Opposition calls for reduced duty on gas, higher stipends

Opposition leader Roy McTaggart has called on the government to respond to high inflation by helping the public with their utility bills, tackling gas prices and increasing the stipends for those entirely dependent on financial assistance.

In a statement, he said consumer price data showed that the cost of living in Cayman continued to rise “at an alarming rate”.

“Our people are struggling to cope with the reduced purchasing power of their dollars,” McTaggart said.

In the first quarter of this year, inflation in Cayman reached 11.2%, driven mainly by higher energy, utility and housing costs.

Government could help the public deal with higher prices with a range of measures, the opposition leader said.

This included “reducing the import duty on gasoline and diesel for six months and ensuring the savings are passed on by gas stations”.

Per gallon gas prices have surpassed CI$7 at some service stations in June, up from $5 per gallon at the beginning of the year.

McTaggart urged government to discuss with utility provider CUC the possibility of minimising increases in electricity costs and advising the government-owned Water Authority not to raise water rates for at least six months.

At the same time, government should speak with privately-owned Cayman Water, which supplies water to West Bay and the Seven Mile Beach areas “trying to persuade” the company not to increase water raise either.

Government announced last week it would set aside $5 million to assist families in need with the higher cost of electricity during the hottest months of the year – July, August and September.

Premier Wayne Panton said the planned programme would help some 22,000 households across all three islands. More details would be released this week.

Civil servants, meanwhile, will receive three monthly honorariums of $150 to help offset higher utility costs over the summer. This will be followed by a 2% cost of living adjustment to civil service salaries from September.

Taken together civil service salaries will be increased by 4.5% this year to account for the higher cost of living, Panton said.

The opposition leader welcomed the move but noted that most people in Cayman were not civil servants. Pensioners on a fixed income were among those most impacted by higher prices.

He said, “They are hurting especially hard, and some may have to choose whether to buy necessary medicine or to buy food because they can’t afford both.”

McTaggart argued government should therefore increase the stipend to seamen, veterans and those entirely dependent on financial assistance from government.

The payment of a monthly $1,500 stipend for tourism workers who lost their job during the pandemic should continue.