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Alden holds his own on BBC

Alden holds his own on BBC

| 12/02/2014 | 67 Comments

(CNS): The Cayman Islands premier managed to wave the flag for the financial sector without suffering too many wounds during the anticipated interview on the BBC's news channel’ flagship show HARDtalk with Steven Sackur. During the show, which was first broadcast at 11:30pm local time on Tuesday, Alden McLaughlin admitted the genesis of the CI financial sector may have been to assist corporations in tax avoidance but things today were very different. He said Cayman’s house was now in better order than almost any other country with a financial sector, and although he dodged questions about public transparency on beneficial ownership, McLaughlin delivered the message that Cayman would comply to any new standards so long as there was a level playing field.

As he opened the show, the host, Steven Sackur, asked if the pressure on tax havens would cause Cayman to lose its allure for corporations using the jurisdiction and the complex financial vehicles it offers.

The BBC host described Cayman as one of the strangest and most unbalanced micro-economies in the world before McLaughlin went on to briefly describethe success story of Cayman from a subsistence economy to its status as an international offshore financial centre.

Tackling the ‘Ugland House question’, he explained that it was right that none of the companies there had a physical presence as it was the home of an offshore law firm, but referred to 1209 Orange Street in Delaware, USA, which has even more registered companies without a physical presence.

McLaughlin described Cayman as being much better regulated than the US state, pointing to the numerous tax deals and exchange agreements Cayman has, as well as the scrutiny from international regulators, onshore authorities and the OECD, which have found that Cayman has one of the best and most robust regulatory regimes in the world.

“The modern day Cayman is an open, transparent jurisdiction,” he said as he listed all of Cayman’s TIEA and multilateral agreements.

He dismissed the findings of the Tax Justice Network, which ranks Cayman as the fifth most secret international financial centre in the world, but also refused to say whether or not Cayman would be publishing the information it keeps on beneficial owners. He told Sackur that consultation was ongoing and that “no country in the world” reveals all the beneficial ownership of corporations to the wider public, though he acknowledged that the UK was heading that way.

The Cayman leader explained that Cayman has never had direct taxation so it creates a tax neutral jurisdiction for international companies to find cheaper financing as the jurisdiction adds no extra layers of tax liability, which is why it would remain an attractive jurisdiction for international finance.

McLaughlin agreed that it was not right for people or corporations to avoid paying tax where it was due and stated that Cayman was no longer a place where corporations came to avoid tax. He said companies and wealthy individuals know that the Cayman Islands authorities will now tell their country of origin about their business or wealth when asked.

The Cayman premier admitted that the world was moving towards automatic exchange but that would not mean an end to Cayman’s success as an offshore jurisdiction. He said increasing regulation and transparency had fuelled Cayman’s success in past years as businesses are increasingly more attracted to reputable well regulated jurisdictions.

Sackur referred to comments made by former CIMA chair, Tim Ridley, about Cayman losing its competitive edge if there was too much regulation but McLaughlin pointed out that for fifteen years Cayman had met the challenge of increasing regulation and the sector continued to grow and prosper.

Despite painting a picture of a well regulated jurisdiction, Sackur’s question about Cayman successfully prosecuting only six cases of money laundering in over seven years proved tough for McLaughlin, who nevertheless insisted that the jurisdiction had been rated as having one of the best anti-money laundering regime’s in the world.

Addressing questions about UK pressure, McLaughlin indicated that the Cayman Islands was not fed up of the mother country yet, and while a few people waved the flag of independence, the relationship with the UK was a good one.

Despite some tensions from time to time, he said the country was happy with its constitutional relationship with Britain. He did, however, press home the issue that Cayman should not be a scapegoat for the world’s financial ills as perceptions about the islands were still a long way from reality.

The show will air again locally at 4:30pm on BBC World but it is also now available on Youtube or the HARDtalk website.

Podcasts and audio versions will also be available on the BBC Worldservice website later.

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Premier meets disability committee but no sign of law

Premier meets disability committee but no sign of law

| 05/02/2014 | 4 Comments

(CNS): It is now almost five years since Alden McLaughlin, who was at the time the education minister, first received a report from the legal subcommittee for persons with disabilities, which was tasked with reviewing existing and recommending new legislation to cover the needs of the physically and mentally disabled community. Since then, hopes for a comprehensive law have been dashed as there is still no timetable for a bill to come before legislators. However, the premier, as he is now, did return to meet with the current disability policy subcommittee last month to thank them for the work they have been doing.

Once it comes, the law will “support, promote and protect the interests of people with disabilities” officials said, but while the Progressive government has said it is committed to the legislation and McLaughlin is picking up where he left off, a date for comprehensive protections for the disabled remains elusive.

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Premier ‘made Cayman proud’, officials claim

Premier ‘made Cayman proud’, officials claim

| 05/02/2014 | 32 Comments

(CNS): The Cayman Islands premier did an “excellent job” when he faced Stephen Sackur yesterday in London on BBC’s HARDtalk, according to Cabinet Secretary Samuel Rose and Senior Political Advisor Roy Tatum. How well he did will be plain for all to see when the show airs but officials say they have not yet been given a broadcast date for the flagship news interview show, which is broadcast on BBC television, radio and the internet. Alden McLaughlin agreed to give the interview to the programme in which the host is known to ask difficult and awkward questions and previous guestshave walk out of the studio. However, his staff said McLaughlin did Cayman proud.

Answering questions about the Cayman Islands and overseas territories and the tax haven label, his interview followed the premier’s appearance at Chatham House, where he gave one of two keynote addresses at a conference regarding global corruption and financial crime.

CNS will be keeping a close eye on the HARDtalk website for indications of the broadcast dates and will post the information as soon as it is available.

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Corruption not just offshore issue, says premier

Corruption not just offshore issue, says premier

| 04/02/2014 | 0 Comments

(CNS Business): Addressing an international conference on global corruption, Cayman Islands Premier Alden McLaughlin indicated that offshore centres are unfairly targeted. While Cayman has benefited in many ways from the spotlight, the country “is review fatigued”, he said, emphasising that in order to effectively tackle the issue, every country – onshore and offshore – must be subject to the same scrutiny because if the focus remains on select jurisdictions, the financial criminals will simply move elsewhere. This truth, he suggested, was inconvenient for “political candidates who are looking for a scapegoat for mismanaged public finances" and for some news media "that operate more as entertainers than purveyors of the truth”. Read more on CNS Business

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Alden to face HARDtalk

Alden to face HARDtalk

| 29/01/2014 | 97 Comments

(CNS): Although the Cayman Islands premier recently accused the local media of wanting to take "pot shots" at government when he made it clear that regular press briefings are now a thing of the past, Alden McLaughlin is, however, set to make an appearance on one of the BBC’s flagship interview programmes, where he is likely to face more than pot shots. Leaving for London on Friday evening for a conference on combating global corruption, where he is delivering a keynote address next week, the premier will also be taping an interview for HARDtalk with host Stephen Sackur (left), following an invitation to talk about Cayman’s tax haven label, among other issues.

In a release from his office McLaughlin said he was “humbled to have been asked to appear on HARDtalk to tell not only Cayman’s story, but that of the other overseas territories,” as it is understood he will be the first OT leader to appear on the show and face Sackur’s pointed questions.

“It’s a pretty big stage,” said thepremier. “It’s my honour to represent the Cayman Islands and the overseas territories. We all have a good story to tell,” he added.

Topics to be discussed include Cayman’s status as an international finance centre, the use of the term “tax haven”, international efforts to curb tax avoidance, banking regulation in the Cayman Islands and reported recent tensions between Caymanians and the expat community.

While in London, the premier, who will be travelling with the Cabinet Secretary Samuel Rose and Senior Political Advisor Roy Tatum, also plans to meet with officials from the Foreign and Commonwealth Office.

The main purpose of the visit, however, is for McLaughlin to deliver an address at the corruption conference hosted by Chatham House, "Combating Global Corruption: Shared Standards and Common Practice", which is being held on Monday and Tuesday, 3-4 February. McLaughlin will address Session Five of the conference, "Recovering the Proceeds of Corruption".

The premier said he was delighted to accept the Chatham House invitation and for the opportunity to tell the world of the successes of the Cayman Islands on the global financial stage.

“It’s rare that a leader of a UK territory has the opportunity to address anti-corruption initiatives from a global perspective,” McLaughlin added.

This conference will examine action to tackle global corruption and consider the role of governments and businesses. Participants and speakers will critically assess current and emerging international efforts and consider their consequences for future business practice and governance.

Chatham House is home to the Royal Institute for International affairs, an independent think tank and organisation that analyzes, informs and influences debate on the hope for a prosperous and secure world for all. Engaging governments, the private sector, civil society and members about developments in international affairs, it produces analysis of critical global, regional and country-specific challenges and opportunities and puts forward possible solutions on the world stage.

Other keynote speakers at the conference include Angel Gurria, Secretary General for the Organization for Economic Cooperation and Development; Dr Mo Ibrahim, Founder and Chair of the Mo Ibrahim Foundation; and Ngozi Okonjo-Iweala, Minister of Finance, Nigeria.

During the absence of McLaughlin and Rose, Deputy Premier Moses Kirkconnell will be the acting premier and Robert Lewis will act as the cabinet secretary.

Officials said McLaughlin will depart on Friday, 31 January, but did not state when he is expected to return. The interview with the BBC will take place on Tuesday but no date has been confirmed for when the show will air.

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Press briefings ‘pot shots’ at government, says Alden

Press briefings ‘pot shots’ at government, says Alden

| 23/01/2014 | 60 Comments

(CNS): The regular TV press briefings originally instigated by the former PPM administration, adopted and dropped by the McKeeva Bush led UDP government and then reinstated by the minority Cabinet last year will not be returning. Once a staunch advocate of the briefings, Premier Alden McLaughlin said his government would answer any press enquiries when they were made but he did not see a need to re-establish weekly briefings just so the media could take "pot shots at government". Although the PPM had said it would hold regular briefings, if not necessarily on a weekly basis, since coming to office the ministers have held only specific calls, where the media have been directed to ask only relevant questions to the press briefing topic.

On Wednesday, however, when the premier appeared alongside the deputy governor to talk about and answer questions regarding the auditor general’s latest reports on the shortcomings of governance, CNS asked the premier if press briefings would be returning and for answers to a number of unanswered questions that have been submitted over the last few months.

McLaughlin dismissed the need for regular briefings.

“If the media has questions, let us have them. I am not prepared to engage in a back and forth and let the media take pot shots at us,” he said.

When pressed, he gave short answers to some of the questions that CNS has submitted, including details on the government’s plans for one man, one vote and the state of the Dart talks, but the premier made it clear that there was little he could say on the subjects, which was why the questions had not been answered.

During the election campaign the PPM had highlighted their introduction of weekly briefings as a positive factor in their preference for open and transparent government. They were held, the party said, to advise the media and country of government actions and activities. 

“One of the first changes the PPM government introduced was a weekly press briefing at which journalists could ask what they wanted,” the party manifesto from the 2013 campaign states.

Although the current premier has not resorted to televised national statements since taking office, an issue he criticised the former premier over, he has utilized his press secretary to send out statements to the media on issues such as the immigration changes and other key policy decisions. In such cases, the media then has to chase the premier, other relevant ministers or senior civil servants regarding any questions arising.

Disappointed about the position taken over communicating with the media, CNS reporter, Wendy Ledger, said, "Everyone in the local press appreciates that government ministersare busy and feeding the ever-hungry news beast is not a priority for them.

“But getting questions answered in a timely fashion is never easy so we end up calling and pestering busy politicians for answers,” she said, adding that while some government ministers and officials are very quick and helpful answering enquiries, on some of the more sticky issues government has been less forthcoming.

“It may not be their priority to answer us but it’s our job to press,” said Ledger. “With a regular briefing we can ask all the questions and raise all the topical queries at one time when we know we will be meeting with government ministers. This is an advantage for them, too, as it means they won’t be fielding calls and emails all the time when they are busy.

“It avoids us all constantly, as individual reporters, often asking very similar questions and the same ministers then having to repeat the answers. It would also prevent us from having to resort to the tired lines saying we have contacted the relevant minister or official but don’t have a response when we run reports on issues of public interest and concern,” she added.

Ben Meade, the news director Cayman 27, also had some concerns. He said that the team’s reporters have not had a problem with access to the premier and some of his cabinet ministers but he was hoping that McLaughlin would reconsider his position.

“I trust that this will continue despite his recent position on the press briefings. However, I find it unfortunate that the premier sees it fit to view press briefings as an opportunity for members of the press to 'take pot shots' at him. Part of our role in the media is to hold public officials, elected and otherwise, accountable on behalf of the Cayman public. Regular press briefings provide a great avenue for this and I hope he seriously reconsiders his position on this matter," he told CNS.

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No progress in Dart talks, says premier

No progress in Dart talks, says premier

| 23/01/2014 | 34 Comments

(CNS): The talks between the PPM administration and Dart Realty have made no progress, the premier has confirmed.  After months of silence on the subject, Alden McLaughlin stated Wednesday morning that the talks between his government, which began shortly after the election last year, are ongoing but they were not making any progress, which was why ministers had remained silent. The talks are focused on efforts by the CIG to renegotiate the deal between it, the NRA and Dart signed by then premier McKeeva Bush in December 2011. The PPM government is on record as describing some elements of the deal as unacceptable and wide concerns remain that it is heavily in Dart’s favour and does not represent value for money for the public purse.

The discussions are understood to include talks about the remaining stretch of the West Bay Road as well as the issue of the hotel accommodation tax rebate, which appears to be one of the major stumbling blocks in the talks.

The PPM did state on the campaign trail that it would be seeking to renegotiate what is now commonly known as the NRA deal. It was hoping to have some form of through access in the area of the West Bay Road, which is now completely blocked since the previous interim administration and former UDP members gazetted the closure. However, the Progressive administration admitted shortly after being elected that the closure appeared to be irreversible. While the remaining stretch is still in its hands, no one from government has said whether or not that remaining strip of road can be saved because, despite the existing deal, the government will still need to gazette any closure and so retains a strong negotiating tool.

At a PPM public meeting shortly after the election, Works Minister Kurt Tibbetts, who now has responsibility for the NRA, made it clear that the 50% accommodation tax concession given to the developer in the deal, which spans a thirty year period on any hotel or tourist accommodation Dart buys, builds or otherwise acquires was not acceptable.

The concession will see Dart keeping half of the taxes charged on all accommodation for ten years after the opening date, not just on the proposed $200 million hotel and condo resort on the West Bay Road but any other tourist accommodation it owns in the future, which could have a serious impact on the public purse if the developer was to acquire any existing accommodation. It also undermines potential earnings for government in future, given the potential buying power of Dart as the island’s largest land owner and investor.

Tibbetts has also previously stated that such a generous concession was presenting problems to government as it entered into talks with other developers, who all now ask for the same concession before discussing any potential tourism investments.

It is not clear if the lack of progress in the talks will have an impact on Dart’s plans for the proposed hotel on the site of the former Courtyard Marriott, which the developer says is due to open as a Kimpton Hotel in 2016.

As the talks stall, four ladies from West Bay are also still waiting on a Grand Court decision from Justice Alex Henderson regarding the legal action they took against the government over the way that the West Bay Road was disposed of under the NRA agreement.

A judicial review application regarding the same issue was denied last year as a result of timeline technicalities before the substantive argument over the legality or otherwise of the roads closure was ever considered.

Alice Mae Coe, Betty Ebanks Annie Multon and Ezmie Smith managed to take the issue further and although both government and Dart’s lawyers had argued that the law suit was the wrong way to deal with the complaint, they were able to present their full case before the judge at the end of last year.

The hearing took place between 9 and 13 December but no date for the ruling has yet been confirmed.

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Worst behind us, says Alden

Worst behind us, says Alden

| 01/01/2014 | 77 Comments

(CNS): Pointing to a feeling of optimism for 2014, Premier Alden McLaughlin said there was “a feeling that worst is behind us and that 2014 will bea good year” in his New Year message. “There is a new spirit of unity, a sense that all of us – Caymanians and residents, visitors and investors, government and private sector, government and opposition – can and will work together in pursuit of what is best for Cayman,” he said after reflecting on the recent events since the May General election when the PPM won the majority of seats and formed an inclusive government. McLaughlin also pointed to the historic vote just before Christmas when all members of the Legislative Assembly came together, despite differences of opinion, to vote unanimously for the National Conservation Law.

“This was indeed a triumph for our democratic process and a testament to what I hope is a new spirit of cooperation and compromise among the elected members of the House,” he said. “There is much to be done in this New Year and I am fully cognizant that the government will have significant challenges to meet. But meet them we will, just as we have done these past seven months, with courage, conviction and a willingness to listen and compromise.”

Rejecting recent talk of independence, the premier spoke of the renewed relationship with the UK and the country’s acceptance of the government’s long term plan to return public finances to the black and develop the economy.

See full message below.

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Governor and Premier urge people to think of others

Governor and Premier urge people to think of others

| 23/12/2013 | 16 Comments

(CNS): Both the premier and the governor were urging people to take time this holiday to think of those that need help in their Christmas messages. Premier Alden McLaughlin said his Christmas wish was that everyone in the Cayman Islands could live year-round with consideration, good will and caring for each other as he urged people to enjoy time with their families and to visit those who are hurting or in need this Christmas season. Governor Helen Kilpatrick asked people to look out for their neighbours who are sick or elderly, and to speak up for children who are at risk.

See the Christmas messages below.

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Premier promotes Cayman in special video for JMC

Premier promotes Cayman in special video for JMC

| 25/11/2013 | 7 Comments

(CNS): The Cayman Islands premier has recorded a video to promote the Cayman Islands for this week’s overseas territory meeting in London. During the course of this week Alden McLaughlin and his ministerial colleague Wayne Panton will be flying the flag for Cayman at the table with FCO  officials as the mother country engages in talks with all of its territories' leaders and discusses the continued relationship. With public finances at the fore, as well as issues such as conservation and the financial services sector, this year’s meeting will also see the OT leaders mingle with UK  investors. The short video describes Cayman’s natural beauty as well as the economy and invites people to come see the islands for themselves. Go to video

 

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