It seems the easiest way out of our problems is to sell, sell, sell. Often we find in life the short cut is only temporary. We need to have a proper plan with a long-term solution.
All government-owned companies and statutory authorities should be overhauled by our leading accounting firms – for solutions. Can they bring in revenue? How much? Or they should be combined or made redundant or sold? Where can we increase our revenue or cut expenditure? This cannot be done by outside consultation. The auditor general repeatedly states that our accounts are not up to date.
The civil service is an important key. What happens if mass numbers suddenly are unemployed? They need to be employed and the private sector cannot absorb them; our unemployment numbers are already too high.
We must look at our expenditure and revenue structure.
License fees (revenue)
We can no longer allow a Manager’s License to cover up to 50 companies and pay government a little over $30,000 a year. This is approximately US$60 per company per year (if this is correct).
Revenue should be a scaled fee as to capital – one shoe does not fit everyone. According to published reports, Cayman attracted US$13.5 billion in the third quarter of 2013, e.g., changing hands, $1.9 billion, $1.8 billion and $1.6 billion, along with 137 other companies, totaling 140 companies for the quarter.
How much did our government collect in fees?
Government should be monitoring the salaries they are paying to monitor the offshore businesses, e.g., a United States senator is paid approximately US$174,000 per year. What is our top salary?
We often hear that government receives 52 percent of its revenue from offshore businesses, but we conveniently never hear how much it is costing our government. It’s no use being the fifth-, seventh- or 10th-largest financial center in the world while our country is drowning in debt. Suddenly, our country seems like it is Third Word, unemployment is rampant, businesses are closing and crime is rising.
The time to act is now!
Do you think we will remain one of the largest financial centers in the world? Personally, I don’t think so, at the rate we are going.
We all need to get on board – Caymanians and expats.
Here is a solution. I believe this country has been exceptionally good to all offshore businesses. Cayman has attracted some of the smartest people in the world. Our business environment is among the best in the world. Unfortunately, we have failed to raise the revenue bar, and now we are in debt. We need to change the way we collect revenue if we are to survive and remain as an attractive financial center, instead of becoming a Third World country. We are all in this boat together!
Cabinet needs to make a decision to change the banking licenses to, e.g., 0.0006 percent fee on all wire transfers, cash deposits and electronic transfers, paid monthly into a special revenue account, collected by CIMA and dispersed by percentages to allocated government portfolios.
This is not direct taxation. Banks are already adding a stamp duty – why not on all transactions, including in the offshore banking sector? By doing this, our government would have a healthy monthly revenue stream.
A minimum of 5 percent of this revenue collected each month should be used to market the Cayman Islands as a financial center and a tourism destination.
Reduce all other license fees by 50 percent.
Remove duty from food items – monitored by Customs Department (the present profit structure of these companies to remain as is). Twenty percent can be taken off the point of purchase. Also, remove duty from gas and diesel and when purchasing at the pumps, get 20 percent off. The present charges on CUC and water will now be discounted. This will bring down the cost of living in Cayman by 20-25 percent. All other government revenue measures remain the same.
With these things in place, the Cayman government now has money to pay down the debt.
Clifton Hunter
At Clifton Hunter School, the days should start at 7 a.m. to 1 p.m. for the present students, and from 2 p.m. to 11 p.m., the school should be on a long-term lease to a well-known university (e.g. Yale or Harvard).
This would take care of the loan payment and Caymanians would have an opportunity to acquire a great education here in their homeland and also attract overseas students.
Education is the key to our future.
Unemployment/Immigration
Business licenses are renewed in Jan. 2, 2015. Cabinet should come together and agree that all Caymanian companies, offshore, including CEC, must employ a minimum of 12 percent Caymanians in their company.
To get your business licenses renewal approved, the company should, with their application, submit names, addresses, telephone numbers and email addresses of the Caymanians employed and this should be verified by the Immigration Department by contacting the persons listed as employees to verify their employment prior to the license being renewed.
Tourism
Starting 2015 to 2023 for the next eight years, government should take a minimum of $2.5 million from the budget for tourism and build boutique resorts of a minimum 70 rooms in the eastern districts, Cayman Brac, Little Cayman and West Bay. Look for 50 percent Caymanian participation and market this product with Cayman Airways as a “special package,” which would include airfare.
Offer all purchasers of this “special package” a 10 percent discount at all companies/stores participating, i.e., duty free, restaurants, water sports rentals, tour operators, car rentals, etc.
This will be instrumental in improving the economy in all these districts. In less than eight years, government should not have to subsidize Cayman Airways. The airline should flourish with new attractive island-friendly accommodation, if supported with the proper marketing and promotion through our Tourism Department.
Expats and Caymanians, we must not sell our assets. Our forefathers worked very hard to put this “nest egg” together. What will our future generations say of us?
We have much going for us. Look at where we have climbed in the financial world over the years. We need to be accountable. For every debit, we must have a corresponding credit. We have to change our course and put Cayman back on a solid footing, so that everyone benefits.
To our legislators, civil service, expats and all Caymanians, we need to pull up our boots, work together (as we did after Hurricane Ivan), be accountable, and get Cayman back on a profitable track. We can, we should – it is our duty.
To our legislators in whose hands the issues are now, we respectfully implore you to not make any hasty decisions to sell our assets. Who gains?
We trust that God will give you the wisdom, faith and courage to make the right decision. God bless you and may God bless these beloved Cayman Islands we call home.
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