Budget delayed as no UK OK
Posted on Thu, 09/24/2009 - 22:38 in Headline News
(CNS): Cayman was breaking out in a cold sweat on Thursday evening as there was still no agreement from the UK for the CI government to borrow the necessary funds to balance the budget. A planned public meeting hosted by Leader of Government Business McKeeva Bush to explain what government has had to concede to get permission to borrow was postponed after long talks with the FCO failed to produce an agreement. Government has also been forced to delay the budget statement in the Legislative Assembly until 1 October.
Bush spent a good deal of Thursday in continued phone negotiations with the Foreign Office, which has continued to spell out the need for the CIG to find a sustainable revenue to fund its expenditure. Although Bush has said he is adamant that he does not want to introduce any form of direct taxation, it is becoming increasingly clear that the UK wants to see exactly that before agreeing to extend the borrowing levels of the territory.
For the last week government has been stating on a day by day basis that it hoped that the UK would give its support to the extra borrowing that government needs to get through the next budget year, and it was reportedly hopeful yet again that “tomorrow” would be the day it would gain approval from the UK.
With the budget policy statement postponed for the second time, government now finds itself in an unusual situation as the last budget appropriation by the LA will expire before the parliament next meets.
During a closed door meeting with representatives from the commercial and financial sector today at the Westin, Bush pursued earlier requests made to the private sector, most of which have been rejected. But speculation also mounted that Bush was exploring the possibility of seizing the contents of dormant and frozen accounts to fill government’s empty coffers.
Late on Thursday evening News27 posted a video interview with Bush as he left the meeting with the private sector in which he said negotiations with the UK were continuing. He said the UK wanted to see cuts in expenditure and a more sustainable revenue base.
“As far as cuts are concerned, this will have to await some sort of study. This is not a decision I can make ... it is something for the officials and the governor will be on top of those matters,” he told Cayman’s TV network. Bush explained that revenue raising measures were, however, down to his government and he had spoken with the private sector to see what it would accept.
“Private sector, of course, is not satisfied with the CEF, not satisfied with income tax, not satisfied with property tax, not satisfied with VAT. However, they have gone away to look at what fees can be increased. We have made suggestions but, of course, when you meet with one section of the private sector it does not always satisfy the next,” he said, adding that people at the meeting had spoken out about their needs and how to make business flourish.
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McKeeva Bush vs Kurt
McKeeva Bush vs Kurt Tibbetts
I say it's time to call elections again. The UDP would win again, but that's what they need right now, a little confidence booster. It would be like having West Indies Cricket Team play against our local Prison Team and then let Manderson escape (is he in now?) while West Indies are batting so nobody would be in the field to stop them scoring.
Do you remember the campaign period when the consensus was that Mac was needed because Kurt couldn't make a decision? Since being elected Mac has decided to cancel Pirate's Week and Miss Cayman. He decided that he needed to travel many times over and spare no costs. He decided that knowledge of the particular subject should not be a hindrance to sitting on any Government board. He decided that every board appoinment must be political, no matter how technical the subject. That was the decisive Mac, but I have become a bit confused lately.
Mac decided that there would be a pension holiday for the Civil Service, then he decided there would not be a pension holiday. He decided there would be a reduction in Civil Service salaries, then he decided there would not be a reduction. He decided that he had to go to London to negotiate with the FCO because he couldn't do that over the phone. He came back after a week and decided to negotiate over the phone. He decided to implement a payroll tax, then he decided not to implement a payroll tax. He decided to implement property tax. Just kidding. But you have to appreciate Chris Bryant's sense of humour to suggest that a substantial and reliable source of revenue could be derived from taxing the owners of expensive condos like those at the Ritz.
I look forward to the coming week to find out what he is NOT going to do by first telling us "This is what I am proposing.........."
Didnt Chuckie found guilty by
Didnt Chuckie found guilty by the Commission of Enquiry? What about Charles Clifford and the Cayman Airways Building? what about Kirk and the Hampstead deal? What about Charles Clifford and the Kozaily deal? What about Naul and the 30 million that is gone.
This is just a few and i can name more. You guys try to bring stuff on Mac because he is from a humble up bringing.
I dont think its that - its
I dont think its that - its just people are concerned about how qualified he is to lead the negotiations and the image he presents
It has nothing to do with whether people are black , white , caymanian , non caymanian , gay , straight , married , unmarried - its not where you start but where you finish and how you live your life . Some of the most successful men / women have come from extremly humble beginnings - so dont go down that route
God help us all with Mr.
God help us all with Mr. “what’s in it for me” negotiating our Country’s bleak financial future!
Put a tax on stupidity…”we should be home and dry”…God bless Mr. Dart & Co.
The tiny island sails
The tiny island sails downstream cause the life that lived is is dead.
I didnt realise Mac had such
I didnt realise Mac had such an illustrious past however when you put his name into google search engine just check out what pops up !!
the wilkipedia entry is a belter !!
I never knew he bred pedigree
I never knew he bred pedigree poodles as a hobby.
Although I dont claim to
Although I dont claim to understand about the complex financial matters that are currently ongoing what is clear is that neither has Mac
I listen to what Mac has to say and then I look at what Travers has to say and it is clear who the expert is .
Mac you are our head of government however at the rate we are going we are going to be left with nothing worth governing - be sensible use your authority to create an official role for Travers as our chief negotiator -
It doesnt matter that he is an ex pat - he can do the job and that is what is most important - we should nt appoint people just because of their race, religion or background but on how well they are qualified to do the job .
UDP supports PPM!! LOGB
UDP supports PPM!! LOGB KO'D!! UK does not give OK!!
S.O.S.!!!!
It's been a tough week I need a B.E.E.R.
Wow! Not looking good at all
Wow!
Not looking good at all folks...never a good sign when the foreign press breaks important news to you before your own government is it?
Well, who is to blame Cayman?
No one but ourselves!
I saw this coming a long time ago - but I was of course too young and naive to know what I'm talking about.
As a people we became too materialistic, shallow and elitist.
There are dozens of examples of where that road ends all around us - even in our great neighbour to the north as well as our greatest enemy at the moment (UK).
We kept ignoring the warning signs offered by the smaller voices in Cayman. You know, some of the younger, "less experienced" and even some older - though "controversial" personalities as well ... a few of these individuals were over-looked again on May 20th of this year.
All of that being said - I do place a LOT of the blame for this situation on the previous government (PPM).
Not because I am a UDP supporter by any means, (I'm actually not very fond of either party), but because they managed to overthrow McKeeva "The Salesman" Bush - yet turned around and screwed things up to the extent of having themselves ousted only to have this character in charge yet again.
However, that is not my main concern either. The fact remains that we were floating in money over the last few years! We pulled through Ivan with little to no outside help - yet somehow we ended up being broke in 2009?!
Too many extravagant projects and not enough "saving for a rainy day" - moreso this was done in the face of a forecasted impending global recession!
PPM - you guys had a stellar opportunity and you blew it. Now that "blow" may end up changing the character of the Cayman Islands forevermore.
Thanks a lot guys ... thanks a lot!
So, Cayman - what are we going to do now?
I hope we can manage a bit more than to "pray" and exchange "God bless you's" on Rooster FM!
There are so many things wrong with this society and it baffles me to no end.
Anyway, let's go pray about it tomorrow morning - that'll make everything just fine and dandy again.
What a hopeful / less, superstitious, complacent, push-over bunch we are. Nothing but a pack of luxury car driving prayers.
Dear Indie Dude i assume from
Dear Indie Dude
i assume from your posts that you are Caymanian. I would like to thank and congratulate you for giving me faith in the youth of cayman as being able to get the country out of this situation. I have seldom seen a more enlightened posting on this website from a Caymanian. Please continue to make sure than your influence is felt.
Dear indie Dude, I too am a
Dear indie Dude,
I too am a young Caymanian. I too take pride when the youth speaks. I too am very frustated on a daily basis because 1. as a young person and 2. as a civil servant I am hardly ever listened to, just abused. But I do want to take exception with one thing. Prayer is a most powerful weapon. The downside of it though is that when God fixes things man takes the credit. But remember that God works through people, to accomplish amazing things. I have seen people healed of diseases through prayer. I have seen history changed through prayer and many many other things. I myself have seen amazing things happen in my own life because of my relationship with Jesus Christ. There is nothing superstitious about it, it is real, and I pray that you find Him as well. That being said, I stress, God works through people, so while I don't agree with you on everything I encourage you to keep going at it, keep producing and putting your contribution forward. But to you and all others, make no mistake about it, God is going to save this country. In His own time and in His own way. But the fact is we have become too materialistic, and we divide along any and every line. So we have some hard lessons to learn before He rescues us. Unfortunate, but necessary.
Travers or Mac Anthony
Travers or Mac
Anthony Travers Chairman of Cayman Islands Stock Exchange was made an Officer of theLink title Most Excellent Order [OBE] for his services to the Government and the Financial sector August 1998 Mr Travers , Senior Partner at Maples & Calder has been the driving force behind a large number of the developments in the financial sector over the last 20 years. Apart from being one of the prime movers in the creation of the Exchange , he has been instrumental in preparing legislation governing financial services , including the Fraudulent Dispositions Law 1989, the Exempted Limited Partnership Law 1991 and the Mutual Law 1993. The Governor of the Cayman Islands Mr John Owen said "Anthony Travers has contributed enormously to the development of the Cayman Islands as a leading financial sector and this honour is in recognition of a job well done "
March 2009 The Cayman Islands Financial Services Association (CIFSA) announced today the formation of a task force of leading representatives of the financial services industry that will engage with relevant authorities in the U.S. and other nations to help build understanding and acknowledgement of the global benefits of Cayman’s financial services sector.
The task force will be headed up by newly-appointed CIFSA Chairman Mr. Anthony Travers, currently Chairman of the Cayman Islands Stock Exchange, who has represented the financial services sector in relation to the Organisation for Economic Development and Cooperation (OECD) Harmful Tax Competition Initiative and the European Union Savings Directive.
Bush
Bush is notoriously associated with overseeing of 3000 Caymanian Status grants via cabinet that has caused much social friction and anger amongst the Caymanian population. Furthermore, Mr. Bush and the United Democratic Party were alleged to have been at the center of several corruption allegations relating to the Royal Watler Cruise Terminal, the Government affordable housing initiative, Boatswain's Beach, and the Ritz Carlton Hotel.
Bush was forced to resign from Executive Council in 1997 being implicated as culpable in the failure of First Cayman Bank, a fraudulent institution he was a Director of at the time. It is said that he was also involved in the failure of Eurobank that resulted in the abdication of the Island's attorney general at the time who fled the Island due to espionage allegations.
In November 2001 he was a founding member of the United Democratic Party XXXXXXX.
A self-employed businessman.
Assuming we need stable
Assuming we need stable steady income to run the CIG.
Which is better...............
Payroll tax.......large new Government department. Have any of the Government accounting departments ever balanced the books or have up to date accurate accounts. How many employers will run three sets of accounts. What happens with a world/global down turn in the future and employers are released....payrolls reduced......is this not stable steady accountable income.
Property tax......you own property and want to live in the country you pay an annual tax. The Land Registry gets increased staffing. The Land Registry is probably the BEST and most efficient Gov dept. properties can be properly appraised and monitored. Don't pay your property tax have your title suspended until payment.
I Cayman is going to have a tax to balance the books and stabilize which is better ?
Lachlan MacTavish
Do you think Mac even knows
Do you think Mac even knows what a Hedge Fund is ?
Is it the term for stashing a
Is it the term for stashing a bag of cash in shrubbery to be picked up as part of moving forward a legislative process?
I have made these points in
I have made these points in recent discussions with the Cayman Islands and Anguilla when they sought permission to extend their borrowing without showing how they intended to drive down borrowing in the short to medium term. I am sure these discussions will continue for some time
It is concerning to see Mr Bryant say that the discussions will continue for sometime - he obviously doesnt have any confidence in what has been proposed by CIG / Mac so far
Time to send in the experts at CIFSA I think
The Guardian yesterday
The Guardian yesterday evening published two articles with regards Cayman Financial status http://www.guardian.co.uk/world/2009/sep/25/cayman-debt-crisis-budget-postponed
The other was written by Chris Bryant British terrirotries are moving on tax
Lach said: "Because we need a
Lach said:
"Because we need a steady solid form of income. Then the people need to tell the elected members to spend wisely and have a budget."
A "steady solid form of income" discourages wise spending by politicians.
That is what is so good about our current form of taxation. It is self limiting.
Even with a steady form of
Even with a steady form of income for the CIG there will still need to be duties and fees. The duties and fees can be adjusted down in order to balance the budget. Couple of thoughts....when did we ever see a balanced budget from any CIG. For the last two decades there has been rampant spending. Sooner or later the voters need to express to our elected representatives that they need to be responsible.
Lach MacTavish
The problem with closing
The problem with closing Boatswain Beach t "tomorrow" is that the way McDinejad financed the deal was via a bond issue.
If the government closes the attraction the debt does not go away. In fact there would be an immediate call on the bond and the government would have to pay off the entire $75M debt immediately. Yep thats your McDinejad for yah !!!
Take that too !!!
Here are some ideas to
Here are some ideas to increase revenues. It would not solve all problems, but definately help. Plus, all the below would not hurt anyone (I think) in a huge way.
My 2cents to the debate!
While I agree with closing or
While I agree with closing or selling of Boatswain's Beach and levying of increased fees on large cylinder engine vehicles, I do not see where increasing of the other methods of raising revenue will help that much as it will negatively affect the poorer segment of Caymanian society.
Not only large cyliner engine cars should have duties increased on them but also luxury cars should have higher duties imposed on them as if someone can afford to purchase a luxury car, they should be prepared to pay for the privilege.
I think that duties should be imposed on duty free items sold in freeport stores as they are only luxuries and not necessities, and the average working Caymanian will not be impacted if duties are levied on these items.
Since we are always preaching about a drug free Cayman, I feel duties should be increased on liquor/liquor items and tobacco/tobacco products as they are drugs as well and only help to destroy the health and lives of people.
A payroll tax will more negatively affect the pay of the average working man than those of the affluent ,as many affluent self employed can find loop holes preventing them from having to pay out salaries to themselves by switching to payment of dividends .
Those are all excellent
Those are all excellent suggestions. Added to downsizing the civil service, not borrowing for projects we can't afford, making minister's salaries dependent on performance, a mild sales tax and tax on alcohol and tobacco, they would all go toward bringing our economy back in line. But the point is the "suggestion" from the UK is to invoke direct taxation. And it doesn't appear to be a suggestion, it is a pre-requisite for their blessing. It has been stated in no uncertain terms. And in no uncertain terms we should tell them to mind their own business as you are stating there are many ways to derive income for government than to tax wages. That's an obscene way to do it.
We are at the beginning or
We are at the beginning or the end depending on your point of view.
The beginning of taxation. And the end of any ability we have left to control the cost of government.
The reason so many are adamantly saying no about a form of direct taxation...including the general population and including the private sector... is because people who have basically gone broke are running the idea past us if we would agree to give them money from our earnings. HAHAHA. That is too funny!! In other words this situation doesn't instill a great deal of confidence. So pardon us if we're a little sceptical. LOL
At this point because we are still a territory of the UK it doesn't appear we have much choice and that is their wise recommendation. (Look fellows...it's a never-ending stream of money! AND it's extracted from wages before they ever even see them. Clever huh? You can F-up as much as you want! Just raise more money through more taxes! You can even invent them! We've got taxes on virtually everything! The only limit is your imagination! It's a wonderful system!).
The beginning of direct taxation.
is
The end of fiscal responsibility. Assuming there ever was any.
It most always results in...a never-ending stream of gigantic F-ups. World wide recession anyone? I don't remember did we all stop working? Did we all go to the beach? No. The geniuses (the ones who came up with direct taxation) blew it completely, missed the boat, fell asleep, didn't notice, and more importantly didn't care.
It wasn't their money that disappeared in a clusterF and there is always that never-ending stream termed direct taxation.
Give MY hard-earned wages....To ones who... obviously can't handle money?
That is more or less what we're being asked to consider right now.
Let me think.....
NO.
remember this is the last time any of us will have the ability to... say no. think payroll deduction at the source.. and with governments running deficits.. they'd spent your money before you'd earned it. clever huh?
no. think hamsters.
Good points....but we elected
Good points....but we elected the leaders of our country.
Lachlan....we have no choice
Lachlan....we have no choice but to elect someone. That's a given.
But
If I hired someone to take care of my business. And they.. obviously... did not do a very good job. I could fire them.
In other words I look at government as a board of directors and the people as the stockholders.
In the situation with direct taxation regardless of whether money is being spent properly it is gone....phweeeet....zzzzip....deducted......at the source of your wages.
Your option then is to wait. Perhaps for four years as your money is continously misspent.
Other forms of taxation which are more benign ie. sales taxes, alcohol and tobacco, duties, etc. allow you to have some form of recourse or control. But not direct taxation. And once in place and imbedded it can be easily increased. It is hardly ever decreased! Only occasionaly allowances are made for how much you can scramble back at the end of the taxation year. Corporations make careers out of this with reams of accountants. Don't you suppose that's why many are here? They're not here for the beach!
In the meantime.....for most of us....it has already been deducted. And can disappear it in the blink of an eye.
Promises are made by the opposition that they can do a better job. But in reality they hardly ever do! They blame it on the last bunch. Ad nauseum.
So there you have the limitations imposed on government and it's spending practices once direct taxation is imposed on the public. Do you see any? There are none.
"Country" should have
"Country" should have a capital "C"......Idiot
Really? Why? It is not a
Really? Why? It is not a proper noun and we don't capitalise nouns like in German. It is "country".
But please do tell me why "country" needs a capital "C", I am looking forward to the birth of a new CNS cult figure, the "Poor Grammar Grammar Nazi". (I capitalise because that description would be a proper noun).
Gambling. Yes but how and
Gambling. Yes but how and whom.
Lets not just grant a license to an old buddy or the Ritz cause it is there. And certainly not a national lottery because that is a tax on the poor and no new dollars will flow into the islands.
5 casino licenses. Advertised for sale world wide not requiring Caymanian partners.
Each one costs i don't know... $5,000,000, $25,000,000?
Each one is required to be in a hotel to be built by the license holder. 100 machines and 10,000 sq feet of casino for each 100 rooms. 500 rooms minimum.
Each license holder in addition to building the hotel and being allowed the license must also add some tourist infrastructure to the island.
Before the next election we add 2500 hotel rooms, build out all the required infrastructure to support it, cut unemployment by half if not eliminate it, have the ongoing revenue stream of a % tax on the revenues of the casinos.
There are I am sure one or two folks or companies already here capable of putting together the capital to fund a license. A single full page ad in the Wall Street Journal and we find the other four.
Tourismmmmmmm
Tourismmmmmmm
Why not just agree to an
Why not just agree to an income tax, borrow the money, then repeal the income tax. Since we have it all figured out once the money is borrowed right?
Because we need a steady
Because we need a steady solid form of income. Then the people need to tell the elected members to spend wisely and have a budget.
Excellent theory, but let's
Excellent theory, but let's get serious... Governments never spend wisely. Governments never spend money that is not theirs wisely. Governments never stick to a budget even if they had one. Governments will find ways to not only spend all your money but then raise taxes to spend that money too. Governments are the least efficient, most corrupt, and poorly managed entities. So yeah, good luck with that.
INDEPENDENCE (seriously) Has
INDEPENDENCE (seriously)
Has anyone really taken a MODERN approach to this option?
Before everyone reminds me of Jamaica and the Bahamas' fate of DECADES ago kindly hear me out...then please offer your views and opinions.
Many reject this option outrightly based on the fact that we "cannot protect ourselves". Yes, we have no military etc.
Others reject it on the basis that we have no natural resources i.e. oil, agriculture etc.
However, what we do have are 2 very lucrative industries nonetheless - correct? Ok.
Is this not a case of our perceived weaknesses being our greatest strengths?
Could not the fact that we have no tangible assests be in our favour?
For example, if some rogue, crazy world leader was to invade us and take over - we would immediately be rendered worthless! He would in fact be capturing a very scenic, beautiful nation of hanger-ons!
I say this because the minute that we are taken over the tourism would come to an abrupt halt, the financial industry would immediately shut down - and our new owner will have inherited nothing but an extra 60,000 mouths to feed.
Our financial industry houses some of the sharpest individuals in the world, and it is spearheaded by very competent individuals that have consistently proved their worth for decades now - if I was an investor / client I wouldn't throw a hissy fit because the Cayman Islands are now an independent country? Obviously the UK / USA / EU was not "carrying" us in that regard as they view us as their most formidable opponent!
Times have changed folks, banking and legal institutions are now a mere click away from relocating to another part of the world - it is no longer a "bricks and mortar" situation as it was 30 years ago.
Lastly, could it not be argued that due to our sensitive financial industry in which its demise would greatly disrupt the flow of global commerce and banking - that this would offset our need for an "on alert" standing army?
Would this situation simply be too tempting for some power hungry nation to resist? Is the western world still as trigger happy as yesteryear?
Standing by for your thoughts folks...
Idiotic and Preposterous. It
Idiotic and Preposterous. It is based on the assumption that anyone really cares what Cayman has to offer. In brief, massive public debt, a government that's broke and can't pay its bills, a mostly uneducated/poorly educated local population, crime up the ying yang, and financial services that any other island or country can offer...oh yeah, let's not forget your 7 Mile beach which is in fact closer to 5 miles has the aroma of that great toxic waste filling the middle of your Island, the Dump that catches on fire every once so often...I'll stop there for now.
:o) Ok, I understand - you
:o)
Ok, I understand - you don't see much potential in that option at all.
Appreciate the feedback.
Not looking good Cayman.
Whereas I consider the UK is being a right b**tard in regards to this issue today - at the end of the day, we Caymanians are to blame.
We had a near perfect society in the 80's & 90's but due to bad government (fault of Caymanians) we threw it all away.
It amazes me that I am still in my 20's yet have long since been convinced that we were going about much of our business in the wrong way.
What excuses do our current and previous leaders have?
Cayman is choc-filled with elitist capitalists.
It was easy to see where that road would end.
My apologies about the
My apologies about the previous post (Idiotic and Preposterous). I was being somewhat facetious. Let me just sum matters up by saying that the Road to Hell is paved with good intentions, as is the Road to Independence. I understand that Independence should be looked at closely, but this is not the time to do so. That can wait until the current economic situation stabilizes. Also, let me please add that once the Cayman Islands have gained their independence from the UK, there is noone to protect you from the politicians - and this is protection that is needed - to date, the politicians have proven to be of two stripes; well-meaning but inept, or corrupt. Although the politicians in Turks and Caicos were upset about the UK's intervention, the majority of the population was grateful - that's how corrupt things had become... And lastly, should the Cayman Islands' two economic pillars fail or seriously deteriorate (unlikely, but can happen), the UK does have the responsibility to bail us out.
You know, I just don't think
You know, I just don't think most of the posters here get how fragile Cayman's future is. You have summed it up in one paragraph. But the deniers will not listen.
I'll try to answer your
I'll try to answer your points as you raise them, starting with your emphasis that people should discount the history lessons of the Bahamas and Jamaica. Yes, these countries went through their problems decades ago, but what was the cause of those problems? In large part social unrest, politicians more interested in self than country and a blind belief they could go it alone without any help from " whitey." I know this is a gross generalisation, but is this so different from Cayman today? I don't share your confidence that an independent Cayman would avoid these pitfalls, just because they happened many years ago and elsewhere.
I don't have my finger on the same pulse as you do, but in all my years here I have never heard anyone, Caymanian or expat, say the equivalent of " thank goodness we've got the UK looking out for us or we would be invaded immediately." This is a non-issue which in my view neither supports or opposes the idea of independence. Set it up to knock it down can be a nice mis-direction though.
March 2008....................
Why did ACE choose to relocate. The answer seems to be in the ever-changing political winds.
On a conference call, ACE Chairman and CEO Evan Greenberg > said Cayman was "incompatible with ACE as it stands today. The Cayman incorporation brings little to us, yet it exposes us from a reputational, financial and tax perspective. It creates unnecessary uncertainty."
I'm sure many will dismiss this as a one-off, but it illustrates concerns that many users of Cayman's financial service industry weigh up when deciding whether to do business here or continue to do business here. Do you think independence will increase or decrease the perception of risk and uncertainty that Cayman already struggles with? In particular what impact on this issue do you think the current, highly public financial struggles of Cayman, the arbitrary throwing about of new taxes, the refusal of government to tackle the thorny issue of reducing it's own expenses, the rise in crime and the high level of anti-expat sentiment expressed by many sections of the local population, will have on the perceptions of those involved in choosing an offshore domicile?
You took exception to another poster who suggested that the financial service industry would shrink to 20% of its current size and asked why. I've given you the reasons above. I'm sure that 20% is a figure pulled out of thin air, but if independence is to be seriously considered, the powers that be must look beyond the present to assess the most likely post-independence scenario they will face. If they do not allow for a fairly significant loss in quality business, they are almost certainly out of touch with reality. We're having this discussion, at least in part, because the previous government made this exact mistake.
The wider impact on the economy of even a small fall in the size of the financial service industry would be much greater. Loss of clients means a reduction in professional staff required to service them. This has already happened but would get worse. Fewer professional staff means fewer support and secretarial staff. To list but a few consequences, government revenue down, through lower work permit and licencing fees, less demand for rental accommodation, leading to lower rents. Lower rents lead to mortgage payment problems for landlords, leads to forced sales and lower property prices. Less people leads to less demand for food, power, gas, building supplies, leads to fewer people employed in these service sectors. You tell me where this might stop.
As you yourself wrote, most of the financial service industry is just a click away from moving elsewhere. This is not a good thing. You suggest that actually pushing the button and moving elsewhere would disrupt the global economy. Mind and management of 90% ( my best guess ) plus of the financial service industry is elsewhere and would remain elsewhere if the Cayman entities re-domiciled. The global economy would not even notice.
In my view there may be worse times to consider independence than now, but I'm struggling to think of one.
RE: O'Really, Thanks for the
RE: O'Really,
Thanks for the feedback, you raised very strong points and I appreciate them all.
In any event, I strongly feel that we are entering a very bad chapter in the story of the Cayman Islands.
Neither option / avenue fills me with much confidence.
At the end of the day, we Caymanians handed to the UK this opportunity to to shaft us on a big, shiny platter.
Ram away Gordon and Bryant aka Capt. Knickers! (We'll pretend we're male in his case!)
Two industries??? Tourism is
Two industries???
Tourism is a farce and our mother-farkin-head isgoing to kill the financials.
I suggestwe have ONEindustry- and it is a very thin fishing industry...
I agree with you completely
I agree with you completely on the tourism issue.
I dread to think what will happen if the financial industry does in fact take a major hit due to these developments!
If Caymanians believe they've been sold out to date ... they haven't seen ANYTHING as yet.
McKeeva is already a lapping dog behind major "scum" money; XXXXXXX, I can only imagine what would happen if the worst was to happen.
All I can say is that I am happy to have grown up in Cayman's most fortunate era - and I don't mean by way of monetary wealth alone.
If you want a financial
If you want a financial services industry contributing less income to government and supporting about 20% of the jobs it does today, and if you are happy with an income tax, and you have a good idea for new employment ideas for Caymanians, then maybe you have a plan.
Re: Gerald: I'm not really
Re: Gerald:
I'm not really following you.
Why do you anticipate such a rapid decrease in financial industry jobs?
Do you predict a mass exodus of the workers themselves or certain sectors of the industry as a whole?
If so - why?
Re: Employment for Caymanians
I am a strong proponent for the diversification of Caymanian interest in various fields.
Foolish Caymanian pride is the reason behind many of our permit holders being here in the first place.
(Many Caymanians really have no business possessing the arrogant and snobbish attitudes (in regards to lifestyles and job levels) that they do. Sometimes I think to myself, "What exactly qualifies you to look down on any particular career Mr./Ms. Caymanian?")
Does anyone know if Macs
Does anyone know if Macs "advisors" are being paid by the hour or by the indecision?
Yawn. I am tired of all this
Yawn. I am tired of all this rhetoric!
CIFSA is only body capable of
CIFSA is only body capable of developing a consensus for the Cayman Islands Financial Industry and it does so. It has real meetings real discussions and arrives at real conclusions by consensus. The views expressed are the views of the Cayman Islands Financial Services Association. IF CIG ignores these views as it is clearly doing it does so at its peril .CIG has no one within it , and not within the Civil Service with any comparable understanding. Personalizing this fundamental point with inane personal nonsense is trivializing the importance of the CIFSA recommendations and the structure that lies behind them.No wonder CIG feels it can ignore them with impunity. But if it continues to everyone in Cayman will suffer. Without the Financial Services Industry Cayman needs Civil Service of 50 people .
We have killed the goose that
We have killed the goose that laid the golden egg.
The outrageous financial situation our Islands are enduring at this time is disgraceful. Our ignorant, bloated and overpaid Government officials, past and present have arrogantly, so it seems never thought of planning for rainy days like our forefathers were forced to do, embarking on money wasting, frivolous and corrupt spending practices when the cash was rolling in through tourism, land sales etc ( the chickens have come home to roost).
If these incompetents ever lived in the real world of fiscal economics they would have realised by now how other developed Countries are being brought to their knees by direct taxation. They have pleasured themselves building ivory towers and futuristic edifices trying to enhance their worthless self esteem.
When most credulous Companies are preparing quarterly accounts... what do we do...we sit back, and allow uncontrolled spending throughout our Government Ministries with NO accoutabillity and a "matter of fact" book-keeping approach. No doubt, sooner or later Mr. Dart & Co will be asked to bail us out of this situation for his, and others benefit.
How dare this Government even consider penalising our Country's citizens by imposing Draconian measures such as direct taxation, more or less accusing us all of the present predicament Through the sweat and hard work of our forefathers we have earned the right to tax free status, and so it should continue.
"Trim the fat" is a popular saying being bantered about lately, and for good reason, for one, is there any reasonable explanation as to why Government employees should not make a contribution towards their pension and medical insurance like the rest of us surfs? This Island still generates revenues in excess 476 million Dollars p/annum, as far as I'm concerned, spent wisely, there is no need to impose direct taxation our Citizens and,in the process erect another bloated Government collection department (cut your cloth accordingly).
Groan. For the last time (I
Groan. For the last time (I know better, I know I'll have to say it again), the reason Civil Servants dont pay for their pension and medical is because the salaries in the civil service are far below those of the private sector and the non-payment of these items is a way of getting them back to or close to par. There has been much said about civil service salaries being the same as private sector but it simply is not true. The public's opinion is being skewed by a small number of jobs that pay good (but nowhere near private sector equivelents), you are not looking at the vast majority (thousands) of civil service jobs. If you don't think that civil service salaries are lower then answer me this, why is it that expats and Caymanians alike in the private sector have traditionally not migrated into the civil service?
You also have to admit that every job has trade-offs, and those trade-offs have value. In addition to lower salaries, Civil Servants suffer under a stigma of being more inefficient than everyone else - believe me this matters when you are applying for a job elsewhere! High ranking civil servants have the added pressure of public scrutiny and comment on what they do, not many of us would like to live that much out in the open. Civil servants also have no choice in medical provider. So you want us to pay a premium to be forced to only go to the same hospital that you are complaining about as being inefficient?
Please also recognize that the civil service has by in large grown in response to various reforms and demand for more and more services from the public. I am not saying it is a perfect organization and things need to be done to make improvements, but good people, please, please, understand that there is more going on than you know and civil servants can't tell you becauase we are under a secrecy agreement. And please understand that no matter how much you peek through a persons window, you won't know how she runs her house. This is more complex than you think, so have patience with the civil service, we are working hard, doing our part. I wish I could say more on why it is important to not reduce civil service terms and conditions of service, but even here I cannot.
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