Bush defends tax giveaway
Posted on Wed, 07/11/2012 - 19:36 in Politics
(CNS): The premier has denied that there is anything unusual in the decision to allow Dart Realty Cayman Limited to collect 50% of the taxes paid by guests in any of its tourist accommodation as part of the ForCayman Alliance deal. In a statement broadcast on Radio Cayman on Tuesday evening, the premier said that hotels around the Caribbean and the world are not getting built without incentives, as he accused MLA Ezzard Miller of being mischievous when he exposed some of the deal government and the NRA signed with Dart last December. McKeeva Bush said his priority was to create jobs and that was why he agreed to the various incentives.
“Other countries offer tax incentives, such as tax holidays, with taxes either waived or deferred. In the Cayman Islands we are doing the same thing,” he stated. “These are not taxes that the government is currently collecting; these are taxes that would only be earned by the government if the hotel is first redeveloped and then if the hotel is occupied with paying guests on a nightly basis."
However, the agreement states that Dart will also be able to collect taxes on any existing hotel it buys or acquires over the next thirty year period. This means that if Dart Realty or any affiliated company purchases the Ritz-Carlton, the Westin or any other local hotel, government could lose half of an existing revenue stream.
Nevertheless, in his latest statement Bush justified the generous terms of the agreement pointing out that hotels in the Cayman Islands have been closing or are being transferred to long term residency.
“In the last ten years, we have lost the majority of the rooms in the former Hyatt Hotel, the Sleep Inn, Indies Suites and the Courtyard by Marriott, the one now under discussion. We need new hotel rooms; that’s the way we can grow our tourism," he said.
The 100% customs duty waivers would apply only once per hotel redevelopment, Bush indicated, and only to “major hotel redevelopment”, and Dart was expected to create an additional 200 to 300 new hotel rooms over the next few years. Bush said this would stimulate the economy and contribute to government coffers as a result of the multiplier effect, commonly referred to as trickle down.
Attacking Miller, the independent member for North Side, over his decision to reveal parts of the Dart agreement leaked to him last week on CNS, Bush said that once completed, the final NRA Agreement, any amendments and the results of the independent review would be made available to the public.
The premier accused Miller of being irresponsible for releasing the document out of context as he accused him of not following due process.
“Mr Miller preaches due process every Tuesday and every opportunity he gets, although he didn’t follow it many times himself. However, for his own politricks he is more than happy to mislead the people and not follow the same process he preaches about,” Bush stated.
The premier asked the public to focus on the economic turnaround and the need to create jobs.
“We’re trying to get money flowing into the country and allow people the opportunity to get jobs to take care of their families,” he added. “A closed hotel cannot help us and anything we agree with Mr Dart’s group of companies in regards to new hotels will benefit the Cayman Islands more than the revenue we choose to give up,” Bush claimed.
See premier’s full statement below
Check back to CNS on Thursday for the complete Dart, NRA and government agreement.
| Attachment | Size |
|---|---|
| Ezzard Miller-NRA Agreement Response 10 July 2012.pdf | 79.47 KB |
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Let's look at the reverse
Let's look at the reverse side. Dart builds some hotels and GIVE the Cayman Islands 50% of the tax that he collects off visitors to his hotels for 10 years and 100 % thereafter. What is really wrong with that? I think the man is very generous. Half of a loaf is better than no loaf for the next 10 years
Let me see if this works. I
Let me see if this works. I com in from Miami and the duty on my goods is $600.00.. I tell The customs agent, " I will give you $300.00, 1/2 of what I owe you and you should be happy cause I could give you nothing." What are you smoking???
What's wrong with it is that
What's wrong with it is that it's totally unfair for the government to make the public purse subsidize just one private hotel project, when all the other hotels have to pay 100% of their taxes. It's anti-competitive and it creates an unlevel playing field in the hotel industry.
In any case, If Dart is such a good business man he should be able to make money on the hotel project per se, without fleecing the public purse of it's FAIR SHARE of the duties and taxes. The gowerment is giving away TOO MUCH, or looking at it another way DART IS TAKING TOO MUCH.
Half a loaf is not good enough when the country is starving.
Dear 08:59 Are you serious?
Dear 08:59 Are you serious? You are either ill informed or a bit daft. Taxes on Hotel rooms are levied by the Cayman Island Government therefore neither Mr. Dart nor Mr. Bush have any right to use or to disburse them. These taxes are the peoples money and any "legitimate" use thereof should and must go through all the requirements of the regulatory laws that govern them.
Some time ago when Mr. Bush first entered the political arena two well respected "local" gentlemen predicted: THE DAY THIS YOUNG MAN ACCEDES TO A POSITION OF POWER IN THESE ISLANDS, WILL BE A DAY EVERY CAYMANIAN REGRETS. How profound, how wise!!
Oh for the days when wise and learned men placed OUR PEOPLE above SELF, and POLITICS.
The following was posted
The following was posted earlier by someone:
The Premier and Dart ( I will leave the rest of the UDP ou of it because I don't think he even discusses it with them before putting his hare-brained schemes into action) has closed down more than half of the businesses that operated in George Town and now they are going about closing down the estaurants hotels and condos on seven mile strip. It seems that Mr. Bush's way of getting money flowing into the islands is by allocating it to the Dart Group. All the money somehow seems to flow directly to Dart doorsteps. Please do not expect the Governor, the FCO or any one else to sort Bush out. Let us the people get rid of him once and for ever next year - give him a preview of how it will feel by voting and passing OMOV. That will shake him up and show him that "we the people mean business"
All I can add to that is, AMEN TO THAT MY BROTHER (OR SISTER) !!! TIME TO SHAKE THINGS UP!!!
In the words of Bush Marley:
In the words of Bush Marley: " I'm giving and I'm giving and I'm giving away, I'm giving and I'm giving and I'm giving away, I'm giving and I'm giving and I'm giving away, as long, as I can get, for myself !!
I love when one of our real
I love when one of our real estate "Leaders" does radio ads saying lets get going with the For Dart Alliance deal. He is showing his greed and lack of real understanding That before long Dart will own his real estate company and he will be acting like our current leaders and kissing Darts boots.
Planning Department
Stinky dinky doo, smells like
Can we give our dear Premier
Can we give our dear Premier away instead? We won't need to defend that one, I think you will find little opposition to that move.
Instead of a duty waiver,
Instead of a duty waiver, duty should be paid at the time of importation. If the guidlines provide and duty is to be exempt, then the importer should apply to have the duty refunded. This is the same practice if you were exporting goods where duty was paid on import. There are too many people bringing in items duty free because they are on the same bill of lading as duty waived shipments.
Uncle Ken and his employees will benefit under this duty free grant. Maybe Uncle Ken will now open his own shipping and clearing company in Cayman. Oh wait! I heard he already has!
More rubbish by Bush here
More rubbish by Bush here again...i don't beleive anything he says at all!
With 100% duty waivers, what
With 100% duty waivers, what incentive is that to buy from the local vendors? How is that going to help the local economy? The schools, the Government Offices and various other projects on island have been granted duty concessions. All of the materials are imported by the contractors and very little is purchased locally. I don't have a degree in economics, so would someone educate me, please?
If Dart imports something under his waiver, how are we Caymanians going to be sure that he is not really importing materials for another project, like Camana Bay, which is not a duty concession? Which customs officer is going to inspect to see if the materials have been delivered to the designated duty free project? Who is going to police that Dart is actually comlying with the terms of his duty waiver? I have seen many Caymanians and local businesses prosecuted for customs offences.
Why for 30 years??? Why not 5 years???
I need answers. I will be voting OMOV!
Another good one to swallow;
Another good one to swallow; when you think that nothing else can insult your intelligence, there comes another curve ball ! I honestly feel that the people need to more supportive by showing that they are not afraid to take a stand and put your name to your feelings. As a people it has always been our downfall, let's say " Not this time BoBo ". You just might set an example and influence others. Please stand up for your rights ! No chance of back back then. God Bless, Michel Lemay.
omov is a positive change but
omov is a positive change but we we need new blood & somone who has the country in heart!
If McKeeva wants to talk
If McKeeva wants to talk tourism - we'll talk tourism. It is an abomination. All you do is cater and kowtow (poorly, I may add) to the HIGH END tourist. That is where your advertising dollars go and all marketing campaigns revolve around SMB.
I want to know why when I had visitors down last month the diving staff at XXXX divers told them that the acceptable tip in Cayman is 25%. Disgusting. Sure - you can open more room stock. Sure. But you'll most certainly put Cayman in the heap of "ordinary" rip off destinations.
Here is something extracted
Here is something extracted from the Anti-Corruption Commision's Newsletter:
Corruption means that decisions by public officers are not taken for the public benefit but rather to serve private interests. When corruption involves public officers it wastes the public’s resources and public money. In this sense, corruption contributes to the deterioration of democracy and diminishes the community’s trust in all sectors of Government.
Corruption is a global challenge, and the Cayman Islands is not immune from its wrath. Corruption is a major hindrance to sustainable development and corrosive on the fabric of our society. Corruption undermines democracy and the rule of law, leads to human rights violations, distorts markets, erodes quality of life and carries the potential to allow organized crime, terrorism and other threats to human security to flourish.
Simply speaking, corruption is inherently wrong – It is a misuse of power and position by public officers; an intolerable myriad of acts. Corruption undoubtedly undermines the integrity of all involved and damages the core value system of the organizations to which they belong.
We believe that persons whom the public entrust with authority have an obligation to serve with integrity and honor. Greed and self-interest have no place in Cayman’s public service, and violations of the Anti-Corruption Law will be thoroughly investigated and prosecuted. Join us and act against corruption!
Mckeeva, How can you simply
Mckeeva, How can you simply justy this? You alone has singlehandly sold Cayman out! All for the love of money! You are a public disgrace to us and that is why we have to vote YES to OMOV come July 18th, 2012. You sir, will NEVER be honourable in my eyes. You will go down in history as being the most disgraceul representative these Islands has ever had. XXXX you WILL pay for your actions.
He needs to resign, like
He needs to resign, like yesterday.
Going forward, could we please elect someone moral, ethical, logical, educated, selfless, etc.
Sooooooo Let me get this
Sooooooo Let me get this straight. Collect 100% of the occupancy tax from the tourist and he gets to keep half of it???? Skimming plain and simple. Cheating plain and simple. Piracy plain and simple.
Here Mr Dart please take the keys to our island and do whatever the fu$k you like.
And keep the Vaseline !! and
And keep the Vaseline !! and milk and carrots !!!!@%&#?.
I read this and then by
I read this and then by chance I glanced out of my window and I swear I saw our Honourable Premier fly by heading towards the heavens, and then suddenly he dropped like a rock.
And I thought 'Is he all right'?
Then I realized 'Is he all right' was really the first thing that came to my mind when I read the article...
Getting things "done" in
Getting things "done" in Cayman is horribly frustrating, especially when the government is involved.
DART, on the other hand, has a track record of building high quality infrastructure on time and on budget. DART is a competent developer and project manager.
The Premier recognizes the situation and is in the process of out-sourcing as much government activity as he can in order to "get things done". He is outsourcing a significant amount to DART. Is this a perfect solution? No, but it does have a lot of short term benefits. Long term benefits.....the jury is out.
A better solution?
1) Do some very hard work in the LA to streamline many of the obtuse laws of the land that have been enacted over the years to benefit certain well placed individuals. The immigration and environmental laws come to mind.
2) Aggressively overhaul the civil service so that it functions more efficiently and is significantly smaller (fewer expats would be good when we educate and train more Caymanians). It looks like Mr. Manderson is starting down this road. I wish him success and encouragement, it is a tough and long term job.
Having said all this, I believe that McKeeva Bush is not the leader that Cayman needs. He is in way over his head and is doing more harm than good.
I do not have much hope for the result of the 2013 election, whoever wins will still not be the leader that Cayman needs, none of the current crop of politicians "cut the mustard".
I hope that in 2017 we have a fresh slate that is made up of young, well educated, well trained, hardworking, and ethical Caymanians. I know of Caymanians who fit this profile. They are our only hope.
The bottom line is that there
The bottom line is that there is not enough being done to ensure that these prospective jobs will be going to actual Caymanians and therefore "improving our economy".
A quick overview of the current situation in the tourism industry is all the proof one requires to realize this fact.
Granted, there are a myriad of reasons for this which include; low wages, cheap imported workers, harsh contracts / working conditions, greedy and power-hungry developers and managers, discouraged locals (Caymanians), disinterested Caymanians etc.
E.g. Just recently a family member of mine was enjoying a day off work in the water up at Rum Point. While there, a group of tourists soon realized that they were Caymanian and almost broke their necks as they waded over exclaiming to one another; "Look honey, its a local!"
This story would be funny had the group of tourists not been on island for 3 whole days before interacting with an actual Caymanian.
There is a LOT to be done to get our tourism product back to anything remotely close to the early stage that actually put us on the worldwide map in this regard - and it is very sad that we have to GO BACK in time and REVERSE policies and practices that are commonplace today.
Of course, all of this speaks to minimum wages, employment protection, recruitment of locals, attitudes of Caymanians etc. Surely, some will make snide remarks at this point, however, none of these factors can be isolated from the others.
The year is 2012 and the (regular people of) World are growing wary of globalisation, unfair practices, exploitation of foreign workers, subsequently lagging local economies, value for money, and unscrupulous developers / rich people.
No one wants to actively contribute to such practices today as every world citizen is currently affected by these things to some degree in their respective countries. (Imagine how it must feel to escape to "paradise" only to find the same wolfish elements entrenched in this environment?)
It is for the above reasons why I am primarily opposed to this particular element of the "ForCayman" alliance - and believe me, there are many others!
(Furthermore, can we please introduce a policy that bans any future accumulative, multi-faceted "deals" or "alliances" in this country?! I may not live the life of super-wealthy but I sure do speak their language ... and rest assured, it says; "If you are not of us, you are about to get shafted as was the guy before you!")
For the Cayman Islands to have any hope of a generally, stronger local economy and thriving tourism industry certain changes simply must be made.
Obviously, that is easier said than done as the status quo is clearly prepared to fight tooth and nail to prevent this as heaven forbid - they take home only $17m instead of their usual $20m at the end of the financial year.
Interestingly, that difference in profits for those at the top can be the deciding factor in generational and socioeconomic crime and stablility in our community.
Lastly, and most crucially, at the end of the day, such factors are the very foundation of our tourism industry. If certain changes are not made beforehand, then the incentives and discounts on offer to Dart or any other developer will all be for naught.
Of course, all of the above is simply my personal opinion and take on the matter.
Chuckster can you please put
Chuckster can you please put your law practice on hold for a year and come and deal with McDinejad like only you can BoBo ? Lets finish him politically for good. Take out the head and the body (puppets on string) will fall same time !!!
Cayman cannot afford anymore of this man !
Dart and the Government now
Dart and the Government now have a method to get rid of any competition as any increases in the tax affects Dart less than anyone else.
Our Tourism is lots because
Our Tourism is lots because there are no Caymanians to talk to the Tourist and give them our history and stories of the past and Present. Face it we need to put our people in positions where the tourist can feel at home and on vacation.
Buildings are not the solutions it's our people.
d
Those opportunities are there
Those opportunities are there for Caymanians, its called the watersports and service industry i.e. restaurants, bars and hotels.
The issue lies with the salaries people in those positions earn, i.e. $4hr which most, if not all Caymanainas turn their noses up at. I agree with you, these positioons should be 80%+ held by Caymanians. I also dont understand why they dont work these jobs either considering you take home an easy $150+ tips each and every day, minimum.
I am a Caymanian and i did the watersports / service industry when i was in my teens to early twenties and i loved it.
The very few other Caymanians I did come across in the same positions either didn't show up for work within the first week of their employemnt (i.e. took sick days!) and were fired or they just stopped showing up.
I was making between 40-50K
I was making between 40-50K KYD per year as a bartender on this island. It is a shame that young Caymanians feel that serving is beneath them. All you need to be successful in the service industry is to show up to work, work hard, be friendly and be willing to work weekends and holidays. Unfortunately to many young Caymanians, these conditions are considered unreasonable.
In Bermuda, only locals can work as bartenders because it is such a good job. I'm not saying it should be only Caymanians, but I do think that young people of this island need to reaslise there is a reason why people come from all over the world to work in the service industry here.
By the crisp accurate prose,
Very few expats working in
Very few expats working in the tourist industry use "crisp accurate prose".
This is a totally
This is a totally unsatisfactory explanation by the premier and further reinforces my feeling that it is absolutely necessary for him to retire from holding public office. And any developer, in particular one feeling that he has Cayman over a barrel, should bear in mind that successive governments might well reverse decisions made by the present government, including the reversal of any land swap for crown land.
The trouble is that the
The trouble is that the agreement ties their hands so that they govt. will be sued if they attempt to reverse those decisions.
So what is the problem with
So what is the problem with getting sued? McKeeva does it all the time.
Hell he even buys his way out
Hell he even buys his way out of it with millions of someone else's money. Perhaps we should sue him, Cayman?
AND I QUOTE:“In the last ten
AND I QUOTE:“In the last ten years, we have lost the majority of the rooms in the former Hyatt Hotel, the Sleep Inn, Indies Suites and the Courtyard by Marriott, the one now under discussion. We need new hotel rooms; that’s the way we can grow our tourism," he said.END QUOTE
Let me give you a little advice MR. Bush, the reason for the decline in tourism has nothing to do with lack of accommodations it's the other way around! What has happened since the early 1990s when Mr. Norman Bodden placed a moratorium on any more hotels and/or condominiums, you and your group that were in power at the time listened to greedy developers and others who made you an offer you could not refuse, so you let them build and flood the market. Guess what that did? Let me tell you! Whereas the Hotels we had at the time were at a high rate of occupancy even during the summer months, room rates were reasonable thus the high occupancy rate! And another important factor was that most of the staff were locals which added to an atmosphere of being in the Caribbean. From front desk to gardeners,you found locals in all these positions. Guests would ask, and get correct answers to questions concerning the Island. We had the best bartenders who made deliciously exotic drinks with names like "Cayman Sunset" and the guests sat at the bar along side well known locals like the General one of many local fishermen to whom the visitor became endeared. They were able to order from their menu Local Food prepared in the original manner, served by a smiling face wanting to know and asking if ERY TING WAS AWRITE! Thats "Cayman Kind" These are the things that made the visitor come back time after time, knowing that they would see the same people who took care of them when they were here last. Not some stranger from someplace else who knew nothing about our Island. These people are doing their job which is what they came for. They could care less about a visitors impression of our Island.
So after listening to the greedy developers and lifting the moratorium, not only were there too many rooms, but much more expensive rooms. This was the problem! Because occupancy rate is the key to success in the Hotel Business. And because we had to many rooms and more expensive rooms, hoteliers were forced to cut service and staff to maintain the bottom line on their financials , thus the competition begins and so the decline of a wonderful tourism product that we were famous for, and is now at it's worst in history.
I don't know all the answers Mr. Bush, but I can tell you more hotel rooms is not one of them. What we need is a Minister of Tourism with the foresight to get us back to some semblance of what we had and were famous for; by reviving "CAYMAN KINDNESS" which can only be achieved by insisting on a decent wage scale for locals and putting them back to work. And don't tell me caymanians don't want to do this kind of work. There were some one hundred fifty of us at the Holiday Inn which was torn down and those workers were promised jobs at the Ritz, but not one of those great bartenders that worked there got a Job at the Ritz or anyplace else. But you Love Us!! Thanks but No Thanks Mr. Bush>
You forgot to mention the
My thoughts, exactly. Thank
My thoughts, exactly. Thank you for expressing them for me.
What an excellent post! Those
What an excellent post! Those of us that remember those good days are so saddened by the greed that has transformed our island into the garbage dump it is today.
bush has been the the most
bush has been the the most useless leader ever...however what he is saying here is 100% right...
what are ezzards solutions?????
bush (with a lower case b)
bush (with a lower case b) has been the most useless leader ever. Period. Full stop. End of story...oh wait, there's more...what are Ezzards solutions????? My, My, this bruised and battered, scratched and worn paper thin record is still faithfully playing it's little tune away. What are Ezzards solutions. Well you see, Ezzards solutions to the most useless leader ever is to harrass the hell out of him, to set his ass on fire to see if that can get him going in a straight line. It doesn't seem to be working very well but that is certainly not because Ezzard is not trying. It is MCKEEVA'S job to run the country, and it is plain and simple WRONG to blame Ezzard for not doing that for him. Our beloved Mckeeva most certainly would not have that in any case. If he had his way with the only politician in Cayman who's EARNING his pay, Ezzard would most certainly be picking coconuts in North Side with Mr. Brian Tomlinson, (sorry Brian). Can we please put what is left of this poor old record back in its cover and put it back on the shelf...please. It could well be worth a few dollars as a relic one day.
If Dart buys the Ritz Carlton
Cuckoos, I believe are
Let us end this nonsense.
Let us end this nonsense. Vote for OMOV on 18 July.
can we give this 8000 thumbs
can we give this 8000 thumbs up?!
So why the secrecy? Why can't
So why the secrecy? Why can't Bush do anything in the open?
It is in the real estate
It is in the real estate consultant's code.
And in the Vegas ATM User's
And in the Vegas ATM User's Guide/Handbook
Only a fool would go as far
Only a fool would go as far as denying what is clearly documented in writing!!
I suppose this is Richard's fault too!!
Plan and simple, mac has to
Plan and simple, mac has to go! He has given the country away XXXX! This sell out has to go, I say we round him up and put him, dart and ryan on a plane and ship them off. Belize got rid of dart, Costa Rica got rid of ryan, why do we have to let them ruin OUR island. I'm sick of the go now where chat that happens on this web site! Let's do something about this! NOW before it's too late!
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