Essential

A list of 2011 public holidays in the Cayman Islands has been released by the Deputy Governor’s Office.

All are confirmed with the exception of the date for the Queen’s Birthday which awaits confirmation from the UK.

A delegation from the Cayman Islands headed by the Premier, the Hon. McKeeva Bush, met officials from the Foreign and Commonwealth Office in London last week. Colin Roberts, Director of Overseas Territories Department, chaired the meeting. His Excellency the Governor, Duncan Taylor, also attended.

The aim of the talks was to discuss how to deal with the challenges faced in balancing the Cayman Islands’ budget and to consider credible and deliverable measures with which to eliminate the recurrent deficit in the public finances of the Cayman Islands by the end of the 2012/13 financial year at the latest.

In view of the financial situation that the Cayman Islands finds itself in and the findings of the Miller Commission report, the meeting agreed that swift and significant action, including cuts in Government expenditure, needed to be taken to bring public spending back onto a sustainable track.

An economic team from the FCO will visit Cayman during the week of 22 March to conduct an economic review. They will also discuss with the Financial Secretary and his team the production of a draft three-year plan to deliver sustainable public finances, which could be presented with the budget for 2010/11 in April. The plan will need to feature measures to reduce public spending to an affordable level; a properly costed strategy for managing public assets, perhaps including private finance initiatives; a clear estimate of borrowing requirements; and possibly new measures to broaden the revenue base.

The meeting agreed that current levels of expenditure are not sustainable. The FCO and the Governor welcome the commitment made by the Premier to bring public expenditure back onto a sustainable track The FCO recognises that decisions on exactly how to achieve this must lie with the Cayman Islands Government but undertakes to do what it can to help.

New legislation banning smoking in public places came into effect today.

One of the key elements of the Cayman Islands’ Tobacco Law 2008 is that smoking restrictions will apply in certain public places from December 31 2009.

Buildings covered by the law include enclosed restaurants and bars, public transportation terminals, public toilets, shopping malls and shops.

The legislation permits designated smoking areas in open areas of bars and restaurants. These must be clearly signed and 10 feet from non-smoking areas.

His Excellency the Governor, Mr. Stuart Jack, CVO, and his wife, Mrs. Mariko Jack, have announced that they will depart the Cayman Islands on Wednesday, 2 December.

Deputy Governor, the Hon. Donovan Ebanks, MBE, will act as governor until Mr. Duncan Taylor, CBE, takes over the position in January 2010.

Until recently, Mr. Taylor was the British High Commissioner for Barbados and the Eastern Caribbean, a position he held from 2005. The posting covered Antigua and Barbuda; the Commonwealth of Dominica; Grenada; St. Kitts and Nevis; St. Lucia; and St. Vincent and the Grenadines.

A career diplomat, Mr. Taylor was born 17 October 1958. He has served in the UK’s Foreign Service for 27 years.

The Cayman Islands Department of Tourism is improving its customer service to cruise passengers at the Royal Watler Cruise Terminal with the opening of the new Visitor Information Centre.

The office, which primarily acts as a hub for incoming passengers interested in tours, attractions and facilities on-island, boasts a striking mural of Caymanian photos representing the culture and beauty of the island.

Since the Royal Watler Cruise Terminal received its first cruise ship in October 2006, the Department of Tourism has been stationed in an old Caymanian-style temporary office in the open area. This new space offers a professional environment that not only allows guests to cool down from the heat, but moreover provides guests with a visual depiction of Cayman’s unique and diverse offerings with the anticipation that it will entice guests to experience something new.

‘The new space we have at the Royal Watler Cruise Terminal will positively impact the visitors’ experience with DOT staff when requesting information and brochures on the islands’ attractions, watersports, restaurants and everything else the Cayman Islands has to offer,’ said Racquel Brown, Manager – Tourism Development Services for the Department of Tourism.

In addition to supplying information and materials for incoming visitors, the office supports the Cruise Conversion Programme, ‘Welcome Back’, which encourages cruise passengers to return as stay-over guests. ‘Welcome Back’ will be relaunched November 2009. For the first time, the Department of Tourism has a physical and convenient location for guests to register for the programme and for staff to be able to deliver personalized service and enhance awareness about ‘Welcome Back’ to cruise passengers.

Government has declared November 6 a public holiday to mark the introduction of Cayman’s new constitution.

The day will be a public holiday in 2009 only.

Banks, many shops, and government offices will be closed for the day.

The UK has given the Cayman Islands permission to borrow $279 million to help deal with its financial crisis.

Leader of Government Business McKeeva Bush broke the news at a United Democratic Party meeting last night. He was speaking after a week of talks with the UK Foreign and Commonwealth Office.

The UK has given immediate approval to $50 million of borrowing. The remainder is conditional on the Cayman Islands making cuts in financial expenditure over the next two financial years. An independent study of the impact of direct taxes on the islands’ economy will also be carried out.

Mr Bush outlined significant cuts in government expenditure including new staff hire, purchases of furniture and equipment, and non-essential travel. He stated there were no immediate plans to introduce income or property taxes. Additional revenues will be raised by increasing customs duties by two percent, passport fees, tobacco duties, and introduction of new duties on luxury and other goods.

The legalisation of gambling was also mentioned as a potential source of new revenue. Mr Bush stated that if this was considered necessary, the matter would be decided in a referendum.

Government officials confirmed today they are considering a temporary pay cut for civil servants to help balance the budget.

Under the proposal there would be a 2 percent reduction in salaries for civil servants earning more than $3,000 per month. In return civil servants would receive four days of unpaid leave each month.

Chief Secretary Donovan Ebanks said the measure could come into effect in October 2009 and run until June 2010.

Civil servants earning less than $3,000 per month and teachers employed on a daily basis by the Education Department.

The 2009 Miss Cayman Pageant has been cancelled as a direct result of the economic crisis facing the Cayman Islands.

Government has decided is unable to afford the $100,000 cost of staging the competition.

As a result there will be no entry from the Cayman Islands in the 2009 Miss World pageant and the 2010 Miss Universe pageant.

Leader of Government Business McKeeva Bush stated in a press conference yesterday that income tax and property tax are not options to resolve Cayman’s financial crisis.

He stated ‘Property tax and income tax. To go this route would change the uniqueness of these islands’ economic base.’

To cover the deficit government are seeking private partners to upgrade Owen Roberts International Airport, develop a new sewage system, build a cruise ship facility, and improve roads.

On September 1 government’s operating bank account was overdrawn by CI$4.3 million, with a limit of CI$15 million. Cash outflows during September are likely to be around CI$79 million with revenues of only CI$30 million.

To meet its obligations government needs to borrow around CI$ 40 million. In order to do this it needs the approval of the United Kingdom Foreign & Commonwealth Office.

On Monday 7 September government is due to present plans to the UK outlining proposals to cut spending and increase revenues. They hope to then receive approval to borrow the money they need to pay government salaries and other expenditure.

Last month government was unable to pay employee healthcare and pension costs.