The members of the Legislative Assembly from each political party have been saying the cost of living is too high and the people are suffering.
During downturns in the economy our governments (which were not political party governments) did the following among other things to help the lower and middle income families by reducing the cost of living:
a. We removed import duty on over 30 food items so their grocery bill was less and also we reduced import duty on motor vehicles.
b. We reduced import duty on gas and diesel, which caused electricity and water to cost less and car gas bills were lower.
c. We introduced the Government guaranteed mortgage scheme for Caymanians.
d. We introduced and / or increased poor aid relief , seamen’s and veterans allowances
e. We kept borrowings by government small – year 2000 Government debt and self financing (statutory authority) loans were only $107million, which was well within Caymanian’s budgets compared to the very high $453 million estimated for 2007/2008)
The PPM Government is blaming everyone else for causing a higher cost of living (and even bullying some sectors of the private sector) while the Government itself and the UDP’s earlier government are to blame for the escalating high cost of living.
1. In 2006/ 2007 the new PPM Government increased taxes and put on new taxes of a whopping total of $23.3 million, which pushed up the cost of living while the people were still hurting from Hurricane Ivan.
2. Water fees by Governments Water Authority increased and hospital fees are about to increase, which means that health insurance will increase, and again the poor civil servant and public are asked to pay more.
3. Government’s large borrowings of $130 million and spending spree mainly on construction will push up construction costs and other contractor prices for the person wishing to build his home or business. This situation causes the cost of living to spiral and increases inflation yet Government continues to wonder why it is going up.
4. For Government to borrow $130 million in one year (probably equal to several years of home mortgages) and more than the accumulated entire Government debt as at the year 2000, which was only $109million) will divert CI$ loan money, which would otherwise be available for mortgage loans and drive up the cost of mortgages to Caymanians. These massive borrowings will reduce mortgage money that the struggling Caymanian and resident could borrow making loans harder to get and interest rates to increase as interest rates are subject to supply and demand.
Caymanians are hurting. Electricity, interest rates and gas prices affect some Caymanians but do not affect many of the low income Caymanians who are in a much more serious need and may not have a home or a mortgage or a car. Food on their table to feed their children is what is important and the PPM and UDP governments are doing very little to help this serious situation, rather they are creating more economic hurt to the Cayman people.
Government needs to act now and not wait until it is closer to election time.
Truman Bodden
John McLean
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