The Hon. Premier Alden McLaughlin delivered the 'State of the Nation' address today, Wednesday, September 5 at the State Opening of the Legislative Assembly in Cayman Brac.
His address covered some of the key topics surrounding the Government, including the development of the cruise piers and cargo expansion, the Ministry of International Trade and Investment, and the revitalisation of George Town, to name but a few.
Some of the key highlights and passages from Premier McLaughlin's address can be found below, for your convenience. Alternatively, to read the Premier's address in it's entirety, please click here.
1. Increase in duty allowance
Government to increase personal duty allowance from CI$350 per person to CI$500 per person from 1st November 2018. Expected loss revenue is CI$1 million.
2. Cruise piers and cargo expansion
“We have also been clear - and we are determined - that the financing must not place disproportionate risks on government finances. In June this year the Deputy Premier confirmed that the negotiations with the cruise companies regarding those issues, among others, remain on track. Because of the commercially sensitive nature of the discussions we cannot provide the kind of running commentary on progress that some have called for, but as the Deputy Premier has repeatedly promised, as soon as we are able to communicate those details we will do so.
“For our part, the Government believes that it is in the vital national interest of the Cayman Islands to proceed with the port project - provided we do everything we reasonably can to limit the environmental impact and to build it as affordably as we can, and with the cruise companies having skin in the game. And this we will do.”
“I have mentioned just now that our support for the cruise berthing facility is conditional; not just on finding a suitable funding model but also on a design that minimizes the environmental impact.”
3. New Ministry of International Trade and Investment
“The Ministry’s role will be to enhance the reputation of the Cayman Islands; to advance the economic and political interests of the government, the people and the business community; and to make our economy easier to do business with, including acting as a single doorway for potential foreign direct investment. The Ministry will assume responsibility for the Cayman Islands Government Office in London and other overseas offices, such as the proposed Cayman Islands Government office in Hong Kong which I have previously announced. As Premier, I will assume responsibility for this Ministry which is planned to become operational early in the New Year.”
4. Constitutional Reform
“I am continuing to press the case for constitutional reform with the Prime Minister’s office and Lord Ahmad, the minister for the Overseas Territories, to clearly delineate local matters from the very few areas where the UK needs to retain competence to act directly. Despite the tangled web that is Brexit, the UK has responded positively to the issues I have raised and agreed to work with us on discussing constitutional reform. Constitutional reform may seem a dry subject to some, but it matters. It really matters. It matters to our economy and it matters to our people.”
5. Caymanian employment
Some 3,350 more Caymanians are now working and able to support themselves and their families than was the case before we took office in 2013. Total unemployment is now at 3.4 percent versus 4.1 percent at the same time last year.
6. WORC update
The new department will launch early in the coming year. It will enable the Government to make four vital improvements on what has gone before. First, we are creating a new function within government to work with our key private sector employers to properly plan and meet the long term labour market needs of our economy. Secondly, WORC will be able to support all Caymanians to access the labour market in a much more holistic way than has been the case with the National Workforce Development Agency, which it will replace. Thirdly, it will improve and streamline the work permit process so that it is fair and transparent for the benefit of businesses and employees alike. Finally, a new accreditation system will be launched that recognizes and rewards the many private sector employers who do play their part in employing and developing Caymanians.
7. Revitalisation of George Town
“Improved roads and pedestrian areas are a key feature of the George Town Revitalisation Project that was started under the last Administration. The Ministry of Commerce, Planning and Infrastructure continues to develop the Revitalisation plan and is in the final phase of hiring a town manager to oversee the plan’s implementation. The town manager will work directly under the Ministry and will begin by supervising some of the smaller, but important projects identified within the plan; the low-hanging fruit that should immediately give the town centre a freshened and friendlier feel. Simultaneously, stakeholders, including businesses and residents will be invited to contribute to the broader development of medium and longer-term plans to improve our town centre and beyond. Another key part of the George Town Revitalisation project is to maintain the main functions of Government within the Capital. This Government will resist any approaches or suggestions to move functioning Government entities outside of the Capital.”
8. Purchase of Scotia Bank Building and its satellite car parks – new courts building
“I am therefore pleased to announce that Government has, last week, completed the purchase of the Scotia Bank Building and its satellite car parks. These will support a larger project to provide 21st Century court facilities for these Islands - and in so doing delivering on another of this Government’s stated objectives. Plans include erecting a new multi-story courts building connecting the Scotia Bank building and the existing Court House, which will also be suitably refurbished. The first phase of this project will commence early next year. When complete this project will resolve the longstanding need for modern court facilities that will also serve as a significant landmark for generations to come. I am pleased to say that the Chief Justice and his staff are as excited as the Government by this development and we are all committed to ensuring that the result is not only fit for purpose but also affordable. As the plans develop we will certainly keep this honourable House and the public advised.”
9. Solid Waste Management plans
“One of the most pressing has been the need for a modern and effective solid waste infrastructure for all three Islands. Negotiations with the Dart-led consortium to create that infrastructure are continuing as we seek to reach an agreed position on a number of reserve matters, including financial, technical, and legal issues. Once these have been agreed, a draft contract will be drawn up for Central Tenders Committee to review and, hopefully, approved. The technical staff has advised that it anticipates this occurring by the end of March 2019. The work being done on the Environmental Impact Assessment is also expected to be completed by March and shortly thereafter, all going well, we expect to have planning approval for the built waste facilities that are at the core of the project.”
10. Government surplus
“Whilst we have maintained our pledge not to raise fees and charges, government revenues, fueled by our economic success, continue to rise. We are continuing to bear down on costs wherever possible. As a result, for the first six months of 2018, the entire government surplus topped $200M. We continue to set aside money to build our reserves and the surplus is also funding our capital projects that are under way. We also continue to pay down government debt and in fact have repaid almost $20M over the course of this year alone. We will make a significant further step in that direction next year when we repay at least half of the bullet bond that falls due. The surpluses we achieve will also help cushion these Islands should natural disaster or economic downturn threaten.”
11. Cost of living increase to civil servants
“I am pleased to advise today that the Government has agreed to provide a 5 per cent cost of living increase to the civil service this year, back dated to 1 July, 2018, and which will be commence being paid with the September salary. Providing Government financial performance and the economy remain strong, we will look again at a further CoLA increase in 2020 to adjust for the Consumer Price Index between 2018 and 2020. This will finally begin to bring civil servant salaries back on track after seven or more years of playing catchup with an increasing cost of living. This will also complete the plans started during the last Administration to bring civil servants pay back in line and will not only benefit families of civil servants but is money that will be spent back into the local economy.”