GOVERNMENT AND OPPOSITION SPAR OVER SPS

By Staff Writer

In the main, the meeting of Parliament to present the Strategic Policy Statement(SPS) ended the way it started, with a heavy focus on the government’s financial projections for 2026-2028.

The controversial issue of the so-far-avoided deficit, the additional revenue measures announced, and the government’s overall budget management to date, were central themes to varying degrees by the MPs.

Opposition Leader Joey Hew had launched the initial salvos on the SPS (see our previous report) stating: “Despite collecting record revenue, our entire public sector surplus is CI(KYD)$14.9 million less than for the same period last year. That, we take as a warning sign.”

MCTAGGART

That warning tone was echoed by Roy McTaggart, finance minister in the last PPM/Progressive government.

“There are three themes that I found permeated throughout the document speech. They are increased taxes, increased borrowing, and increased spending. Yes, tax, borrow and spend in each of the three years. And yet, with all of this, they can only muster surpluses of $6.5 6 million in 2026, $9.3 million in 2027, and $13.8 9 million in 2028.”

Mr McTaggart asserted: “In my 12-plus years in this Parliament, I have never seen such meagre surpluses being budgeted. With razor-thin numbers like this. There is absolutely no wiggle room.”

But the former finance minister’s critical assessment of the SPS drew a scathing retort from the current postholder.

ANGLIN

Rolston Anglin, independent member and Minister of Finance in the NCFC government, was also in the 2009-2013 United Democratic Party(UDP) government, which he claimed inherited a fiscal hole from the PPM/Progressives at the time and was forced to take corrective measures.

“The record surpluses that were being touted were earned on the back of the tax packages, the fee packages the UDP put in place. In fact, the PPM didn’t roll back one fee after saying that they were going to kill the goose that laid the golden egg. They took over the government from 2013 to 2017, and 2017 to 2021 and not one fee was reversed.”

On comments that the financial services sector was being overly targeted to raise government revenues, he claimed: “We had to put taxes and fees in place to ensure the country could survive.”

The Minister of Finance also said costly school projects undertaken by previous PPM governments, as well as more recently by the United People’s Movement-UPM led by ex-premier Juliana O’Connor-Connolly (who is now a member of the PPM), had put strains on the government’s finances. However, Mr Anglin said he was open to taking a second look at some of the revenue measures proposed in the SPS.

BRYAN

Deputy Leader of the PPM/Progressives and former UPM tourism minister, Kenneth Bryan, intensified the attack on the SPS.

He elaborated on the theme of ‘tax, borrow and spend’ that the Progressives have labelled the NCFC government.

“It was his administration that raised the (banking) fees, and it looks like it’s his administration that will do exactly the same thing again,” Mr Bryan declared, referring to Mr Anglin’s then membership of the past UDP administration and now with the NCFC.

“Tax, borrow and spend, Over $300 million in borrowing is what the Minister of Finance has presented after his leader spoke about financial control and responsibility,” he added while defending the PPM/Progressive’s fiscal management record.

He said the NCFC’s coalition partner, the Cayman Islands National Party(CINP), had engaged in scare tactics over the Pre-Election Financial Update (PREFU), accusing them of inflating the deficit projection beyond the official figures.

SAUNDERS

Independent MP and former finance minister in the 2021 PACT government, Chris Saunders, broadly supported the NCFC administration’s revenue-raising objectives. Regarding the additional fees to be imposed on the banking sector, he said his research shows that from revenues of US$986 million, Class A banks (physical banks) made profits of US$752 million. This, Mr Saunders claims, far outstrips the margins of similar banks in the US, UK and elsewhere.

The Bodden Town West MP said it was of particular concern to him as many bank employees have had to rely on government support after leaving their jobs because of inadequacies in the pension and health insurance systems. “If we do not tackle this issue, it is going to bankrupt this country,” he warned.

Mr Saunders welcomed the move by the government to set up a committee to examine the issue of healthcare and related matters.

With comments from PPM/Progressives MP Roy Tatum dealing especially with early childhood education, and NCFC Tourism Minister Gary Rutty giving an update on the industry, it was left to Premier Andre Ebanks to deliver the rebuttal.

PREMIER’S REBUTTAL

Mr Ebanks delivered a robust defence of his government’s first SPS and Finance Minister Rolston Anglin. He also addressed the issue of immigration reform; one of the flagship policies. ”Nobody wants to wreck the economy. The goal is simple…We need a system that protects Caymanians, but at the same time, has an efficient, effective system to get overseas talent when required,” the Premier said.

He credited Finance Minister Anglin with aiming to get the government on a better financial footing.

“What he has done is to present a realistic budget; get it three quarters of the way, on the basis of if we fund it all the way, and just put our hands up and accept the problem, it grows…we have to solve the problem.”

He closed with a call for MPs to “get in the game!”

The government’s budget will be presented on November 5th.