Small business relief package submitted to Government for consideration

The Chamber Council has written to the Ministry of Commerce recommending a series of cost reduction measures intended to provide immediate assistance to small businesses. The submission follows the public announcement by the Premier at the CEO conference on the 20th February 2014 confirming that Government intends to propose a “range of measures” during spring’s budget process aimed at cutting operating fees for small businesses. In the letter dated 27th February 2014 to Commerce Minister the Hon. Wayne Panton, the Council proposed that the Ministry considers a series of financial and technical initiatives for implementation over an 18 month period from 1st June 2014 to 31st December 2016. The proposed small business relief package would include the following financial measures:

• 30% reduction in trade and business licensing fees;
• 7.5% off the current import duty tax;
• 25% concession on custom duties for new small business start-ups;
• 30% concession on customs duties for small businesses that introduce alternative energy solutions;
• 25% reduction in all work permit fees and a 50% discount on permit fees for part time staff (20 hours per week); 
• 25% reduction in work permit fees for managerial level positions.

Additional proposals address technical matters to assist small businesses. These include:

• Free access to training courses through the Chamber of Commerce Professional Development and Training Centre during the period. The Cayman Islands Government would reimburse the Chamber for the courses at reduced Chamber course rates. The Department of Commerce and Investment would work with the Chamber to identify special courses that can be designed to meet the needs of small businesses.
• Access to two one hour small business consulting/ advisory sessions with a legal, accounting or other professionals during the period.
• Development of a small business mentoring programme that would match up small businesses with larger businesses who would be willing to offer advice and assistance on business related matters addressing all aspects of a business.

The Chamber recommended that in order to receive the benefit of the cost reduction package each small business would have to be fully compliant with pensions and health insurance obligations and have paid all outstanding fees owed to Government. If a small business has a formal arrangement in place with a Government agency to pay off their debts then they would also be eligible. The DCI would establish the criteria as to what constitutes a small business that can qualify for the relief package.

“Small businesses represent a substantial segment of the Chamber membership and the Council is responding to their call for assistance in the recent State of Business survey to lower their operational costs,” said Chamber President Johann Moxam. “The proposals are intended to provide the Ministry with some practical ways to provide small businesses with immediate relief.”

The Council also offered to work with the Ministry and the DCI to develop a national small business strategy as a matter of urgency.

Read the letter to the Minister.