Politics
Mac conciliatory in reply
(CNS): Despite the criticisms of him in the premier’s policy statement and things which he described as “not right", the opposition leader made a conciliatory reply to the government’s throne speech and budget address when the House resumed on Thursday. The first to speak in the budget debate, McKeeva Bush said he was giving the government as "wide a berth" as possible and was willing to let some of the things said go as he put them down to the “euphoria of being elected ” to office. The UDP leader said the budget was no surprise and there was even a lot that he agreed with. However, he noted that much of the $100 million surplus would come from fees that his government had implemented.
Bush said he was not surprised that the campaign promise by the PPM to cut fees had not been met because he knew that the new government would have a hard time bringing the budget as the British Foreign and Commonwealth Office was not going to change.
“They have been like that for a thousand years. They are not going to change, no matter what he said about his new relations with them,” the opposition leader stated, referring to the current premier’s position that things had improved between London and Cayman. “Him and his grinning is not going to change things.”
Bush made much of his position that he was not going to nit-pick and go out of his way to find an opposition view. “We have had enough of that destructive attitude over the last four years,” Bush told his legislative colleagues. “The opposition can’t be the 'same old same old' as it has been,” he said, adding that he intended to ignore the jibes and he hadn’t made it as far as he had in politics without learning something.
“We are one Cayman and we have nowhere to go," he said in the first of several reference to him having just one passport (a Caymanians one), clearly aimed at his fellow West Bay MLA and government minister, Tara Rivers. “We must work to build things up and not to tear them down," he said. “We are here to offer good ideas and not mash down on whatever is being attempted. My purpose here is to work. I am a worker and if I can’t be given a chance to help, I won’t be a hindrance,” Bush added.
The opposition leader said that when the debate was concluded and legislators made it to Finance Committee, he would be asking about some things he had seen in the budget that need explaining but otherwise he was not going to make extensive criticisms, as he acknowledged some savings made by the government in the spending plan.
However, Bush emphasised his view that Cayman cannot survive unless it has outside investment and that would not come without getting outside people and the infrastructure projects off the ground.
“Our people must have jobs now. The country needs the projects because that’s the jobs. That is what we are elected to do — get business done so our people can maintain a good standard of living or we will become the crime capital of world. And we all know that and we all agree we need to stop that.”
He said that no matter how many people the police capture, they had to stop the crime happening in the first place.
Bush said he was not there "to crucify anyone or be spiteful" because there had been enough spite with Duncan Taylor, the former governor. Bush said that this "would be proven" as he went on to imply that the public purse had spent money on cars to take "his dog to the vet" but that wasn’t seen as abuse, and suggested that there was one rule for the governor and one for everyone else.
The opposition leader also lamented the lack of financing for MLAs' constituency work. He said that most elected members spent significant amounts of their salaries on constituents' needs, and noted that now they had to finance their own offices, as he made a bid to get his phone costs covered, saying that was how representatives kept in touch with the people that were elected to serve. He said government was paying for iPads but couldn’t help with the phone bills.
Looking back over his own time in office, he said that his government had accomplished much. While he didn’t do everything he wanted, he believed he had a solid list of achievements as they had kept the country afloat, even if nobody wanted to acknowledge that fact. From getting Cayman off the OECD Grey List and retaining the country’s credit rating, to the road side clean ups and tourism success, Bush listed what he felt were the positives from his time at the helm between May 2009 and December 2012.
Talking about the future and the very topical issue of unemployment, he suggested government hold a national personnel symposium to let everyone talk and air the issues relating to local employment and employers, and the creation of an accreditation system for good employers. He called for capacity building and retooling of local people to transform Caymanian workers to be best in world and ensure the competitiveness of the economy. Bush said the country had to build a better work ethic and life skills training for young people to generate passion for excellence.
As he wound up his response to the throne speech, he once again emphasised his single Caymanian passport, adding that he had “nowhere to run to”. Cayman, he said, could not afford four more years of fussing and fighting, as he referred to the opening of his presentation when he quoted from the Ernie Smith song.
Closing his response to the government, Bush continued to be conciliatory. “The government has announced some things I am in tune with and that I support … My purpose is to work and I will do my part to help.”
Rally going ahead as LA sits
(CNS): The member for North Side has confirmed that he will be taking part and speaking at the planned demonstration against the government’s proposed immigration bill Friday. Although there were some indications that the protest march, due to start at the government building at 10am on 11 October, was to be cancelled. the rally, Ezzard Miller said, was very much alive. While some original members of the organising committee have been mollified by government’s comments on the proposed immigration changes after they met directly with the premier, the independent member said many, many more people still considered the bill as “genocide for Caymanian employment”.
Miller said there were significant issues and major problems for local workers with the bill, which would reinforce the glass ceiling, and he hoped government would listen to those opposed to the proposed legislation before it was too late. He told CNS that the country should not be placed in the position of dealing with something as though it were a national crisis when it was a result of poor planning by disorganised employers.
“They have known about this for two years. We should not be forced to rush through such important legislation because of their bad management,” he added.
Speaking in the Legislative Assembly on Thursday afternoon, Miller said that the rising crime in Cayman could not be separated from the growing problems of unemployment and the marginalization of Caymanians.
“Young people have lost hope in the system as hard work and determination are no longer rewarded and they are turning to crime,” he said. Yet despite these problems the first thing that the new government want to do was to regularize the position of some 1500 expatriate workers and allow them all to apply for permanent residency, he went on to state.
The North Side member said he was still hoping that the government “would have a Saul on the road to Damascus moment” and withdraw the bill to give much more time for careful consideration of the process of reform.
He said there was still time to backtrack but he did not hold out much hope as he believed that the rush to make the changes had to be coming at the request of someone with significant influence. “I can’t believe government is doing this of its own violation, somebody is pressuring somebody,” Miller said.
The protest rally, which is set to start outside the Government building on Elgin Avenue at 10am will see those involved march down to the Legislative Assembly, where the crowds are expected to gather as lunch time approaches and where a few short speeches will be made about the opposition to the legislation before demonstrators will march back to the government building by 2pm. The demonstration will now take place against the backdrop of the budget debate, which will be continuing in the Legislative Assembly.
Prior to the protest, government is hosting a second town hall meeting this evening (Thursday 11 October 7-30pm) in George Town at the Elmslie Memorial Church, where officials will deliver a presentation and take questions regarding the proposed bill, which is expected to be debated in the LA during this budget session following the completion of Finance Committee later this month.
Bernie Bush sworn as opposition LA deputy leader
(CNS): As provided for in the Cayman Islands 2009 Constitution, Bernie Bush, the third elected member for West Bay, has been appointed the Deputy Leader of the Opposition in the Legislative Assembly. While he is the second in command spot in the LA among the three United DemocraticParty members, Bush is not the UDP deputy, as local businessman Renard Moxam, who failed to win a seat in the George Town election battle, has been given that role. Bernie Bush was sworn in by Governor Helen Kilpatrick at her office in the Government Administration Building on Wednesday, 9 October.
As Bernie Bush took the oath of allegiance, veteran politician and opposition leader, McKeeva Bush, was present to see his legislative and party colleague sworn in as his back-up in the parliament.
Although the United Democratic Party is the official opposition, it has only three members in the House and is flanked by the two independent members from East End and North Side. The opposition sits across from a full government bench after the three Coalition for Cayman members opted to join the PPM administration after the Progressives won the largest number of seats. In addition, following the election results, Juliana O’Connor-Connolly, who left the UDP to join the PNA, crossed the floor to join the PPM and took up the speaker’s post, giving the party a significant majority.
$2.8M missing in PR fees
(CNS): The chief officer from the Home Affairs Ministry has said that government is owed around $2.8 milllion from permanent residents who have not paid their annual fees. At a meeting in West Bay Tuesday night (8 October) Eric Bush revealed the hole in the public purse as he explained government’s planned immigration reform. He said that under the proposed changes permanent residents who do not pay their annual PR fees could find their residency rights revoked. The new regime will require applicants for PR to pay their first annual fee plus all the administrative application costs, which have increased, and any dependency fees up front at the point of application to deter frivolous claims.
Explaining the changes and the much more stringent system that the new government plans to introduce once the Immigration Amendment bill is passed, Bush said that in future permanent residents will be required to submit an annual truthful declaration in respect to their investments, employment and other factors when they pay their annual fee. Failure to comply or to withhold or give false information will be an offence leading to the loss of their PR. The right to residency could also be taken away if the person moves to an occupation that is not authorized in his certificate.
In light of the controversies that have arisen since government announced the major overhaul to one of the Cayman Islands’ most revised piece of legislation in modern times, Premier Alden McLaughlin, who was hosting the public meeting, said he was aware of the “concerns and misunderstanding” in the community. He told the audience of more than one hundred West Bayers, which included Opposition Leader McKeeva Bush, that he was keen for people to understand what was being proposed.
McLaughlin emphasised that there were lots of work place initiatives being implemented in parallel with immigration changes that would help Caymanians get back to work, as well as efforts to get the economy moving again. He said that government had worked hard to inspire business to invest and grow jobs, and with the return of commercial confidence after it had been seriously undermined, things would improve.
Immigration, he said, was a separate element from unemployment, but when half the country’s workforce comes from somewhere else, Cayman needed a system that works properly to protect Caymanians and give employers access to work permits when they are genuinely needed.
Ahead of the chief officer’s presentation detailing the changes, McLaughlin spoke of the weaknesses in the currentsystem and pointed to the lack of enforcement and abuse. Going forward, thirteen more officers were earmarked for the department and at least five of them would be compliance officers, charged with monitoring the law and for the first time ensuring that the details presented in work permit applications were accurate and realistic
“The system has been abused badly,” the premier stated and pointed to the unintended consequences of the key employee barrier and seven year rollover. This had led to a drop off in investment in property because the majority of people on work permits were aware they would never get a chance to apply for PR, so instead of investing here they sent money back home.
McLaughlin said that by treating everyone the same and allowing them all to stay and try their hand at PR it was hoped that there would be more direct investment in the economy as people worked towards reaching the PR criteria and collecting enough points to stay.
As a result of the changes some 1,500 term limit exemption permit holders will now get the chance to stay on and apply for PR. It was revealed at the meeting that around 250 of those will be eligible immediately and they will need to make applications under the much stricter regime straight away or they will be required to depart. If their application is refused, which officials believe will be the case for most of them, they will also be required to leave at the point of their application being declined. Under the new regime appeals will be filed from overseas as appellants will no longer be required to appear in person.
Following the presentation of the proposed changes, the response was mixed but many West Bayers seemed more optimistic about the changes when they realized how much more difficult it would be in future for most ex-pats to get through the PR application process.
However, many had concerns about existing residents who should never have got through the barrier in the first place. It was clear that the attendees wanted to see government revoke the PR rights of every one of the delinquent fee payers.
Most of the concerns from the floor after the presentation centred on the problems Caymanians have getting work and the abuse they face, with employers bending the law to avoid taking on locals and treating Caymanians “as second class citizens”, one local stated.
The plight of returning graduates was highlighted as a particular problem, as the perception is that many human resource managers are ex-pats who refuse to engage local graduates on the basis that they have no experience. With no one willing to give that experience to them, however, they are making up a significant percentage of the unemployed locals.
One West Bayer who had been part of a planned protest against the bill, which is understood to now be cancelled, said that he was comforted by what he had heard. But, he said, the premier should have consulted the grass roots and explained the aims about the amendments before putting out the bill. McLaughlin conceded that this was good advice that would be heeded.
As he rounded up the meeting the premier emphasised that the main goal was to ensure those who got PR were immersed in the community and had the wherewithal to take care of themselves, as many that already had residency rights were not able to do so and had now become a burden on the public purse.
The new process would “take out the subjectivity of the board”, he said. “We looked at systems across the world and nowhere do boards with personal knowledge of the applicants choose the people who will receive residency rights.”
McLaughlin pointed to the fundamental issue when he added, “Unless we decide that the only people who can become Caymanian are those born to Caymanian parents, we have to create a system that allows people to stay and become integrated. This may not be perfect but we believe it is a major improvement,” hesaid.
The next immigration public meeting will be in George Town on Thursday evening at Elmslie United Church.
See the full presentation below on the reform bill below.
Budget details released
(CNS): The documents that spell out where government expects to spend $518 million running public services this year and how it will collect $644 million from the tax payer to pay for it have been released. Following the budget presentation by Finance Minister Marco Archer, the PPM’s policy statement by the premier and the throne speech by the governor on Monday, legislators will begin debating the budget Thursday and will then sit down in Finance Committee to scrutinize the line items set out in the annual plan and estimates and other budget documents.
The detailed paperwork shows that one of the biggest pay-outs of the public purse is for the RCIPS, which has a budget of close to $32 million, just over a $1 million less than it received last year. Spending has, however, increased on related correctional and intervention services, such as electronic monitoring, CCTV and court interventions, by just over $1 million.
Government will also spend around $13 million on various scholarships, over $6 million on poor relief and another $6 million on veterans' benefits. The Turtle Farm will get more than $10.2 million of tax payer’s cash again as it continues to drain public coffers, while Cayman Airways will receive just over $5 million in addition to the $18 million government pays for specific air services.
$6.3 million will be spent on the regulation of the financial services sector this year and well over $18 million on health insurance for retired civil servants. Government will spend $14 million on tertiary care at various local and overseas institutions and a further $11.7 million on health care for indigents. Controlling mosquitoes will cost the public purse more than $5.7 million this year and government will spend over $52.5 million on teaching for primary, high school and special needs students.
Meanwhile, the education minister will be the most expensive member of Cabinet when it comes to ministry assistance with more than $4 million set aside for policy advice, governance and ministerial support services, which is double and in some case three times that of her colleagues.
With a major surplus predicted, government expects to earn more than $644 million this year and that will come from a variety of existing coercive revenue measures, such as $90 million from company fees, around $42 million from mutual fund administrators, and over $87 million in regular imports, while $17 million will come from the sale of booze.
The banks are expected to chip in double that at more than $34 million. But even outstripping the earnings for banks this year will be the duty government will get from fuel at almost $35.7 million. It will also receive well over $60 million from work permit related fees.
See the Annual Plan and Estimates below.
Good governance is wise spending, says governor
(CNS): In her first throne speech the new governor told the Legislative Assembly that, to her, good governance involved careful and planned management of resources and spending wisely, as she commended the public service for reducing expenditure and moving towards more strategic ways of working. As Helen Kilpatrick delivered her presentation ahead of the budget address, she proposed funding intelligence-gathering, planning, consultation, standard-setting, international collaboration, monitoring and evaluation, as well as stricter enforcement. As she listed the various government initiatives, she said a recurring theme was the use of technology to achieve goals in a cost efficient way.
As a public finance expert, Kilpatrick has been expected to focus on Cayman’s purse strings and she said it was "incumbent on this honourable House to ensure that the proposals submitted by government for the coming financial year offer the people of the Cayman Islands value for money,” noting that it was a weighty task.
“The civil service is also to be commended for the reduction that it has achieved in personnel and operating costs. Their savings to the country have come at a cost to many. However, ensuringthe sustainability of these Islands is a noble and worthy cause,” the governor said in her relatively short speech, giving a very brief overview of government’s plans, which were later expanded upon by the premier in his much longer address.
From the auditor general’s plans to enhance its independence by working towards a new law, to efforts by the judiciary to find a way to pay for a much needed new court house, the governor focused on the portfolios and independent arms of government. She revealed that the director of public prosecutions is working with the criminal justice department and law enforcement agencies to develop a formal witness protection programme and that the legal department was working on an anti-money laundering unit under the aegis of the Attorney General’s Chambers.
She spoke about the work of the deputy governor’s office to review public entities with the aim of rationalizing the various departments, assessing those that are obsolete, in need of transfer, or in need of separation or amalgamation.
“Consideration will also be given to opportunities for privatisation or outsourcing where this is feasible,” she said.
Noting changes to the police law to establish a commission to offer civilian oversight of the RCIPS, she said that in the coming year the police would continue to target serious crime through a variety of strategies, including a pro-active task force to patrol vulnerable locations. She said the Cayman Islands Prison Service would also be working to mitigate issues identified by the United Kingdom and local prison inspectors.
“The prison will also address long-term estate needs while making emergency repairs on existing facilities,” she revealed.
Giving a brief review of the work of the various ministries, Kilpatrick said the Customs Department will reform and modernize its compliance management, intelligence and risk management in order to enhance border security and revenue collection.
The governor also said that in response to the need for a further 36 megawatts of electricity on Grand Cayman, the Electricity Regulatory Authority would conduct another competitive solicitation for the development and operation of a new power generation plant. During the coming fiscal year the National Energy Policy Committee’s mission to establish a National Energy Policy would also receive support from government.
Kilparick revealed that the Mosquito Research and Control Unit will once again explore field trials for a proposed Oxitec project as a comprehensive and effective strategy for dengue fever prevention. The previous trials carried about by the UK-based research company raised considerable concern when the public discovered that the firm had released genetically modified male mosquitoes into the district of East End.
See full throne speech below.
Archer plans fiscal prudence
(CNS): Finance Minister Marco Archer said he was optimistic for Cayman, despite the difficult times, when he delivered his budget address to the Legislative Assembly Monday. The budget documents and appropriations bill are expected to be circulated Tuesday but in his address Archer said there were no new revenue raising measures and several cuts had been made in operating expenses. There were no indications of any tax or fee cuts as Archer pointed to fiscal prudence and discipline. The finance minister said government would be watching every dollar, as he laid out some of the cost efficiencies that had been identified to produce the budget, which is expected to produce a surplus of more than $100 million.
The government has set a high bar for itself, following years of criticisms of the inaccurate predictions of the previous administration and the need to find money for capital expenditure. The finance minister will now be under pressure to reach the ambitious forecast and improve the cash reserves of the public purse.
Archer said the budget aimed to get the fundamentals right, with accountability, transparency and prudence being the new modus operandi throughout all of government.
“The fiscal policy of the Cayman Islands Government over the medium-term adheres to the definition of fiscal prudence. Revenues and expenditures are planned in such a manner that instead of increasing public sector debt, such debt will be declining. Our fiscal policy targets a modest revenue increase that is non-inflationary, and at a rate that is below projected economic growth, so as not to stifle our fragile economic recovery. This will be accompanied by a decline in total government spending without compromising necessary social investments,” he said.
As well as reining in spending, he said, government would also be more rational in its approach to spending. “Our current fiscal position implores us to make tough but thoughtful decisions,” Archer said. “We must live within our means, and question every dollar the government spends, whether that is within a core government department or in one of our statutory authorities or government companies.”
He said there would be a greater emphasis on partnerships within core government and with the statutory authorities so units don’t work in isolation. Government had rejected general across the board cuts, the minister stated, but was practicing prudency while providing resources for healthcare, education and social services, protecting the borders and exploring opportunities for business prosperity.
Archer revealed that government had ended the last financial year with a surplus of $63.3 million. The prediction by the UDP government when it set that spending plan had been for more than $80 million. Government’s net assets were $1.3 billion, cash balance was $117.06 million and core government debt stood at $575.9 million.
The minister said that the 2013/14 budget was based on the four year fiscal plan sent to London in August, which was approved in days without the need for a defence of the plan, demonstrating the improved relationship between the UK and the CIG.
Government, he added, was focusing its revenue management efforts on encouraging economic growth through private sector investment, as well as improving the collection of revenues from existing measures by identifying and closing loopholes and limiting waivers and concessions. The administration also plans to pay down debt and, Archer said, “where possible restructure the debt portfolio to cut interest costs and remove potential uncertainties around the repayment of bullet bonds.”
He predicted operating revenues of $644.6 million and operating expenditures at $517.9 million, with the financing expenses forecast at $31.4 million, equating to an operating surplus of $95.3 million. After factoring in the forecast net operating surplus of the statutory authorities and government owned companies of $5 million, the entire public sector is forecast to record a net surplus of $100.3 million. Capital Investments are forecast to be $51.9 million and core government debt is expected to fall to $548.8 million with principal debt repayments of $26.3 million during this financial year 2013/14. Cash balances are to increase during the year by $44.9 million, growing to $161.9 million by the year end.
From that cash $59.9 million will be in the operating bank account and $102 million in the various reserve funds, such as the general reserve fund, the environmental protection fund and the infrastructure development fund, Archer stated.
“Even though we find ourselves in a surplus position, with today’s fiscal challenges comes the opportunity for government to demonstrate greater wisdom in spending the people’s money,” Archer told his colleagues in the Legislative Assembly. “The government’s revenue outlook is stable, and is not dependent on any unproven measures. This year will see the implementation of only one new tax measure, Licensing and Registration of Hedge Funds Directors. This measure was originally announced last year by the previous administration but was delayed in order to allow for proper consultation with the financial industry.”
He said the primary drivers of expenditure for this year are education and training initiatives; unemployment related issues; rising health care costs; rising crime rates; social assistance programmes; and new constitutional requirements.
Archer explained how government had managed to shave costs to statutory authorities and government companies (SAGs). Last financial year the government spent $110.8 million on outputs from the SAGCs. “For 2013/14 this has been reduced to $100.7 million by implementing a number of innovative measures,” he added.
The finance ministry held a meeting with the larger SAGCs in August, which led tosome cost saving measures. Archer explained that some SAGCs collect most of their revenue in US$ but expenditure is in CI$ but there were others that collected the bulk of their revenue in CI$ but purchased large quantities of US$ from the local banks for their overseas expenditure.
It was agreed that they would collaborate, whereby those with excess US$ cash would sell to those in need at a fair exchange rate,” he stated. This foreign exchange management saved two entities almost a half million dollars but could be utilized further to save millions in future.
He said it was also agreed that the Cayman Islands Airports Authority (CIAA) would no longer charge rent to the Customs Department and the Immigration Department. Instead it will receive revenue directly from other coercive fees diverted from core government.
“The net effect of this decision is zero but the overall benefit is that it allows core government to reduce its operational expenditure and avoid the need for increased tax revenue, thus reducing the pressure to add to the cost of living and doing business,” Archer said.
Government has also taken a policy decision to exempt core government agencies and SAGCs from paying import duty, lowering operating expenditures for both the SAGCs and core government. Another area of partnership between the SAGCs and the core government was cash management.
“Based on their business cycles and the underlying cash flows there are times when SAGCs have surplus cash on hand lying idle, while the core government is running an overdraft. By partnering with the SAGCs to have them place their surplus cash on deposit with the Treasury Department, the government is forecast to save approximately $89,000 in interest expense by 31 January 2014.”
He said these were just four easily identified initiatives that reduced government's operating cost, and more were in the pipeline.
Archer’s forecasted expenses of $517.9 million represents a $6.8 million reduction on last year as personnel costs were cut, even with a provision of $11.4 million to be paid into the Public Service Pensions Fund for past service liability. Outputs from Statutory Authorities and Government Companies are forecast to be $100.7 million, which also represent a reduction of $10.1 million from 2012/13 because of the initiatives.
Government’s major spending outputs, however, include $14 million to fund overseas medical, $2.5 million to provide Legal Aid, $1.6 million to provide rental housing accommodations to persons in need, $1.5 million in funding to the Cayman Islands Private Schools Association and $1.4 million to fund the NCVO Pines Retirement Home. Transfer Payments increased by $1.5 million to provide funding for scholarships to the tune of $13.6 million; $7.8 million for poor relief and $6.7 million in seamen and veterans benefits.
The planned capital investments of $51.9 million is intended to fund $27.3 million in core government assets, such as roads, land, building improvements, vehicles and equipment. A sum of $24.6 million will be invested in SAGCs, primarily to fund the debt service obligations of these entities.
“Although our fiscal resources are limited, we are making investments where possible, while maintaining effective levels of support for our people,” Archer stated. “This budget affords us the opportunity to reshape government.”
See full Budget Address below and check back to CNS tomorrow for details of the Appropriations Bill.
Alden sets out busy year
(CNS): The premier outlined a busy agenda for his government during 2013/14 when he spoke for more than an hour and a half Monday, as he delivered a policy statement following the governor’s throne speech and ahead of the finance minister’s budget address. As the Legislative Assembly budget meeting opened, Alden McLaughlin listed a catalogue of policy development and legislative amendments the PPM administration hopes to tackle before this financial year is over. Promising sound financial management and responsive social policies, he said there were no silver bullets for the challenges the country faced but confidence in Cayman was being restored after its reputation had been sullied at home and abroad.
In a policy statement entitled 'Getting Back on Course', the premier began by saying that the voters had given the People’s Progressive Movement a mandate to restore the lustre of Cayman’s tarnished reputation.
“A reputation that had been sullied both at home and abroad by charges of corruption, abuse of office, mismanagement of the economy, a soured relationship with the United Kingdom and all manner of unsavoury practices and unseemly behaviour,” he said.
With a good reputation being the flip side of the confidence coin, restoring that confidence was the first step for the new government, which he said had made “considerable headway”, with the “suspicion and scepticism of the Foreign and Commonwealth Office replaced with trust and respect.”
McLaughlin said foreign investors now had “certainty that transparent, legal processes will protect their investments", while local business owners had been "buoyed by the consultative process” that his government is engaging in.
“We know that the restoration of confidence is not a one shot deal and we shall continue to consult regularly with stakeholders in business and civil society and maintain our promise to be open, transparent and accountable,” he said. McLaughlin noted that there were “no silver bullets or 'one size fits all' cures,” before detailing the goals of the government’s first year in office. He said achieving the goals would involve a targeted approach through specific educational and training programmes.
“Investment in a modern infrastructure will be within our means and will yield maximum returns for the country. Expenditure on government and by government will give value for money,” he said, and although government would facilitate the environment, growth and employment would be driven by the private sector. McLaughlin stated that the planned immigration reforms would be the core of future economic expansion that would protect Caymanians while acknowledging the need for a reliable labour force.
With unemployment among locals a key issue, the premier said the revamp of the National Workforce Development Agency (NWDA) would make it easier for Caymanians looking for work as businesses will work directly with the NWDA to find Caymanians to fill their vacancies before they make an application for a work permit.
“We have heard the cries of our people in their search for jobs and we are doing much to ensure jobs for Caymanians in the near and far future,” he said, adding that the combination of increased economic activity, immigration reform, new NWDA initiatives and vocational training will put Caymanians back to work, as he emphasised how it will now be an offence for employers not to acknowledge Caymanian applicants.
McLaughlin also mentioned a suite of programmes to get Caymanians into work from the employment ministry and the identification of over 200 unemployed Caymanians who want to work in hospitality industry that government will be helping to place in jobs beginning this month.
Crime was another area of concern, in particular the recent increase in gun-related crime. McLaughlin spoke about recent police successes, with the round-up of robbery suspects and seizing drug canoes. He said Cayman had to be open for business but closed to criminals as he announced more would be done to try and help vulnerable business to protect themselves, either through legislation or duty concessions. Critical attention was being given to the Crime Reduction Strategy, he said but noted that there are numerous programmes aimed at fighting crime. However, to really make a dent in crime a coordinated effort was required to ensure accountability and effectiveness of these programmes.
In a long speech the premier listed a considerable amount of planned legislation, from the enactment of disability legislation to the national conservation law, which he said would be brought to the LA before the year is out. He revealed that the government intended to adopt the draft climate policy, produced in 2011 by a multi-disciplinary public and private sector initiative led by the Department of Environment, and to begin urgent work on an implementation plan.
McLaughlin announced changes to social policies at the Department of Child and Family Services which would see clinical issues separated from welfare issues, and amendments to the Poor Person’s Relief Law, as well as the development of accompanying Regulations.
They were reviewing and re-writing the Cabinet code of practice to manage government and bring it in line with the constitution, but in the meantime the current guidelines, established in 1995, would be made public for the first time. Government has already published the proposed Standards in Public Life bill, after four years in waiting, on the government gazette.
McLaughlin revealed some planned enhancements on the Sister Islands, including what is likely to prove a controversial plan to develop a runway on Little Cayman. The airport on Cayman Brac will also be enhanced and Cayman Airways will be opening an office on the island. He announced that the costly hurricane shelter on the Bluff, which was nicknamed Hurricane Hilton, will be converted into a new high school.
With a heavy emphasis on reducing government spending to balance the books, McLaughlin also pointed to the importance of e-government, which was an election campaign promise. He said government would utilize technology to cut costs and red tape. He pointed to the high saturation of computer at 74%, internet use at 65% and cell phone owners at 98.5%, with many now using smart phones. Government has plans to maximise information technology to provide better services.
From the boosting of local food production and sports tourism development to exploring how Cayman can become a centre for medical research and the challenges of tackling the George Town dump, the premier listed a myriad of diversepolicy aims and new legislation that his government is hoping to tackle.
McLaughlin said that the budget, which was presented by finance Minister Marco Archer, underpinned the broad plans and would provide the “oxygen to stoke the economic fires” as he thanked everyone involved.
Pointing to the importance of inclusivity in his government, McLaughlin thanked the Speaker, Juliana O’Connor Connolly, for crossing the floor and joining the PPM in the wake of the election, as well the three Coalition for Cayman members and his own Progressives team for providing Cayman with what he was said was the best government possible.
“The result is an administration of immense depth and ability and which I am most honoured to lead,” the premier added.
See the premier’s policy statement below.
PPM predicts $100M surplus
(CNS): The new Progressive government has presented a budget for 2013/14 with a whopping surplus of some $100.3 million dollars due to cuts in operating expenses and a prediction of decent earnings for government as a result of the sustained revenue from financial services and tourism. Finance Minister Marco Archer said the government expected to bring in over $644 million but will be spending less than $518 million in operating expenses. With debt financing expected to be $31.4 million, core government is hoping for a surplus of more than $95 million, which will be further boosted by some $5million from the statutory authorities and core government companies, following innovative cost cutting measures.
Delivering his first full budget, Archer, the new finance minister, made it clear that fiscal prudence, which was the theme of this budget, would be the future modus operandi for his ministry.
Outlining some of the details, Archer demonstrated how he had managed to cut costs already through innovation and thoughtful management of government spending. He pointed to some cost cutting measure among statutory authorities, from foreign exchange reductions, rent removal between government departments and the removal of duty for government agencies, which have led to some $10 million in savings
Archer also noted that government would be improving its revenue collection to ensure it brought in more of the fees it is owed and that going forward it would be better managing concessions and waivers.
Check back to CNS later today for a full report on the budget, throne speech and the policy statement from the premier.
PR to get much tougher
(CNS): As all expat workers will now be allowed to stay in Cayman long enough to make a permanent residency applications, the government is about to make it much tougher for them to be approved. Applicants will require more points to qualify, and despite the premier talking about the need for a wider cross-section of people to get PR, it will now be even more difficult for the not so well off to stay. A review committee has recommended that the points system be revamped to focus more closely on the economic, social and cultural needs of the Cayman Islands, and although it will give a clearer indication to those applying what their chances are, cash investment, income and earning potential will be essential to the outcome.
Officials said that the revised point system will allow government to select permanent residents who have the skills and experience in occupations that are needed in the Cayman Islands in the short and long terms but the premier said it would now be tougher to get through. “It is certainly going to be more difficult to get permanent residency under the new regime,” said Premier Alden McLaughlin.
The proposed new system will use data from the annual Labour Force Survey, the National Census and work permit statistics to determine the ratio of Caymanians to non-Caymanians in the workforce.
If government settles on the recommendations, points will be awarded based on the occupation in which the applicant is working and additional points will be available if their job is designated as one that is needed for the advancement of the national, economic, cultural or social objectives on a long-term basis. As the country evolves, government should adjust the desired occupations and that a list of priority occupations is gazetted to ensure transparency.
The “skills” category in the current system will be dropped and replaced by “education, training and experience”. Points would be given based on the level of academic or technical training received, the length of education or training and its degree of difficulty. The committee suggests that the higher the level of education, the increased likelihood that the applicant would be able to continually obtain gainful employment and maintain himself and his dependents, according to a release from government explaining the proposed changes.
Despite the occupation and educational standard of an applicant, unless they are financially well off, the goal of achieving PR will be very tough for those who have not injected a significant amount of cash into a property or a business.
Total investment made by the applicant, debt ratio and average monthly income will be significant and no points will be awarded to applicants without a total investments of less than CI$50,000 for the last five years. Maximum points would be awarded to applicants that have invested more than $500,000 over the past five years. The committee also recommends that points should be awarded based on the actual amount of personal funds invested rather than on the basis of funds subject to a mortgage.
This means wage earners who have managed to buy themselves a home could still get zero points if their deposit was less than $50,000. In addition, applicants will not get points for pension contributions but will need to demonstrate other means of being able to support themselves.
The new system also takes aim at what the government said was one of the most abused categories under the current points system of community contribution. Government officials said applicants join service clubs shortly before making the application for PR in order to boost points but the revised system clarifies priority areas and sets minimum levels of service to the community. Applicants who demonstrate active involvement in the training and employment of Caymanians and the rehabilitation and mentoring of offenders would get higher points.
The PR history and culture test remains, but questions will now be randomly selected from a bank of 300-400 questions to reduce the likelihood of questions being copied and circulated. Under the new points system, the requirement for references has been removed.
Also being removed are points for being married to a Caymanian because those who are already receive considerable benefits under immigration legislation. They will still be eligible to apply for PR but will be assessed on the same level as all applicants. PR applicants who have Caymanian grandchildren will not be awarded special points.
A new additional category is age, which does not bode well for those under 24 and those over 60. The committee recommended controlling age diversity to balance the labour market so that the long-term sustainability of worker supply to the islands is assured.
The new system will also seek to balance nationalities and although the new system does not identify any particular one, it will directly impact Jamaicans as they remain the largest foreign national group holding work permits. Under the current points system, the awarding of points in this category is discretionary but the committee said this should be changed, giving top points to foreign nationals from countries that have less than 5% of their nationals holding work-permits.
Points can be deducted in the new system for health reasons as well as for bad character or breaking any laws. With appeals being made tougher and an increase in the application fee, government is hoping that a more stringent PR points system will reduce the number of applications and allow only a few people to eventually go on each year to become Caymanian.