THE STATE OF THE NATION

Statement by Premier, Hon. Alden McLaughlin, MBE, JP, MLA

14th
October, 2020

Opening of the Legislative Assembly

Mr.
Speaker, my statement today takes the form of a State of the Nation
address. These occasions are usually an opportunity to place on the
record Government’s achievements and its plans for the year ahead.
For those of you looking forward to that, I hope not to disappoint.

As
I contemplated putting pen to paper and the thoughts that would fill
the lines I considered the teachings of Ralph Waldo Emerson, the late
American essayist and thinker and his poem, “A Nation’s
Strength”, which he penned in 1847. Permit me, please, to
paraphrase:

“What
makes a nation’s pillars high

And
its foundations strong?

What
makes it mighty to defy

The
foes that round it throng?

It
is not gold.

And
is it pride? Ah, that bright crown

Has
seemed to nations sweet;

But
God has struck its lustre down

In
ashes at his feet.

Not
gold but only man can make

A
people great and strong;

Those
who for truth and honour’s sake

Stand
fast and suffer long.

Brave
men and women

Who
work while others sleep,

And
who dare while others fly…

They
build a nation’s pillars deep

And
lift them to the sky.

As
I reflect on those words and the achievements we have made as a
nation and a Government, I am buoyed in the belief that the
foundations of these Islands have indeed been strengthened and built
on pillars deep by the work we have done these past seven and a half
years.

And
so, if I were asked to sum up in one word the strength of our nation
as we sit here today, I would use the word resilient. We began this
year in a strong fiscal position with the economy continuing to grow
and unemployment low – all things this Government had promised
would be delivered during our term in office.

Indeed,
for the first three months of this year, the country was doing
exceptionally well. Cayman’s economy grew by 3.2% in 2019 and
unemployment was at a low 3.5%. It appeared that our major challenge
was to overcome the problems of success. Inflation was running at
5.7% and the government was acting to deal with rising prices.
Commuters were spending too long in traffic jams so we had embarked
on highway improvements to ease congestion.

But
in the space of mere weeks, the situation changed out of all
recognition. We have estimated that growth for 2020 will decline by
7.2% with unemployment rising to 6.9% and inflation falling to 0.4%.
A similar story is seen across every country in the world. Indeed,
many economies both in this region and globally are faring much worse
than Cayman.

But
whilst there are many here who are doing reasonably well, my
Government and I appreciate that there are also many Caymanians,
especially in the tourism sector, whose livelihoods have been
impacted by this pandemic. But we are working hard to not only try to
safely get some tourism jobs back online but also to provide
assistance to these families and businesses and I will speak more to
this later.

Mr.
Speaker, I had warned in early March, at the Cayman Economic Outlook
Conference, of the threat posed by a new virus, which could have
potentially devastating effects on Cayman. By the end of March, the
COVID-19 virus was with us and we were forced to shut down the
economy to defeat the virus and stop community spread. That decisive
action was necessary to protect public health and to save lives. Only
by taking that firm action could we give ourselves the best chance to
rebuild even stronger.

The
alternative would be ‘death by a thousand cuts’ with repeated
lockdown and opening up because we failed to do what we knew had to
be done in the first place. Our people would have suffered from the
virus itself while in the long term our economy would have been hit
even harder as confidence was adversely impacted. I am not guessing
at this. We can all see what is happening in the United States, the
United Kingdom, France, Spain and elsewhere. That was not an outcome
anyone would want.

Today,
despite our significant challenges we are doing reasonably well and
our economy has indeed proved to be resilient, and in some cases even
robust - particularly international financial services and much of
the domestic sector. Our revenues are impaired but the Government’s
finances are still strong and will help get us through most, if not
all, of next year.

But
Mr. Speaker the world around us, including our major trading
partners, is filled with uncertainty. Given the turmoil of the last
seven months, the normal patterns of our society and our economy have
been seriously interrupted. As such it is not easy for us to
understand exactly how things will develop as we move into 2021.
Equally, there is so much left unknown about how events will unfold
from here that it is difficult to plan properly for what is to come.

Therefore,
Mr. Speaker, I cannot think of a time when it has been more necessary
for a Caymanian Premier to make such an address as this.

Events
beyond our control have created a set of circumstances facing these
Cayman Islands today that I think are unparalleled in our still short
history as a self-governing nation.

But
Mr. Speaker, despite the uncertainties around us, of this I am
certain, we are, to a very great degree, still masters of our
destiny.

We
need to move forward as a country and as a people and to do so
determinedly, together. Crucially, I am thinking, Mr. Speaker, of the
need to maintain vigilance in the face of the current public health
crisis that we are not yet through and of the need to chart a course
back to economic prosperity, and to do so together.

One
of the things that give me confidence in our ability to come
together, Mr. Speaker, is the experience we have had over the last
seven months. The response of Cayman and its people to the COVID-19
crisis has been a source of considerable pride and inspiration for
me. I think all who live and work in these Islands should have those
same feelings. The response of the community here, both in terms of
a willingness to follow the rules the Government moved swiftly to put
in place and in the way we have come together to look after each
other, is a story we should be proud of, Mr. Speaker.

Just
last week we again saw the community comes together in response to a
positive case, albeit weakly positive, at the Red Bay Primary School.
Setting aside some initial panic caused unnecessarily by an online
blog site, the school and education and public health officials all
acted responsibly, professionally and quickly to determine the facts
and then to contain the situation. Thankfully after some 207 tests
were done of contacts and possible contacts there have been no other
positive cases found.

I
am glad the child and her family are well and I wish the very best to
them as well as to the many families now quarantined as a result of
that incident. But it served as a good reminder, if we needed to be
reminded, that we still need to be vigilant to avoid a serious
outbreak and a return to strong measures. We do not want to go back
there Mr. Speaker. I do not want to go back there and I am sure none
of us do.

This
Government has made some tough decisions over the last seven months.
Tough decisions that have curtailed liberties and impacted the
livelihoods of Caymanians and residents in ways that no one on these
benches would ever have wanted to see happen in these Islands. But it
was those measures that have now allowed us to go about our lives in
reasonable safety.

In
that context Mr. Speaker, I must take this opportunity to thank my
colleagues on the government side of the House for their steadfast
support during this difficult time. I also thank the members of the
Opposition for their support of Government’s measures. Both in
their willingness to support the general government effort and in the
steps that they have taken within their Ministries, I believe they
have provided exemplary political leadership in a hugely difficult
period in Cayman’s history.

Thanks
too to the Governor and the official members of Cabinet for their
support and the long hours of work they have put in to keep these
Islands safe. The Governor attended every one of the 65 or so press
briefings that we have held since March. The Governor’s office
played a key role in obtaining necessary equipment and medicines,
including the test kits that were such an important game-changer for
us.

We
could not have made it through the worst of the pandemic without the
able assistance of the learned Attorney General, the Deputy Governor,
Cabinet Secretary Samuel Rose, my Chief Officer Eric Bush who oversaw
Curfew Time and Travel Time, Employment and Border Control Chief
Officer Wesley Howell and their respective teams.

Thanks
are also due to all civil service leaders and staff who have adapted
and reshaped the way they work to new demands and changing
circumstances so that much needed public services could be delivered
through these times. This includes the stellar work done by the
Ministry of Community Services, headed up by Teresa Echenique and in
particular the Needs Assessment Unit. They were at the forefront of
much of the Government’s assistance to those in need and impacted
by COVID.

I
should also acknowledge the tremendous work of the Ministry of
Education on the Department of Education Services. Equally the work
of the Ministry of Tourism led by Stan Bodden of the Department of
Tourism led by Rosa Harris deserve recognition and appreciation.

It
is perhaps invidious to single out an individual amidst a collective
effort of this magnitude but I want to place on the public record my
appreciation for the work of Chief Medical Officer, Dr John Lee. His
clear and unflustered advice has been crucial to the Governor and I,
and fellow Cabinet Members, as we came to terms with the unfolding
public health crisis.

First,
we were able to make timely decisions to intervene and close things
down in a way that I believe has saved lives and maintained public
health in the Cayman Islands. Secondly, the quarantine and testing
and tracing arrangements put in place from a standing start have been
crucial in both containing community transmission and providing
public reassurance.

Clear
political leadership was possible because of the quality of the
advice we received from Dr Lee and Dr. Samuel Williams-Rodriguez,
Medical Officer for Health Services, and their health colleagues,
including those at Public Health England who supported Cayman. I
believe the nation owes them all a debt, one I would like to
acknowledge in this House today. Dr. Lee’s appointment as an
Officer of the Most Excellent Order of the British Empire by Her
Majesty the Queen is thoroughly well deserved and I congratulate him
on this.

I
also congratulate Angela Tanzillo-Swarts, forensic DNA specialist at
the Health Services Authority, on her award of Honorary Member of the
Order of the British Empire for her contribution to helping build
Cayman’s capacity and ability to carry out wide-scale testing.
Indeed, I congratulate all those who were recognised for their
contribution.

I
also thank the many who worked very hard to get us through the
hardest days of the pandemic and I want to recognise the capable
efforts of the Commissioner of Police and the Royal Cayman Islands
Police Service, of Cayman Border Control, of WORC and the other
uniformed organisations that assisted.

We
also must recognize and thank the private sector and our generous
charitable community for all they have done and are still doing to
assist people in need during this time.

Mr.
Speaker, we continue to follow the best public health and scientific
advice as we move now to carefully re-open Cayman and its economy to
the outside world. The changes that came into place on the first of
the month represent an important first step on the path back to a
more ‘normal’ relationship between Cayman and the rest of the
world. As you have seen we are acting cautiously and slowly. We hope
further steps will be possible and have several initiatives being
worked on that can be introduced when we are confident that we can do
so safely.

I
will make a separate statement on the COVID-19 position during this
meeting, Mr. Speaker, but, for now, suffice it to say that the
Government recognises that we must get the tourism sector moving
again but we will do so in a way that does not jeopardise the
hard-won position we now have achieved.

Getting
tourism and the broader economy moving again, however, does not mean
just turning back to the way things were before. This crisis has
changed Cayman. It has changed the world. It has created an
unprecedented economic shock. It has changed consumer behaviours.
Things will not just spring back as they were.

For
all those reasons, Cayman now needs to think anew about its future
and take the opportunity it gives us to re-chart our path back to
prosperity.

The
good news is that we are not starting from zero. The development
sector is still doing well and has helped jump-start the domestic
economy as we reopened - a very good indicator of the confidence in
our Islands.

The
Financial Services Industry and its support eco-system has carried on
through the recent turmoil, if not uninterrupted then certainly in
strength.

The
task of Government in respect of the Financial Services Industry is
two-fold.

First,
we will continue our engagement with the European Union and building
relationships in Brussels. Mr. Speaker, it feels to me that I have
spent more time this term than anyone could have wanted travelling
around Europe trying to persuade the EU of the bona fides of the
Financial Services Industry in Cayman. Or travelling to the USA to
reassure investors about the future of the jurisdiction. But this has
been necessary and ultimately fruitful work.

I
know we were all pleased that earlier this month the European Union
acknowledged the work we have done to further strengthen our
regulatory regime regarding funds and removed us from their list of
non-cooperative jurisdictions for tax purposes. This was a
significant achievement with all hands working over many months
despite the pandemic. This work was greatly aided through our
programme of engagement. But the job does not end here. As we know
there will be other initiatives aimed at us and we will be ready.

Secondly,
the partnership with the industry must continue and be strengthened.
Government and industry have separate but complementary roles to play
in keeping the sector strong. However, we must and will move forward
in lock-step to secure the future of the Financial Services Industry.

The
Minister for Financial Services has provided first-rate support
through the process and her work in partnership with the industry has
been crucial in providing the European Union and others with the
evidence of Cayman’s commitment to the highest standards of
international regulatory compliance. I thank the Minister for her
hard work.

Let
me quickly add Mr. Speaker, that whilst some may complain about the
added requirements on a significant part of our Funds business, many
in the sector believe that many benefits will accrue to these
Islands, not least of which is the possibility of additional jobs and
opportunities for Caymanians.

In
addition, the economic substance rules require that appropriate
businesses must have an adequate amount of operating expenditure
incurred in these Islands, have an adequate physical presence here,
and have full time qualified employees also located here. Also, the
new requirement for annual audited financial statements for
closed-ended funds will add to the work needing to be done here.

All
this means that the changes are creating new job opportunities for
Caymanians both directly in the financial services sector and
indirectly as more money gets spent in our domestic economy.

The
other pillar of our economy, tourism, still has an important part to
play in Cayman’s future. It will recover but it will recover slowly
and unevenly.

Both
business economics and the on-going public health concerns dictate
that it will be stay-over tourism that recovers here first. ‘RB5 –
The Road Back to 500K Air Arrivals,’ the three-year plan published
by the Deputy Premier, charts a realistic course by which Cayman can
in time recover to its pre-COVID position of half a million stay-over
visitors a year. I commend the clarity and thoughtfulness of the plan
that he, his Ministry team and the industry itself have devised.

Across
government, we are working to make sure that the implementation of
that plan can be achieved with minimum risk to Cayman’s population.
The key will be in the continued partnership with the industry to
make sure Cayman’s hotels, when they reopen to business, are
COVID-secure locations, maintaining the highest standards. The
Government will give them the advice and support they need. The
‘resort bubble’ is one solution that is being worked on to help
restart tourism in a phased and careful manner. As is the Global
Citizens Concierge programme that will be launched shortly to attract
longer-term visitors to live and work here. We are also in
conversation with Villa management companies as to how to allow
visitors to stay and quarantine at what is effectively a
self-contained villa.

While
we will continue to err on the side of caution as we reopen our
borders, we understand that reopening Cayman successfully is
required. We cannot stay closed indefinitely. While a successful
reopening acknowledges that we will have some risk, we will take
great pains to minimise the risk of an outbreak of the virus.

Mr.
Speaker, we will need to be flexible and responsive as the situation
changes. Once the serious threat of COVID-19 is abated we must make
sure that we maximise the benefit from the visitors who do come to
the Islands. We must get them out of hotels and apartments and
broadly spending money in our economy from West Bay to East End and
North Side and over to the Sister Islands along with the other
districts in between. This offers real opportunities for Caymanians
and the plan proposes a New Visitor Experience Development Fund to
help provide funding and guidance to new business start-ups looking
to exploit those opportunities.

Inevitably,
the opening of Grand Cayman to the cruise industry will take more
time and, in my view, it will take time for consumer confidence to
return to that industry in any case. We cannot expect the numbers of
cruise visitors we have been used to. The Government will therefore
continue to offer both short term help to those impacted by that
reality and longer-term support in terms of retraining and small
business support to create more opportunities for Caymanians.

I
have throughout my time as Premier spoken of the need to diversify
the Caymanian economy. In particular, we need to embrace the
opportunities offered by digital business and the knowledge economy.

The
Government has made important steps in that direction. The framework
of protections we created for intellectual property was a crucial
step and we have seen initiatives like Enterprise City and Tech
Cayman attracting increasing numbers of new businesses to our shores
as a result.

The
Virtual Assets Law, which this House passed in May, is another really
important step forward. On the one hand, it is a significant
regulatory provision to support the development of our financial
services in the fast-moving world of cryptocurrencies and digital
assets.

On
the other hand, alongside the intellectual property regime, it opens
the way for creative industries in Cayman to prosper. For young
people looking to develop their interest in gaming or app development
or music into a career, it offers them the chance to create digital
content and receive safe payment here in Cayman. In the rapidly
developing digital world, I believe Cayman’s young people have the
creativity to drive success. This Government is providing both the
legal frameworks they need and also the skills development and
business support necessary to turn great ideas into viable income
streams.

In
the face of this current crisis, I recognise that we now need a
step-change in our efforts on diversification. My government is
willing to do more to support the location of knowledge-based
business in the Cayman Islands. Discussions with the market leaders
suggest that to attract and retain such businesses, Cayman needs to
consider a third undersea communication cable to both increase
capacity and improve resilience. Therefore, the Government has sought
expressions of interest in providing that third cable.

I
am determined that these developments, exciting as they are, must not
just be about attracting overseas investment. Mr. Speaker, they must
be about creating new opportunities for Caymanians.

Those
opportunities will come in two forms. First, the investment will
create new jobs in the digital industries. We have recognised that if
Caymanians are to be in the best possible position for employment in
the jobs being created, then they need the best possible education
and training to equip them in the new marketplace.

The
improvement of Cayman’s public schools is a long haul but this
Government has made good progress. I want to thank the Minister of
Education for the strategic approach she has taken, which is tackling
some of the long-standing problems that were revealed through the
important work on baseline assessments carried out during the
government’s first term.

Central
to the strategy has been improving the quality of teaching.
Investment has been made in training for our teachers and salaries
have been raised. The increases we have provided recognise the value
of teachers in our society and also help to attract and retain the
best to teach in our schools.

A
testament to that was the special mention at the Clifton Hunter High
School graduation this month of three students, Diamond Chambers,
Joshua Peart and Aaliyah Powell, for attaining top performance status
and being named in the top 10 for the Caribbean Region for their
academic performance in external examinations in Integrated Science,
Human and Social Biology and Electronic Document Preparation and
Management.

I
congratulate these young graduates, their parents and teachers on
their outstanding achievements.

The
latest round of inspections of our public schools is recognising the
progress that has been made.

High-quality
teachers need to be teaching the right things. The education system
needs to challenge students and support them to achieve. For that
reason, a new curriculum has been introduced in Cayman’s primary
schools. That curriculum, based on that in place in England, expects
more of our young people but, in doing so, gives them the education
they need to be successful. Regrettably, the COVID crisis has delayed
the further rollout of the new curriculum but that will be the key
priority for the coming year.

The
education system increasingly recognises the need to individualise
the experience as far as possible so that each student is supported
to reach his or her potential. The system is one that promotes
excellence but remains inclusive. The Government has therefore also
invested heavily in improving support for students with special needs
so that no child is left behind.

The
disruption of recent months has also delayed the changes to school
governance that the Government wishes to bring forward. The key to
maintaining the path towards excellence, the path that Cayman’s
schools are on, lies in creating better accountability to ensure
improved performance. New school governing bodies will provide an
important new element in that system of accountability.

This
is a new idea for Cayman and while we can learn from elsewhere, we
need to design the right school governance arrangements specifically
for Cayman. The Minister has therefore delegated authority to the
Education Council to develop and implement a pilot project during
2021.

As
well as jobs, Cayman’s increasingly diversified economy will create
business opportunities for Caymanians. The new digital industries
require an extensive eco-system of businesses to support them, which
will provide new opportunities for Caymanian entrepreneurs to start
or expand their enterprises.

Through
the last seven months, the Government has stepped up to extend the
support available to small businesses. Financial support, totalling
CI$3 million, has been made available as a grant to meet immediate
needs but in the longer-term access to the right advice and support
is the most important factor in helping businesses to grow. The new
Small Business Centre is offering a one-stop-shop centre of
excellence for businesses to find the advice and support they need.
Also, a recent initiative has established a $5 million fund to
provide additional grants for micro and small businesses. This second
phase of grants will assist qualifying Caymanian micro and small
businesses with wages, commercial rent, digital enablement, business
continuity, and business process innovation. Microbusinesses will be
able to access up to CI$10,000 and small businesses packages up to
CI$20,000. Those wishing to apply can find the information and
application forms at www.cpiministry.gov.ky.

I
would like to thank the Minister of Commerce for the work his
Ministry has done both to create a lifeline that meets the immediate
needs of small businesses and to bring forward their plans and to
open the new centre ahead of schedule.

Infrastructure
provision by Government will remain a key enabler of growth in the
new Cayman economy. Despite the interruptions of the last few
months, the Government has made considerable progress on national
infrastructure priorities.

Work
on the runway improvements and other enhancements in the airport
development plan has continued apace. Work on short term
improvements on the highway network and the longer-term extension of
the East-West Arterial Road has also progressed. With the problems of
congestion re-emerging as the schools re-opened, the completion of
these much-needed improvements is crucial for the longer term.

As
I have said before, however, highway network expansion cannot be the
only thing we rely on. Cayman needs a new approach to meet future
transportation needs that does not just rely upon private vehicles.
Before the onset of COVID, the Government was starting the work
needed to identify the right public transport solution for these
Islands. This project was slowed during the lockdown but the Request
for Proposals will go out by the end of this month for a company to
do the analysis and recommend a suitable solution or list of
solutions for the Government to consider and progress.

A
successful public transport system is also one plank of the climate
change strategy that this House has agreed is necessary.

What
is clear, Mr. Speaker is that the current changed circumstances offer
Cayman the opportunity not just to devise a new strategy but to take
action that will benefit Cayman and contribute to reducing climate
impacts.

In
addition to transportation, another good example is the scope we have
to accelerate the delivery of the National Energy Policy that my
previous Administration devised. Two key actions stand out for their
ability to genuinely move the dial on the Policy’s ambitions. In
doing so they will both also create new jobs and business
opportunities for Caymanians in a similar way to that offered by the
digital economy I spoke about earlier.

The
first is to reduce energy consumption by improving the energy
efficiency of the existing building stock. The Government needs to
take responsibility for its footprint in this respect and we are
commissioning a series of energy audits for public sector buildings.
The result will be a programme of energy-saving measures that can be
implemented in the future, achieving energy and financial savings.

I
want to see the same approach extended to private sector buildings in
both the domestic and commercial property sectors. Government has a
responsibility to support this work. Most obviously, some of the
least energy-efficient buildings are houses occupied by some of those
least able to finance improvements to those buildings. The Government
will therefore look at the possibility of providing grants and
incentives that do not just repair but also improve the energy
efficiency of them.

These
kinds of improvements will not just yield energy benefits. They will
reduce the cost of living for poorer households, reduce fuel poverty
and help improve outcomes for health issues linked to poor housing.

These
types of programmes create jobs in the retrofit sector.
Energy-saving measures are relatively labour intensive to implement
and therefore the impact on jobs could be potentially significant,
provided these jobs are taken by unemployed Caymanians.

As
much of the technology may be new to the Islands, training and skills
development would be required. The apprenticeship centre at the
Public Works Department and the trade schools operating on the Island
with the Government’s support could rapidly expand to provide the
necessary training places for Caymanians as part of our existing
strategy to revise this country’s approach to technical and
vocational skills development. In short, I believe there is the
potential for Cayman to develop as a centre of excellence in energy
efficiency for the entire Caribbean region.

The
second Energy Policy initiative is to accelerate moves to more
renewable energy in line with the 70% target in the National Energy
Policy. Solar energy provides the swiftest and easiest path to
achieving that target and the Government has welcomed CUC’s
announced plans to seek a partner in a further utility-scale solar
project.

We
also believe that there is the potential to look afresh at the
contribution of distributed networks. The experience with the CORE
programme gives us a place to start but the experience globally has
moved on and new models have been developed from which we can learn.
The Government has therefore welcomed the Governor’s offer to seek
expert technical support from the United Kingdom to move work in the
renewables sector forward.

Solar
energy is not the only renewable energy source that we can utilise.
The Integrated Solid Waste Management Project that is being
progressed by the government will generate electricity from incoming
solid waste and landfill gases from the George Town landfill site
once it has been capped and remediated. The primary purpose of the
project is, of course, to achieve the closure of the existing
landfill through alternative means of waste disposal but in achieving
that, the government is moving to an approach that utilises waste as
a resource rather than simply as garbage to be disposed of.

I
am delighted with the progress the contract negotiations are finally
making. I must thank the Minister for Health and the Environment for
his fortitude and perseverance in keeping the project moving forward.
As we announced yesterday, early works contracts have been signed
that will complete the capping of the existing area of completed
landfill over the next year and which will start the planning and
environmental impact assessment work for the new plant. These are
signature achievements of this Government.

The
capping and remediation of the George Town landfill will also
virtually eliminate fire risks and minimise the environmental impact
of the site.

Other
important environmental programmes being delivered thanks to this
Government include the massive extension to marine parks; new public
parks and open spaces; and the designation of new protected
conservation areas.

Regrettably,
these achievements got talked down during the public debate over the
proposed cruise dock. I do not mean that just from a political
standpoint. It is also regrettable that the hard work of many civil
servants, community groups, charitable organisations and individual
members of the public who, for example, put their own time into
helping bring open space into public use, got lost in that debate. I
hope that the whole of Cayman will now be ready to acknowledge that
work and that effort as I do.

I
want to emphasise too, Mr. Speaker, that this is a Government that
will do all it can to support vulnerable Caymanians and those in need
in our community.

During
the recent crisis, we have acted to provide additional support. The
vital measures that we have put in place included a one-off payment
of $425 to the disabled, seafarers and veterans, and other persons in
need who get financial assistance from Government. Also, a one-off
stipend of $600 was provided to taxi drivers and Caymanian tourism
workers and in subsequent months all unemployed tourism-related
workers received $1,000 per month. Over 200 musicians and artists
also received support totalling CI$226,000.

Assistance
with health insurance costs from April through June totalling over
$419,000 was also provided to workers who had been furloughed –
covering over 1,200 individuals, employees and dependents. We also
assisted individuals in the community with masks at a cost of over
CI$131,000.

With
food security in mind one million dollars was provided to farmers to
help buy feed and supplies.

No
one should be surprised, Mr. Speaker, by the extent of the help we
have offered to our people. The Government made it clear from the
outset that we would stand up for the vulnerable and the needy.

One
of the first promises we kept was our commitment to raising the
minimum income of our veterans and seafarers and those in need of
welfare support. In our first budget, we raised that minimum income
figure from $550 per month to $750 per month. We also extended that
benefit to long-standing civil service pensioners in recognition not
just of their need for help but as a reward for their valuable
service to this country.

And
we did not stop there, Mr. Speaker. In our budget presented to the
House last year, we further increased the minimum income guarantee to
$850 per month effective January this year and with a further
increase to $950 per month in January 2021. As a result, by the time
this term is over, the income of over 2,000 Caymanians most in need
in our community will have increased by approximately 73%.

This
is a Government, Mr. Speaker that looks after Caymanians and their
families.

It
is also a Government that looks after the national finances. We set
out an ambitious delivery programme for our term in office but we
also committed that we would achieve the objectives we had set while
living within our means.

In
particular, we promised that we would deliver year-on-year surpluses;
we would impose no new fees or duties on our people; and we would pay
down Cayman’s debt, financing our investment priorities from
operating surpluses.

It
is a source of regret that the events of recent months will break our
strong record of sticking with those promises. The reduction in
economic activity is impacting government revenues while we have had
to increase our spending to make the vital interventions to support
businesses and families across these Islands. Clearly, we will not
deliver a surplus in this our final year in office.

Yet
despite that, remarkably, we will finish our term without needing to
raise new fees or duties and, we hope, without needing to resort to
borrowing. Very simply, that is because of the extremely strong
position that our public finances were in as we entered this year. We
have enough cash in the bank, we expect, to get us through the
current difficulties.

Mr.
Speaker as at 30 September this year, the Cayman Islands Treasury
held roughly CI$500 million in cash and deposits, representing
operating cash and reserves and restricted cash.

I
must remind the House and the country, Mr. Speaker that the cash we
hold is only there because we achieved the financial strategy we
committed ourselves to. It is the direct result of seven years of
successful financial management by this government and the previous
administration.

We
have also secured a US$403 million line of credit, which is before
this House for approval in this meeting from a consortium of local
banks should it be necessary. That is the prudent thing to do so that
we can access favourable terms now and do not go to the market in a
weak position at the point of necessity. However, as I explained
when we announced that this arrangement had been secured, it is an
insurance policy should we need it. In any case, on current
projections there should be no need to access the credit available
before the latter part of next year, if at all. But I would add, Mr.
Speaker, that the willingness of the market to offer credit on very
favourable terms is yet another demonstration of confidence in this
Government and the country as a whole.

Contrast
this position, Mr. Speaker, with that elsewhere in the world. As we
sit here today, Cayman has taken its income reduction on the chin. We
have provided considerable support for families and business. And
our national debt has increased by……. zero. Not one dollar has
been borrowed. To take two other examples. In the same
circumstances, national debt in the United Kingdom has increased by
around £250 billion since this time last year and now exceeds £2
trillion, larger than the size of the UK economy. Meanwhile, in
America, the Government has borrowed an eye-watering $3 trillion
since 1st March.

Cayman’s
position has not come about by accident. I repeat, Mr. Speaker, it
is the direct result of this Government’s fiscal strategy. I must,
in particular, pay tribute to the Minister of Finance. The country
has been fortunate indeed to have a figure of his stature and
experience at the helm at this time. His stewardship of the public
purse has been notwithstanding remarkable.

Another
accomplishment of the Minister is the arrangement between the
Government and five local banks to a government-guaranteed loan
scheme that will provide up to CI$200 million to assist medium and
large-sized businesses that are at least 60% Caymanian owned, with
meeting their operating and capital expenditure and refinancing their
debt. Under the scheme, banks will consider applications for loans
from eligible medium and large-sized businesses where each medium and
large-sized business can borrow up to CI$750,000 and CI$3,000,000,
respectively. Decisions will be made solely by the banks and must
satisfy all their usual credit approval and other requirements. The
Government will guarantee 50%, or a total not to exceed CI$100
million, of the loans granted as an additional incentive to have
banks loan money to our struggling businesses.

This
House will also consider and vote on this scheme during this meeting.

I
promised earlier, Mr. Speaker, that I hoped not to disappoint those
expecting to hear about the Government’s achievements. But time is
running short. There are a whole host of other achievements I do not
have time to go into in detail, Mr. Speaker. From establishing the
new Plan Cayman process to the improvements to the airport and
runway; from finding new courtroom space to implementing the
Standards in Public Life Law; from opening a new 25-metre competition
swimming pool on Cayman Brac to providing new trucks to make garbage
collection more reliable; from enhancements to our public beaches to
celebrating Cayman - this Government continues to deliver on the
promises we made to the country when we came into office. It is a
track record of achievement that I believe is unparalleled in
Cayman’s recent political history.

I
also promised to speak about the Government’s future plans. I have
touched on many of those, from renewed economic growth to protecting
the environment.

At
the end of eight years in office, it might be expected that there
would be a tired feeling attaching to the Government. I can report to
the House and to the country that I detect no such feeling in my
colleagues.

Far
from proposing to rest on its laurels, this Government remains
ambitious for the future of our country. There is more left to do as
the country moves forward from the current crisis. On these benches
sit the people with the experience of delivery and the strength of
vision to do it.

This
Government has proven its ability to lead the country through crisis
and adversity. On these benches sit the people who the country
recognises can provide the leadership to bring us back to prosperity.

I
thank all of my colleagues, Ministers and Councillors for their hard
work and dedication to the people of these Islands.

Next
May I will complete two consecutive terms as Premier and 20 and ½
years as a representative of my people. Although I will not be
Premier again, I will stand for re-election in the constituency of
Red Bay and God and my constituents willing, I hope to continue to
represent my people and assist in governing this country I love so
very much following these elections. But more important than that by
far is that I am confident that the man who has managed this
country’s finances during this term is more than up to the task of
succeeding me as Premier.

Next
May, Mr. Speaker, the country has a really big decision to make. Does
it retain its confidence in those whom it has seen deliver on the
promises we have made and who have set out a clear and important
vision for the future of our country? Does it stick with those who
four years ago committed themselves to put aside political
differences in the national interest and who have remained steadfast
in that commitment? Or does it instead turn to a mismatched group of
individuals who in the past four years have shown that the only thing
that unites them is political ambition and political opportunism?

No
doubt beyond the official opposition, there are others already
recruiting their committees and planning their campaigns against
those on this side. We have heard many of them clogging the airwaves
and social media platforms to spread their particular mixture of
platitudes and misinformation. I have heard lots of talk but no
solutions, nor indeed who they will work with to deliver for the
Caymanian people.

Going
back to Ralph Waldo Emerson, with whose poem I began, in 1841 he gave
a lecture in which he distinguished between the “Party of Memory”
and the “Party of Hope”. So it is in Cayman today. Some are
lining up to stand in our forthcoming elections essentially arguing
that now is the time to wind back the clocks; to forget the
commitment to growth and to improving life-chances for Caymanians
that has served us so well. Instead, they prefer to search for some
mythical golden age that exists only in their rose-tinted
remembrances.

But
theirs is a view of our future that stands on self-imposed
limitations, created in memory and turned into a political programme
that distrusts our Caymanian ability to forge our own successful
future. Its self-appointed leaders want to limit Cayman to some
replay of their imagined past because they doubt Caymanians’
capacity to achieve and to thrive in a future that is there to be
grasped if we have the courage to do so. I wholeheartedly reject
that view.

I
am proud of Cayman’s heritage. Next year, I am pleased we will be
able to honour our seafaring tradition, not just on Heroes Day but
throughout the year. But we also celebrate our advancement as a
people. The recent celebrations of 60 years of our Coat of Arms and
our Constitution were about the achievements of our pioneers but also
about recognising the progress we have made over the last six
decades.

The
new Constitutional Order that will hopefully be made by the Privy
Council in the next few weeks will give us another opportunity to
celebrate and recognise our continued development. The Legislative
Assembly Law, the new Law for the autonomy of this House that we will
debate during this meeting is another important step in our maturity.
Both these developments are important way-markers to Cayman’s
future.

I
am proud of Cayman’s past but I have no desire to live there again.

I
am honoured to lead the Progressives. The Party of Progress. But I am
also privileged to have led this National Unity Government over this
term. Working together in the national interest through these
toughest of times, we have retained our shared hope for the future.
We have had challenges and, yes, we have had our differences along
the way. But we have achieved much progress and created hope and
confidence in Cayman’s future by working together and staying
together.

Where
the Party of Memory says Caymanians must have over-weaning protection
to be successful, we say Caymanians need only full access to
opportunity and then their inbuilt drive and determination will
deliver success.

Where
they say our country should fear growth because we are surrendering
to outside special interests, we say that growth comes by combining
innovation and creativity of the Caymanian people with the knowledge,
expertise and financial clout that only comes here because we are
bold and visionary.

Where
the Party of Memory would limit Cayman’s place in the world to
remaining three small Islands adrift in global seas at the mercy of
the winds of fortune, we offer the opportunity for Cayman to continue
to grow, to punch well above our weight on the global stage and to
control our own future.

I
do not know exactly what the future holds for Cayman, Mr. Speaker but
there is a saying widely repeated in the tech industry that goes “the
best way to predict the future is to create it.”

I
believe that we have in our power now the ability to create a new
future for our Cayman Islands. As this crisis passes, the years ahead
will require us not to batten down the hatches but to be bold, and
unfurl the sails.

I
have confidence and optimism in the future of our people. And, Mr.
Speaker, I have confidence that faced with the choice I have
highlighted, the choice of regressive malaise versus the bold
progress we offer, our people will return those on these benches for
an effective third term, unprecedented in Cayman’s political
history.