“Responsible Governance in Challenging Times”

ArchiveAug 22, 2012

16 min read

It puts checks on Government’s expenses and this in turn means that the private sector can price its goods and services to remain competitive; and
It reduces the need for external borrowing – which in turn reduces the debt burden on the public purse, and as such Government’s resources can then be more extensively utilized to provide services that the public needs.
the Dart projects;
ForCayman Investment Alliance;
enhancements to our Immigration policy;
the Narayana Cayman University Medical Center;
cargo dock to do trans-shipment;
the Dart agreement with new hotels and other commercial property developed;
a golf community development in North Side/East End;
a new 4-star hotel in the Bodden Town area;
a re-development for a cruise ship jetty at Cayman Turtle Farm to make it more tourism oriented;
numerous partnerships with the private sector in the building of condos and commercial development that is keeping the construction industry going; and
new gateways for CAL and other airlines to enhance tourism
Ministry of Education, Human Resources and Culture, some forty-four point two million dollars (CI$44.2 million), been spent on the John Gray and Clifton Hunter Campuses, Sunrise Adult Training Centre and other capital works and capital purchases.
Ministry of Health, Environment, Youth, Sports and Culture, one point six million dollars (CI$1.6 million) spent on the purchase of equity assets, plus write off of overseas medical debts for indigents and uninsured.
In the Portfolio of Internal and External Affairs, some two point nine million dollars (CI$2.9 million) was invested for crime suppression equipment and assets for use by the RCIPS.
Operating Revenues of $598 million;
Operating Expenditure of $576 million;
an Operating Surplus of $22 million;
Capital Expenditures and Investments in Public Entities of $83 million;
New Borrowings of $59 million; and
Operating Overdraft of $65 million for the period 1 July 2012 to 31 January 2013 and for it to revert to $25 million from 1 February 2013 to 30 June 2013.
Operating Revenues of $661.9 million;
Total Operating and Financing Expenses of $592.3 million;
Operating Surplus of $69.6 million;
Capital Expenditures and Investments in Public Entities of $56 million; and
No long-term Borrowing.
Increases in Fees charged to Directors for various regulated and unregulated entities under the Companies Law – this is forecast to earn approximately twenty-one point three million dollars ($21.3 million);
Increases in Fees charged to Exempted Limited Partnerships which is forecast to earn approximately thirteen million dollars ($13.0 million);
The introduction of new set of fees for Professional Directorships – this is forecast to earn approximately ten million dollars ($10.0 million);
Increases in Bank and Trust License fees – this is forecast to earn approximately nine point four million dollars ($9.4 million);
Increased Work Permit Fees – this is forecast to earn approximately six point three million dollars ($6.3 million); and
Increased annual registration fees for Exempt Companies – this is forecast to earn approximately five point two million dollars ($5.2 million).
Construction of two new high schools;
Completion of the Government Administration Building;
Construction and repairs to the Golden Age and Frances Bodden Homes;
Design and commencement of construction of the Drugs Task Force Marine Base;
Implementation of the work permit Biometric System and upgrades to 911 system;
Purchase and installation of CCTV cameras; and
Other minor works and the purchase of other assets such as vehicles and equipment used by the Police and Ministries, Portfolios and Offices in the delivery of their outputs.
Fifty-eight point three million dollars (CI$58.3 million) on the construction of the new government administration building;
Fourteen point two million dollars (CI$14.2 million) on construction and upgrade of road works on the three islands;
Resources are being added in the 2012-13 Budget for community boxing gyms in East End and West Bay. This has proven to be an outreach that is effective in teaching young men greater discipline, self-respect, and respect for others.
Two point one million dollars (CI$2.1 million) on the ongoing construction of a Cayman Brac emergency shelter;
Zero point seven million dollars (CI$0.7 million) on ramps and jetties including ongoing works on the Coe Wood Public Beach;
One point two million dollars (CI$1.2 million) for commencement work on the Juvenile Remand Facility; and
Eleven point seven million dollars (CI$11.7 million) for the purchase/construction of other executive assets such as works at the landfills, playfields and public facilities, agricultural facility, cemetery vaults and improvements to the central business district.
Increasing the number of signed Tax Information Exchange Agreements (TIEAs) between the Cayman Islands and other Countries from 8 as of 1 April 2009 to 27 at present. This resulted in the Cayman Islands being once again returned to the OECD’s “white list”. This was a critically important achievement in order to protect our Financial Services Sector – a key pillar in our local economy;
With a steady hand at the wheel and prudent fiscal management, the Cayman Islands retained its coveted Aa3 rating by Moody’s even as other countries experienced downgrades. This again was another key accomplishment in preserving favorable interest rates and access to Capital;
For years, the country bemoaned the lack of timely annual accounts. Under my leadership, the Government prepared and submitted a complete set of annual accounts in 2011 by the legal deadline established in the Public Management and Finance Law. This was the first time that such an achievement occurred since the introduction of the Public Management and Finance Law in 2004;
The Government had a successful bond issue in November 2009 which was several times oversubscribed. This allowed us to amalgamate certain long-term debts into a single bond at a favorable interest rate and was part of a wider debt strategy for fiscal sustainability;
I inherited a fiscal position where Government’s finances ended the 2008/9 fiscal year with an $81.0 million Entire Public Sector deficit. Within two fiscal years, that result was turned around into an unaudited surplus and our current budgetary plans will feature an even greater surplus of eighty-one point nine five million dollars (CI$81.95 million) for the 2012/13 fiscal year;
I have been a staunch defender of our Financial Services Sector and have ensured a presence at the negotiating table whenever discussions or threats presented themselves. This afforded the Cayman Islands an opportunity for robust engagement and to also ensure that measures with potentially adverse impacts on our jurisdiction was effectively mitigated. Such efforts have resulted in the Cayman Islands taking the top spot in the second quarter of 2012 as the most popular offshore business destination for investors;
Under my leadership, the good ship Cayman has been sailing the turbulent financial seas to calmer waters; we have faced the storms of proposals from previous FCO administrators for direct taxation on property, income and value added tax (VAT); and we’ve overcome those obstacles by rejecting them while keeping our finances afloat;
Each government has a 4-year term. The Government had to borrow during the first two years of our administration as we inherited substantially incomplete capital projects that were started by the PPM government and for which there were insufficient revenues to support capital payments. My government has since worked hard and I am pleased to say that, again under my stewardship, the Government incurred no long-term borrowing in 2011/12 and will not be incurring any long-term borrowing in 2012/13;
Last year, our GDP grew by 1.1% signaling the start of a turnaround from the contraction which began in 2008. Achieving growth in this global economic environment is no easy feat; the key drivers for this growth were increased demand in our stay-over tourism services and our financial services sector – both of which fall under my responsibility as a Minister of Cabinet; and
Finally, after much hard work, long nights and marathon negotiation sessions, we have now prepared a fiscal trajectory that places the Cayman Islands on a path whereby in 4 years time, we will have cash reserves of just over $200 million, compliance with all debt ratios (ones which are even more onerous than those which existed during the previous PPM administration), one where no borrowing will be required during that period and will result in our current debt stock being reduced by a further $100 million. I believe that is a fiscal path that any Minister of Finance can rightfully be proud of and it is something that I have worked hard to achieve.
The Economics and Statistics Office will continue to upgrade economic statistics, as well as the social indicators vital to socio-economic development planning; and
The Internal Audit Unit will facilitate the establishment of an Audit Committee, which will provide independent assurance and advice to the Minister of Finance on the quality of compliance, governance, and internal controls including risk management.

A hard-working, forward-looking young Caymanian Director was appointed after Acting for 4 years, which has seen 3 years of positive performance. In addition, the head office team has gone from 72% to 94% Caymanians].
At the end of 2011, visitor arrivals were up for 26 of the preceding 28 months. We were one of only 3 Caribbean destinations to have that positive trend (up by 6% at the end of 2010; up by 7% at the end of 2011).
These are our best stay-over visitor arrivals in 10 years, and 2012 is on track to again feature record numbers.
This is due in part to the excellent synergies being developed between the Department of Tourism and Cayman Airways Limited, along with the other airlines providing air lift: we opened new Service from 5 cities via different airlines, in the past 3 years.
Much has been done also to consolidate the relationships with private sector partners, and to work with them on keeping up standards of guest accommodation, and services.

construction of 16 Affordable Homes
construction of the Brac Hurricane Shelter, and the new Emergency Facility
continued marketing of the Sister Islands as a prime destination for tourists and investors

We will continue our drive towards the attainment of a world-class education system in the Cayman Islands, building on an impressive track record of critical improvements that have been made in the past three years.
We will build on the establishment of the new National Workforce Development Agency to deliver services that will support work readiness and job placements for Caymanians actively seeking employment or career progression. Through this new agency we will also establish, for the first time, a national workforce development and training agenda.
Recognising that this objective will only be achieved in a well-regulated jurisdiction, we will build upon the establishment of the new Department of Labour and Pensions to provide more effective and efficient mechanisms for managing compliance and enforcement in both pensions and labour matters.
We will further develop the Public Library Service and National Archive, as partners in the Ministry’s human capital development agenda, making more strategic use of the programmes and resources these agencies can provide for personal enrichment, enjoyment and education.

The Ministry will introduce the “Teach Cayman” programme, to deliver high quality local initial teacher education and leadership training in partnership with our University College and higher education institutions overseas, and a mentorship programme for newly qualified Caymanian teachers.
Work is underway to ensure that a comprehensive framework will be in place for education, to legislate for the many improvements that have occurred in education, and for those still to come, during the next financial year.
Over the past three years, through the Ministry’s literacy strategy, there have been significant improvements in English passes at Year 12. Last year interventions such as the ‘leveled literacy’ and ‘corrective reading’ and ‘catch up literacy’ programmes were implemented to tackle underachievement at primary. These efforts will continue. In 2012/2103 the Ministry will aggressively tackle the issues of chronic underachievement in mathematics within our schools, with the introduction of a new mathematics strategy. The strategy will focus on students achieving the basic skills early within their school careers, and will build on the ‘leadership in primary mathematics programme’ introduced last year, to develop capacity within the education system to coach and promote best practice. Alongside this they will be implementing a suite of interventions to improve the teaching and learning of mathematics, most notably the ‘Maths Recovery’ programme for those students at Primary who struggle the most in this subject.
This Government recognises that there is an ongoing need to provide our children with high quality learning environments. We are pleased to advise that four new primary school facilities at Sir John A Cumber Primary, George Town Primary, Savannah Primary and Bodden Town Primary will be opened for the start of school. These new classroom blocks, delivered in a fiscally responsible manner, will deliver state of the art facilities to provide critical improvements to our aging, primary plant. They will provide much needed additional spaces for growing enrollment and staff needs, allow us to reintroduce Reception classes at these schools, and to discontinue the use of temporary classrooms.
I am also pleased to announce to the country that this Government will deliver the new Clifton Hunter High School at Frank Sound for the new academic year. This is an important milestone for my Government and this country, as the investment required for these schools, at around $100 million each, is sobering and long-term. I would like to thank the Minister and his team for their perseverance over the past three years to surmount the many challenges they inherited with these projects, to bring us to this stage.
My Government’s position on the flagrantly extravagant and costly design of the new high schools by the previous administration is well established – we could have gotten world-class facilities, with space for our growing enrollments, without financially crippling our country. However, I trust I can be equally clear on the need for new secondary facilities. I am proud to be in a position to say that this Government will deliver a new school in September, and that the Ministry is working to ensure that these facilities will benefit children from all our districts, for example as a centre for our successful extended secondary afterschool programme for both Clifton Hunter and John Gray students, and by developing and using the performance arts building as a central resource for the development of arts, drama and music for both secondary and primary schools.
This Government’s commitment to supporting the performing arts also extends to our Sister Islands. This year, an additional $50,000 has been budgeted to support the development of music in Cayman Brac.
This government has continued to work closely with the parents, teachers and administrators and other stakeholders on Cayman Brac to prepare of introduction of a five year high school and Year 12 programme in 2013. A pilot dual entry programme has started already with one student taking classes at both the Layman Scott High School and UCCI. The Year 12 programme will be finalized after further consultations this year, to provide a bespoke product for Cayman Brac, focusing on the local needs whilst ensuring students are prepared for the wider world within their chosen careers.
We need no reminder of the ever present need for our school leavers to be as effectively prepared as possible for the challenges of life and work. In 2012/2013 this Government, through the Ministry of Education, Training & Employment will further develop the careers service at the CI Further Education Centre (CIFEC), which was established last year, to incorporate components of our highly successful Passport to Success programme, and the new Work Keys programme for work readiness assessment and education to ensure all our students are adequately prepared for the next stages of their careers.
In terms of the Technical and Vocational Education and Training (TVET), in 2012/2013 there will be an expansion of TVET offerings at the Cayman Islands Further Education Centre (CIFEC) to include accredited courses in cosmetology, construction, catering and work skills. Provision for CIFEC will be substantially enhanced by their move to the old John Gray site, enabling access to substantially more learning spaces, including a library, workshops and IT equipment.
Beyond TVET offerings at CIFEC, this Government remains committed to expanding on successful training programmes currently running in local businesses and will seek further development of partnerships between schools and employers to enable apprenticeship programmes. Work is well underway to establish apprenticeship programmes in areas such as construction and motor vehicle studies and cosmetology.
The Minister for Education is to be congratulated on the many critical advancements that he has championed in the area of early childhood care and education in such a short space of time. Improvements in this area is a key priority area for my government, and a long-term investment in our children’s and country’s future. The Ministry will now finalise the new Cayman Islands Early Years Curriculum Framework. The draft document has been produced and the Early Childhood Care and Education Unit within the Ministry has consulted with the stakeholders; trained the practitioners to use this document in practice and supported the centres through visits and individual professional development opportunities.
In September this year, Reception will be reintroduced at three more of our government schools: Sir John A Cumber Primary in West Bay and Savannah Primary and Bodden Town Primary schools. These 9 new Reception classes means that over 200 more children and over 200 more Caymanian families than last year will benefit from access to one year of free, quality education prior to the start of compulsory schooling for their children. This has been made possible as a result of the additional space provided by the new classroom blocks at these schools and the government’s prioritization of the additional funding required for this critical initiative.
The Ministry will also raise the age of entry for compulsory schooling to age 5, to ensure that our children are more ready developmentally to meet the demands of our school system and curriculum, bringing our country more in line with international best practice.
The Ministry of Education is finalising preparations for the implementation of a National Strategy for Safer Schools. The Strategy provides a vision and a set of guiding principles to develop safe, supportive and respectful learning environments throughout the Cayman Islands that promote inclusion, intervention and student wellbeing. It identifies five goals that will assist Caymanian schools in creating learning environments where all members of the school community feel and are safe from aggression, violence and bullying. It also responds to new and emerging challenges for school communities such as the misuse of drugs, sexual misconduct, internet safety, cyber bullying and community concerns about gang-related activities and weapons.
The National Workforce Development Agency will establish a national work readiness programme, to address barriers to employment and career progression. It will work to identify skills deficits and personal challenges that may exist, ensure that these are effectively assessed and then put relevant remediation strategies in place. This is not the old process of simply sending someone for a job interview on a wing and a prayer, with fingers-crossed and little other reassurance that they even have a fighting chance of getting the position. That was a demoralizing experience, where we often set people up for failure.
The National Workforce Development Agency will also develop specific programmes to target marginalized groups and to provide assistance to these priority groups in overcoming their specific barriers to employment. Interventions of this sort by my Government already have a proven track record with its highly successful Passport2Success programme.
The National Workforce Development Agency will work with employers to provide them with access to suitably skilled and qualified job-seekers in a timely fashion. This will require a number of enhancements to the old job placement process, including the generation of data on the availability of qualified Caymanians that is fit for purpose, accurate, reliable and up-to-date, the establishment of a system which effectively pre-screens job-seekers for vacant positions, so as to provide employers with appropriate referrals and the introduction of on-line access for the posting vacancies for employers and of résumés for employees.
Through the National Workforce Development Agency that the Ministry of Education, Training and Employment will also seek to provide fresh impetus in the area of technical and vocational education and training. To this end, the Agency will be responsible for the implementation of a new national Technical and Vocational Education and Training strategy, which will be managed in partnership with the private sector and quality education and training institutions.
Allied to these Technical and Vocational Education and Training initiatives, the National Workforce Development Agency will establish and develop a Quality Assurance Framework for Training and Development in the Cayman Islands. This will encompass the registration of training institutions and training providers and the introduction of a register of training programmes.
commencement of the Children Law 2003 for the 1st July 2012;
reorganization of the CAYS Foundation;
development of a framework for youth rehabilitation including suggested changes to the relevant laws;
completion for the Foundation for the Cayman Islands Youth Center;
redevelopment of the Windsor Park Affordable Housing site;
completion of the suggested changes to the Adoption Law – which will be presented to Cabinet over the next few weeks;
passing of the Gender Equality Bill and the establishment of the Gender Equality Tribunal; and
development of a website for the Gender Equality Law

Published August 22, 2012