2020/2021
Strategic Policy Statement

“Delivering
Government’s Priorities”

By Premier Hon. Alden McLaughlin, MBE, JP, MLA

12 April, 2019

Mr.
Speaker, the Honourable Minister of Finance and Economic Development
earlier today laid on the table of this Honourable House, and spoke
to, this Government’s 2020/2022 Strategic Policy Statement.

Mr.
Speaker, with your permission, I will read from that statement the
summary of economic and fiscal forecasts:

The
2020 Strategic Policy Statement (“SPS”) provides medium term
economic and financial forecasts for the Government for the next
three financial years covering the period 1 January 2020 to 31
December 2022 along with the Government’s Broad Strategic Outcomes
which will guide the development and implementation of Government
Policy during this period.

In
addition, the SPS sets the parameters for the preparation of the
detailed 2020 and 2021 Budgets and provides the operating expenditure
and capital investment targets to be achieved by each Ministry,
Portfolio and Office over the next three financial years.

Mr.
Speaker, overall economic growth in the Cayman Islands is forecasted
to increase at a steady rate over the medium term. Economic growth
as measured by changes in the Gross Domestic Product is forecasted to
grow by 2.8% in 2019, 2.2% in 2020, 2.1% in 2021 and 2.0% in 2022.

The
Consumer Price Index which measures the change in retail prices is
also expected to increase by 2.7% in 2019 followed by increases of
2.2% per year in 2020, 2021 and 2022. These forecasted changes are
primarily driven by forecasts in the United States a principal market
from which the Cayman Islands imports its consumer products.

Mr.
Speaker, the Government remains committed to a fiscal strategy that
is centred on the following key principles, compliance with the
principles of responsible financial management, in particular
achieving substantial surpluses each year, no new fees or taxes
levied on the public and no new borrowing.

The
2020 SPS builds on the central guiding fiscal policy objective for
the management of the Government’s finances over the forecast
period.

Growth
in revenue is driven primarily by increased demand for goods and
services as all sectors in the local economy are projected to expand
during the forecast period. The Government also anticipates
transferring a total of $74.3 million to General Revenues from
various trust accounts whose holding period is scheduled to mature
during the SPS period.

The
total operating expenditure targets for the Core Government for each
of the next three financial years have been set at $734.2 million for
2020; $741.7 million for 2021 and $746.8 million for 2022.

This
expenditure will be used over the next three years to fund the
following key priorities:

• Ministry
  of Human Resources, Immigration & Community Affairs - Improving
  safety and security through enhanced community policing; improving
  security of our borders; delivering better management of labour
  markets; implementation of the immediate priorities in the Older
  Persons’ Policy; and social assistance programme reform.
  
  
• New
  Ministry of International Trade, Investments, Aviation and Maritime
  Affairs – Establishing a new ministry to foster international
  relations and promote foreign investment in these Islands.
  
  
• Ministry
  of District Administration, Tourism and Transport – Enhancing
  tourism marketing to high value source markets; continuing service
  by Cayman Airways to strategic tourism markets; and the continued
  implementation of the National Tourism Plan.
  
  
• Ministry
  of Finance and Economic Development – Increasing funding to the
  Cayman Islands National Insurance Company for the continued
  provision of health insurance services to its clients.
  
  
• Ministry
  of Financial Services and Home Affairs – Enhancing the Financial
  Services policy functions of the Ministry and the regulatory
  services provided by the Cayman Islands Monetary Authority in
  response to recent international regulatory changes; and building
  capacity in the Cayman Islands Fire Services and the Prison Service.
  
  
  
• Ministry
  of Commerce, Planning and Infrastructure – Continuing to develop
  and implement Information Technology services including improved
  cyber-security and E-Government initiatives; and the continuation of
  the George Town revitalisation project.
  
  
• Ministry
  of Education, Youth, Sports, Agriculture and Lands – Continuing
  enhancement of teaching and learning in schools with a focus on
  increasing the use of online and computerised testing; strengthening
  core curriculum across primary and secondary schools; funding for
  scholarships for advanced, specialised tertiary education – such
  as Medical and Special Education Needs; and supporting and promoting
  growth in the agriculture sector.
  
  
• Ministry
  of Health, Environment, Culture and Housing – Implementing the new
  Integrated Solid Waste Management System and the commencement of
  operations of the new Long Term Residential Mental Health Facility.
  
  

The
total capital expenditure target for the Core Government over the
next three financial years has been set at $383.4 million to address
critical investment in areas such as education facilities, road
infrastructure, solid waste management, improvements to public safety
facilities and continued support of Statutory Authorities and
Government owned Companies (SAGCs). The Government is forecasted to
maintain year-end cash balances averaging $282.2 million over the SPS
period and full-compliance with the Principles of Responsible
Financial Management. The Government does not intend to incur any new
borrowings and plans to fund all of its operating expenditure and
capital investments from cash generated from its operations.

I
confess, Mr. Speaker, that as I rise today I find myself somewhat
reflective, for this will be the last time that I am called upon as
the Premier of these Cayman Islands to move the motion for adoption
of the Government’s Strategic Policy Statement.

It
is also recognition that I have just two years left to get as much
done for my country in this role as I am able to do. So these next
two years will not be a gentle wind-down, but rather a ramping up of
delivery as my Government looks to push on further and achieve even
more for our people.

Yet
inevitably, this last Strategic Policy Statement does lead me to
reflect on how different, indeed how much better, a place our Islands
are in now compared to when I rose to make my first such speech six
years ago following the 2013 elections.

Following
those elections, as we formed the Government, we understood full well
what Winston Churchill meant when he said, “the problems of victory
are more agreeable than those of defeat but they are no less
difficult’.

Everyone
here will remember that at that time, Cayman was struggling to pull
itself out of the last major recession. And so we knew that whoever
won that 2013 election would face real challenges.

Certainly,
the recession had taken its toll on our economy and the jobs market.
Growth had virtually stagnated and the overall GDP of the Cayman
Islands was still lower than it had been before the impact of the
recession. Caymanian unemployment had continued to rise, reaching a
high of 10.5% in 2012.

Consequently,
Government finances were hit hard as revenues fell just at the time
when the need for counter-cyclical government spending was
increasing. Inevitably, Government deficits followed and public
sector debt ran to a peak of over $613m.

Against
that background, Mr. Speaker, when I gave my very first policy
address to this House on 7th October, 2013, I set out both what I
believed the task of the Government was and the approach we would
adopt:

Quote
- “In May this year the people of this country entrusted the
Progressives to form a government to get this country back on course.
As Leader I have striven from the very outset to honour that trust by
forming as inclusive a government as possible.” End Quote

In
the last six years we have indeed put the country back on course and
across two successive Administrations I have kept true to that
inclusive approach. As a result, what a very different position our
country finds itself in. The economy has grown steadily. The latest
figures from the Economics and Statistics Office show annualized GDP
growth at 3.6% in the third quarter of last year.

Caymanian
unemployment has plummeted. When the Fall 2018 Labour Force Survey is
completed and released it will show that Caymanian unemployment has
better than halved to 4.6% from that peak of 10.5% before we took
office. This is the lowest level of Caymanian unemployment in more
than a decade – a tremendous achievement by any standard. But this
is not a singular achievement; there is more. Government continues to
generate significant surpluses. My two Administrations have generated
a total operating surplus of some $700m and we have managed to reduce
Government debt to under $420m, having repaid over $150m since 2013.
And we will substantially reduce this further before the end of this
term.

All
this has not just happened by accident. It is the product of this
Government’s willingness to support and work with the private
sector to achieve sustainable growth. It is the product of this
Government’s determination to see that Caymanians are able to
benefit from that growth through accessing jobs and opportunities.
And, Mr. Speaker, it is the product of this Government’s sensible
and prudent stewardship of the nation’s finances, including
rebuilding surpluses and repaying debt.

However,
I believe that as eye-catching as those headlines are, it is behind
the numbers that the real achievements of this Government lie.
Economic growth and sound government finances count for little if we
cannot harness those things to make a difference in our country and
to improve the lives of Caymanians.

The
test is whether this Government is delivering on the promises we made
to our people and against that yardstick we have a proven and growing
track record of success. Taken together, what we have already
achieved and what I am confident we can go on to put in place in the
next two years will represent a record that everyone on these benches
can be proud to put before the people who voted us into office.

I
have repeatedly made the point, in this House and beyond, that
success in driving economic growth is a pre-condition for everything
else that an elected government wishes to do.

Support
for our two pillar industries – financial services and tourism –
has therefore underpinned the Government’s economic strategy. In
both respects, we have been successful.

In
financial services, despite the upheavals of the last recession and
more recently the seemingly endless compliance initiatives and the
endless assaults from those working to undermine our jurisdiction,
the Cayman Islands remains the international financial services
centre of choice across a range of key markets. This is the direct
result of Cayman’s approach in balancing its open-for-business
attitude with fair and proportionate regulation coupled with world
class, legal, accounting, and asset management professionals.

This
Government has continued to develop our legislative and regulatory
frameworks to meet global standards, most recently with the passing
in this House before Christmas of the economic substance legislation.

We
have also been willing to go the extra mile – or thousands of extra
miles actually – to take the political arguments to the European
Union and elsewhere in support of our Financial Services Industry. I
must acknowledge the work of the Minister for Financial Services and
the team in her Ministry for the tremendous effort they have put in
over the last 18 months in particular in making the case for Cayman.

The
fact that Cayman has yet again avoided any kind of blacklisting by
the EU is, in no small measure, the direct result of the efforts that
the Minister and I, supported by the Ministry staff and the Hon.
Attorney General, have made in taking Cayman’s case directly to the
capitals of Europe.

And
I have to again acknowledge the tremendous contribution made by our
private sector financial services partners who worked long hours to
help us fine tune the legislation on economic substance.

We
have more to do as the goalposts continue to move – but this is no
surprise. The EU has now added a requirement that Cayman should
address an apparent need to give appropriate economic substance to
collective investment vehicles or, more simply put, funds.

I
say “apparent need” because the EU has yet to make it clear why
the thousands of funds based in Cayman should be required to be given
economic substance when that is not a requirement for funds anywhere
else in the world. Nor indeed have they been able to articulate quite
what that requirement actually means; nor how it might be achieved.
Nonetheless, we will continue to engage with the EU and work with the
industry here to devise a way forward so long as that is practical
and is an accepted global standard.

As
well as the EU, we have the Financial Action Task Force’s report,
released last month, to deal with. We have fallen short of changing
requirements as, for the first time, the inspection considered not
just the legislative regime in place but the effectiveness of its
implementation.

There
are those who would say that it is because of our significance as a
Financial Services Centre that the bar is higher for us. However,
even if there is truth in this, I believe that the report’s
recommendations will help to strengthen our jurisdiction. I have said
before that Cayman does not need or want illegitimate business and we
stand ready to do all that we can to resist any attempts at using our
Financial Services Industry for money laundering, terrorist financing
or other illegal purposes.

With
much work still to do, the Government’s SPS and budgetary planning
and our legislative timetable both reflect our determination to
support our Financial Services Industry and to defend our position.

Our
Tourism Industry also continues to thrive. Last year Cayman welcomed
nearly 2.4 million visitors; the highest number in our history. The
number of stay-over visitors broke previous records and cruise
visitor numbers would have also seen a record year but for bad
weather in December that prevented 12 ships from stopping here.

This
success is the result of a lot of hard work. The Minister for Tourism
and his team have a marketing approach that is the envy of the region
and the House will no doubt want to join me in recognising the
success they bring to Cayman.

Perhaps
one of the most tangible expressions of the Government’s support
for the industry is the new airport terminal. For years, Mr. Speaker,
the airport had been creaking at the seams. This Government has
finally delivered the modernisation for which our country was crying
out.

No
sooner has the Prince of Wales opened the new airport terminal than
we are turning our attention to the next phase of the airport master
plan – runway and other improvements that enhance efficiency and
safety.

And
so, we continue to support the development of our tourism product,
whether through private sector projects, new air routes, or
government sponsored infrastructure.

Hotel
projects in the pipeline, and the new air links, such as the Denver
route recently opened by Cayman Airways, will continue to expand our
stay-over visitor business.

And
I must add that I appreciate the efforts of Cayman Airways in
maintaining this important new route despite the unexpected and
immense challenges posed by the grounding of the Boeing 737 Max 8
aircraft.

The
new cruise and enhanced cargo port when built – and it will be
built – will secure our vital cruise industry for decades and
create jobs and business opportunities for Caymanians. It will also
enable the country to develop needed cargo handling capacity that
means we can import the goods we need to serve an increasing
population; potentially at lower prices.

All
of these major initiatives are important to our success and this
Government will see them through.

The
results of all of this must be tangible benefits for Caymanians. To
illustrate how our approach delivers those benefits, I will highlight
the development at Seven Mile Public Beach that is happening as a
result of the agreement between Dart, the NRA and Government and will
see $3m spent on improvements to the sports facilities, landscaping
and washrooms. Caymanian vendors and other commercial activities will
be facilitated at a dedicated ‘vendor village’ with better
management arrangements. When complete, vendors will have a dedicated
area and beachgoers will be able to better enjoy the public beach.

Our
focus extends well beyond the Seven Mile Beach corridor. This
Government is directly investing in an improved area for local
artisans and other beach vendors at Coe Wood Beach in Bodden Town.
This development can help to stimulate private sector investment in
Bodden Town and is an important part of our plans to help encourage
more visitors to look eastward.

Similarly,
the Government’s recently announced plans to invest $1m in a long
term solution to the problem of beach erosion at Kaibo will
re-establish that area as a favourite recreational area.

The
new South Sound boardwalk is winning considerable praise from its
growing numbers of users. It also serves a broader purpose to
safeguard one of the best natural views on Grand Cayman.

So
Mr. Speaker, opportunities for the greater enjoyment of our beaches
for local people; better commercial opportunities for local
businesses - these are the tangible benefits we are delivering.

When
we look at the two years that this Strategic Policy Statement covers,
most commentators and economic forecasters believe that there will be
a global slowdown. We cannot think that Cayman can remain unaffected
by what happens in the global economy and, let us be honest; a
slowdown at some point is inevitable. However, our economy is robust
and resilient and local businesses and government are in a good
position to meet the challenges ahead.

Diversification
of Cayman’s economy must be a central part of our future economic
strategy in order to spread risks, improve resilience and create new
opportunities for Caymanians. Again the Government has acted in this
respect.

One
excellent example is the impact that the world-class intellectual
property legislation put in place by my last Administration is
having. That legislation was critical for not only attracting new
industries but also breathing new life into existing business lines.

Because
of this modern IP legislation we have seen the founding of
TechCayman, which is already beginning to attract digital and
knowledge-based businesses to our shores. The legislation has also
supported the work done by Cayman Enterprise City and is helping that
special economic zone attract new business to the Cayman Islands.

The
importance of the IP legislative framework is also being seen in its
impact more broadly. Trademark registrations have more than doubled
from an annual average of around 300 to over 600 in the 12 months
following the passing of the legislation.

For
the first time in its 30 year history, the North American Law Summit
was held in Cayman last year, attracted here to discuss the new
opportunities that our IP regime offers business sectors like the
entertainment industry. This demonstrates the very strong potential
for future growth for Cayman in the knowledge industries.

And
speaking of strong potential Mr. Speaker, I am also pleased to note
the growth in the number of Reinsurance Companies and the increased
interest from players in this key sector in setting up in Cayman.
The reinsurance sector is one that we intend to support and grow.

It
is the development of these new industries, alongside our support for
the traditional pillars of our economy that will create the jobs and
business opportunities for future generations of Caymanians.

Unfortunately,
there is still a perception, spread by some that Cayman’s economic
success is being delivered on the backs of the Caymanian people
rather than for their benefit. Mr. Speaker, nothing could be further
from the truth.

It
is fashionable in some political circles these days to disparage
facts in favour of half-truths, misleading statements or even
downright lies. I hope that in this House, however, the facts still
matter and truth is something we all respect.

So
let us examine the facts, Mr. Speaker.

This
Government pledged to work to achieve full Caymanian employment so
that every Caymanian willing and able to work is able to find a job.
The facts tell us that we are well on our way to delivering on that
key pledge. As I stated earlier, Caymanian unemployment has better
than halved from its peak and now stands at 4.6% and we will continue
to work to create more opportunities.

Behind
that headline statistic, Mr. Speaker, lies increased prosperity for a
huge number of Caymanians and their families. Overall, some 3,300
more Caymanians are employed now than prior to my Government taking
office in 2013. For those who persist in doubting whether this
Government’s economic strategy is really benefitting Caymanians, I
will just repeat that Mr. Speaker - 3,300 more Caymanians are in work
now than when my Government took office in 2013.

Our
pledge to create a new integrated department dealing with both labour
and immigration issues has been delivered with the formal launch in
February of Workforce Opportunities and Residency Cayman or WORC.

I
accept that changing the machinery of Government is not, in and of
itself, something to trumpet so let us look at what the new
Department will deliver in the coming months. The first of those will
be the online jobs clearing house – due to go live in the next few
weeks - through which all jobs will be advertised allowing every
Caymanian full access to the opportunities available.

In
the longer term, for the first time, we are creating the capacity and
capability in government to work with the private sector to identify
the future needs of business so that we can make sure Caymanians have
the skills needed to access the jobs that will be created.

Improvements
in the work permit regime are also progressing and we will road-test
the proposed changes shortly.

For
those that need more help in the labour market here and now, the
Government has acted to make the National Community Enhancement
Project happen twice a year. Around 500 Caymanians benefitted from
three weeks’ work experience – and the income it brought them –
in the latest programme in the run up to Christmas. It is worth
noting again that the number of participants in the last programme
was well below that of previous occasions thanks to the significant
reductions we have achieved in unemployment for Caymanians.

I
have heard it argued, Mr. Speaker, that these excellent job numbers
are a red herring. The argument goes that Caymanians are being stuck
in low wage jobs while opportunities for advancement are only
available to ex-pat workers.

As
is often the case, Mr. Speaker, a very small grain of truth is being
spun into a web of misinformation.

Again,
let us examine the facts. The Occupational Wage Survey, recently
released by the Economics and Statistics Office, for the first time
gives us real data to draw upon. While the results are not strictly
representative, having gotten returns in respect of only around half
of all those in employment, I think we can safely draw some key
conclusions.

First,
let us consider that the average Caymanian wage earner in the survey
earned $3,851 per month or over $46,200 a year. I believe that we can
agree that is a respectable wage, Mr. Speaker. However, what may be
surprising to some is that the survey results also indicate that the
average Caymanian wage earner makes more than $500 per month, or
$6,000 per anum than the average non-Caymanian wage earner in the
survey.

That
is because when you look at the lowest 20% of earners in our economy,
only 13% of Caymanians are in that bracket but over 28% of
non-Caymanians can be found there.

Conversely,
the proportions of high earners are broadly the same with Caymanians
being just as prevalent as non-Caymanians in the top 20% of earners.

So
Mr. Speaker, overall then, the statistics in the survey indicate that
Caymanians are generally better paid relative to ex-pat workers and
certainly more Caymanians are doing well in our flourishing economy
than this Government’s critics would have anyone believe.

It
is always a mistake, though, to look at the overall picture and to
ignore the very real problems of some individuals. That is where the
grain of truth I mentioned earlier comes in. I expect everyone in
this House knows of people in their constituencies who are low paid
or who have been denied opportunity for advancement.

That
is why this Government will not ignore those individuals. For those
who are currently amongst the lowest paid in our economy, the
Government will review the minimum wage. Now that the Occupational
Wage Survey – the key data source needed – has been published,
the review can formally commence. I will commit now to this House
that the Government will carefully consider and act upon the outcome
of the review.

For
those who feel that opportunities are being denied them, the new WORC
Department will put in place two important mechanisms in the coming
months. The best approach is to work with businesses to get this
right. Therefore, the first mechanism is an accreditation scheme that
will recognise those businesses that actively provide opportunities
for Caymanians.

However,
we also recognise that things still may go wrong and we need to be
able to clamp down where Caymanians are subject to unfair employment
practices. The second mechanism is therefore the creation of a new
Fair Employment Opportunities Commission. The House will debate the
legislation required to create the Commission at its next meeting,
but for now I will say that I believe it is a crucial piece in the
overall approach this Government is creating to secure the fair
treatment of Caymanians. Its key purpose is to penalise unfair
practices in a way that prompts businesses to eliminate
discriminating practices.

So
to summarise the facts I have laid before the House, Mr. Speaker; our
economy is growing strongly and Government’s approach will secure
the long term future we need. Caymanians are benefitting from that
growth. We have delivered a significant reduction in unemployment and
overall some 3,300 more Caymanians now have jobs when compared to
2013.

Caymanians
in work are generally paid better than non-Caymanians and at the
higher pay brackets, Caymanians and non-Caymanians are equally well
represented.

This
Government is tackling low pay through the minimum wage review;
promoting opportunities for Caymanians through the accreditation
scheme; and tackling discriminatory practices by establishing the
Fair Employment Opportunities Commission.

But
Mr. Speaker, low wages are one issue but so are wages that have been
fixed with little movement despite higher prices in the shops. We
cannot fix this for everyone but we can, and have, mostly fixed this
in the civil service by addressing over the last term, and this one,
the pay stagnation caused by the austerity measures following the
2008 Recession. This included various cost of living increases so as
to account for inflation as well as dealing with salaries across the
civil service that had fallen out of line with the market rates for
similar jobs. Whilst these corrections addressed wages of the civil
service, it also sent a clear signal to the private sector.

This,
then Mr. Speaker, is a track record of delivering for Caymanians that
this Government is proud to lay before the House and the country.

Yet
there is more. Some say that a rising tide raises all boats.
However, I have never believed that we can rely solely on economic
growth and what Adam Smith called “the invisible hand” of market
forces to solve all of the issues we face. Sometimes Government needs
to act directly to benefit people who would otherwise be left behind.
I would echo the sentiments of Rahul Gandhi who remarked, “A
rising tide doesn't raise people who don't have a boat. We have to
build the boat for them.”

For
that reason, Mr. Speaker, this Government made a pledge to the
country to improve the position of seafarers, veterans, those in need
of social assistance and long serving civil service pensioners. That
is a pledge we have delivered on. As of this January, we have raised
the guaranteed minimum income of those Caymanians to $750 per month
from $550 per month when we took office. This represents an increase
of at least 36% in the household income of over two thousand
Caymanians and their families.

Hundreds
more Caymanians are benefitting from the work that the Minister of
Commerce is leading to improve the support available for small
businesses. I thank the Minister for the welcome approach he is
taking to enhance opportunities for enterprising and entrepreneurial
Caymanians who want to start and grow their own business.

Central
to that approach is the drive to reduce the burdens government places
on business, be they financial or regulatory. Trade and Business Law
requirements have been greatly reduced and the whole renewal process
has been moved online. Take-up of that online service is improving as
business owners’ awareness of the benefit it brings to them
increases.

As
part of this Government’s commitment not to raise costs on
businesses and families we have maintained the reduced fees for small
businesses put in place by the last Administration. In 2018, some
4,800 micro or small businesses benefitted from these reduced fees.

I
would also note, Mr. Speaker, that recent amendments to the Companies
Law have also reduced red tape and costs for non-profit
organisations, including local charities, churches, sports and youth
clubs and associations. Application fees were cut from $1,000 to $300
and administrative fees from $500 to $25.

The
second part of our approach is about improving the support available
to small and micro businesses. The Minister and the Cayman Islands
Small Business Association signed a memorandum of understanding in
February aimed at delivering a range of support services including
workshops, mentoring sessions, grants and individual assistance to
small business.

The
partnership between public and private sectors will be further
enhanced through the establishment of a small business centre that
will enable the provision of direct support, which will increasingly
be tailored to the specific needs of Cayman’s thriving small
business sector.

As
Cayman continues to grow, we need to do so in a planned and
sustainable way that makes best use of the land available while
preserving our unique environmental heritage. The Government has
delivered on its pledge to restart the long term planning process
through the publication of the Plan Cayman development framework that
recently completed the first round of public consultation.

I
am pleased that so many individuals and organisations across Cayman
have shown such interest in the process. We have received over 2,800
visits to the Plan Cayman website and over 350 people have submitted
formal responses.

We
will now take the process forward. The Minister has wisely decided to
move into more detailed planning on an area-by-area basis. This means
that we can focus on one major land area at a time. By covering the
whole Island over a five year period and then restarting at the
beginning, it makes the process continuous and allows for an ongoing
planning review process.

Most
crucially, the development of area plans will give an opportunity for
people to be engaged in the future of their own communities. The
first such plan will be created for the Seven Mile Beach Corridor
because we need to deal positively with both the significant
development pressures there as well as ensuring that the Country is
maximising the economic opportunities available.

That
process will proceed alongside the work we are doing on the
revitalisation of George Town.

The
House will no doubt be aware, Mr. Speaker, that we have both spoken
in recent months about the potential to consider much higher
buildings as part of both of these pieces of work. The Dart
organisation’s concept for an iconic tower at Camana Bay is
something we must take seriously. I was pleased that my comments
generated some debate in the press and elsewhere regarding increased
building heights generally and tall towers specifically.

Indeed
at the recently concluded conference of the Royal Institution of
Chartered Surveyors in Cayman it was reported that this matter was
discussed and the concept of an iconic tower was said to have merited
consideration. I agree.

It
was also noted that given the potential size, the tower proposal
should be separated from a wider debate about building heights in
general. I also agree.

However,
I suspect that there is a very long way to go before Dart or any
other developer builds any such tower.

Although
much focus will be on Seven Mile Beach, including increasing of
building heights there, there is also real potential in rethinking
the building heights we might be willing to see as part of the George
Town revitalisation. If we are to see the kind of mixed use
development that could both ease commercial demand pressures and
bring our Capital back to life as a social and cultural centre as
well as an economic hub, we need to be willing to think more
creatively about how we utilise space.

As
I said recently in my speech at the Cayman Economic Outlook
Conference, the key issue for Government considering any proposals to
increase building heights, especially to accommodate any ultra-tall
tower, will be the tangible benefits it brings to Caymanians. We will
want to see job and training opportunities and I have made it clear
that any developer will also need to bring forward a significant
programme of infrastructure investment. This would necessarily
include road and other transport improvements and potentially social
infrastructure – improvements to Cayman’s schools or investment
in affordable housing for local people for example.

As
well as taking an area-based approach, the Government will pick up
and tackle some of the important thematic issues contained in Plan
Cayman.

Perhaps
the most vital and immediate of those is infrastructure. This
Government has recognised the historic backlog in infrastructure
investment in Cayman and we have invested tens of millions of dollars
over the last six years to begin reducing that backlog.

This
has most obviously been seen in the improvements we have delivered in
the country’s road network. While the achievements of the last six
years have been considerable, the growth in traffic has been such
that our increasing capacity has barely kept pace with the ever
rising tide of demand. In some cases, problems are just getting
worse.

Members
of this House will not need me to tell them this; I am sure they hear
it directly from their constituents, particularly those living east
of Grand Harbour. And so we intend to fast forward existing plans to
address the traffic congestion along the peak east-west routes.

This
Administration has come up with something that eludes many
governments worldwide, Mr. Speaker – that is a common sense
solution. We will push forward road improvement and spending
originally planned for later years to deliver the improvements we
need in the coming two year period.

In
particular, this means that plans for the extension of the East-West
Arterial will be accelerated by more than two years and we will take
the route first through to Northward and then on to Bodden Town. The
cost of this work is likely to be some $18m, which as I have said, we
will bring forward from future years into the coming budget period.

This
is absolutely crucial in solving the problems, Mr. Speaker, but while
it is necessary, it is not sufficient. Accordingly, we are also
reprioritising the rest of the highways’ programme to include
projects around Grand Harbour and westward into George Town to ensure
traffic can move more smoothly.

Taken
together, this package of improvements will enable us to reduce
congestion; shorten and make more reliable journey times; and improve
accessibility between central George Town and communities to the
east.

For
those avid social media followers among you who have seen the meme, I
can promise that we will be able to deliver this programme of
improvements without ‘364 roundabouts’!

Seriously
though, these plans represent a significant additional investment in
the highways’ programme beginning near the end of this year and
stretching over the next two years.

Finding
the money for all this, which the elected Government has done in this
SPS process, is only one aspect of the challenge. We rely on the
capacity of the National Roads Authority in terms of the workforce
and equipment needed to carry out works of this scale and I would
like to thank them for the positive approach they have shown to
mobilising to deliver on the plans we are announcing today.

The
Plan Cayman project also gives us the opportunity to properly
evaluate the long term potential for different solutions to the
problems our small Island nation faces. I would like to highlight two
issues in particular.

The
first is renewable energy. The creation of the National Energy Policy
by the last Administration set ambitious but achievable goals to move
Cayman to a more sustainable pattern of energy generation and
consumption. The Government is implementing several important actions
such as the switch to greater use of electric vehicles and the
increased use of renewables for government buildings. The Plan Cayman
process; however, gives us the opportunity to look at how we might
implement some of the more ambitious parts of the National Energy
Policy in a planned fashion – and we intend to take advantage of
the opportunity.

The
second is the related issue of sustainable transport. I have just
announced the Government’s commitment to increasing substantially
our investment in road-building. That is vital if we are to deal with
today’s problems. However, all the evidence suggests that if we
simply increase road capacity, then sooner or later the roads will
just become congested again as our population continues to grow.

In
anticipating tomorrow’s problems we must deliver alternative
solutions. These include safer cycling and walking routes, but I also
believe a radical new approach to public transport is necessary.

Accordingly,
alongside our announcement of increased highway investments, I am
also announcing today that the Government will commission a
specialist mass transportation study to analyse the options available
for us to achieve the necessary step change in public transport that
the country needs – indeed that the country must have. The study
will be complete within a year so that we will be able to consult
widely and draw up detailed plans for inclusion in the next Strategic
Policy Statement.

The
sustainable future we need involves striking a balance between
development and the needs of our environment. It does not help us
that Government has created approaches and legislation that rather
than reconciling those twin drivers, appear to have unnecessarily
pitched them as enemies.

Now
that the Plan Cayman process is under way, it is time to progress the
commitment the Government made to review the operation of the
National Conservation Law. Personally, I believe that large parts of
that Law are necessary and valuable and we need to maintain them.
Other parts are perhaps not so helpful.

If
I may add some levity and paraphrase American President Ronald Reagan
- if the Conservation Law had been around at the time the Creator was
turning his hand to founding our three Islands, we would still be
waiting on an environmental impact assessment.

But
in all seriousness Mr. Speaker, it is important not to cherry-pick at
this point, so the Government will conduct a thorough review of the
whole Law, and how well it works, and consult widely as part of that
process. I expect we will bring forward proposed amendments to this
Honourable House early next year.

In
the meantime, the Government’s delivery of its environmental
objectives will continue. Perhaps the most significant will be
concluding the contractual negotiations with the consortium that will
implement the measures this country needs to end our unsustainable
reliance on the landfill.

I
am optimistic that if we can push those negotiations to a speedy
conclusion – if it could really be called speedy after more than
two years – then during the next coming budget period we will be
able to put in place the enhanced recycling facilities we need; begin
the preparatory works for the new waste to energy plant; and make
substantial progress on the required remediation works at the
landfill itself. In fact, Mr. Speaker, I am hopeful that work on
remediation can begin this year. My optimism is boosted by the fact
that despite the delays in finalising the contract we have already
dealt with the tyres at the site and increased the recycling of
metals. In addition, I understand that negotiations are proceeding
well and should be completed in the coming months.

Effective
management of the country’s waste is not just about major
infrastructure. It is also about something really basic – litter.
Cayman has always been a relatively clean place in which to live, but
in recent times the situation has deteriorated and litter has become
increasingly more prevalent.

We
need to act now before littering of our streets, beaches and open
spaces gets completely out of control. I can therefore announce today
that the Government is preparing a major anti-litter campaign. We
need to re-educate both locals and tourists as to what is expected
from them; we need to provide better facilities for waste and, in
time, for street recycling bins; and we need to look again at the
litter laws and their enforcement. All three parts of this campaign
are important and need to reinforce each other.

Other
environmental related infrastructure is being progressed, notably the
new reverse osmosis water plant and piped water distribution system
on Cayman Brac.

It
is pleasing also to see the positive international attention that our
approach to protecting natural species is now attracting. After years
of adverse press reports, the achievements of the Cayman Turtle
Centre in restoring healthy populations of our national symbol are
being recognised. Using data provided by years of DoE research, a
University of Barcelona study shows 90% of green sea turtles nesting
in Grand Cayman have a genetic connection to the Cayman Turtle
Centre.

The
DoE is now partnering with CUC and the NRA to install 40
turtle-friendly streetlights along main roads adjacent to
turtle-nesting beaches in Grand Cayman. This pilot programme aims to
maintain road illumination and safety while reducing mortalities
caused when hatchlings emerge from their nests and follow the bright
street lights to the road.

The
Nassau Grouper conservation efforts are also winning plaudits. More
generally, the Government has enhanced our approach to marine
conservation to protect natural habitats and species and promote
biodiversity. We stated long ago that as part of the inevitable need
to mitigate any environmental damage caused by the port development,
we will enhance environmental protections elsewhere.

Accordingly,
to coincide with the Prince of Wales’ visit last month, the
Minister of the Environment announced that Cabinet has approved the
preparation of drafting instructions to strengthen and enhance our
system of marine parks. Once implemented, the shelf area
protected as marine parks will increase from 15% to 44% in Grand
Cayman; from 14% to 43% in Cayman Brac; and from 10% to 57% in Little
Cayman. These enhancements will significantly enhance the
protection of the marine eco-system in the Cayman Islands and
safeguard the future for our precious marine environment. I
would like to offer my thanks to the Councilor for the Environment
for the support he has given to the Minister in assisting with this
project.

The
long-standing Blue Iguana Recovery Programme is growing from strength
to strength with upwards of 1,000 blues living freely in one or more
protected areas.

Also
working well is the programme to cull the invasive green iguana,
which has already destroyed more than half a million of the harmful
species and to which we are committing further funding, as needed.
While it may not be possible to cull every last green iguana, the
success of this project to date indicates we can get the number down
to levels that we can effectively control in the future.

The
protection and safeguarding of land is equally important, Mr.
Speaker. We have procured a further 634 acres of protected land,
increasing the total amount of protected land here to 4,111 acres –
about 6.3% of Cayman’s total landmass.

Open
space that our people can enjoy is also an important part of
community infrastructure. We are progressing the project to enhance
Smith Barcadere and we have purchased Scranton Central Park to
safeguard public access. And land has also been procured to create a
park for Red Bay and Prospect.

Thanks
to Government’s actions, thousands of Caymanians will be able to
use and enjoy these important open spaces in perpetuity. I would like
to thank the Councillor for the Lands Ministry for the work she has
done, particularly at Smith Barcadere.

The
Government is also implementing its plans to ensure beach access is
being enhanced across our three Islands. The beach access report was
delivered a year ago and has ensured that we can correctly identify
each of the 121 actual rights of way accesses and the 167
unregistered paths to the sea across our three Islands. The public is
now able to locate those routes more easily through a programme of
improved signage by the Public Lands Commission.

Mr.
Speaker, as we heard in this Honourable House earlier this week,
since July 2018, Government has purchased 16 parcels of land from the
$10m appropriated from the Environmental Protection Fund. There is an
unspent $3.9m of the $10m appropriation, which will be carried over
for the land purchase project to continue this year.

The
Government is also delivering real improvements in those quality of
life issues that are dear to the hearts not just of Caymanians but to
people the world over – our natural desires for a roof over our
heads, safety and security for our families and good health.

This
Government is supporting Caymanians in achieving their dream of home
ownership. Accordingly, we have reinvigorated the National Housing
Development Trust in its mission to construct suitable homes and to
assist hard-working Caymanians to buy those homes.

I
am delighted, Mr. Speaker, with the positive approach that the Trust
has taken and the progress it has made in bringing home ownership
within the grasp of deserving Caymanian families. I would like to
thank the Minister for Housing for the leadership he has shown in
working with the Trust as it delivers its mandate.

Last
year, 16 new homes were completed in Bodden Town and in January we
broke ground on a scheme in East End that will deliver another six
homes. As the East End homes are finished, work will begin on eight
more homes in West Bay.

Taken
together, this means that 30 new homes are being built at affordable
prices for Caymanians and their families. These homes, Mr. Speaker,
are specifically aimed at the average Caymanian who just needs some
extra help to realise his or her dreams.

Looking
ahead, the Trust has bold plans to extend its helping hand to still
more deserving Caymanian families. The Trust is buying land on which
to build in North Side and recently obtained a 24-acre plot of land
in George Town for affordable housing.

This
kind of targeted support is important but the Government has also
acted to provide help for other Caymanians wanting to own their own
homes. We have significantly increased the stamp duty thresholds for
first time Caymanian buyers. This represents a welcome leg up on to
the property ladder for many young Caymanians and their families. The
Government estimates that hundreds of Caymanian families will benefit
from this change.

We
have also recognised that for a variety of reasons often outside
their control, some existing home owners are living in conditions
that are not really habitable. Again, Government is extending a
helping hand to those families to help them keep their roofs over
their heads – often literally. The Housing Repair Assistance
Committee has been re-established and we are working through the list
of properties needing repair on a priority basis. In this way, some
22 Caymanian homeowners have been helped by this Government so far
this term.

In
the run up to the last election, members from across the House heard
from our constituents that they were increasingly concerned about
crime and the safety of their communities. A central plank of this
Government’s programme has been developed in response to those
concerns.

The
first and most important part of our response has focused directly on
what actually happens in communities. There was a feeling, I believe,
that the police had lost touch with people and were not responding to
genuine concerns that communities were raising.

The
current Police Commissioner has achieved a real change in approach.
Rightly, he has asked the elected Government for support, not just in
terms of his philosophy of policing but in terms of hard cash to
invest in the better, more responsive services that he is building.

In
its last budget, therefore, the Government committed to funding 75
more police officers over a three year period. This has allowed the
Commissioner to reinvigorate the neighbourhood policing approach,
improving visibility and response times; reassuring communities and
deterring crime. Increased numbers have also allowed the police to
more effectively target prolific and persistent offenders.

Our
police officers deserve to operate from fit-for-purpose accommodation
and to utilise reliable, modern equipment. The Government has funded
a new digital forensics hub that enables the RCIPS to take on the new
breed of cyber criminals. We will deliver the new police station that
has been promised for West Bay and the SPS also includes funding to
enable the RCIPS headquarters to relocate to a new location in George
Town. Modern and fully-equipped new police vehicles will also come
into service in the next two year period.

But
it is not just about policing. The safest communities are communities
that help look after themselves. The Government has therefore
supported the development of new neighbourhood watch schemes and we
have been delighted that so many citizens have been willing to take
part in what now number over 30 such schemes across Cayman.

This
approach is paying off. Burglary was one of those crimes that people
were becoming really concerned about and we were seeing a spike in
the numbers of crimes committed. In 2017, there were 515 burglaries
reported on our three Islands. Since then, persistent and prolific
offenders have been targeted and as the increased police numbers came
on stream, and neighbourhood watch programmes developed, those
numbers have been reducing. The success of this can be seen in the
2018 number of burglaries, which fell to 324.

However,
there are two reasons not to go overboard in celebrating this data.
First, crime statistics are notoriously volatile and we will need to
see a long-term trend before we can determine properly how things are
working. Secondly, while the numbers are reducing, every burglary is
a hardship for the household or business it affects so there is more
that we need to do.

So
the work continues and the next step is to introduce new community
support officers who will work within their neighbourhoods. Their
role will be to help the community police officers gather
intelligence and develop relationships with local people and
businesses. The recruitment process for 12 new community support
officers is already under way.

The
Government will also implement a new anti-gang strategy. Work to
develop the strategy has been under way for some time across
government and the police, led by the Deputy Governor. The delivery
of this strategy will be an important part in making our communities
safer by disrupting and reducing gang activities. It will also
improve the life-chances of young people who otherwise might fall
into criminality through their involvement in gangs.

Gang
activity is, of course, often linked to drugs and firearms and if we
are to reduce the risks associated with those problems, we need to
improve the security of our borders. The creation of the new Customs
and Border Control service represents the significant action this
Government has taken in that regard.

That
is because the new service is not about some bureaucratic
rearrangement of civil service responsibilities or about new logos
and uniforms; rather it signals a shift to a more integrated and
intelligence-led approach.

That
approach began to be introduced over the last year as the former
customs and immigration departments began working more closely
together in advance of the formal creation of the new service on 1st
February this year. Already the results are significant and the
contribution that the CBC is making to keeping our borders more
secure and our communities safer is clear.

Throughout
2018, 63 persons were arrested by the CBC enforcement division,
formerly part of the Customs Department, for various drugs and
weapons offences, including importation, possession with intent to
supply and conspiracy to import controlled substances.

As
the new integrated service was developed, customs officers also
conducted 46 joint operations with the Department of Immigration and
the Royal Cayman Islands Police Service. The proactive patrols and
joint operations, which mostly targeted individuals involved with
drugs and weapons activities, resulted in several hundred pounds of
drugs and multiple firearms being seized by officers. In addition,
more than CI$250,000 in cash, suspected to be used in illegal
activities, was confiscated.

By
better targeting those attempting to carry out illegal activities;
the new service is also able to make processes quicker and easier for
legitimate travelers and businesses. The introduction of the
red/green channel at the newly redeveloped airport is a good example
as is the pre-clearance service introduced at Miami Airport.

Further
innovations will follow. Just a couple of weeks ago the service began
the procurement process to select a partner to work with us on the
introduction of new immigration and passport control kiosks, very
like the ones many of you will have used when passing through
immigration at overseas airports. We expect a pilot utilising four
such kiosks to be in place before the end of 2019. Also this year, we
will introduce a fully online visa application process.

The
other key change in terms of safety and security at our borders is
the creation of the Cayman Islands Coast Guard. This innovation is
modernising Cayman’s whole approach to maritime safety and security
and bringing our Islands into conformity with a series of
international obligations.

The
Coast Guard will deliver further reductions in crime by giving our
Islands a significantly enhanced maritime capacity and capability;
ensuring safe use of our waters for recreational and commercial
vessels; and improve the competence and professionalism of our
response capability for maritime search and rescue.

The
arrival last month of the new Airbus H145 helicopter – part funded
by the United Kingdom Government – is an important part of that
additional response capability as well as being part of our overall
policing and security resource.

The
next significant development for the new Coast Guard service will see
the opening in the coming weeks of the new operations and rescue
coordination centre that will play a key role in ensuring Cayman can
coordinate search and rescue and other activities on a 24/7 basis.

The
effectiveness of our crime fighting capability depends upon our
ability to dispense justice efficiently. The Government has acted in
response to the need to enhance our court capacity through the
purchase last year of the former Scotia building. Judicial
administration functions have already moved into the new facilities,
easing the pressure on space in the existing court building.

The
rest of the building will be refurbished. A temporary court room will
be in place and operational next year and by early 2021 the permanent
home for the new Court of Appeal will be ready.

In
the meantime, the business case for the potential overall redesign of
our court facilities is being developed.

A
project for a new prison is also in the early planning stages and the
Government will move this forward as part of the next budget.

While
improving the effectiveness of the criminal justice system is a
landmark achievement of this Administration, it is better to keep
people out of the system all together. Our approach to this is
two-fold.

First,
as I mentioned earlier the anti-gang strategy is partly designed to
prevent young people in particular from falling into criminality.
Secondly, we must also make it easier for people who have had a
criminal lifestyle to leave it and to stay out of it by improving the
support we give to the rehabilitation of past offenders.

One
of the key enablers for successful rehabilitation, Mr. Speaker, is
the ability of ex-offenders to access employment after their release.
Preparing for that starts while still in prison. The Prison Service
enables prisoners on Release on Temporary Licence to access community
placements through initiatives such as the ‘Fresh Start’
programme. This flagship partnership with collaborators involves a
range of private sector partners and I thank them for their
willingness to support Caymanians in this way.

You
may have read in the press recently that one prisoner on placement as
a trainee chef at a prestigious Seven Mile Beach hotel was named that
organisation’s ‘Employee of the Month’. This can only be
helpful in enabling that person access a job on their release and
avoid being drawn back into crime.

Government
has stepped up to play its part over the last year. Three prisoners
are now engaged by the Department of Environmental Health – good
for them and their prospects and a real help to the community as we
continue to improve the garbage collection service.

The
Government has also begun a new programme specifically designed to
offer a ‘Fresh Start’ in the civil service to Caymanian former
offenders trying to get back into regular employment. A pilot is
being run with five persons during 2019.

Keeping
communities safe and secure also means preparing for national
disasters and improving Cayman’s resilience in the face of such
disasters. For that reason, the Government’s plans for the next
period include the completion of the Bodden Town hurricane shelter
and the emergency shelter on Cayman Brac. Already this year we have,
with the help of the Governor’s Office, upgraded the Islands’
emergency disaster communications capability, learning lessons from
the experience of some of our fellow Overseas Territories during
Hurricane Irma.

During
Irma and the other hurricanes of 2017, our capacity to handle
disasters was on display as we aided our sister British Overseas
Territories in the region, not only with safety and security, but
with medical assistance.

Indeed,
Cayman has developed some of the best health personnel and facilities
in the region. We have also created a system of health insurance that
provides effective cover for working families, coupled with the
safety net of Government-funded care for indigents, which ensures
that the vast majority of Caymanians receive the care they need.

Yet
as Cayman and its population have changed, we have not always kept
our health system responsive to those changes.

Put
simply, most Caymanians are now living far longer than they used to.
Those welcome extra years of life are spent post-retirement and often
without access to affordable health insurance. And inevitably that
longer life is coupled with one or more long term health conditions
that need to be managed so that our seniors can enjoy life as they
deserve.

These
demographic pressures require us to look at a new approach, so the
Government consulted last year on the potential for a new post-65
health insurance programme. We will shortly bring proposals for how
best to take this idea forward in a way that appropriately balances
the responsibility of the individual with the support that Government
might provide.

As
we complete that work, we recognise that there are broader issues
about the health insurance market that need to be addressed. The
crucial part of that is the operation of CINICO and a review of the
role it plays in the market is already under way.

As
I have said, Cayman boasts world class health facilities and we are
working on ways in which more Caymanians can benefit from those
facilities while we also work with the H.S.A. to improve standards
and services.

One
key development that the H.S.A. intends to bring forward in that
regard is the development of an enhanced medical facility and
district clinic in Bodden Town to better serve the people of the
eastern districts. This new facility, when complete, would offer more
medical services and relieve some of the pressures from our main
hospital in George Town by offering additional primary medical care
as well as X-ray facilities and dialysis.

In
order to enable the H.S.A. to advance its plans for this new
facility, the Government has agreed to donate a suitable site for the
project and the H.S.A. will fund the building from its own sources.

Mr.
Speaker, in my 2017 address, I updated this House on the efforts of
the H.S.A. to reduce the cost of pharmaceuticals and medical supplies
through a reverse auction system.

The
reverse auction initiative was quite timely, and became instrumental
in tempering the impact of the increasing costs of drugs at source
markets internationally, caused by mergers and acquisitions, and
global shortages in the provision of certain key drugs.

Notwithstanding
those factors driving up the costs of drugs in the market, the H.S.A.
was still able to realise savings in the unit costs of several
pharmaceutical and medical supplies. For example, the cost of one
important cholesterol reducing drug that was purchased in 2017 for
$28.40 per pack was halved to $14 per pack in 2018 through the
enhanced procurement process. These efforts will continue through the
annual tendering process where more savings are expected to be
realised.

Sadly,
a greater prevalence of mental illness also appears to be a function
of modern life. We need to do more as a society to acknowledge and
understand mental illness and to provide appropriate support for
sufferers.

Much
of that support will be community-based but for those suffering from
mental illness who need more intensive care, we remain committed to
building a new long term residential facility on Island. That new
facility will mean we can provide excellent therapeutic care for
patients here in Cayman rather than having to send our people to
Jamaica or the USA for treatment.

I
have to be frank here and say that we have not been able to progress
this project as quickly as anyone would have wished. The problem is
actually one caused by our buoyant construction market and the
limited number of large-scale contractors on Island.

I
commend the creativity of the project team in looking to repackage
the work to make it more available to a broader section of the
construction market; but regrettably we still have not received
sufficient bids to move the project forward at pace. The Ministry is
working closely with the Major Projects Office to identify next steps
to move this important - and much needed - project f through the
final stages of procurement. Mr. Speaker, I know that the Minister
has been working diligently to move this forward and he is as
disappointed as I am; indeed as is the Government that this project
has seen delays. But Mr. Speaker, I can confirm to this House and to
the public that this Government will find a way to move it ahead
despite the challenges thus far because we understand full well the
necessity of this facility.

Mr.
Speaker, I would also like to mention two other important pieces of
health-related work this Government is taking forward. First, we
brought to the House earlier this week the Healthcare Decisions Bill,
which obtained passage and made it possible for people to communicate
their healthcare preferences before they are no longer able to make
those desires known. This is important for individuals and families,
but it also something that medical professionals have been asking for
in order to give more certainty to them in the important care
decisions they make.

Secondly,
we passed the organ tissue transplant regulations that came into
effect last July. The House will be aware of the lengthy process of
ensuring we framed those regulations properly and that we put in
place appropriate safeguards. I am delighted that it is now fully
possible to carry out transplant procedures on Island. Mr. Speaker,
it only takes one conversation with someone whose life has been saved
by a transplant to know the benefits this will bring to the people of
these Islands.

Another
aspiration for all Caymanian families is to see their children get on
in the world and key to that is the education that opens up
opportunities for them. This Government’s first priority is to
ensure those opportunities are available for our young people and
drive up standards in schools.

To
ensure that standards are improving, we cannot merely wait for test
results for our children, but instead we need to ensure that the
standard of teaching in schools is high and in so doing will help
ensure the success of our students when taking external examinations.
This is why, Mr. Speaker, it was in the last term that we
re-introduced the schools inspectorate as well as carried out a
baseline evaluation programme to determine teaching and learning
standards across all of our public schools.

Recent
inspection evaluations have indicated good progress at some schools
whilst others are not yet where we would like to see them.

But
the excellent Lighthouse School is the first Cayman Islands
Government school to earn an overall ‘good’ rating under the new
framework for school inspections that was adopted last year. All the
other schools, except two, received ratings of ‘satisfactory’. I
commend these schools and task all of our public schools, including
the two that are below satisfactory, to rise to the challenge so that
all of our public schools can be rated as ‘excellent’. Indeed,
this is the expectation of this Government and we are working with
all stakeholders to ensure this goal is achieved.

I
have welcomed the determination that the Minister for Education has
shown in driving forward the reforms necessary if our public schools
are indeed to improve. From the start, the Minister has made clear
that the key to that is to support the improvement of teaching in our
schools as, unsurprisingly perhaps, it is the quality of teaching
that makes the most difference to what our young people can achieve.
The next budget provides the additional money needed to deliver on
the pledge to raise teachers’ pay to a monthly minimum of $5,000.
This is essential if we are to attract and retain the best people as
educators. Continuing and enhancing programmes for teachers’
development ensures they are equipped to deliver the kind of
individualized, child-centred approach that gets the best out of our
young people.

The
Minister has been ably supported by a dedicated and enthusiastic
Education Council and together they are setting the pace for an
on-going programme of reform that will drive further improvement. The
next step is to change the curriculum and from this September a new
curriculum will be introduced into our primary schools based on the
latest British Schools’ curriculum.

Some
inside and outside the education establishment here have questioned
whether this change is appropriate. They argue that Caymanian
children may find the new curriculum too difficult. Call me a
traditionalist if you will but I thought that education was supposed
to challenge young minds. Rather than believe they should somehow
settle in advance for a level of mediocrity, I believe in our young
people. I believe they are as capable of learning and developing as
any in the UK or elsewhere in the world. Why should we limit what we
expect of our children or indeed what they should expect of
themselves?

If
we are to challenge our young people then we must match that with the
right help and support. That is why we need to invest in the quality
of teaching and in getting the right textbooks and other learning
resources – this Government is doing those things.

And
now here is a radical idea – maybe, just maybe, it is not the good
people in the Department of Education, many of whom rarely set foot
inside a classroom, who are best placed to make decisions about what
happens in those classrooms. Quality education comes not from the
issuing of centrally driven policy documents but from what happens in
the interaction between the teacher and the student. Taking decisions
closer to that moment of truth by delegating responsibility away from
the Department and toward schools, principals and teachers will
enable genuine improvement and innovation at the point where it
really matters.

So,
over the next two years we will establish new governing bodies for
Cayman public schools and give them the responsibility for raising
students’ levels of achievement. Those governing bodies will give
parents, teachers and the wider community a direct say in how their
schools are run.

While
the Minister will continue to set the overall direction for the
education system and will hold schools to account, it will
increasingly be the schools themselves that decide what happens in
Cayman’s classrooms.

Achievement
for students will not always be in academic terms and we must
continue to do more to open up routes in technical and vocational
education and training for our young people. The comprehensive review
we promised is nearing completion and engagement of significant
employers is helping to shape a range of exciting ideas. As we move
to implement the agreed package of changes over the next two years,
we will see more and more opportunities created for Cayman’s young
people. These will come in various forms, from traditional training
programmes to internships and apprenticeships but in all cases the
focus is on giving young people the skills they need to compete in an
increasingly complex, global jobs market.

As
is often the case, Government is leading the way and playing its own
part in helping young Caymanians to gain the necessary skills and
qualifications for the future. The Public Works Department runs the
very successful City & Guilds vocational studies programme, which
has grown over the past two years and today provides a variety of
training courses to some 17 Caymanian apprentices. We will now expand
the programme and build a brand new facility to serve at least 50
students next year with training provided in a number of fields
including air-conditioning, plumbing, electrical trades and
carpentry.

And
of course the good work continues at the Nursing School and the
Hospitality School, both of which are affiliated with UCCI and
provide excellent career opportunities for our young people.

We
have not forgotten, and we will not forget or neglect, the education
and development of young people with special needs. I said earlier,
Mr. Speaker that I do not believe in setting limits on our
expectations for Cayman’s young people. I apply that to all young
people and this Government has set about delivering more support to
those with special needs in all of our educational settings so that
they can grow, learn and fulfill their potential.

Lighthouse
School, by way of example, has set a challenging path in this
respect. As a result, for the first time in the school’s history,
on 14 June, 2018, seven students successfully passed Stage One City &
Guild exams. With those qualifications that are recognised worldwide
behind them, a whole new range of opportunities is opened up for
those seven young people both in further education and the workplace.
I want publicly to congratulate Principal Bryan and his team for all
the work that went in to support those successful students. But most
of all, Mr. Speaker, I want to congratulate those seven incredible
students. I hope the House will join with me in celebrating their
achievement and I will just pause to read their names so that the
nation’s pride in them can be reflected in the official record of
our proceedings here today. The students are Lynval Foreshaw, Marlon
Bodden, Chelsea Frederick, Keanu McKenzie, Dante Thompson, Julius
Smith, and Yanique Ebanks.

It
is not just the needs of young people with special needs that this
Government is addressing. Plans are agreed for a new Sunrise Adult
Training Facility and that facility should be fully operational by
early 2021. It will include better and more modern equipment and
significantly enhance the opportunities available for learning and
personal development for the some 150 adults to which the facility
will cater.

The
other key commitment we made to the country on education was to
invest significantly in improving and expanding schools themselves. I
am pleased to report, Mr. Speaker that the new John Gray High School
campus project is under way again and the target of completing the
project in time for the 2021/22 academic year is ambitious but
achievable provided there are no significant delays in the
procurement or build out of the new school. The House will be aware
of the Minister’s announcement of a phased approach to the project
and this should allow some of the new facilities to come into use in
advance of September 2021.

We
are aware that there are capacity and other issues elsewhere in the
education system and we are tackling those as resources allow. Other
capital investments this year include in this SPS three new
classrooms at Red Bay and construction of a hall at Bodden Town. We
are also looking to improve the outdoor sporting facilities at a
number of our public schools. We are constructing new artificial turf
football fields at Red Bay Primary School, Bodden Town Primary School
and Prospect Primary School. Additionally, we are building artificial
turf playfields at Spot Bay Primary School in Cayman Brac and East
End Primary School. Running tracks were installed at Edna Moyle and
Sir John A Cumber and work has also commenced to install one at Red
Bay.

Sports
play an important part in our community Mr. Speaker and so I am proud
that in less than two weeks the Cayman Islands will host the 2019
CARIFTA Games. This provides not only an opportunity for our young
athletes to perform at home at a major regional sports event, but it
also provides opportunities for Caymanians to attend and see our
athletes compete with some of the best in the region. I would like to
thank the Councillor for Sports for his ongoing work in supporting
the Government’s sports programmes.

Government’s
other vital role is to support the most vulnerable in our
communities. Sometimes, sadly, that support needs to be about
protection and this Government has shown it is willing to tackle some
of the long-standing issues in our society that have been too long
ignored or swept under the carpet. In partnership with the RCIPS, we
some years ago opened the multi-agency safeguarding hub, known as
MASH, as a vital initiative to improve child safeguarding and to
tackle domestic violence. MASH continues as a key tool to not only
catch perpetrators, but to support victims.

It
may seem strange to say, but I am delighted that as our people come
to understand the functioning of MASH, referrals are going up. I do
not believe that is because the problems it is tackling are growing
but instead that individuals are more willing to make those referrals
because they know positive actions will follow.

Improving
reporting and more effective response is one thing, Mr. Speaker. What
we want to do, however, is to reduce risk and prevent harm in the
first place. One good example of how we are tackling that is the
Ministry of Education’s programme to ensure contracted service
workers for Department of Education Services and staff in all Early
Childhood Care and Education Centres are trained in child protection
and have policies, procedures, and practices in place to minimise
risk for children. Last year, the Ministry completed such
training for well over 500 individuals working in various capacities
with children.

Government
actions that directly deliver improvements in safeguarding
arrangements include the completion of the redevelopment of the
residential facility at Northward to allow for the appropriate
segregation of children from adults.

Support
is also about extending a helping hand. Here Government is fulfilling
the commitment we gave to overhaul our approach to social assistance
programmes.

We
have implemented a series of quick fixes to tackle some of the
immediate problems and improve the systems in place. For example, we
have instituted a solution that enables landlords participating in
the rental assistance programme to receive a direct, electronic
payment from Government. This means that they get paid in full in a
timely way, which is encouraging landlords to take part in the
programme. Their tenants are benefitting as the landlords are given
more security rather than threatening to quit because of payment
problems.

We
recognise though that there is a limit to the improvements we can
make because, frankly, the legislation and other procedures around
welfare are hopelessly out of date. Accordingly, the Ministry of
Community Affairs has undertaken two rounds of consultation with
service users, charitable organisations and others, looking at how we
can completely reshape the social assistance framework in the Cayman
Islands. I am very grateful to the Councillor for Community Affairs
for the leadership he has put in to this work.

The
result will be legislative changes and more customer-focused
processes that mean we can deliver on the promise we made to put in
place social assistance programmes that get the right help to the
right people at the right time.

As
we promised, the Government has taken forward the work necessary to
begin the implementation of the Older Persons’ Policy. The Council
is up and running and has been leading the engagement programme
across our districts to work with older persons on their priorities
for action. Although the policy looks to long term goals, I am
pleased to see how active the Council has been in promoting the
economic, social and cultural inclusion of older people.

But
there is more that we can do to assist our senior citizens today. I
noted earlier that we had increased various social assistance
payments to older persons and retired civil servants to a minimum of
$750 per month. I am also pleased to announce today that Government
will look at what fees or duties can be reduced for senior citizens;
persons older than 60 years. We will finalise this list of senior
citizen discounts in time for the next budget. We expect to include
items such as driver’s licence fees, work permit fees for
caregivers, and trade and business licence fees for older persons
with their own businesses. I hope that this will encourage more in
the private sector to follow suit.

Similarly,
the well-being of our young people and the development of their
self-esteem is becoming an increasingly important issue in our
society. The role that CAYS – Children and Youth Services
Foundation – plays can be crucial but we need to ensure that it is
producing impactful programmes in the best and most efficient way,
especially in the context of the work also being done by the
voluntary sector. The Government is therefore reviewing the role of
CAYS and I expect any changes to be brought forward shortly.

It
would be a mistake, however, Mr. Speaker, if we somehow fell into
just seeing young people as potential victims in our society, needing
Government or charities to support them. Young people are a vibrant
and vital part of our society and so many of them are not only
self-sufficient but already willing to do their part to support
others and make a difference in their community. For that reason I
was delighted by the success last June of Cayman’s first ever
student volunteer programme fair that brought together hundreds of
students from six local high schools and representatives of 20
charitable organisations .

Across
the board, Government customer service is improving. The Deputy
Governor’s customer service programme is transforming the everyday
experience of public services. Consistently high levels of customer
satisfaction of over 90% are being shown in the “happy or not”
performance statistics for our high volume, transactional services.
While these are important, it is the potential of the E-government
programme to increase accessibility and drive efficiency that
personally I find the most exciting.

E-government
has already revolutionized the cargo customs declaration process.
Over 5,100 such declarations per month were made during 2018
representing around 92% of the total. Similarly, the vast majority of
Caymanian companies are now choosing to conduct their business with
government online. Over 96% of company registrations, annual returns
and director changes are now being made digitally.

Usage
of the online criminal records certificate process is increasing
rapidly as awareness of the facility grows and I am confident that
other services such as vehicle and driver license renewals will also
become more popular over time. Another helpful innovation has been
the introduction last November of text reminder messages for expiring
vehicle licenses – nearly 8,000 reminders were sent in the first
full month alone.

What
this is showing is that the E-government programme has the potential
for a huge positive impact on the daily lives of Caymanians and
residents. Further significant new E-services are on the way and in
order to facilitate them, the Government is contracting for a new
identity and access management solution. As we offer more and more
services online, it is vital that Government can verify identity and
that the citizen can trust that only they can access their
information.

The
solution is therefore accompanied by a range of security enhancements
including improved firewalls. The appointment of a Chief Information
Security Officer to Government service will ensure we keep pace with
the ever more complex security requirements of the digital age.

Getting
the right expertise is important. We have taken the same approach
with the appointment of a Director of Government Communications. She
is improving our capability to engage properly with our people based
on a better understanding of what our people want and need from us.
The major communications innovation in the coming year will be the
launch of a new Government website that will act as the single,
timely, authoritative source of public information both on a daily
basis and in time of national emergency.

This
Government has a track record of delivery and achievement. And we are
doing it all in a fiscally responsible way.

What
this SPS shows, Mr. Speaker, is that we will conclude our eight year
period in Government following the same principles of sound financial
management that we committed to at the start. While the 2021 election
seems a long way away, Mr. Speaker, this is, in effect, the
pre-election budget of this Unity Government. We have, however, as
has been our practice, resisted any temptation to pursue reckless
spending plans in the run up to the election.

Instead,
this SPS will once more be delivered in full conformity with the
Public Management and Finance Law. We are maintaining the duty
reductions of the last Administration and sticking to our pledge not
to increase any existing fees or taxes. Instead we are generating
additional headroom to fund investment in public services through
internal efficiencies. The costs of pay increases we have delivered
to civil servants are being met from within existing budgets rather
than by adding to them.

That
represents efficiencies of nearly $12m. Additional efficiencies are
being realized through E-government and new procurement procedures.

The
coming budget delivers a sustainable long term position for public
finances with operational surpluses; capital investments being
financed with cash; and debt being paid down. Indeed, this year we
will see a very significant reduction in public sector debt as we
repay around 40%, or about $125m, of the bullet bond payment that
falls due in November.

This
track record of responsible stewardship of the public finances is not
just an achievement for this Government; it is one that will continue
to benefit those Governments that come after us. I must congratulate
the Minister of Finance and his Ministry team for what I believe is
one of the most significant long-term achievements of this
Government.

I
have spent my time today, Mr. Speaker, detailing the delivery of the
plans this Government placed before the country nearly two years ago.
I have set out both the progress we have made to date and how we will
go on and deliver against the remaining commitments over the next two
years.

However,
no plan can foresee every eventuality and so over that two year
period we have had to reprioritise some things and deal with things
that we had not expected. Therefore, we are making some adjustments
to the detailed targets in the SPS that is coming to the House today.

It
was British Prime Minister Harold MacMillan who, when asked by a
journalist what was most likely to blow a government off course,
replied, “Events, dear boy, events”.

This
Government is no exception and one such event that threatened to blow
us off course was when the UK Parliament passed the Sanctions and
Anti-Money Laundering Act last May. The Act threatened Cayman and our
sister Overseas Territories with the imposition of public registers
of beneficial ownership. I was clear in setting out my concerns over
the move at the time.

First,
the requirement is unreasonable and unnecessary. There is no
international regulatory standard for such public registers and
indeed it is a standard to which few if any competitor jurisdictions
even aspire. Given our information exchange arrangements with tax
authorities across the world, there is simply no need to publicise
the registers we hold.

Secondly,
and in my view most significantly, this is a matter that is properly
for the locally elected Government to determine and this attempt by
Parliament to interfere in our business represents a severe
Constitutional over-reach.

This
second criticism has the most far-reaching potential impact because
once the UK Parliament does this a first time, who knows when and
over what other issue they might decide to do that again. Both the
subsequent attempts to legislate to reduce the proposed 2023 timeline
for imposing any such requirement for public registers and the recent
report from the UK’s Foreign Affairs Committee have only reinforced
my initial concerns.

For
that reason, over the last nine months or so I have been leading
negotiations with the UK Government to try to put in place new
Constitutional safeguards. To be clear, I am not seeking to grab more
powers for Cayman or remove anything from the UK that is rightly
their responsibility. Rather, I am trying to better delineate our
respective rights and responsibilities. It is not so much a new
constitutional settlement as a clarification of the settlement we
thought we had achieved in 2009.

It
is only two weeks or so since the hugely successful visit to our
Islands by the Prince of Wales and the Duchess of Cornwall. And what
a success that was, Mr. Speaker. I am sure that I am speaking for the
whole House when I thank the team from across government that worked
tirelessly with the Governor’s Office to ensure the whole event ran
so smoothly.

I
know that Their Royal Highnesses enjoyed their visit to our shores
and it was great to see so many Caymanians turn out to see them. In
particular, a large number of young Caymanians were able to take part
during the visit and I know their memories of this time will stay
with them just as ours have of previous royal visits.

What
the whole occasion underlined, Mr. Speaker, is how much these Islands
are British, and want to remain British. We have come a long way as a
people over the last 60 years but our affection for the royal family
remains one of the defining features of Caymanian society.

Our
future constitutional arrangements are therefore not designed to be
some kind of precursor to independence; far from it. We need these
new arrangements to ensure that ours remains a respectful
relationship where our respective roles are clearly defined and well
understood.

The
latest talks were held in London in December. Our requests have been
generally well-received and I am encouraged by the willingness of the
UK to respond positively to what I believe to be a sensible and
pragmatic set of proposals we have put to them. Clearly, we will not
get everything we have asked for but the negotiations are proceeding
well and I am hopeful they will be brought to a positive conclusion
in the coming months. I was hoping Mr. Speaker that we would have
reached an agreement with the UK in time for the celebration of the
60th anniversary of our very first written Constitution in July as
part of the Celebrate Cayman festivities. However, we, like the rest
of the world, are at the mercy of the ongoing Brexit negotiations.

I
think that for our colleagues in the UK Parliament, Brexit has
probably escalated to beyond something even Prime Minister MacMillan,
who I referred to earlier, might describe as merely an “event”.
There have been times in this House when I have wondered if we were
not simply going round in circles but watching events unfold in
Westminster over the course of the past months has shown me how
purposeful our debates truly are.

As
I have said before, it is not for us to do anything other than watch
whatever happens. And whatever happens, we will deal with it. Brexit
is both a threat and an opportunity. Naturally the UK’s focus in
the run up to Brexit and then in dealing with its impact will largely
be in its own self-interest. If Cayman’s interests are to be
well-represented by the UK we need to do our part and make ourselves
easy to deal with. Of more significance, potentially, are the
opportunities that the UK’s Global Britain initiative could bring
to Cayman if we put ourselves in the best possible position to
exploit those opportunities.

For
in this and other regards, the last two years have indeed presented
us with new opportunities. The invitation from Dr. Liam Fox, the UK
Secretary of State for International Trade, for the Cayman Islands to
accompany him to the GREAT festival in Hong Kong earlier last year
was a real eye-opener.

To
be honest, Mr. Speaker, I was initially somewhat skeptical about the
value of travelling all that way but the experience has led me to
believe that as we think about the future of our Islands, we must
also consider Cayman’s future place in the world. To that end, I
announced in the autumn of last year this Government’s intention to
create a new Ministry of International Trade, Investment, Aviation
and Maritime Affairs.

It
was obvious in Hong Kong that compared to other governments, our
individual Ministries’ activities appear disjointed and
uncoordinated from the point of view of our partners overseas in both
the public and private sectors.

Opportunities
to present a coherent and consistent approach to governments and
potential investors and partners are therefore being missed.

Over
time the Ministry will develop a network of international offices in
strategic locations where the interests of Cayman will be best
served, including support for financial services and tourism.
Proposals for such offices will be brought forward on a case-by-case
basis and the first business case, for the establishment of an Asia
Office, has been developed and approved.

The
establishment of the Cayman Islands Government Office – Asia will
create a focal point to promote all aspects of the jurisdiction in an
increasingly significant market. It will strengthen and deepen
business ties and provide a gateway for future trade and investment.
It will also facilitate the development of cultural ties and
humanitarian links between Asia and these Islands.

In
setting up both a new Ministry and an Asia Office, the case for
change is underpinned by the view that international issues will
become increasingly important to the wellbeing of these Islands.

Mr.
Speaker, speaking of a case for change, with the transformation of
our labour and immigration regimes into two separate specialists
entities – that is Workforce Opportunities and Residency Cayman, or
WORC, and Customs and Border Control – it is appropriate to change
the name of the Ministry responsible for these two departments from
the Ministry of Human Resources and Immigration to the Ministry of
Employment and Border Control. This name better defines the work of
that Ministry and henceforth will be known as such.

So,
Mr. Speaker, as we reach the mid-point of this Government’s term in
office, I think we can draw some pretty clear conclusions about its
effectiveness.

The
future is uncertain and in a world where we are increasingly unable
to rely on the norms of the past to hold, it is vital that our three
small Islands prepare for whatever the future will bring. That is why
my Government has been willing to take long term decisions that
increase our resilience, reduce our risk and better place us to grasp
the opportunities that will come our way.

We
are focused on the long term economic wellbeing of our country,
willing to take the difficult decision to go ahead with the port
project because both the long term prosperity of our cruise industry
and the demands of a growing population for imported cargo require
it.

We
are sowing the seeds for the future diversification that our economy
needs and we have established a new Ministry to attract the future
investment we need in order to prosper.

We
have created the capacity and capability within government to plan
properly with the private sector to ensure our people can fill the
jobs of the future.

We
are making the fundamental changes in education that will drive up
standards and also offer more effective routes into work via
technical and vocational education and training.

We
are investing in infrastructure that not just catches up on our
historic backlog but begins to properly address future needs.

We
are planning properly to meet the future land use needs of a dynamic
economy and a growing population. From sustainable energy to public
transport to taller buildings we have shown a willingness to embrace
new ideas if they can bring benefits to our people.

But
our eyes are not just fixed on a future horizon. Most importantly, we
can see this Government’s continuing delivery of its commitments
impacting positively here and now on the lives of Caymanians.

You
can feel that impact directly if you are one of the 3,300 Caymanians
who are in work now having not had a job when this Government took
office. You can see it in the more visible police presence that is
helping to keep our people safer. You can hear it in the classrooms
where students are already benefitting from the improved teaching
that inspectors are seeing from teachers who feel more valued and
supported by this Government.

And
as we look ahead, Mr. Speaker, there is yet more that we need to do.
What this Strategic Policy Statement demonstrates is that we are a
Government that will do it.

If
you are still without a job then the developments that WORC is
implementing will improve your chances of getting one.

For
those in work looking to advance, the implementation of the new
accreditation scheme and the creation of the Fair Employment
Opportunities Commission will incentivize business to give you more
opportunities.

For
those who need some more support, the changes planned to our social
assistance programmes will ensure you get the right help when you
need it.

If
you are student looking to advance in the world of the future, the
new curriculum will challenge you but we will ensure your teachers
are equipped to give you the support you need.

If
you are a parent or business person, concerned about the education of
our children, the creation of governing bodies for our public schools
will give you a direct involvement in what happens in schools.

For
commuters and parents suffering the grind of daily travel from the
east into and out of George Town, we will deliver a comprehensive
package of highway improvements that tackle congestion. And we will
also look for progressive solutions to address future public
transportation needs.

For
everyone, Cayman will be a cleaner, safer, greener place to live.
Cleaner as we deal with the growing litter problem; safer as our
border security and community safety approaches combine to reduce
crime and criminality; greener as we create more public open spaces.

This
is a Government with a track record of delivery to be proud of. I
want to thank all my colleagues in Caucus and in Cabinet, including
the Hon. Attorney General and the Hon. Deputy Governor, Mr. Speaker.
A special thanks to His Excellency the Governor for the work that he
has done so far to not only help guide, but also to support the work
of myself and Government.

Mr.
Speaker, I also appreciate the support that you have provided in not
only forming this Unity Government, but also in working with me in
the best interest of the people of these Islands. Who knows Mr.
Speaker, we may have found good working formula. That bodes well for
the next elections!

I
also wish to thank all Chief Officers and other public servants who
have worked, and are still working, to deliver on the priorities of
the Government. Certainly my Chief Officers, including Cabinet
Secretary Samuel Rose, Eric Bush, Wesley Howell and Teresa Echenique
have certainly have been an immense help to me; as has the staff in
the Office of the Premier led by Roy Tatum ably assisted by Kieran
Stigant, Julie Hutton, Tammie Chisholm, Frank Cornwall and Jana
Pouchie-Bush.

Mr.
Speaker, it has been a team effort to have accomplished all that we
have done to date. However, I am not complacent and as I said at the
start of my speech, Mr. Speaker, these next two years will not be a
gradual winding down towards the next election, but instead it will
be a ramping up so that I and the Unity Government that I lead will
accomplish all that we can for the benefit of our beloved Islands and
people.

There
is much more this Government still needs to do.

My
pledge to the country today is to give everything I have to get it
done.

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