Jumping on a somewhat vague statement by Premier Alden McLaughlin, the Cayman Islands Chamber of Commerce has proposed a number of ways to reduce operating costs for local small businesses.
Mr. McLaughlin said last month at the Cayman Economic Outlook conference that his administration intended to propose a “range of measures” in the upcoming government budget aimed at lowering operating costs for smaller companies.
Chamber members asked the government late last week to consider implementing a number of cost-cutting measures, to be implemented between June of this year and December 2016.
Those reductions, the Chamber said, should apply only to small or micro businesses, as they are classified by the government’s Department of Commerce and Investment. To qualify, those businesses should be fully compliant with pension and health insurance payments and also must have paid all fees due to government.
The “small business relief package” proposed by the Chamber includes the following incentives:
- A 30 percent reduction in trade and business licensing fees.
- A 7.5 percent cut in all current import duties.
- A 25 percent concession on customs duties for small business start ups only.
- A 30 percent cut on customs duties for small businesses that introduce “alternative energy solutions.”
- A 25 percent reduction in all work permit fees and a 50 percent discount in those fees for part time staff. The 25 percent reduction in fees would apply to managerial positions.
The Chamber has also proposed that government reimburse the organization for training and development courses and develop a small business mentoring program.
Another suggestion included the potential for government to establish a mechanism for local small businesses to “get better access” to large public sector development projects.
Chamber President Johann Moxam wrote in a letter sent to Commerce Minister Wayne Panton that small local businesses are feeling the pinch of increasing fees more than most.
“Business costs are being driven mainly by high labor expenses, specifically work permit fees, government fees and fuel,” Mr. Moxam stated. “The escalating costs of health and property insurance are also high on the list of small business concerns.”
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