PPM suggests major term-limit changes

The People’s Progressive Movement executive wants to see significant changes in the term-limit policy to create a better solution for dealing with long-term residence of foreign workers. 

During his contribution to the budget debate last week, Leader of the Opposition Alden McLaughlin said the seven-year term limit – widely known as the rollover policy – succeeded in its objective of reducing the number of people who stayed in Cayman long enough to be granted security of tenure, while at the same time ensuring that those who did stay in Cayman long term received that security of tenure.  

“But the rollover policy has succeeded in its objective at considerable social and economic cost,” he said. “Eight years after it was introduced, there is still widespread dissatisfaction with its workings and its effect, both within the immigrant population who are subject to it, but also among Caymanian employers.” 

Mr. McLaughlin said there could be no doubt that the rollover policy does not encourage work permit holders to put down roots and actually discourages them from spending money in the local economy. 

“It also causes employers to lose good, experienced employees at the stage when they are at optimum value to their employer,” he said. “We believe that the time has come for the Cayman Islands to abandon the rollover policy in favour of a more business-friendly, socially-acceptable and equitable policy.” 

Mr. McLaughlin said the PPM was not suggesting that every work permit holder be able to stay in the Cayman Islands indefinitely. Instead, he said the party proposed a repeal of the provisions for seven-year term limits and for key employees. 

“In the place of these provisions, there should be a general provision, which provides that all persons on work permit are entitled to apply for permanent residence after they have lived in the Cayman Islands for eight years and that they must do so by year 10 if they wish to remain in the Cayman Islands beyond that point.” 

He said applications for permanent residence should continue to be considered and determined on a points-system basis. 

“Not everyone who applies for permanent residence can expect to be granted it,” he said. “But we should not set the bar for permanent residence so high that only professional and managerial persons can ever hope to achieve it. Nor should we set it so low that just about anyone will qualify.” 

Mr. McLaughlin said those who are granted permanent residence “must have the capacity to be good, contributing members of the Cayman society and have the meansto look after themselves”. 

Improved system 

By repealing the seven-year term limit and key employee provisions, a better, fairer system could be established, Mr. McLaughlin said. 

He noted that under the financial services directives issued by the present government, almost all lawyers, accountants and other important workers in the financial services industry are automatically designated key employees. 

“That’s fine as far as the financial services industry is concerned, but it’s a real injustice for everyone else.” 

By allowing any foreigner who works here for at least eight years to qualify to apply for permanent residency, he believes, the inequities of the current system would be addressed. 

Mr. McLaughlin said, in his opinion, getting a grant of permanent residence depends too much on the applicant’s assets. He would like to see a system that allowed people of all economic standing to be able to obtain permanent residence. However, investing in property and becoming involved in the community were still important qualifying factors. 

“People do need a demonstration of a level of commitment to the country,” he said. 

He notes that under the current system, many foreign workers have little or no hope of attaining the key employee designation, which affects the way they live and spend here. 

“When people come here on a seven-year term limit knowing full well they have no prospect of staying past that term, their community investment is likely to be much less than if they come here knowing they have a chance to stay if they wish and do the things necessary to get enough points [on the permanent residence application]. At least they have an opportunity and hope that they can meet the criteria.” 

Mr. McLaughlin believes his change in thinking has been a natural progression of having lived the legislation for more than seven years now. 

“Thinking evolves; circumstances change; experience teaches,” he said. “Only the foolish or the dead can’t change their minds and I’m not dead.” 

Controversy 

The rollover policy has remained a controversial law, favoured by some Caymanians and disliked by immigrants and business owners of all nationalities. 

Speaking about the issue after his budget debate, Mr. McLaughlin said there are a lot of laws passed that people don’t like. 

“For instance, no one likes to pay more taxes,” he said. “But usually, if you pass something like an increased fee, people will complain but the clamour eventually goes away.” 

More than seven years later, that hasn’t happened with the rollover policy, he noted. 

Mr. McLaughlin said he has spent a lot of time over the last few years thinking about how the term-limit system could be adjusted to improve it. 

“We can’t just revert to a laissez-faire system that hopes natural attrition and employer choice will limit the number of people that stay here,” he said.