The government would do whatever possible to deal with the high cost of living, Leader of Government Business Kurt Tibbetts told the Legislative Assembly.
Making his winding up contribution to the Throne Speech and Budget address debate on Tuesday, Mr. Tibbetts said increases in prices were pressing on the minds of the public, and if legislation would help, the government would legislate.
Mr. Tibbetts gave figures from the Economics and Statistics Office which showed that in June this year the average home insurance cost was $21 and in September it went down to $20. It was $20 in March this year, before the elections, and was under $9 just before Hurricane Ivan last year, he said.
It had to be understood that insurance rates were not something that legislation could dictate, he explained.
The government was however in discussions with the providers and would make all attempts to see that all avenues were explored so the best rates could be found, he said.
Mr. Tibbetts said that in June, average fuel prices were at $3.70 per gallon and in September it was $3.86. The price was $3.46 in March and $3.26 in September last year.
Cayman was an importer of fuel and so prices at the pumps would be determined by trends in the crude oil market, said Mr. Tibbetts.
The two oil companies had been here for an extended period of time, had licences and engaged in both wholesale and retail business, he said.
The licences became due in 2011 but it made no sense to wait to start talks with the companies or they would use the same ‘trick’ as last time and threaten to pull out at the last minute, he said.
The government did intend to speak to the companies shortly and would say they had to understand they should not expect to acquire all sorts of licences.
Mr. Tibbetts said there was a pipeline between the two companies and that on some occasions the petrol was the same under both brand names.
He felt that was the perfect scenario for collusion and he said the government would have to develop ways to deal with things in a way that would benefit the consumer.
Electricity rates
On electricity rates, which, said Mr. Tibbetts, were affected by the fuel prices, he quoted figures for the cost of 200kw hours at $55 in June, a little over that in September, $46 in March and $43 last December.
The rates were high, consumers were hurting and the government would be working hard on the problem in the best interests of the country, Mr. Tibbetts told the House.
When negotiations resumed with CUC the public would be kept informed.
Turning to other matters, Mr. Tibbetts said legislation was on the way for the registering of builders and others.
He said it was obvious that certain tradesmen and craftsmen had to be licensed because many were saying they were skilled, short changing the public and not giving the public what they wanted.
He said the government could proceed with plans for new government office accommodation.
There was $8 million allocated for lease arrangements at present and that would be paid out every year until they did have their own accommodation.
Making his closing remarks to the debate, Financial Secretary Kenneth Jefferson said when a Cayman delegation recently visited London, the UK’s Foreign and Commonwealth Office told them that if there was a good business case, they would look favourably on approving the project, which would mean exceeding the present borrowing levels.
He said the FCO had been told the government was presently paying a high rent for the accommodation and that it was a good business case to use money so the government could have its own accommodation.
Mr. Jefferson told the House he had every confidence that the projected revenue forecast in the budget would be realised.
Projections were realistic and there were no new significant revenue measures, he added.
The House was adjourned until the conclusion of Finance Committee business.
Mr. Tibbetts
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