STATEMENT FROM THE CHAMBER OF COMMERCE COUNCIL
REDUCING EXPENDITURE IS CRITICAL
The elected Government’s decision to reduce their salaries by 20-25% and to begin paying half of their health insurance premiums is a welcome first response to the current budget challenges facing the Cayman Islands and should send a clear message to the Civil Service and all Statutory Authorities. Reducing Government spending is critical and the Chamber congratulates the Premier and the Government for taking a leadership role in driving change. This decision is in keeping with
the election promises that were expressed by most of the candidates during the Chamber’s District Candidates Forums held in April 2009.
The call to reduce Government spending, to build up national reserves, to operate under the same set of rules in the workplace as the private sector, to adopt privatization and to explore outsourcing as key strategies for reducing the size of Government are positions that the Chamber membership has advocated for many years. Unfortunately, successive Governments have dismissed or failed to acknowledge the warnings and continued to add layers of non-essential activities and additional
workers to the long list of services; many of which can be performed by the private sector at considerable savings and with improved efficiencies.
Controlling expenditure and reducing debt featured prominently in the last discussions that the Chamber held with Government in September 2009. The Chamber proposed and supported the commissioning of an independent review of all Government services, departments and statutory authorities (four reviews of the Public Works, Prison, Department of Tourism and the C.I. National Insurance Company are nearing completion) and called for a 25% reduction in the public sector spending. To reduce
Government debt, the Chamber recommended that the identification of assets that can be sold outright or can be offered for investment through privatization or the issuance of an initial public offering (IPO). By introducing this approach, local residents and businesses will be able to become direct shareholders of several important national assets and Government would reduce its direct operational costs.
The Chamber urged the Government to control costs, reduce the national debt and raise revenue from areas that would have minimal impact on business development and residents and expressed the membership’s opposition to any additional revenue measures without a definitive plan to cut costs and reduce debt, any additional general corporate or any form of taxes on income, interbank transactions, payroll or property.
In terms of future business development, the Chamber expressed its support for the development of cruise berthing, medical tourism development, convention facilities, waterfront redevelopment in George Town, attracting the reinsurance sector and additional private trust business.
The Chamber membership also pledged its full support to:
• Address the crime issue that threatens to destabilize the society and drive away business;
• Develop investment policies in partnership with Government that will attract additional local and international investment to the Islands;
• Recommend revisions to immigration policies;
• Strengthen cooperation with the Cayman Islands Investment Bureau and the Department of Tourism;
• Develop policies and programmes to support small business development;
• Host an economic forum to discuss and develop a shared vision for the key pillars for our future success.
The Chamber is pleased that Government has adopted many of the strategies outlined during our meetings in September. We look forward to continuing the dialogue at future meetings so that the Chamber, representing the broad cross section of the business community, can work together to address and find solutions to the challenges that face us.
CAYMAN ISLANDS CHAMBER OF COMMERCE
FOR FURTHER INFORMATION CONTACT: Wil Pineau, CCE, Chief Executive Officer, 949-8090 (ext. 122)