STRONG SUPPORT FOR CAYMAN SOVEREIGN WEALTH FUND

A proposal for Cayman to have its own Sovereign Fund has received the unanimous backing of the jurisdiction’s Parliament. The motion, presented by Premier Andre Ebanks, was credited to the efforts of MP and Parliamentary Secretary Julie Hunter.

While no target date for its implementation has been set, the motion as presented by the Premier calls for an extensive and comprehensive process of research, consultations, and setting up an advisory committee.

Hon. Premier Andre Ebanks: “Be it therefore resolved that this honourable House supports in principle the establishment of a Cayman Islands sovereign wealth fund to be held for the benefit of the people of these islands, and to be protected by governance arrangements intended to outlast any administration.”

The Premier also acknowledged the efforts of Parliamentary Secretary Julie Hunter for driving the initiative which is expected to ultimately result in establishing the fund.

“Mr Speaker, as part of being a team, I’m pleased to report to this House that the underlying preparation and work to compose this motion and its supporting arguments was primarily developed by the Parliamentary Secretary Julie Hunter, the member for West Bay West, in collaboration with a small working group. I therefore yield my time so that the member for West Bay West can substantively present the motion.”

Making her presentation for the landmark Sovereign Fund, MP (Cayman Islands National Party) and Parliamentary Secretary Hunter outlined the basis for her proposition. “A sovereign wealth fund is at its core, a way of turning today’s national wealth into tomorrow’s financial security. We see this demonstrated all around the world in places like Singapore, China, Norway, Saudi Arabia, and Kuwait, to name just a few. And they are shining examples of what a sovereign wealth fund can do for a country.”

She also said there was strong religious underpinning to the concept. “There is a biblical story that illustrates the principle behind what we are seeking to do,” she stated, referring to the story of the seven years of feast and seven years of famine. “That is the principle we are asking this country to embrace. We cannot predict exactly what the future will bring, but we can decide what we will do with the good years that we have today.”

CROSS-PARTY BACKING

That perspective also formed the basis for other supporting contributions. Independent opposition member Dwayne Seymour gave it his full backing.

“I believe the principle behind this motion is a sound one. The motion makes a very simple but important point: when a country is experiencing economic and fiscal strength, that is precisely the time when it should consider putting something aside for the future. It also reminds us that the wealth generated by these islands ultimately belongs to our people, and that each generation should seek to leave the country stronger than they found it.”

Also speaking in support was former finance minister Roy McTaggart of the main opposition People’s Progressive Movement/Progressives(PPM). However, he suggested that the concept is not entirely new. “This is not a new concept to this country. It’s not a new concept to this government or to any government. We’ve had them for decades. Let’s remember, a lot of work has been done, and I would say what is really needed are belts and braces around it to tighten up on the things which need to be tightened up on, particularly where other funds can be invested.”

The views of the former PPM finance minister were echoed by the party’s deputy leader, Kenneth Bryan. “I want to give my full support not only on behalf of myself, along with the opposition, but on behalf of the good people of Georgetown, central to this motion, who I’ve checked with, and whose thoughts and views on it categorically told me to make sure I support it. I think it’s important to highlight the point that the Honourable Member from Georgetown East, Mr Roy McTaggart, highlighted that we do have these types of funds right now, and it’s more so about the mechanisms we put in place to protect the fund and what it’s going to be used for.”

Addressing the value of Cayman having its own sovereign wealth fund, the current Minister of Finance and Economic Development, Rolston Anglin, however cautioned: “One of the things that we need to do is make sure that we temper expectations. Let us not make the public believe now that all of a sudden, within two or three years, we can have hundreds of millions of dollars in this thing. It’s about starting today. Seed capital. Let’s start today because the only way you can get to that point is by starting this journey now.”

Support also came from independent MP and ex-finance minister with the then PACT coalition, Chris Saunders. “In the final analysis of everything, we’re not going to be remembered for what we inherited. We’re going to be remembered for what we leave behind…I welcome the member for bringing this because it forced us to have the conversation of what Cayman we want to leave behind. What are we going to leave for our children?”

MP and former PACT Premier, Wayne Panton, challenged the ex-PPM finance minister McTaggart on his assertion that there are other similar funds already in place.

“I have to say I disagree with his view that we have had variations of sovereign wealth funds…it’s very clearly a very distinct difference…but I see where he was going with it. His point is still valid in the sense that we have found ways to identify funding opportunities for those purposes, and this is just one of those.”

The ex-premier also emphasised the necessity of having a sovereign fund in place for Cayman.

“We are a small three islands in the Western Caribbean. We’ve done well. We’re prosperous by some standards…We have probably missed some opportunities to build on those successive years of opportunity and surplus budgets that we have had…So we need to be thinking, as we are today, about how we insulate, how we isolate ourselves from those risks, and how we ensure that we are able to help ourselves and meet the needs of our people going forward.”