are a good example of one who is easily misled.
They're waiting to see how we all respond before doing anything. That is why we can confidently say this report is headed for the shelf. It is going nowhere else.
15:04 Isn't that what they should do? Afterall they are supposed to be OUR representatives and therefore should seek our views.Perhaps you are of the opinion that once elected they should have all the say.Wrong,they are act in our best interests and not theirs.
fools
I HAVE AN IDEA!
Why don't we just sell the whole Island to Mr. Dart? Then he'll turn it into his own little Kingdom. He'll then get rid of all the politicians, and bring in "his experts" to run the Island while he sits as it's "benevolent dictator". We'll all be employed, because he does not want a welfare state, and, he'll have efficiently run programs for the indigent and the elderly! And! He'll eventually turn us into the"MONACO" of the Caribbean! Wow.
Did I Just say that? UHUHUH! What do "you" think.
YES! Thumbs up / NO! Thumbs down!
Privatizing and consequent profits sound good in principle but at what impacts on the people these institutions serve? From what I can gather the new Shetty Hospital's fees are prohibitably high. If CInnico has a problem now, wait until after privatizing HSA, if it comes to that!
And the timing could not be worst for that consideration. I hope the cabinet has enough sense to says hands off HSA. While I am sure there can be some more cost cutting and savings, we have to ensure good health care is affordable to the average person.
i am a little bothered by the suggestion of privatizing Water Authority. Whatever the back story (I see someone mentioning royalties), what I see is a reasonable bill for a good service. I would rather that not change at all. And I see people being professional and working hard when ever I go there to pay my bills. Let's not interfere with what is working well.
Well, this is a great idea. It's the smartest idea I've ever heard in my whole life. Currently the private sector is awash with cheap foreign labour being paid wages so paultry that Caymanians could not possibly survive on (short of living 15 to a house and sharing one toilet, that is) and now we're actually contemplating transfering Caymanians from the civil service into the same dire situation. They will be kicked out ("downsized" whatever) by companies looking to maximise profits (and "bonuses" let's not forget) asap and replaced with foreign (basically) slave-labour, then end up dependent on the state and charities ; the companies who got rid of them having nothing whatsoever to do with this consequence, of course : that's for "government" (and social services) to sort out, obviously. What a nightmare. And what gets me is that those in government who will engineer all this individual and family ruination are very wealthy people. Have you figured out what these senior civil servants take home every month yet? They'll be okay, we all know that. So will the politicians on their fat salaries, obviously. As for the poor, soon to be poorer, civil servants on the lower end of the pay scale, currently earning a mere fraction of the $10K – $15K pm of those in the smiling "feeling good" senior civil servants club (they feature often in photo ops regularly), well I guess it'll be a case of "Let them eat cake". And we all know how that ended.
You should stick to writing childrens stories. They would belive you but no one else will. The story of business being anti Caymanian and Caymanians being qualified for any job has been put to sleep. Move on.
Some children's story. Tell you what, you try moving on to the public (still!) library and bone up on history (particularly French history in your case). You'd be amazed. It's a big world out there and your mind could benefit extensively from it, clearly.
Cut off the limb, spare the body, but do it now while hre is still time!
This would be an excellent time to pass anti-trust laws. If we go selling off any of our infrastructure or land we need to make sure that no one entity gets too much control. Often "big money" will attempt to take control of a jurisdiction in that manner.
Some good ideas and suggestions in the report, but unfortunately some crazy ideas are there as well, and they are put forward as priority. Lets look at the numbers, reduce them by a factor of 1000 and apply them to our own situation. i.e. lets imagine we earn $800,000 per year, and have expenses of $700,000 per year. $100,000 per year would not seem like a lot leftover to play/invest with, but who in their right mind would sell off ALL of their real estate holdings or a small profitable business just to pay down debt that is now manageable? It might be a good idea/opportunity for those who wrote the report, but I believe one of the better things to happen to Cayman was that PMFL law that currently prevents elected governments from putting us the people into more debt. Another 8 years under that yoke is probably the best thing that can happen to us.
Ernst & Young are seen as "foreign" and as such will not be taken seriously. Poor Caymanians suffer at the hands of the foreigners blah blah blah.
Until we have an "Us" dealing with problems instead of "Them" and "Us" we can prepare all the reports in the world without hope of implementation. The people who stare out the windows all day in Government offices are still safe – and The Band Played On.
What rubbish. Dan Scott, its managing partner, is very much Caymanian. If it is rejected it will be on its own merits or lack thereof. The problem is that it presents only a narrow bean counter's perspective, and not wider economic and social issues which the govt. must take into account.
Yes 9:52, Dan Scott is very much a Caymanian, living in the typical multi million dollar house that all Caymanians, especially government workers, live in.
So because Dan Scott is rich that means he is less Caymanian? LOL. The fools we have on CNS. Honestly.
I think you missed the nicely ironic point of the post you are criticising, 12:21.
Irony is not understood in Cayman, 15:03.
My post reflected that I got the obvious irony, but if there was some deeper irony that I missed please explain it to me.
E & Y is in essence, Dan Scott. How much more local than that would you like to see?
Not So Funny Anymore.
The recomendations to privatize Gov. assets that are making money and keeping people employed is nothing short of trying to destabalize the country. If a company like Water Authority is adding to your coffers why be so eager to sell? As an FYI do a check on the difference between Cayman Water Company (Private) and Water Authority (Authority) and look at the difference in the cost of water.
There is also the question of what to do with an un-employed population. The Gov. is heavily dependant of the revenues from work permit fees and cannot lower the number of approvals for the foreseable future. So if you cannot lower the work permit approvals for revenue reasons and you are not creating new jobs and you are cutting jobs, what do you think the outcome will be? Remember we have 300 – 400 students entering the work force every year.
If the Gov wants to save money they first need to look at cancelling any old boy contracts. why is the Monytary Authority not occupying the Admin Bldg?
You make some good points, but you are off on the point re the Water Authority which only makes a profit because of the handsome royalty paid to it by Cayman Water. Cayan Water is subdising the customers of the Water Authority.
I find that hard to believe. If it is a royalty then it is passed on to the government just as ICTA and ERA boards pass on the royalties they collect after taking out the administration costs.
Check it out and you'll see. It counts as Water Authority revenue and for that reason, and that reason alone, is the Water Authority profitable.
Suggest you go and look at Water authority's finacials in govt budget and annual reports. I would like to compare with the Caymon water ones (not consolidated water's) but can't find these online anywhere (maybe they don't exist). Bare in mind too that Water Authority's legislation calls for it to do many more things than just sell city water.
What? Sell the Gov Building now, and then pay guaranteed rent for eternity??? This is the number 1 most prioritized recommendation? Well good luck PPM if you want to get that hard cash now only to ambush your future and give eternal headache to future politicians.
Don't be fooled, this is very tempting to the current leaders because by the end of the year, they can brag that we raised 65$M or so, only for us all to realize that we will be paying 20M$ rent for the next 1 million years. Try to do the math if that makes sense? The premier seems to allude in the last paragraphs that this does not make sense. I wonder why EY and its political backers think it's not an obvious move for a hidden agenda.
The rest of the merging and downsizing are fine, but put it in legislation that all caymanians are protected for a full 5 years under the private sector – no pay decrease, no benefit decrease! That's the least you could do.
Protect Caymanian employees? No, no, no, you don't understand what privatisation means. Please, get with the C$C programme.
How much did EY get paid for this? is there even one thing in this report we all didnt know already, or which hadn't already been proposed?
Good God Alden, lead from the front and stop hiding behind "experts" like so many before you!
And wasting even more of our money!
I have no problem with Government downsizing and streamilining, so long as its done in a thoughtful manner.
The problem I have with this report is that it really doen't help cut costs. Most of the entities they recommend selling either post a profit or at the very least pay their own way. The major exceptions are the Turlte Farm (which no one in their right mind would buy) and Cayman Airways (which EY are saying "don't sell").
I'm not saying we shouldn't discuss selling assets, but the assets mentioned aren't a burden on the public purse (except for the 2 exceptions listed above). It just seems that this report tells us what we all have known for a long time: Government expenses need to be cut but no one is willing to make the difficult decisions on which cuts to make……including now EY as well.
E&Y you let me down really bad….
The worst cost aspect of our Gov was not taken into account not mind you I fully understand why but why it was not proposed frustrates me.
Why can we not sell our politicians? Well I know the answer is who would want to buy them openly when they already have them privately.
People all jokes aside…This is a trainwreck waiting to happen.
E & Y did not let you down. The realities of true situation let you down.
Cayman 3rd World …. coming, coming, psst… it's here now. Austerity measures in place, well folks it is now time to look for higher grounds….. the suit cases will be filled and ready for flight.
Those that have the most will go to Monaco, Switzerland, Luxembourg and Liechtenstein, in a matter of weeks and months they will forget that Cayman existed.
Dog will eat the suppa of those that have no where to go.
With the millions of dollars leaving this country by foreign workers E&Y should address that. If so much money can leave this country by just three nationalities what if all remittances we factored in. We are being penny wise and pound foolish, this country is going to burn like rome if the government continues to fiddle.
so you tell these workers that they can't bring their family, and they cannot even on dreaming of staying in Cayman, but you don't want them to send money home so their family doesn't starve. Why would expats invest or spend money here when they have no future here.
Why would expats invest or spend money here when they have no future here. That is exactly the point if they send all their money home then they should not feel bad when they have to leave after 7 years. Cayman need to look around and take the same approach as Dubai and other countries that are very successful in the management of their country's fianances and are also able to balance their immigration policies.
Sorry, meant to give a thumbs up. I didn't realise you were only quoting the person you were responding to.
I believe that you have it the wrong way around. People send their money overseas because they know they will not be permitted to live here permanently. When I came to Cayman, I did so on the basis that I would only be allowed to remain for 7 years maximum and that my right to remain in the country could disappear every time my work permit goes in for renewal. As a result, I could not plan for a long term future here and had to maintain links to another country where I have the right of residence. As a further result I remit money to that country to pay for the residence that I maintain there (which I would have sold in order to help finance the purchase of a residence in Cayman, had Cayman adopted policies that gave me a realistic prospect of staying permanently). I also have a pension policy here (as well as another in my home country). When I retire, that pension will go with me and be spent overseas, as I do not have the right of residence here. I do, however have a right of residence anywhere in the European Union, which includes some extremely pleasant (and very cheap) places to live, so guess where my pension is going to be spent.
As for Dubai, well – a large amount of oil kick-started their economy and they invested that for a future when the oil ran out . They applied intelligence, planning and forethought and, more to the point, they did so 30 years ago or more.
The majority of people that send their money home is to support their families at home. I doubt very much the 7 year roll over has anything to do with that.
I have a question though as you're obviously from an European country. Why do you want to just move wherever? Don't you have a family home/land etc? Please don't take it the wrong way. I'm just astounded at Americans, Europeans, etc that just sell everything they have and move all over the place. The way I see it is that you have no allegiance to your own country so why should you have an allegiance to mine. I like United States but I'm not selling my 4 generational home and land in Cayman tomove there or anywhere else in the world.
Well many of your country men are!
Rubbish. There are people here with PR and status who bank/invest most of their money elsewhere. They don't even want to buy a decent car here.
So no Caymanians are importing cars? or buying building products from Home Depot, Lowes, Ikea?
And paying CI duty on it, dumbass! That's the point.
14:45 why are you here,go to the eu its the greatest place on earth.
Fool expect everyone to stay here forever.
Dubai? Are you joking? Its only a few short years ago that their friendly neighbour Abu Dhabi bailed them out when the property bubble went 'tits up'.
Research the treatment of Dubai's foreign workers.
So next is a law that states you can make all the money you want but you can't take it off Cayman? I bet you think thats a great idea. Right? This country is already burning like Rome like once a week thanks to doing the dump NOT the expat way.
Bigger tax on money leaving the island
The report is dated September 2014. Shouldn't a report which cost $150,000 at least have a specific date?
This report is sound. It will breed efficiency and bring the govt out of debt. which in turn can translate to a stop in ever increasing custom and other fees. There are many ways to argue the point of vicious and vituous cycle but generally speaking the govt. coming out of debt and taxing less is a good thing.
PPM would love to not do anythingand just spend and talk about austrity. But PPM's hand is being forced by the UK who can see that this runaway spending machine called CI govt needs to be tamed. Implement most of the suggestions in the report I say.
This report makes me fearful for the future of these islands.
Interesting that E&Y give a figure on savings for the merging of schools in cayman brac but are unable to give any figures for sayings on Cinico or pensions overall. A total joke if the government thinks this report is complete in relation to education. Me thinks you have already made up your minds and needed this report to back you your ill advised education policies.
Yes. Thats what Ms C$C was trying to soften everyone up for the other day. Now she can say she was ahead of the Report, but no one was behind her on implmentation but they'll show us and do it anyway. Then we'll see. Who makes the money.
Here is a thought. Outsource employment and Immigration matters to Baraud, CML, Affinity, Personnel 2000 and close down the NWDA. We can easily track the success of the recruiters and they may finally be incentified to place locals? Face it, with their commissions (on permits and a lucrative revolvoing door) WHY would a recruiter put a local forward? Also, heaven forbid a good local qualified local candidate, there would be no churn so hence no second chance to place another expat and thus more $$.
Start with outsourcing where we have experts in the field that are "doing it better" and can produce results.
Immigration- Outsource
Payroll- Outsource
IT – Outsource
Healthcare – Outsource
Transporation – Outsource
Because we can always depend on Baraud, CML, Affinity, Personnel 2000 to look out for the interests of Caymanians being employed, right? LOL.
Sell the Turtle Farm!
Hear, hear. Sell the Turtle Farm, and add a fab feature like the new water-park at the Ritz and it will start to make money!! This is a no brainer.
I DO have to disagree with PWC saying to RAISE airfare with Cayman Airways…Huh? We are alsready LOSING to West Jet and Jet Blue for Caribbean flights….a better solution to Cayman Airways wold be to eliminate the TAX on airfare and watch the seats fill up. Full flights benefit everyone… (and no more free flights for ANY politician or locals…that is just as bad as GasBoy and the Credit Card scandal)
This is a joke justlike the current government.
So there you have it, a supposed i dependent report produced by EY. It is convenient that it supports the governments desire to create a public private partnership in schools through charter academies. They have not obviously read the extensive research on the subject pointing to no evidence whatsoever that it increases standards. What it will do is create sink schools and we all know where that road leads.
EY know nothing about education otherwise how could they recommend the reduction of the teaching workforce. Even if those teachers are transferred to the private sector, the government will still be paying so where is the saving.
Also saying that it will save on health costs, HOW? Someone will have to pay and we are already finding it impossible to attract high calibre teachers.
Their recommendations admit there is no evidence for charter schools yet goes on to make recommendations. If the premier thinks that saving money is a good enough reason to create such a devisive school system on such a small island then he is more ignorant than we thought.
I suggest Mr McLaughlin, Ms rivers, Mr connolly that pay careful attention to the recent PISA report showing that competition between schools is counter productive. But there again you will not be swayed because you have already made up your mind and no amount of expert opinion of people who actually know about education is going to change your stance.
i feel sorry for the children and young people of the Cayman islands that you are betraying.
You don't get it. They are not interested in fact and you can quote all the research evidence you like, they are forging ahead with C4C's agenda and they are unstoppable.
I am insulted that as a voter who rejected Dan Scott and his C$C cronies at the polls I am now stuck with paying him money to tell us how to mess up the country more. I find it particularly galling that rejected ideas like charter schools and amalgamated schools were presented as must-do actions by bean counters. – Count how many parts of this report want to privatise, i.e., make a profit from, necessarry services, such as educating people's children.
Dan Scott was not a candidate in the last election. It was Jude Scott. Please get your facts straight.
Can some one tell me what NRA is doing in the swamp land up east? Far as I can recall the road extension was still being reviewed or has it been approved?
tranparencey please ppm?
Call and ask? Only then can you accuse them of being opaque.
Up until now I wasn't sure if I had seen the final nail that would be pounded into the coffin of this (former?) natural and economic paradise known as Cayman. However, thanks to Ernst & Young, I can safely say today is the day that rusty, corroded nail has been presented to the people.
Don't do it Cayman. Do not do it.
Christ, Whodatis, where is the blaming of the UK and gratuitous references to Chagos etc?
They are where you appear to be stuck.
Somewhere in the past under a relevant news story.
Please join us.
(And while at it, kindly try to address the issues at hand instead of portraying your crippling disdain for Whodatis.)
Norman Bodden was perhaps the single politician (or one of the very, very few) of integrity, decency and true concern for Cayman that this country has had in the past 40 years. I've long had that opinion and Chris Johnson's post confirms this.
Things that make sense from an economic standpoint are not always practical!
What looks good from one perspective can cause catstrophic results if implimented.
Down-sizing Gvernment can result in unemployment, reduce the money in circulation, cause people who are assets to the islands to leave and could easily resut in widespread disaster to Caymanians and the islands as a whole.
Combining Primary Schools in Cayman Brac may appear to be a wise exercise but is sure to have serious dis-advantages that will be devasaing to Cayman Brac's people, reduce job
opportunities and worsen the islands struggling economy.
Selling some of the Govenmnt's other assets are also likely to make matters worse instead of better.
Following many of the proposed recommendations could be like the old proverb:
"Fools rush in, where angels fear to set foot"
I beg our polititians to be extremly cautious and refrain from doing things that will cause regret and make matters worse for our people, instead of better.
Handing over our public health system to the tender mercies of the business community? The public's health in the hands of the profit-hungry financial elite? What utter madness. Have you seen the total mess in the U.S. with its sky-high infant mortality rate and over a third of its people unable to access proper health care? For God's sake, what a dreadful idea that will cost the lives of so many and untold suffering and misery for our people. Private health care? YES, but only as a compliment to a publicly funded government system like in all the developed countries around the world.
While i agree with things that make sense 23:24 . I will say NO to Goverment down sizeing , and saying YES to Goverment learning how to manage the assets of the Islands and beeing more responisible and honest with them . The EY proposal sounds too FUSSIE to me to be good for the people and the Islands . This sound like a storry that i heard a long long time ago, this guy sold his bike rim to buy a tire for it .
Well E&Y certainly got the country stirred up and if this stupid ass Govt should follow this to the letter of the law they can kiss their political careers goodbye.
I wonder if this govt will have the will to deal with those unprofitable govt bodies headed by their cronies and supporters. I also agree with the report that the dissatisfaction of those that would end up with a landfill in their district, will be offset by the larger number of those satisfied with the move. Will this be left up to politicians wanting to 'get back in' putting their own needs before the country's. We will see.
As for this govt's track record, So far, there are no projects or new business in the works for the country. We get bashed and put on a bad child list by the UK and it's left at that instead of calling for a retraction or recompense for the damage done. They allow the civil service and authorities to be under constant attack. The largest employer of Caymanians. Instead of focusing on cutting back on permits and getting Caymanians back to work they are talking foolishness about daylight savings!!! I hope people have seen what they do not need to repeat in 2017. What's that saying, 'Fool me once shame on you. Fool me twice shame onme.' But oh, they did fool everyone twice! What does that make those voters?
Thanks for the clarification
Well folks there you have it. Get ready to pay more for water, sewer, garbage, air fare, port fees etc. Now I wonder who will buy these assets. Could it be some of those who reccomend selling them.
Yep, we are going the American way.
Everything privatized, extremely expensive, and nowhere for consumers to complain.
The winners ? Insurrance companies and investors (politicians).
On the long term all employees will be fired and replaced by foreign cheap labour.
This is really very bad. Unfortunately most of you will approve and think it will get cheaper and more efficient. You are in for a big surprise.
Who pays the bill ? YOU ! !
Mr. McLaughlin, I am disgusted and angry.
The solution is the other way arround. Let governmental organisations compete with private companies. Let cinico except others than the old, uninsurable and poor, because they are the people that are going to suffer.
Let IT perform services on the private market.
Etc etc.
well said 20:54
I agree. The richer pensioners should have to pay a monthly premium instead of the public paying for them. Millionaire retired pensioners are raping poor Cinico and we the people cover all their cost. Plus the indigents that Cinico must cover by law should be shared with the private insurers they must be forced to provide coverage or pay 4times in annual business licence fees and company fees. Why should the public pay that full cost and these private insurers laugh at us while on the way to the Bank. Make Cinico profitable by offering the same plans as the private sector. But we know why that wont happen because too many in Govt. Have an invested interest in these private insurance companies. Cinico can be profitable if everyone pays.
" Yep, we are going the American way.
Everything privatized, extremely expensive,"
Last time I was in the good ole USA everything was much cheaper then here in Cayman. Especially utilities.
Yes, but good old USA have many more utility companies to choose from. Also, I pay a lot less for my water in Cayman than what one US CNS reader said he paid so I guess it depends on where you live.
Limitations on ulitity providers in Cayman a construct of current government regulations and not result of economics.
The Cayman government meddles in the affairs of this country to the detriment of its people.
I suppose unna have not seen that CUC makes a double digit million dollar net profit every year? The so brazen they boast about it on their website to the tune of $17 mill
Hello! It is a company in business to make profits for its investors. If it made no profits there would be no investors and the company would soon go bust. You will find that the return per share is nothing spectacular which is why the share price has not shown any consistent increase over the past 6 years. Back in the 1990s and early 2000s CUC share price would double and they would split about every three years. The market has spoken.
I would bet the Report does not point out that nearly the entire civil service on the Brac does nothing, through no fault of their own, because there is nothing to do. In modern public management terms, the Brac receives a "transfer payment"-simply put, a welfare grant.
maybe we should privatize the Brac :))))
Yes, on an island of 2,000 people with a hospital, schools, roads that need to be maintained, cargo coming from abroad, passports that need to be renewed, buildings that need to be maintained, bills that need to be paid, etc. etc. etc…civil servants sit under the coconut trees of Cayman Brac playing dominoes all day. Get a life 20:17. I bet you've never been to the Brac especially during work hours. The vast majority of civil servants in the Brac WORK!!! To provide service to ungrateful people like YOU!
Slam, bam, thank ya, mam!! Tell um how it go! Soooo sick & tired of the Brac bashers. And they always come on here with the same boring line. Get a life, please!
Consolidation and privatization makes sense from an economic and efficiency standpoint. This government will do what it normally does and avoid making any decision that could potentially impact its ability to get re-elected. This will be analyzed 10 different ways and mark my words – nothing will happen. Refer to Miller Shaw report for similar example of common sense ideas that were ignored.
The Miller Shaw report was ignored by the last government, not this one.
Did the report say anything about all the free flights on CAl that various people and their families get-even past Board members after they have retired from Government?
About time, now transparency rules needed for the sale.
They don't teach that in expensive charter schools.
It’s hard to get rid of the adipose……
That's fat, folks. That's fat folks.
Taking a cursory look, whilst there are many asinine recommendations that show a lack of understanding on the part of EY, there are also some pretty good common sense recommendations which are decades overdue. The recommendations around merging certain SAGCs is a good example of a sensible recommendation, the Museum and National Drug Council is a gross waste of public funds and should be totally revamped under more effective leadership.
Finance should be recentralized and so should HR. We should also definitely move towards shared services and back office functions for the Auditor General, Complaint's Commissioner and the Information Commissioner's Office.
Increasing the fares on Cayman Airways may get you a profitable airline and save the country $10 million per year, but is that worth the value of your overnight tourism industry? selling certain non-operational Government assets such as condos and certain tracts of lands also make sense, but there are other assets recommended for sale which does not make sense and shows short sightedness on the part of EY.
Will be interesting to see how this plays out.
The report points out that there is a difference between "shared services" which it calls for and "centralisation" which your report, CNS, mentions as having been "pointed to". Be careful, please. This is a highly contentious Report (which I personally think will go nowhere as it is politically and nationalistically unacceptable) but the summarising of it needs to be accurate.
I can't say that I have a lot of faith in a document that starts with "we is pleased".
It starts off, EY is pleased.
Then why treat E&Y as a plural noun thereafter? It does not make grammatical sense.
There is no, oops I mean there ARE no reasons to teach proper grammar in charter schools. Every child will be an accountant.
It starts EY ("we" or "our") is pleased….. I never went to a charter school, but EY being two persons, namely Ernst and Young, then John Gray High School grammar (back when John Gray was the Headmaster) would dictate "are" instead of "is" for multiple people when conjugating the verb "to be". So the proper interpretation of the document is that is clearly states "we is pleased", or "our (three named partners) is pleased", or "Ernst and Young (whomever they may be) is pleased". All gramatically incorrect.
Ernst and Young is treated as a company name, not two individuals.
It does not; it begins with “EY is pleased.” It seems that you have misunderstood the use of the parentheses.
I wondered why the PPM was being so "transparent" in releasing this report before they had decided on it but then I realised they are waiting to see the public outcry or aggreement before they decide what to do.
It will not happen.
In 1992 Norman Bodden commissioned a report on Tourism and after due process Coopers and Lybrand were awarded the contract at a price of US$250,000. It was very well received by Government and the public alike. Regrettably elections came up within months and the incoming party ignored the report. In hindsight it foresaw many of the problems that have been encountered since 1992 and came up with viable solutions. The most interesting thing about the preparation of the report was that several committees were formed using local expertise to seek advice on what was wanted by the peopleand their input was incorporated in the report.
I do hope that EY involved the locals in their report but above all I do hope that the Government takes seriously their recommendations whilst not necessarily taking on board alsurf them. No procrastination on this report please.
I agree with Mr Johnson but I can think of three reports, going back 30 plus years, on what used to be called Central Funding Scheme, later DVES, all of which recommended in effect closing it down and outsourcing the services. It has not happened yet. And then there is the Miller Shaw Report. In reality, political imperatives to protect jobs/votes always condemn these reports to the shelf.