Range of fees to plug budget
Posted on Thu, 08/09/2012 - 09:00 in Politics
(CNS): The financial services sector will bear the brunt of the fee increases that government will impose to replace the controversial expat tax. However, ordinary businesses will also face increases in work permit fees, starting at 5% on permits between $1,000 and $3,000 and 10% on those in the next category, increasing gradually to 20% on the most expensive management permits. Premier Mckeeva Bush said Wednesday that he hoped to raise over $44.3 million from a combination of fees with $7.8 million coming from the permit increases. Bush announced a list of fee increases, from tourism room taxes to licence fees for boats over 30 feet, to plug the budget but most of the revenue will come from the finance industry.
Speaking at a public meeting on Wednesday evening at the Mary Miller Hall for more than two hours, the premier waited until the last moment to reveal the package of new revenue measures he hopes will satisfy the UK's demand for a "sustainable and credible" budget for the 2012/13 fiscal year.
These include an increase in tourism room taxes from 10% to 13%, a departure tax increase of $10, a rise in stamp duty on some insurance policies, as well as stamp duty increase on real estate, new traffic fees, licences for boats over 30 feet that will increase incrementally on the size of vessels, fees on tobacco products and ten cents on beer bottles and cans. He said the details of the measures would all be revealed when the budget was approved by the overseas territories minister and presented to the Legislative Assembly.
The majority of the new revenue in the revised budget will come from increases on the finance industry, which Bush described as a national asset. There will be director fees, fees on master-funds, which he said would raise over $2.3 million, and an increase in the fees of limited partnerships, which should bring in around $9 million.
Together the fees will mean that the so-called 'community enhancement fee', which was a proposed tax on the earnings of work permit holders, would be scrapped. The u-turn on the contentious proposal came as a result of various groups approaching government with alternative suggestions and members of the business community making a commitment to take on more fees.
Bush said he was against taxation and that fee would have been a last resort. He said he had no intention of introducing taxes on profits, incomes, property, death or inheritance and that he had fought hard not to introduce direct taxation.
It was, he said, his intention to present the revised budget to the UK shortly and he hoped to have a favourable response next week, which would allow him to present the budget on Monday 20 August.
Although cutting things fine, this would allow the legislators ten days to debate the budget, scrutinize the spending plans and cuts in public spending and pass the appropriations bill before the government's stop-gap budget passed in June expires on 31 August .
During Wednesday night's public meeting Bush did not allow a question and answer session and there was no debate or discussion. He received some applause at times but the presentation, which was a rehash of his speech at the West Bay meeting last week, was made before a smaller and more subdued audience. Although he railed against the opposition and the press, the premier reigned in his criticisms of the governor and other public officials.
He did, however, accuse CNS and The Caymanian Compass of creating an international media feeding frenzy with their 'hysterical headlines'. Bush seemed to think that it was not the proposals to introduce a form of direct taxation to the jurisdiction that had attracted the international attention but rather the “irresponsibility” of the local media.
Although the premier was as scathing as ever about CNS, which he described in an email earlier this week as a "wutless scandal sheet", he also took aim Wednesday night at the owner of the Compass. Being the only print media, the owner was abusing his position and being irresponsible, Bush said, adding that he would be writing to the paper in response to the "licks” the local newspaper had given him this week.
Bush denied the accusations made against him of vote buying and said what he did was because he had a passion to do good. “I am trying to help people at a time when businesses are not concerned and don't understand that there are people who can't pay their electrical bill,” he said, adding that these people end up on the doorstep of every politician, including the opposition.
Given the difficult times, Bush appealed to employers to take on Caymanians and told them not to refuse people because they were over qualified. He pointed to the local unemployment problem and asked how there could be 20,000 work permits and an unemployment rate of over 8% among Caymanians.
Bush said he was introducing an additional fee that employers would pay on certain categories of work permits that were for jobs that could be taken by Caymanians and hoped this would encourage people to take on local painters, among other similar categories of workers.
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Why not sell the Hospital to
Why not sell the Hospital to the Private Sector? sell Boatswaine Beach to Scientists and reintroduce the annual $25 Head Tax to all 18 and over Males living on the Islands? This should help Revenue. On the other hand start looking into those annual unit costs and if they are not using their allotments, then redeposit it back into the Treasury. All those former employees and their famililies needs to pay FULL Airfares on Cayman Airways. Semi Retired and retired able bodied Government Employees, should be rehired to dispatch passengers through our borders and also to guard any of our Government entities. Too much money being wasted to Companies, who has pure foreign Nationals doing these jobs that can be of high risk, to these Islands and to National Security.
XXX, 16:08, why XXX in 2012
XXX, 16:08, why XXX in 2012 should the poll tax (that's what it is) you suggest be just for males? Just because that was what it was 40 years ago doesn't mean we need to stick with such outdated attitudes. That is a problem with Cayman - it wants things to be "as in the good old days". Wake up. They are gone.
How about privatising Garbage
How about privatising Garbage company and get recycling in this frsidt class counrty! Let them offer 3 pales free with ID numbers to every household and most important the bars and restaurants with all those glass bottles.
What private sector company
What private sector company would take on garbage? There is no profit. Caymanians think they should not have to pay a garbage fee. My neighbor - an ignorant 50 year old Caymanian - has been proudly throwing his garbage in "holes" in his land for at least 25 years because "no gernment is going to force me to pay fees for something I don't want-that's communism".
Does anyone have any sensible
Does anyone have any sensible recommendations as to how we can get this guy out of office... his stupidity is second to none if this is the best he can come up with.
I thought the objective was
I thought the objective was not to increase the cost of doing business in Cayman. Work permit fees in Cayman are already significantly higher than similar juridictions in the world, this will turn off Companies from operating here because its too expensive. Short term fixes create long term problems!!!
Case and point a local hedge fund manager moved operations to Canada this year because it was cheaper to operate there than here?
Think, Cayman does not have the capacity to sustain huge losses if these businesses pull out and with the limited population of people with applicable skills the demand for a work force can't be met!
I agree ????? 09.28: I have
I agree ????? 09.28: I have lost my job to redunancy at no less than 4 Offshore Banks because they relocated the Operations to other jurisdictions due to the escalating costs of doing business in Cayman...this will only continue to happen.
BUSH, Rolston, CG, Mario, and
BUSH, Rolston, CG, Mario, and Kerry are the only ones talking about cutting 500 CS jobs as the ONLY remedy to balancing the budget. The wider, sensible community is talking about cutting government spending overall, which includes cuts to:
Official Travel
Social Service vote-buying fund
Salaries to MLAs
Boatswain's Beach subsidy (by selling some of it)
Cayman Airways subsidy (by selling some of it)
Premier's household items (cook, utilities, security), by rights, shouldn't the Leader of Opp be entitled to the same? (not saying he should take it)
Gasboy Allowances
Government vehicle usage after hours and weekends
Health Insurance premiums paid by Govt
Cayman, we do not have a revenue generating problem, WE HAVE A POLITICAL SPENDING PROBLEM!!!
Although a proper
Although a proper analysis/adjustment of CIG's expenditures/revenues is desperately needed, there is another component here that is an integral part of any long term solution to CIG's budget woes. That is the health of the private sector. CIG must realize that there is a limit to what the private sector can currently bear before the negative effects of fee increases begin to slow and ultimately reverse our local economy.
However, there are two desperately needed things that can be done to offset the negative effects of these proposed additional fee increases(and if CIG can keep its spending under control, may even allow us to lower fees in the long run). I will list these two items that I feel will not only instantly help our economy, but will also give the UK confidence in us for the long term(then maybe the UK will be willing to cut us some "slack" with regards to budget/borrowing). They are as follows:
1)AIRPORT EXPANSION
2)CRUISE BERTHING FACILITY
Our tourism sector has far more potential for growth and would be able to contribute more to CIG's revenues if it was healthier, and CIG cannot continuously rely on the financial sector for additional revenues.
The only thing required for these projects to get underway is for CIG to be willing to follow proper procurement procedures and international best practice standards as publicly stated by the FCO. Instead, it seems as if CIG is stubbornly refusing to initiate these projects according to these guidelines. Guidlines that have been developed to protect us and ensure that The Cayman Islands get value for money from these major infrastructure projects.
CIG, can you please proceed according to these guidelines and do what is best for Cayman.
Breaking News!! Canada July
Breaking News!! Canada July Employment falls by 30,400!!!!
Anyone notce MLA's inflated
Anyone notce MLA's inflated salaries will not bt touched...?
Christian Heritage Park...another $3million to be wasted. Why can't that be turned into a paying car park badly needed for GT...?
Mac also is sticking with his vote buying fund...disgraceful, c'mon UDP save your country from this madman.
Think about
Think about This
Lottery/Gaming:::::The people that want play can, also visitor can..If also sold by mail the potential endless
Garbage Fee's::::Flat fee, say $100 year or (based on number in household)
Boat licensing fee:::: Luxury boats could pay more...(smaller fishing boats 15-18' none)
Docking Fee:::
Persons on Public Assistance (that are able) could do clean-up Parks, School yards, Public Beaches & Grounds of Government Buildings.
They get money, should have to earn it !!
Vehicle Licensing:::Raise fee's $5 to $10 a year based on axial size
Bush is a Fool. Proof: (as
Bush is a Fool. Proof: (as if you needed more) "...the majority of the new revenue in the revised budget will come from increases on the finance industry, which Bush described as a national asset."
Translation: The finance industry is a Golden Goose so let's kill it so we can eat today. WHAT AN IDIOT !!!! I feel like an idiot too as I actually defended this gent in the past.
Country, meet toilet.
The obvious solution - the one that seems most "painful", requires nothing more than the courage of a leap of faith. CUT THE CS! For the love of your Country.. stop supporting the vibe that we can't cut CS. The pain later will be so much more terrible.
Don't let your leaders burn this great land and the industry that Vassel Johsnon built to the ground because they are too cowardly to face the reality of our times. LEADERSHIP is what is missing here.. VISION is what is missing here. "C O U R A G E" is what IS MISSING HERE ! ! !!
PROTOCOL, the new Tahoes, the government license plates, the walls around your home, the private staff, the first-class and private travel.. those are the problems in this great land. The culture of "Government First and above all else" needs to stop. The idea that a small band of entrepreneuirs and global businesses can be bled dry to support the unsustainable - that WILL ABSOLUTELY stop.. as sure as not paying your credit card bill will get you cut off.
The decline will be quicker and much more sudden in a small Country like this, than it will in the States or Europe.
Stop the madness and see your fortunes reverse Cayman.
Dear Mr. Premier, You must
Dear Mr. Premier,
You must act to reduce government spending and balance the budget.
You were told to make these hard decisions when you came to office but you chose not to heed good advice.
If you cannot or will not cut the civil service then I urge you to immediately enact a 4 day work week and a subsequent reduction in pay (20%) until things get better and then reinstate a full 5 day work week and full pay.
This is a shrewd way of reducing not only salary costs, still keeping those civil servents in their jobs whilst enjoying a reduction in government utility costs as well.
I think the civil service and the general population will appreciate you being honest with them. This way no one loses their job, they simply take a tempory pay cut to get us through this situation. It's better to work 4 days than be unemployed.
I am moving back to Jamaica.
I am moving back to Jamaica. Too much confusion here. And guess what? I do not have to pay any work permit fees. By the way, are Cashiers work permit fees below $1000.00? I noticed that those permit fees were not increased that are in the one thousand bracket.
Bring back the tax! :)
Bring back the tax! :)
The Great Premier says the
The Great Premier says the following about the owner of the Compass -
"Being the only print media, the owner was abusing his position and being irresponsible"
I'm going to go with -
Being the Islands only Premier, Mckeeva Bush is abusing his position and is being irresponsible with our Islands future.
There, all better.
I haven't had much in the way
I haven't had much in the way of paid work in weeks. I pick up what I can and so does the rest of my family. We survive. I have turned my efforts toward gardening. I will continue to grow foodstuffs for my family until the point which that becomes untenable, and then I am done.
I cannot spend that which I do not have. Why is government allowed to do so? Listen up, Mr. Premier et al......... the monies that you fritter away on intangible things comes from MY pocket. I am NOT represented. If I were, my representative would note that I am living hand-to-mouth, and struggling. I don't require any entitlement or vote-influencing goodies. I just want to not have to pay for duties and services from which the fees are wasted.
I am a conservative. Conservatives want less government, not more pie-in-the-sky processess to waste our hard earned dollars. Government should be responsible for safety and infrastructure, for which we have historically overpaid you for performing. I am Caymanian, and I have no voice, other than that which is read here.
I have never before in my life been afraid of my government. Lord let us survive until the next election. Amen.
Good Points NeoSurvivor, I
Good Points NeoSurvivor, I am in a similar position and please God we avoid any Hurricanes this year as I certainly have not had the income to affordt the $ 500-700 per month Insurance Premium required........ - I worked hard all my life to build and pay for a house and now I can barely manage to scrape the light bill together each month let alone anything else - but I refuse to put a further burden on my Countryman by applying for Indigent Status whilst I can do what I can for myself (even though I am qualified and still cannot get a job -not for the want of repeatedly trying).
Also, please God I do not become incapacitated or ill - because I am offered NO conciliatory Health Rates or treatment without being declared 'indigent'., which, by the time I have been assessed may leave the 'approved' slip nailed to my coffin at the Hospital door. So much for every citizen having Insurance...............
I am surprised (but maybe should not be) at some of the stories I hear from people trying to get me to apply for assistance (a lot who do not even need it - ........how in the good Lord's name they manage to pass the assessment test beats me).....the comment is 'well 'so and so' does it and she's getting money from a,b,and c, apartment rentals etc... so she doesn't even need it !!! Let's review this system as a means of expenditure reductions so that only the really needy are assisted.
I WANT to help myself, but just give 'us unemployed' a break when we can prove that we have done what we can to get a job and are still striving to help ourselves without asking for undue assistance.
Perhaps DES could have some kind of card system which is stamped to prove our attendance and efforts at employment - oh no, I guess this would come under increased Government Expenditure ?
And before I hear one of those ignorant fools with no actual experience of it.... sitting in their comfortable jobs saying 'stop whinging' or 'Unemployment is a Myth' - please quit your job, join the unemployment line and try to get re-employed.......yes, Self-Employment as Neo-Survivor describes IS an answer, but not always the true meaning of Employment as a substantial and regular means of Survival.
I didn't attend the meeting
I didn't attend the meeting on Wednesday night, but I listened to the 6.00 p.m. news on Cayman 27.
The Premier said, "he will not cut scholarships", he remembers when only a chosen few received scholarships. This hasn't changed very much.
In respect to the YNBP (Young National Builders Programme) funding that is distrubed from his office, the Premier needs to ensure that the scholars that need this assistance get it!! The chosen few receive, and I guess it is who you fa or who you know!!
There are those scholars that are getting the "huge scholarships" from the private sector and are still going to the Education Council and YNBP and are still receiving funds from these Government entities as well.
Scholarships will always be
Scholarships will always be given to a chosen few. The private sector and Education Department choose their few based on merit, while the Premier chooses his few based on political affiliation.
Or they could just stop
Or they could just stop wasting, spending and stealing sooo much and still have enough for a real (see the money) surplus.
So I just heard Mac's voice
So I just heard Mac's voice on the news and had to turn off the TV. I cannot possibly listen to any more of his crap. I'd rather read about it later.
Nice pic of Mac with the
Nice pic of Mac with the cracks and bandaids lookin all beat up !
So all of us hard working
So all of us hard working professionals must work harder so the CS voter block can continue to plunder the purse??????? No I think not. Sorry Boss. Hope you can find a Caymanian to do my job because I no longer want to. Bye Cayman. and Good luck. Really.
UDP #worstgovntever
UDP
#worstgovntever
Governments are not in
Governments are not in existance to make profit, or massive surplus whatever you want to call it. They are not a retail business. If there is a major excess then they are either collecting too much money or not spending enough. So what's it to be Mac?
Anon 1706 the fact that we
Anon 1706 the fact that we have a deficit indicates that the Government is not making a profit. Gee we would all love that problem.
Mac would be a national hero.
The businesses that appealed
The businesses that appealed to government on not taxing the employees, the majority of their workers are "work permit holders", store clerks, clerks, etc...does that mean thoses businesses will be paying a fee cause they should be hiring Caymanians? Can't have it both ways!!!
It greatly saddens me to
It greatly saddens me to stand bye and watch this tick suck the blood life out of Cayman. He has spent so exhorbetantly and now he has pulled out his abacus to see how it is that he can squeeze us for money to plug the huge gap that he has left. I cannot believe that the rest of his party can even show their faces in public. I hope that the UK tells him to take his budget and shove it. When the money runs out he should have to pay from all of the millions that he has sucked out of us to keep the country running. Is there really no way to get rid of this *******?? I really hope that the UK steps in and dethrones him soon. Oh and by the way Mac you can vote yourself honourable until kingdom come but we will always see you for what you are. A blood sucking tick!! Nuf said!!!!
Did you hear that?.....Sounds
Did you hear that?.....Sounds like Mac is hammering in the nails on Cayman's coffin!
We no longer use nails in
We no longer use nails in coffins. We use screws. The noise you hear if the hammer drill driving in the screws.
I didn't know they held
I didn't know they held elections again? Seems certain businesses can sway someone!
Why blame the Compass and
Why blame the Compass and CNS, it's not their fault he's an idiot!
Shoot the messenger. It keeps
Shoot the messenger. It keeps them quiet.
Lets start with the Premiers
Lets start with the Premiers words to us some time ago that he would lead the way in salary cuts.More empty promises but now he expects the rest of us to tighten our belts.What a joke this Govt has become.Full of empty promises and frivolous spending.Does anyone in Govt even know how to run a business?I doubt that very much from what I am seeing now.and the beat goes on.
There's not much point in
There's not much point in raising more revenue if the civil servants and politicians are just going to flush it all down the nearest toilet.
Raising more money doesn't solve anything if the public sector gravy train is going to go merrily rolling on down the tracks.
Mr Premier, the FCO are not going to even look at this unless you include substantial cutbacks in outgoings and that, whether you like it or not, means cutting the dead wood out of the civil service.
Right now the way the civil service runs is that essential services such as the Information Commissioner's Office are kept short of staff while non-essential departments with low workloads enjoy a 10-20% (and a lot more in some cases) staff surplus. I know that, the FCO knows that and you need to both accept it and get a grip on it if you want the Cayman Islands to remain under Caymanian control.
More taxes will NOT help
More taxes will NOT help Cayman. Less spending by the dumba$$ Government is the only answer/solution to this problem. The Cayman Islands Govt makes enough money to have a mega surplus every year if it were not for the fact that MacDumba$$ and his colleagues think those funds are ALL for them to do with as they wish. DROP the tax talk and make the Minister of FINANCE pay for his unchecked rampant spending, especailly on himself....He needs to be held personally accountabe for the mess he single handedly has created...It is not our problem to fix and we should not be punished for his crimes, not Caymanians nor Expats. The more he gets the more he will spend and you all know that so quit feeding his greed and hold him accountable for his incompetence. And then jail him for life.
so if the direct taxation was
so if the direct taxation was a last resort - why would he come out with it w/out consulting anyone?? Not even the police about the helicopter? It sounds to me he is scrambling and looking for excuses as he is at the end of his knowledge. Please get some sensible people into government who understand simple math and economics! And why has the "Casino Option' not come up as yet? no one in Cayman would have to suffer!!!! it creates employment, more tourists and tax income all at the same time. I know there are a few investors out there who would love to come in (before Cuba allows them to...) ... a win win situation in my opinion!!!
No DIrect taxes??? LOL
No DIrect taxes??? LOL
If you are lost in a Jungle
If you are lost in a Jungle the first step is to find North, if your family is in debt the first step is to find out how deep. Cayman needs to BALANCE THE BOOKS AND PRODUCE AUDITED ACCOUNTS. With a proper diagnonsis in hand we can move forward. Any other course is foolish. Like Columbus we do not know where we are, and sure as hell do not where we have been. Bush sure as hell has no clue where he is taking Cayman.
Columbus? Think you went to
Columbus? Think you went to my favorite Whitesnake song, "Here I go again".
This is becoming crazy and I
This is becoming crazy and I feel like I live in yoyo. When you think you've heard it all, there comes another curve ball right after and again & again. On the contrary, now mr. bush finds himself as a clown not only in the eyes of the world but specially with the UK after attaking the Governor in a language of bad taste while dividing all residents. I won't be surprised if the FCO and UK govt. refuse to cooperate with him anymore. How can anyone in their right mind believe what this man is saying .You are out of your league sir, and if you Love the Cayman Islands and it's people just step aside and realize that it's YOU that is the problem and as long as you keep opening your mouth before thinking you are doing all us a lot of damage. You are blinded by your power and I often wonder how you can sleep at night with all the ghosts in your closet. yes, I am Caymanian (bye) the way.
The bottom line is that the
The bottom line is that the UDP wants the status quo to continue. Caymanians pay for nothing, not even the fees required by law, while expats fund their entitlement.
There's nothing wrong with that, just admit it.
CNS is it true Dart has
CNS is it true Dart has brought CITN and Cayman Airways?
Thank you.
They are no where near that
They are no where near that dumb. A business that actually cost a lot of money to run and comes with a huge debt. Only a fool would have a business like that. Like CIG.
Well Evryone got what they
Well Evryone got what they wanted. NO INCOME TAX (which i was not in favor of either).
As of this morning due to the increase in WP fees, i have had to notify three of my staff that i will not be renewing thier permits. This does not just effect these three staff members but their families, the schools they attend, rental units etc...
All I can say is thank you to our Business advisors... whom i didn notice had no taxes on their businesses..
I have been sayig from the beginning Government need to look at themselves first, go out and collect all the out standing fees.
Then they need to look at the civil service, if they request a budget of 100 million give them only 80 million and make that work, even if salaries or layoffs have to happen.. this is all we can afford.... if these guys can't work with this well your FIRED!!!
I have had to make cuts in our business over the last few years, not give salary increases etc. Why can't the CS do the same?
I see on the blogs alot of great ideas and do not beleive i need to add any other solutions as it appears to go on deaf ears...
Yup. I've been told the same
Yup. I've been told the same thing. The cost of my work permit tripled last time around and now its going up again. My employer says he can't afford it and will not be renewing again. The lovely young Caymanian girl I am training into my role for when I was going to be rolled over will also have to go, because there's nobody else here to train her to do my job now that I will be leaving prematurely. The only good thing for her is through her own dedication and work ethic, she has picked up some valuable skills. I have offered to be her referee (and she will have an excellent reference), and I will do whatever I can to help her find new employment before I go. Young people like her don't deserve to end up unemployed. She is a human who had a contract too, but unfortunately in the private sector, unlike the CS, cuts will be made when money runs short, even if it goes against moral principles.
These are not sustainable
These are not sustainable revenue measures. They cannot be used to be the basis for further borrowing. The UK has no option but to reject this and require sustainable measures. This defiance cannot go on. I will be contacting my MP today.
Wait, someone explain
Wait, someone explain something to me. A few businesses who we didn't vote in as representatives of our country and the Premier is going to run with their suggestions? Is he out of his mind? First of all Work Permits were increased about 2 years ago? Didn't that cripple a few companies? Isn't that why the pension was suspended for two years? Is he going to get rid of pension now to help companies pay the increase in work permits? What is on his mind? Does he not see the effect this is going to happen to the country? What about the 100's of other businesses on the Island, don't they have a say in anything?
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