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Payroll safe say officials

Payroll safe say officials

| 22/09/2009 | 15 Comments

(CNS): Growing fears among civil servants that September’s payroll will not be met are unfounded, according to government officials. Chief Secretary Donovan Ebanks and Financial Secretary Kenneth Jefferson both said that they had not "seen or heard anything which would lend credence" to the mounting anxiety in the public sector that salaries may not be paid in full for September. However, fear was growing on Monday that government would not have the cash to pay staff as approval fromthe Foreign and Commonwealth Office for further borrowing by government remained elusive.

Moreover, by Monday evening there was still no word from education officials, who had spent the day in closed-door meetings, addressing the problem of the monthly bill for the schools’ contractor Hunter Jones – one of a number of key government creditors that have not been paid. With so many government contract and supplier bills outstanding and no sign of the UK granting permission for government to access the loan it has negotiated, fears grew among civil servants that this could be the long, dreaded month when government simply does not have the cash to pay salaries.

James Watler, President of the Cayman Islands Civil Service Association, said he had not been given any official word that payroll would not be met but there had been persistent fears since the seriousness of the deficit was announced that government might reach the point where it simply could not pay public sector wages. He also stated that there were no back-up or hardship funds that he was aware of that could help public sector workers if they did not receive their full salaries.

With government coffers stripped bare, civil servants were paid last month and officials have stated that there is no reason to suggest that they will not be paid this month, but many suppliers and contractors are still awaiting payment.

Brent McLean of East End Labour confirmed to CNS that his workers had been laid off from the John Gray school development site in George Town as Hunter Jones, the general contractor, had not been paid by government. McLean did state, however, that so far there had been no layoffs at the school site in Frank Sound.  Meanwhile, although Andro Group workers were still working at John Grey on Monday, one worker told CNS that the firm was expected to be laid off from the site by the end of the week.

On the other hand, most of the contractors working at the new government administration building site on Elgin Avenue do appear to have been paid this month as CNS understand general contractor McAlpine was paid.

Although full details of the current negotiations between Cayman and the UK have yet to be revealed, the UK appears to be still pressing the territory to introduce some form of sustainable taxation plan before it will permit any further borrowing, while the CIG remains adamant that such a step is a step too far.

Full details of how government plans to meet the country’s financial challenges for the year 2009/10 should all be revealed this week when it meets at the Legislative Assembly on Friday. A preview of government intentions is expected on Thursday morning when Leader of Government Business McKeeva Bush meets the press before a planned public meeting on Thursday evening.

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Chamber rejects tax but backs local assets sale

Chamber rejects tax but backs local assets sale

| 06/09/2009 | 10 Comments

(CNS): Cayman’s local business body has said it does not want to see the introduction of direct taxes as a way out of the country’s current economic crisis and backs plans by the current administration to sell government assets instead. The Cayman Islands Chamber of Commerce said this week that it had had an “extremely productive” meeting with government and hoped all efforts would be made to attract business through Cayman’s long successful system of indirect taxation without the need to introduce income or property taxes. 

The Chamber said that controlling expenditure and reducing debt formed part of the discussion as well as a need for an independent review of all government services, departments and statutory authorities. To reduce government debt, the chamber recommended identifying assets that can be sold outright or offered for investment through privatization or an initial public offering (IPO).

“By introducing this approach, local residents and businesses will be able to become direct shareholders of several important national assets and government would reduce its direct operational costs,” the Chamber said. 

It urged government to control costs, reduce the national debt and raise revenue from areas that would have minimal impact on business development and residents.  The Chamber proposed a number of possible new revenue sources including – — returning stamp duty on property to original rates of 6% and 7.5% effective 1st December; Introducing a national lottery; allowing Sunday Trading which will increase the collection of customs duties and will provide greater convenience for visitors and residents; introducing a fee on individual money transfers out of the country; legislation to access dormant accounts from retail banks; and reviewing miscellaneous fees and fines.

The Chamber said it had expressed its opposition to any additional revenue measures without a definitive plan to cut costs and reduce debt, any additional general corporate or any form of taxes on income, interbank transactions, payroll or property.  It also said it backed the development of cruise berthing and a mega yacht facility, relocation of the cargo facilities, medical tourism development, convention facilities, waterfront redevelopment in George Town and attracting the reinsurance sector and additional private trust business.

The pro-business body also said itwanted to work with government to develop investment policies that would create a red carpet approach to attracting new investment to the Islands and a revision of immigration policies.

The Leader of Government Business McKeeva Bush said that the Chamber represents hundreds of local businesses so it is important for the government to seek its views over the fiscal situation.  “The government intends to meet with the Chamber regularly to discuss issues candidly, to share ideas and to develop strategies to improve the economy, create new jobs and business opportunities for the Caymanian people,” Bush stated.

The chamber said it welcomed this level of cooperation and pledged its full support to work with government to develop solutions to the current economic challenges that face the Islands. President Stuart Bostock said members were experiencing challenging economic times, but he said with the challenge came opportunity. “This is an ideal time to introduce novel approaches to new business development and to reform the way in which the public sector operates,” Bostock urged. “We must all accept that in order to address some of the challenges that are facing us we must work in partnership and accept that there will have to be some sacrifices by businesses and residents. The Chamber is committed to working with the Government to bring about these changes.”

Government and the Chamber leaders said they were confident that the strength and resilience which has contributed to “Cayman’s significant growth over the past 40 years will continue well into the future.”

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UK tells Cayman to levy taxes

UK tells Cayman to levy taxes

| 27/08/2009 | 128 Comments

(CNS): The Cayman Islands must show plans to introduce long-term and sustainable revenue raising measures such as direct or indirect taxation before the UK will allow the CI government to borrow more cash. Though government does not have enough money to meet its immediate operating expenses for the next month, FCO Minister Chris Bryant has told McKeeva Bush he wants to see a widening of the Cayman tax base before he is prepared to approve any more debt.

Speaking to an audience of both public and private sector representatives on Thursday morning (27 August) at the Ritz-Carlton (which sponsored the meeting free of charge) the leader of government business detailed the government’s current financial situation and shared a letter from the Overseas Territories Minister from the Foreign and CommonwealthOffice, Chris Bryant, regarding the request to draw down on new loans, in which the UK minister effectively refused the request.

Since the CI government broke the parameters defined by the Public Management and Finance Law during the last fiscal year with a record deficit and record borrowing, the country is now forced to gain special permission from the FCO to incur any further debts.

“Because we were not in compliance, it is the first time ever we have had to do this,” Bush told the audience. He said he could play the blame game but there was no point and the time for politics was past. The LoGB explained that he had already negotiated loans locally to the value of $372 million for the next financial year but before he could draw down on that he needed the UK’s go-ahead, which was not yet forthcoming.

Bush said that although he had submitted the cost savings of around $90 million, which was based on expenditure cuts and the pension contribution freeze, when he approached the FCO to approve the loans he had set up, he said that Bryant had told him on the telephone this week that the UK remained unconvinced that the CI government could manage further borrowing without introducing a more sustainable source of revenue.

On Tuesday 25 August 2009, I spoke with the FCO minister to seek its approval to allow the government to borrow at least CI$30 million that is urgently needed to make current operating and capital payments,” Bush said, adding that although Bryant said he was not necessarily disapproving the borrowing requests, he was not approving them either.

In his letter to Bush, Bryant said he was alarmed that the 2007/08 operating surplus could be turned into such a large operating debt in one year and it could not be allowed to happen again and warned of the danger of Cayman heading towards a debt spiral. And while all countries including the UK are being forced to borrow to see them through the recession, they are at the same time levying taxes and reducing spending. He said the UK expects to see its overseas territories taking a responsible approach to managing finances.

“That means both ensuring a clear strategy for cutting borrowing and debt over the next three to five years, and tackling expenditure,” Bryant wrote. “I doubt that the Cayman Islands government can afford to take on extra debt without getting expenditure under control and widening the tax base. I therefore need to be absolutely convinced that there is a sustainable medium-term plan for turning around public finances and pay off the debt before being able to consider any extension of borrowing.”

The OT minister said such a plan must be realistic about future business activity and government revenues. He said it would need to factor in risk especially uncertainties in US markets and hedge funds and financial services, as well as the outcomes of the G20 summit and Michael Foot’s report on the UK’s OFCs.

“It would be unwise,” he said, “to rely too heavily on a rapid improvement in trust fund income or to expect that the Cayman Islands prosperity can presume on its offshore tax haven status. To make the public finances more resilient in the face of these uncertainties and to give me confidence that you will be able to service any new borrowings you will have to widen the tax base. I fear you have no choice but to consider new taxes perhaps payroll or property tax.”

Bryant also warned that operating expenditure had increasedtoo quickly and it needed to be controlled. He said if he could see clear progress being made he would be prepared to consider the further borrowing request and he expected to hear from the CI government about ideas in a few days.

After sharing the letter with the audience Bush asked what it was that the people of Cayman wanted, as it was evident the country needed to change. “Do we now accept the UK’s implication that we should introduce direct taxes?” he asked. “Or do we craft and implement our own vision on the way forward for a sustainable and successful economy?”

He said government had to go back to FCO with a credible plan but he was concerned that both indirect as well as direct taxes could be detrimental to business and the cost of living.

Bush spoke about a number of possible ideas that would generate revenue for government, such as the development of a new commercial port, cruise berthing to expand tourism, development of five star resorts and encouraging more foreign investments. He said that there were a number of ideas from the civil service, such as the Civil Service Association’s consideration of using its funds to buy the new government administration building; increasing fees on alcohol, tobacco and fuel duties; property tax;  tax onmoney transfers; increase existing fees; investigate government possession of dormant accounts; or a national lottery, something which Bush said he would not be opposed to if there was support for it.

Above all, he said people had to be ready to accept change and in particular he warned against protectionism and anti-foreign attitudes, which he said were undermining foreign investment and driving business away. “We can’t have everything without giving up something.”

 

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PPM riding Mac’s gains

PPM riding Mac’s gains

| 29/05/2014 | 66 Comments

(CNS): The leader of the opposition accused the premier of taking credit for the advances in Cayman’s economic situation when most of them were as a result of policy begun under his administration. When he began his response on Thursday to the government’s budget, policy and throne speeches McKeeva Bush said he was pleased to see the finance minister maintaining the fiscally prudent approach that he had started when in office but was amused by the premier’s claimed accomplishments in his first year when most were started by the previous UDP administration. Many, he said, were things that when it was in opposition the now government had opposed. (Photo Dennie Warren Jr)

From the Shetty hospital and medical tourism to the new Dart hotel as well as the launch of sports tourism Bush accused the now premier, Alden McLaughlin of riding his gains as he said these were all policies developed and started when he was premier. Bush said the policy statement was almost a verbatim copy of his government’s policy and he was pleased to see the continuation of all of the things the UDP administration had started.

“The present government is enjoying the early rewards for the bold action we took,” he said, as he listed achievements he claimed were made during the last government from the creation of the special economic zone to the success in overnight tourism which the government was now taking credit for.

He denied that confidence had ever been rocked in the country during his time in office as Moody's had retained Cayman’s rating. He also said he had already done a lot to help local business including some $11milion duty giveaways to Cayman not foreign businesses. He said that he had tried to help anyone who showed up at his office that needed it regardless of “which side they were on.”

“They can’t say we didn’t do work that wasn’t successful,” Bush said, but he spoke about the constant criticisms that had worn his government down.

He said the premier couldn’t keep quiet in his speech about the former government and what the UDP had done, but Bush emphasised the launch of medical tourism with the Shetty hospital and the efforts to diversify the economy as well as the Dart deal all of which he said he was proud of. He took aim at the premier for criticising the deal and said it was no worse than the one they were trying to get “with those people up in Frank Sound” as he said that was not going to be any better.

“I got something what have you all got?” he asked.

Raising his concerns about the impending civil service cuts Bush said people criticising government workers need to remember that Cayman did not get as far as it has without a good civil service. While he agreed there can be improvements he said selfishness from the people at the top of the service had blocked those trying to work their way up. He accused past civil service management of taking all the money for themselves when the wages were reassessed, leaving nothing for those at the bottom.

Bush said that government’s 2.5% bonus announcement was another demonstration of how those earning the big money would be well rewarded by that when it would be nothing for those at the bottom on the front line who deserved it most.

The former premier pointed out that it would not be easy to reduce the civil service as the private sector may be clamouring for cuts but they were always the ones that want more, calling for more policing and other government services. Bush pointed out that the constant criticisms of the civil service for those on the front line undermined moral when the huge majority of those at the bottom were pulling their weight as he urged the criticisms to stop and for people to be more grateful.

Bush also criticised the UK for telling Cayman how to cut the civil service when he said that they had messed up their own country and were “now coming here to tell us what to do!” he exclaimed.

The opposition leader also implied that the PPM government had attempted to borrow but the UK had flatly refused them. “They had a borrowing plan and the UK had turned down their request ….but we never heard about that,” he said. Bush said he was intrigued to hear that despite the claims they had gone to London with a borrowing plan though that appears to have been related to the last budget.
Bush added that, “I had to listen to them chastising me on mangling the UK relationship,” but

“I am still waiting to hear from him (the premier) what I did to mangle the relationship,” he said, as he accused the current premier of constantly fighting with Stuart Jack during the 2005 to 2009 administration. Bush said he did not make the UK-Cayman relationship bad but he had stood up to the UK and the FCO when they wanted him to introduce direct taxation after the PPM broke the public management and finance law.

“They thoughtthey had us conquered,” he said. Bush spoke about being called to London shortly after being elected to office and said he was told by the FCO to cut 500 jobs from the civil service and to put in property or payroll tax.

“I said no BoBo…. you taking to McKeeva Bush,” the opposition leader recalled, adding that he was nobody’s puppet.

He said if there was a lack of confidence in Cayman it was because of the now premier’s mistakes that wound up getting Cayman on the OECD black list. Bush said the premier now "had the audacity" to accuse him of losing investor confidence. The opposition leader said that ringing a bell doesn’t build confidence as he criticised the premier for making such a big deal of his Wall Street trip. “I had eight invitations to go ring the bell but I didn’t have time. I was ringing the UDP bell,” he added.

Bush also took aim at government for not doing enough to help those at the bottom of the pile and about creating jobs (see separate report on CNS later today). The opposition leader said there was much more that needed to be done to plan for Cayman’s future and get people back to work.

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Mac accuses C4C of professional dishonesty

Mac accuses C4C of professional dishonesty

| 16/05/2013 | 51 Comments

i_lied_get_over_it.jpg(CNS): The former premier, who is the target of much of the criticisms regarding the lack of integrity in the local political landscape, has questioned the honesty of some of the Coalition for Cayman candidates. Appearing as a guest on the local TV network’s talk show Tuesday, alongside Oposition Leader Alden McLaughlin and Roy McTaggart, who is emerging as the C4C’s leader, McKeeva Bush suggested that members of the C4C running for office were guilty of professional dishonesty. Without naming anyone, Bush said that as part of Cabinet he had learned about the “skeletons” in their closets but investigations were not instigated to protect Cayman from the UK.

“There is much talk about integrity and finger pointing by the PPM and the C4C and why they won’t form governments with whomever and why they are supposedly the paragons of virtue in this country,” Bush said in the final segment of Cayman 27’s The Panel, hosted by Tammi Sulliman. “What they are not telling you is that they themselves have skeletons in their closets,” he added.

After serving in Cabinet over the years, the political veteran said, his government had been made aware of “unethical practices and huge cases of over billing” here in Cayman.

“Had these allegations been investigated, some of these persons would not be able to get up on a platform speaking about integrity and honesty as they wouldn’t have reached partnerships within their respective firms and would have lost their professional qualifications and, worse, they and their firms would have been put before the courts,” the former premier claimed.

Bush’s accusations came after both McTaggart and McLaughlin had made it clear that no matter what happened on the morning of 23 May, they would not be joining any government led by Bush.

After making his allegations about C4C and leaving it to viewers to read between the lines about the who he was referring to, Bush turned to McTaggart and said, “Now if you don’t want to work with me that’s your business but when the people elect me I am going to try to form a government with whoever is there.”

During the debate Bush had emphasised his position that he was willing to pull a government together with anyone who was there, as all elected officials had a duty to work with whomever the electorate sends to the Legislative Assembly. While McTaggart and McLaughlin were fighting about who should be premier, he said, he would get on to work for the country.

Following his first dose of a vintage Bush performance, McTaggart asked the former premier to clarify his allegations regarding the questions of professional dishonesty regarding C4C candidates. “I don’t know where he is coming from with this but if he knows something, we deserve to know,” McTaggart said.

In response, the former premier was quick to point out why the issue had never been raised publicly before and suggested that the former KPMG partner should know all about it.

“We kept it down because we are small and as Caymanians we said we are not going to destroy Caymanians, which is what the FCO would have wanted. But I can tell you, you go way back and you know about it,” Bush told McTaggart, as the programme drew to a close.

During the two hour long debate Bush also implied that McTaggart and other C4C candidates were part of the 600-strong meeting of business leaders in 2009 that had supported the budget package, when Bush was forced to begin the implementation of more fees on the business community to balance the books. He also suggested that it was C4C candidates who had come up with the controversial payroll tax as an alternative to property, income or sales tax, which the UK was trying to force on the CIG.

Bush, who came armed and ready to defend any allegations of dishonesty that were thrown at him, also made a point of hurling his traditional allegations against the opposition leader that all of Cayman’s ills could be laid at his door because of the money he spent on the schools.

Watch all of the show here.

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Loyalty over principle rejected by candidates

Loyalty over principle rejected by candidates

| 11/04/2013 | 35 Comments

WHOGENE.JPG(CNS): Blind loyalty to a leader has been rejected by all of the candidates so far at the  forums hosted by the Chamber of Commerce, even though at least one of them has already fallen into the trap. At Wednesday night’s forum, the West Bay candidates were asked if they would speak up if they were part of a government and the leader proposed something they disagreed with, such as a payroll tax. All of them, including Captain Eugene Ebanks, said they would not go along with something that was against their principles. However, the UDP backbench MLA also said he did not agree with any kind of direct taxation, even though in June 2012 when the payroll tax was proposed by then premier McKeeva Bush, he remained silent.

Despite the answer given by the West Bay incumbent, who has remained completely loyal to Bush, his party leader, there was no rebuttal during the forum, which has thrown up very little debate so far this election season.

Ebanks said he rejected all forms of direct taxation and would not support any proposals, despite the fact that he did not speak out against the idea when it was proposed by his party leader during the 2012/13 budget preparations.

“I will speak out against any kind of taxation,” Ebanks stated when he appeared on the panel with his UDP running mate for the district, Velma Powery, as well as PPM candidate Woody DaCosta and the two independent candidates for the district, Andrea Christian and Dwene Ebanks.

Although that was exactly what the West Bay backbencher had failed to do last year, he was not called out on his answer. All of the other candidates said that they would not blindly follow and insisted they would resign.

Speaking to CNS on Thursday morning following the forum, Woody DaCosta said that Ebanks' comment was laughable, given the circumstances, but he and the other panel members were prevented from rebutting or calling out their political rivals. The Progressive candidate said the Chamber had shut down opportunities for any crosstalk.

“The forums are not debates this year and it was made clear that the candidates would be asked the questions and given the chance to answer but there would be no room for any rebuttal,” Da Costa said. “The forums cannot be described as debates.”

DaCosta said Ebanks should have been challenged on his answer because he sat by throughout the entire UDP administration, despite everything that unfolded. “He didn’t stand up at all during his time in office and some of his answers last night demonstrated the irony and hypocrisy with the representation in our district for too long.”

The issue of blind loyalty came to the fore last week, when Cabinet Minister Dwayne Seymour, the former UDP backbencher and incumbent member for Bodden Town, revealed that the former premier had thrown him and his party colleagues "under the bus" regarding the proposal to relocate the George Town landfill to his district. He revealed that he did not support the proposal and had never supported it but had not spoken out against his leader at the time as he did not want to air their squabbles in public.

His cabinet colleague Cline Glidden had also endured a public split with the UDP leader over the cruise port debacle but he too had remained tight lipped about the circumstances surrounding the port deal and had given his tacit approval to the talks with the Chinese firm when he remained quiet on the issue.

Speaking about blind loyalty during the first Bodden Town forum, in which there was no debate at all on Tuesday, both PPM hopefuls for the district also said they would not put party loyalty above principles.

Wayne Panton said he would never be thrown “under a bus” as he would resign if he felt strongly about an issue that became party policy. During the BT forum, where only the two Progressives were present, his party colleague Al Suckoo said he had not joined the PPM to be a “Kool-Aid drinker” and was attracted to the party because of the way it was run. He said the members discuss issues and being part of a political party did not mean he had to always swallow the party line.

The forums, which are being broadcast on Radio Cayman live and then posted on the Chamber website, move back to Bodden Town Civic Centre this evening, when the line-up includes independents Vincent Frederick and Arnold Berry, the UDP hopeful Chris Saunders, former district representative and PPM member Osbourne Bodden and the incumbent minister and member of the newly formed PNA, Mark Scotland.

Go to the Chamber website to see more and listen to the forums.

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Leaders find common ground

Leaders find common ground

| 29/01/2013 | 46 Comments

20130124-2477.jpg(CNS): Without former premier McKeeva Bush on the political panel at the CBO conference Thursday, few sparks flew as both the opposition leader and the deputy premier  appeared to find common ground on a number of issues. Rolston Anglin,who has been education minister since the 2009 General Election, has rarely missed an opportunity to take political potshots at the former education minister, Alden McLaughlin, over the cost of the two high schools. But in a particularly cordial debate, the two politicians seemed to be in harmony on education and many of the major issues of the day. From the need to reduce the size of government and the services it delivered to encouraging Caymanians into tourism, the policy position of both men was notably similar.

In the absence of the former premier, who was listed in the programme to join his former opposite number and former Cabinet colleague, back-bench MLA Ellio Solomon, who is expected to be appointed as deputy leader of the UDP at the forthcoming party conference, stood in for Bush and attempted to generate some disagreement on the panel. Nevertheless, the debate was an amicable affair with very little controversy. Anglin and McLaughlin both began to look like party colleagues rather than government and opposition. 

There were no representatives from the independent camp, despite the community clamour in recent times for more independents in parliament. It is not clear if either of the two MLAs already in the LA were invited but an invitation was extended by CBO to the Coalition for Cayman (C4C). However, none of its candidates or supporters accepted the offer.

The three men who did make the political debate faced questions about their vision for Cayman in 2020, taxation, gambling, minimum wage and one man, one vote.

Both McLaughlin and Anglin talked about the need to reduce the high levels of taxes and fees that present a serious economic burden to both the business community and the man in the street through a reduction in the size of government and the services it delivers. The two leaders said they would not introduce a direct tax of any kind if elected to office and hoped to reduce the existing fees and taxes in an effort to attract more business.  Solomon also stated that the UDP did not support any direct taxation, despite his party leader’s attempts to introduce an expat payroll tax last year.

There were few revelations from the politicians about how they would address the economic conundrum that will face any new government, which is how to balance the budget with a growing demand for more services but an increasingly precarious revenue base. Both Anglin and McLaughlin spoke about the need for government to move some services into the private sector so that they could roll back taxes.

McLaughlin said there was a need to restore confidence in government and to eradicate corruption and poor governance, which has impacted business in Cayman. He called for reliable economic figures and a leaner, more efficient government. He said a world class education system was needed to address the problem of unemployment among Caymanians as the system, despite all the work in recent years, had still not recovered from previous years of neglect.

He called for the completion of the John Grey High School and the implementation of the education law to undermine the changes that have been made. McLaughlin also offered his support for the Shetty Health City and medical tourism as a third leg to the local economy. He said he wanted to see a level playing field for local and foreign workers and pointed to the need for a minimum wage to deal with that.

Meanwhile, Anglin, who has been less supportive in the past of a minimum wage, suggesting that it does not address the poverty question, offered his support for a level of pay below which no one should be expected to work. He said it was important for Caymanians to be involved in the economy and he agreed that required a world class education, which he said he hoped would be achieved soon when he rolled out the rest of the reforms following on from past work. He also said he wanted to see government regulate and legislate but it needed to get out of the way of business.

Echoing comments made by McLaughlin, he said he wanted to see Caymanians embracing employment opportunities in tourism. He said that for too long there had been a cultural phenomenon that discourages local people from that sector and there was a desperate need to bring down government debt.

Solomon said Cayman needed to become more self-sufficient when it came to food and that he wanted to see a slow and measured approach to reducing the size of government. He also pointed out that, although both McLaughlin and Anglin had been labour ministers in the past, neither had introduced a minimum wage, something that Solomon himself did not appear to support, although he calledfor a review or committee.

McLaughlin said that although the ministry had already undertaken reviews, research and consultation (as called for by Solomon) when he was minister for labour, the strong opposition in the business community meant he ran out of time. Anglin pointed to the lack of full support across the UDP and implied that Solomon himself was one of those blocking the move.

When it came to the issue of one man, one vote, only McLaughlin remained fully committed, with Solomon wanting a national slate and Anglin still wavering over single member constituencies but he accepted that the country would likely move to one man, one vote.

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A week and a year in politics

A week and a year in politics

| 07/01/2013 | 21 Comments

mac pointing 2.jpg(CNS): 2012 ended with a political week that will go down in local history books, when McKeeva Bush, the first premier of Cayman, was arrested at his home in the early hours of Tuesday, 11 December, and ousted from the top job by his colleagues seven days later. However, 2012 was marked throughout by political turmoil and from the very start of the year Bush’s government faced intense criticism, significant financial problems, enormous pressure from the UK, and was perpetually under the suspicion of corruption. Things started badly for Bush when, despite his claims that it he had stabilized public finances, it was revealed that he had been forced to increase the government overdraft by $10 million. (Photo Dennie Warren Jr)

January: Costing the public purse around $50,000 in bank fees, the then premier had to ask the UK’s permission to raise the government overdraft from $15 to $25 million in order to pay bills ahead of the expected revenue collection in January. As criticisms of his administration mounted, in his New Year message Bush once again pointed to a list of hoped for, but never materialized, development projects as Cayman’s economic saviours.

Activists against the ForCayman Investment Alliance continued their campaign and revealed that the length of the West Bay Road which Dart planned to close was far longer than originally stated. FOI requests also confirmed that the DECCO dump bid, which was part of the deal, had actually been ranked as the lowest bid by the government’s own technical committee during the tendering process.

Meanwhile, the premier complained bitterly about good governance and best practice at the Cayman Business Outlook conference. He said it would cost his government around a quarter of a million dollars for consultants to tell him that the ForCayman deal was good for the country as a result of the requirements under the new agreement he had signed with the UK, the Framework for Fiscal Responsibility, which was to dominate the political year.

At the same conference the investigation into the “Stan Thomas affair” was also discussed when the opposition party chairman said the on-going enquiry was having a detrimental impact on the public and business.

February: The second month of the year brought more uncomfortable revelations for the premier when leaked documents regarding his administration’s efforts to sell its new Government Office Accommodation Building showed that the Central Tenders Committee had refused to act outside of the law at the request of the premier. Bush had asked the CTC to dispense with the usual process and agree to sell the building to an affiliate of the controversial finance company Cohen and Co.

Meanwhile, Independent member for North Side Ezzard Miller filed a complaint with the country’s Anti-Corruption Commission over the $5 million cash donation the Dart Group made to government in connection with the ForCayman Investment Alliance. Although the complaint was later dismissed, the questioning and criticisms of the secret deal continued to plague the Bush government.

Financial difficulties with the government’s budget continued into February, with bills remaining unpaid. However, the serious political challenge to government came when east End MLA Arden McLean and Ezzard Miller launched a petition to trigger a people- initiated referendum on one man, one vote. As the campaign gathered momentum, Bush announced that government would hold a referendum on the issue at the same time as the May 2013 election.

While activists continued to campaign against the Dart deal, the premier was also pressing ahead with talks with the China Harbour Engineering Company (CHEC) over cruise berthing facilities, despite widespread opposition.

Political controversy mounted when Bush announced at a public meeting in East End that he would be funding a potential independent candidate in the district with some $200,000 from the Dart donation. In an unorthodox move that by-passed the district’s sitting political representative, Arden McLean, Bush said his government intended to give John McLean Jr the money so he could be the project manager for a number of local community initiatives.  

March: As the year rolled on and the petition for one man, one vote gathered momentum, the political criticisms of the government heated up. Comments by Bush about a possible fifth seat in West Bay, despite the findings of the Electoral Boundary Commission, brought accusations from Opposition Leader Alden McLaughlin that he was attempting to manipulate the election. Campaigners for one man, one vote called on him to save the country money and simply implement single member constituencies.

Bush tried to deflect some of the political heat by writing to the Anti-Corruption Commission about former Cabinet minister, Arden Mclean, whom he accused of not paying his power bill for over a year during the time he was negotiating a licensing agreement with CUC during the the previous administration. However, the issue was quickly cleared up, as McLean cooperated with the authorities to clear his name. The matter backfired as the opposition then taunted the premier over his own legal troubles regarding the infamous Stan Thomas letter.

The new school facilities continued to be used as a political football as the education minister claimed that the final bill to finish both of the high schools would eventually total around $197 million. Public finances in general presented major problems for the government as it approached the financial year end and another deficit, while efforts to improve government’s public accounting continue to flounder.

The Cayman Contractors Association became the next group to raise concerns over government’s decision to enter into a deal with China Harbour Engineering Company to build the cruise berthing facilities. The cost of the project, the dangers to the local construction industry the inflated CHEC proposal and the environmental damage it could cause were just some of the issues raised by the industry body.

Government came in for some more political beatings when the problems at The Ritz Carlton-Cayman exploded into the public domain, as the property came under receivership but the $6 million duty waiver remained unpaid.

there was more bad news for the UDP when a leading party official and the deputy chair of the National Housing and Development Trust was arrested in connection with an insurance con relating to the affordable homes project in East End.

April: Despite the rough ride for government in the first quarter of the year, things were about to get a lot worse when it was made public that came that the premier was the subject of not one but three separate police investigations.

In a further shocking revelation, the RCIPS confirmed that the enquiry over the Stan Thomas letter was not the only on-going enquiry but that Bush was being investigated over his links with the illegal importation of dynamite and further financial irregularities.

Bush, however, continued to deny any wrongdoing in the face of a 'no confidence' motion from the opposition. He also remained defiant in the face of increasing pressure from the UK to get the cruise berthing project back in line with in best procurement practice.

In the same month Bush changed his mind about the referendum on one man, one vote and in a snap decision called for a July poll in the hopes of pulling the rug from an increasingly successful campaign.

Meanwhile, public finances continued to plague the administration and a report by a UK economic expert reveals further failings in the Cayman government’s ability to account for its spending. The Luck Report pointed to poor understanding and leadership and said the people of Cayman were "without their key controls”.

May: The month of May was far from smelling of roses for the Bush administration, which began with a 'no confidence' motion in the Legislative Assembly. Although his UDP team closed ranks and continued to offer their support for the premier, rumours of cracks in the government mounted. The premier began his campaign against Governor Duncan Taylor and the Foreign and Commonwealth Office (FCO) in earnest with a public attack on Taylor, accusing him of “stealthily and insidiously” undermining the Cayman Islands.

Facing pressure from all directions over the police probes, Bush continued to deny the allegations, describing the investigations as a UK conspiracy against him. As more details about the Stan Thomas affair and Bush’s involvement in the dynamite shipment were revealed, the premier claimed he was merely trying to help a friend. He also produced a second fax relating to the original Stan Thomas letter in an effort to deflect attention and suggested his political assistant, Richard Parchment, had made a mistake with the correspondence.

The planned referendum caused more political division and turmoil when Bush, having hi-jacked the referendum, insisted that, even though this was now a government initiated poll, the result had to be more than 50% of all registered voters rather than a majority of the turnout. In addition, by calling the referendum so late the voters' register was closed within days of the announcement, disenfranchising many new voters.

The unemployment rate for Caymanians climbed to 10%, with no projects breaking ground and public finances still in turmoil. Government efforts to raise cash with the sale of the Water Authority’s sewage system were thwarted when the tendering process was bogged down in further scandal.

Deputy Premier Juliana O’Connor-Connolly (who at the end of the year took helm of the minority government) also came under fire when a report by the Office of the Auditor General revealed that her ministry had unlawfully spent more than half a million dollars in public cash paving private parking lots and driveways in a $3 million public road improvement scheme on Cayman Brac.

Things took an even more painful turn for the UDP when Education Minister Rolston Anglin was arrested in the early hours of 23 May for driving under the influence of alcohol after crashing into a ditch.

June: As the financial year drew to a close, the budget became the centre of political attention — not least the premier’s failure to deliver one. The FCO demanded more cuts, forcing Bush to present an interim emergency appropriation bill and not a proper budget before the year ended. Meanwhile, controversy swirled around CHEC with revelations that the Chinese company remained banned by the World Bank because of fraud and corruption.

The auditor general revealed more shortcomings in the management of public finances and potential abuse of public money and suggested that the public needed to be concerned about how government was handling the public purse. A new white paper published by the UK made it clear Britain would be pushing for better standards of government in its territories and would be taking a more active role.

As campaigns continued against the ForCayman Alliance, documents revealed under the freedom of information law showed that government was limiting an environmental impact assessment into the move of the George Town landfill to Bodden Town to the proposed Dart site in Midland Acres. Bush came in for more criticism over a controversial home saving plan using cash donated by Dart to help pay off people’s mortgage arrears.

Meanwhile, the rollover policy’s future was officially in question when the results of the Term Limit Review Committee’s work recommended the abolition of the seven year term limit.

July: As the new financial year began, Bush faced more calls for his resignation over his failure as minister of finance to produce a budget. The month was dominated by campaigning over the one man, one vote referendum and the controversial "ex-pat tax". 

The premier’s budget was declined several times by the UK when it refused to sanction any borrowing and required a significant surplus. Bush was criticised severely by the opposition and independent members over the budget crisis but he was to receive even more from the public when he attempted to introduce a tax on the earnings of foreign workers, proposing a fundamental change to the local tax system.

In the referendum just over 19% of the electorate voted 'no' to change and in favour of the status quo and multi-member constituencies. More than 80%, however, either voted for one man, one vote and single-member constituencies or did not turn out to the polls at all. Nevertheless, the 5,631 'yes' votes compared to the 3,001 'no' votes failed to win the day under the rules set by Bush, but it was a hollow victory and demonstrated the mood for change in Cayman.

Auditor General Alastair Swarbrick revealed further failures in the government procurement process in a report identifying the waste of scarce resources and a lack of accountability.

Meanwhile, details of government’s deal with Dart finally leaked into the public domain revealing that the developer would be taking a 50% share of all tourism taxes levied from guests staying in any of its properties for the ten years following the development, renovation or acquisition of any hotel, as well as many other concessions. Ezzard Miller said the deal was so bad for Caymanians the premier could not possibly have read it.

Controversy continued to mount for the premier when it was revealed that Brian Tomlinson, the director of the National Roads Authority, was removed from office. The NRA boss was the man who had ordered the seizure of the controversial shipment of 32 tonnes of dynamite imported by Midland Acres, which the premier had tried to have released.

Public officials revealed that members of Cabinet had voted to make top politicians and speakers of the LA 'honourable' for all eternity.

August: As the mercury rose in the thermometers, so did the premier’s temper, with scathing attacks on everyone he perceived to be against him. But he saved his worst for the governor and the auditor general, suggesting that they were hindering rather than helping with the budget problems and Cayman’s economic woes.

After considerable yo-yoing in the face of massive opposition to the proposed ex-pat tax, Bush eventually dropped the controversial revenue measure but continued in a protracted battle with the UK over the budget.

Anarray of new revenue raising measures, mostly impacting the financial services sector, and cuts to civil service salaries were eventually implemented in a budget which was delivered by the premier without UK approval. By the time the debate had finished, however, the UK had given a nod to the 2012/13 spending plans, but with conditions which effectively stripped Bush of his autonomy as finance minister.

The conditions prevented further appropriations, established a budget board headed by the deputy governor and required the CIG to facilitate reviews of the budget by the FCO's economic adviser up to four times throughout the year. The FCO also demanded that Bush adopt the controversial Framework for Fiscal Responsibility into law before the end of September. Bush was further criticised for what was still the highest spending budget in the history of the Cayman Islands and for the further $4.5 million that was allocated to the Nation Building Fund. 

The activist group, Cayman United, which emerged to campaign against the ex-pat tax turned its hand to encouraging people to register to vote and become more aware of exactly what their politicians were doing.

Meanwhile, the director of Midland Acres was charged and convicted over the importation of explosives without a permit and fined $1,300 by a magistrate. Suresh Prasad chose not to fight the case and admitted that the company had erred in its efforts to hasten the production of a significant quantity of marl for a contract it had secured with the Dart Group. The premier’s involvement in this case would later be the cause of his own arrest on suspicion of offences under the anti-corruption law.

The opposition party faced its own political turmoil in August, when the popular representative for East End and leading member of the party, Arden McLean, resigned, formalising the increasingly independent position he had followed.

September: As the hurricane season moved into its busiest phase, the natural storms were nothing compared to the political ones raging in Cayman. A new minister was appointed at the Foreign and Commonwealth Office to oversee the UK’s territories, as well as a new director, but the relationship between the premier and the UK worsened. Bush, however, was overseas for a significant part of the month, including visits to the frozen north and the Far East.

Meanwhile, the education minister made his first public appearance in Summary Court regarding his drinking and driving charge.

Activists continued campaigning against various proposed developments, including the Dart deal, plans for canals in South Sound, the removal of mangroves and the controversies over the Safehaven marina development. The deputy premier also came under fire when Public Accounts Committee examined the controversial Brac paving project.

Although time spent in Cayman during the month was brief, Bush still managed to generate plenty of controversy when he made it clear he would not be fulfilling one of the conditions set out by the UK for its approval of the Cayman government’s budget, as the FFR would not reach the LA until November. Criticising elements of the agreement, he also indicated his intention to change some of it and to add a clause that would make the UK liable for any perceived financial loss to Cayman for following the procedures laid down in it.

October: The month opened with a 'not guilty' plea from the education minister over his DUI charge. Meanwhile, MLA Miller continued to press government to reveal the full details of the controversial Dart deal, which still remains under wraps. Bush’s travelling again came under fire but the premier defended his worldwide journeys, claiming he had to knock on doors for new opportunities. While he was overseas,he signed an MOU with a Philippines corporation which included a potential deal with Cayman Airways.

The information commissioner once again highlighted procedural problems plaguing freedom of information requests and the time authorities were taking to comply with the law, if at all.

Despite bragging by the UDP administration that it had got public finances in order, the auditor general was still unable to audit government's accounts because of the poor quality of information. As a result, the $2 billion of public money spent by the government since it was elected remained unaccounted for.

As the developer Michael Ryan battled his creditors in the courts, the Ritz Carlton-Cayman was sold at auction for US$177.5 million to the company holding the debt for the property. However, the question of who was responsible for the outstanding duty of $6 million owed to government remained unanswered.

The premier geared up for a showdown with the UK as he insisted he would be changing the FFR before it came to the Legislative Assembly. In return, the FCO began indicating it would be prepared to force it into local legislation if the Cayman government failed to honour the agreement to do so.

November: The month began with a very clear indication that Bush was itching for a fight with the British but it was a fight he appeared destined to lose. Bush said he would press ahead with his version of the FFR, but following several days of brinkmanship the premier was forced to back down on both changes to the fiscal agreement as well as his instance on continuing talks with the Chinese firm CHEC to develop the port.

With more calls for his resignation from the public and the opposition benches, Bush remained defiant to the last but was eventually forced, under significant pressure from the UK, to agree to put the port project out to tender and implement the FFR exactly as it was signed.

The premier also came under fire over his failure to secure the repayment of the duty waiver from the new Ritz owners, with whom he engaged in a public spat as he accused them of manipulating the sale price to avoid the real stamp duty rate.

While the Turks and Caicos Islands and the United States went to the polls, despite calls from many directions, including 92% of CNS pollsters, for Bush to step down, the premier pressed on, lurching from controversy to controversy and blaming everyone, from the media to the governor, for the lack of an economic turnaround.

His education minister stood trial over his DUI charge, with witnesses revealing that the minister had told three different stories about the circumstances surrounding his one vehicle collision on the West Bay Road in the early hours of the morning of the accident. However, before the trial concluded the minister changed his position and entered a guilty plea.

With the question of how Cayman would vote in the 2013 general election to accommodate the constitutional requirement for three extra seats still in question, a new political group emerged that denied being a party but said it would offer support for independent candidates. The Coalition for Cayman (C4C), which called itself an advocacy group, attracted hundreds to its first meeting but was later to attract controversy because of its ambiguity and its former links to the UDP.

Eventually, just weeks before the deadline for the election writs, Bush implemented what he and many believed to be the worst of options for the 2013 general election, giving the capital six seats and electors there six votes.

With the implementation of the Bill of Rights, the independent member for North Side issued a warning that the obvious inequality in Cayman’s voting system could very well be challenged in the courts as being both contrary to those newly bestowed human rights as well as being unconstitutional.

An FOI request revealed that the deputy premier had racked up a $200k travel bill since taking office on trips as far afield as Kenya and Sri Lanka, as well as a controversial trip to a postal conference in Doha, which cost the public purse more than $41,000.

Meanwhile, over on the opposition benches, the PPM began revealing more details of its newly shaped party as it crowned Moses Kirkconnell as the party's new deputy leader and the first ever official deputy leader of the opposition.

December: The last month of the year started quietly enough with the premier in London for the annual overseas territories meeting. A regional university announced its intention to award Bush with an honorary doctorate and Michael Misick, the former Turks and Caicos premier, was arrested in Brazil in connection with his involvement in a massive corruption scandal.

A week, they say, is a long time in politics and so it was to be for Bush. 

In an unexpected turn of events, more than 18 months after the RCIPS had admitted that Bush was the centre of a police corruption probe and almost 8 months after revelations that he was the subject of two further investigations, the premier was a arrested at his home in West Bay at 7am on 11 December. 

Arrested on suspicion of theft and several offences under the anti-corruption law, the premier was questioned for two days before being released without charge but on police bail until February.

As the story exploded on the world stage, Bush, true to form, remained defiant and protested his innocence. Refusing to resign following his release from custody, he headed off to Jamaica to keep his engagement to speak at a graduation ceremony at the University College of the Caribbean in Kingston,although the college did not in the end bestow the promised honorary Phd. 

Back in Cayman, the silence from his party colleagues was deafening. For some five days the caucus remained in closed door meetings as the opposition and independent members filed a 'no confidence' motion in the country’s parliament. In a surprise move, five of the UDP parliamentary group eventually opted to join with the opposition benches and bring down their own administration.

At a special meeting of the LA, Bush crossed the floor with his remaining loyal members — Mike Adam (which came as a surprise to many), along with Ellio Solomon and Captain Eugene Ebanks (which did not).

One week after the arrest, Bush was ousted from the premiership when the governor agreed to allow the minority UDP five to form a short term government under the leadership of the deputy premier to take Cayman to the next election. The opposition benches agreed  to support the interim government merely to form a quorum, which will enable it to limp on till May.

The UDP suffered further blows before the year was out when one of the party’s leading members, Mario Rankin, was arrested in connection with immigration offences.

Bush had clearly been hoping that all of his colleagues would have continued their support of him as they had since the police probes were first revealed. However, obviously hurt by their actions, the premier came out fighting and held a public meeting in George Town in front of a lively crowd.

With Bush declaring his innocence and insisting his arrest was a UK conspiracy, the UDP party faithful also remained defiant and began moves to oust the members of the minority government from the party.

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Offshore premiers go to battle

Offshore premiers go to battle

| 06/08/2012 | 62 Comments

EP-704089903.jpg(CNS): The Cayman premier has not confined his attacks to local critics but has also hit out at a fellow overseas territories premier. The Royal Gazette reports that McKeeva Bush has written to Bermuda Premier Paula Cox describing her recent comments about him as “antagonistic”. Cox said Bush had been making disparaging remarks about rival jurisdictions to cover up problems in his own country. In response the Cayman premier told Cox to concentrate on what she can do to help Bermudians survive in these critical days as he said he was doing for Cayman. “As Cayman’s Premier I have never attacked, any other country, including Bermuda not even when its Premier consistently attacks me,” Bush wrote.

Earlier this year when Bush boasted that Cayman could end Bermuda’s lead in the insurance market, he went further with his criticisms of Bermuda and its immigration policies.

“In the mid-Atlantic they say they ‘may’ reduce some fees," he had said, referring to the rival financial jurisdiction. “We have reduced fees. They are still talking about their immigration policy and make long statements, but I say this boldly — while Bermuda has been the champion, be assured that we can grow. We here can do it without the malice, without the inhibitions of race, without the inhibitions of transport.”

In this letter toCox, Bush said he had every right to promote the Cayman Islands, “even if you read into it, that it is something competitive to Bermuda.”

Bush said Cayman had other competitors and he didn’t attack their leaders as he told Cox that he was busy working and asked what she was doing for Bermuda. “My advice is you should stop attacking me and use your energy to move the good islands of Bermuda forward,” he wrote.

The Royal Gazette reports that Cox has declined to comment on the latest salvo and the paper has not been able to reach Bush, who CNS understands was on a trip to Jamaica.

A local opposition politician in Bermuda, Kim Swan, told the Royal Gazette that he found the spat “disturbing” and called on the respective governors to broker talks between the two territories. However, the problem now is that, at present, Cayman’s own governor and Bushhardly appear to be on speaking terms.

“It is unfortunate that the Cayman Premier would choose an open (public) letter to the Premier of Bermuda, which makes a futile attempt to ‘mend fences’ with Bermuda,” Swan said. “I recall that it was the Cayman Premier who made derogatory comments about Bermuda in February 2012 which didn’t sit well me and others at the time.”

Swan said the world was watching as he queried the message the letter and disparaging comments achieved for either island.

Recently the Cayman premier has been hitting out at all of his critics as he faces a massive crisis in his role as minister of finance and his inability to produce a budget that will satisfy the UK without introducing a controversial form of payroll tax.

See full letter here

Go to Royal Gazette article

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Bait and switch

Bait and switch

| 02/08/2012 | 23 Comments

It is inconceivable that after almost three decades in politics McKeeva Bush would be happy to go down in Cayman Islands political history as the man that introduced direct taxation. It may well be better than the ‘politician who faced the most police investigations’ but really, only marginally. So it seems probable that the latest proposal is a case of bait and switch.

The idea that he is proposing something so terrible that when the real policy (which may well be still pretty bad) emerges it won’t seem so awful certainly seems to be a popular sentiment. Those who are long-time students of Bush's political modus operandi appear to be in no doubt that this is the case, but so far the 'switch' remains a state secret.

Some have suggested it could be legalized gambling or even VAT, but are these really as bad as a disguised income tax (which is what the community enhancement fee is, no matter what euphemism one uses) that would lead Bush to create what is unarguably the greatest backlash against him since he took office as premier?

When the issue of the premier being under three police investigations emerged, with the exception of the opposition benches in the Legislative Assembly and Bush’s long time critics, none of the islands’ associations or organisations made much comment publicly. Of course, the muttering and head shaking has been going on in the boardrooms and swanky restaurants for some time now about the ‘Stan Thomas Affair’ but no one was prepared to stick their head above the parapet and openly criticise him.

But since he uttered the dirty words “enhancement fee”, every association and its dog has criticised the policy and made it plain that if Bush wishes to cling on to any futile hope that he will lead the next administration he needs to shelve this idea pretty sharpish.

When asked about the impact on the financial services sector of the Cayman Islands with the premier being under investigation for three different cases of possible bribery and corruption, the Law Society said it had no comment. Asked about the introduction of the payroll tax and the body launched a full scale attack, not just on the plan but on the government and its understanding of economic policy and foretold the downfall of Cayman for ever and ever.

All of the private sector associations, leading businessmen, work permit holders, young educated Caymanians and many others who in the past, for one reason or another, have remained more or less silent over each alarming policy and as each questionable budget  unfolded under the premier’s leadership, have now found their voices.

It has been apparent since the first spending plans were presented by this administration that the premier has not taken the slightest bit of notice of the UK’s rather large hints that the country’s finances are a shambles. To quote his favourite Biblical reference, even blind Bartimaeus could see that the UK’s insistence that he cut operating expenses and seek new revenue would eventually lead to this financial crisis.

Bush has spent the last year stating over and over again that there would be no more borrowing because the UK would not allow it. But he still presented a budget to the UK with both long and short term borrowing requirements that he knew full well would be denied. The question, therefore, is what really is hidden up the West Bay magician’s sleeve?

Direct taxation is not the worst thing that can happen to a country, unless of course its main revenue source depends on a philosophy and principle that taxation on what you earn and own is wrong and things that help people legally avoid it are not.

It is also a problem introducing it when your small businesses and poorer people, including your immigrants, are already paying a disproportionately high percentage of taxation via indirect fees, such as duties, work permits, licences and other government taxes.

People earning just over $36,000 per year will be expected to give the government another $3,600. When we add up the percentage of earnings they already pay as a proportion of their income in duty alone, their rate of taxation is, ironically, among the highest in the world.

A common argument for direct rather than indirect taxation is that it is more fair to the poorer people. However, in this instance, since it appears that government plans to introduce its form of income tax on foreigners’ salaries only, this particular form of direct taxation will be a long way from fair.

Aside from all the powerful arguments against it — it’s incredibly discriminatory elements, the fact that it will mark a sea change for Cayman, as well as the point that not all of the alternatives have yet been exhausted — the tax seems an insane proposition, not least because of the obvious problems of collection. How government proposes to introduce a new tax authority, collection agency, enforcement arm, the ability to assess of all potential payers and an education campaign for employers in the next four weeks is impossible to imagine.

On top of that, government has a terrible track record of collecting the money it is owed and of enforcing the laws relating to what employers should pay on behalf of their workers.

But above all, this place is wall to wall with tax accountants and lawyers who have already come up with the ‘special purpose vehicles’ that willensure that no one earning more than $45k a year will pay a penny of this tax.

The UK has spoken of sustainability and for a tax to be sustainable you’ve got to collect it and it is clear that this tax plan is about the most difficult option when it comes to actually bringing in the money. There are many powerful arguments against this tax but the difficulty in collecting it and Bush’s unlikely desire to want to go down in history as Cayman’s first Zacchaeus, to use another Bible reference, means this absolutely has to be bait and switch.

So come on, Mac! Bring on the switch. We can’t wait!  Casinos? Legalized ganja?  Strip bars and massage parlours? Let s face it, given the backlash in the community to the latest plan, any or all of those are likely to be far more welcome than direct taxation.

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