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- Cayman Islands: Remarks by the Premier, Honourable McKeeva Bush, on Meetings with the FCO
Cayman Islands: Remarks by the Premier, Honourable McKeeva Bush, on Meetings with the FCO
- By S Coward
- Published 16-Mar-10
- Financial Crisis/ Recession
- Unrated
........
No indication FCO wants direct taxes
Remarks for by the Honourable McKeeva Bush, Cayman Islands Premier, on Government's meetings with the FCO on 11 March 2010
This morning I will provide an update on the Government's meeting with the Foreign and Commonwealth Office in London last week.
From March 9th to 16th, I led a Delegation to the United Kingdom which included the Deputy Speaker of the House, the Honourable Cline Glidden, Financial Secretary, Mr. Ken Jefferson, HE the Governor Mr. Duncan Taylor and Consultant to the Ministry of Finance, Mr. Paul Byles. For the meeting with the FCO the delegation was also joined by Mr. David Shaw, who is one of the co authors of the Miller Commission Report.
The purpose of the meeting with the FCO was to discuss the Miller Commission Report and matters relating to the short and medium term fiscal plans for the country. As many of you will be aware, last year the Cayman Islands Government, in agreement with the United Kingdom, commissioned an independent study to determine the feasibility of implementing revenue sources for the Government. This study also entailed examining the Government expenditures as well as its debt sustainability.
The Cayman Islands Delegation made a presentation which contained:
• A summary of the Government's position on each of the Miller report recommendations
• An overview of the current state of affairs
• And explanation of the reasons behind the variance
in the budget forecasts and the actual position
• A number of short term and medium measures that the Government will be implementing
The first thing that I will do today is to provide you with a summary of the Government's position on the various recommendations of the Miller Report.
Let me start by saying that generally the Government is in agreement with the majority of the recommendations of the report. In fact it is our intention to implement many of the recommendations and we have communicated as much to the United Kingdom.
1. No direct taxation
On the first recommendation, that there should be no introduction of direct taxation in the Cayman Islands, it would be no surprise for you to hear that we agree with this general conclusion and believe that ideally new revenue measures will need to be kept at a minimum for the short to medium term. However, we are committed to examining ways to broadening the revenue base and we have given that commitment to the UK. We received no indications during the meetings that the FCO will be pushing for direct taxes, although this is something that they would like for us to continue to consider in our efforts to broaden the revenue base.
2. Orchestrate substantial privatisation and assets sales
On the recommendation to engage in privatisation and asset sales, we also agree with this proposal. In fact, as I announced at the Cayman Business outlook Conference in January, we are already proceeding with the appointment of the necessary professionals to carry out the respective feasibility studies to enable effective divestment as soon as possible.
This morning I will provide an update on the Government's meeting with the Foreign and Commonwealth Office in London last week.
From March 9th to 16th, I led a Delegation to the United Kingdom which included the Deputy Speaker of the House, the Honourable Cline Glidden, Financial Secretary, Mr. Ken Jefferson, HE the Governor Mr. Duncan Taylor and Consultant to the Ministry of Finance, Mr. Paul Byles. For the meeting with the FCO the delegation was also joined by Mr. David Shaw, who is one of the co authors of the Miller Commission Report.
The purpose of the meeting with the FCO was to discuss the Miller Commission Report and matters relating to the short and medium term fiscal plans for the country. As many of you will be aware, last year the Cayman Islands Government, in agreement with the United Kingdom, commissioned an independent study to determine the feasibility of implementing revenue sources for the Government. This study also entailed examining the Government expenditures as well as its debt sustainability.
The Cayman Islands Delegation made a presentation which contained:
• A summary of the Government's position on each of the Miller report recommendations
• An overview of the current state of affairs
• And explanation of the reasons behind the variance
• A number of short term and medium measures that the Government will be implementing
The first thing that I will do today is to provide you with a summary of the Government's position on the various recommendations of the Miller Report.
Let me start by saying that generally the Government is in agreement with the majority of the recommendations of the report. In fact it is our intention to implement many of the recommendations and we have communicated as much to the United Kingdom.
1. No direct taxation
On the first recommendation, that there should be no introduction of direct taxation in the Cayman Islands, it would be no surprise for you to hear that we agree with this general conclusion and believe that ideally new revenue measures will need to be kept at a minimum for the short to medium term. However, we are committed to examining ways to broadening the revenue base and we have given that commitment to the UK. We received no indications during the meetings that the FCO will be pushing for direct taxes, although this is something that they would like for us to continue to consider in our efforts to broaden the revenue base.
2. Orchestrate substantial privatisation and assets sales
On the recommendation to engage in privatisation and asset sales, we also agree with this proposal. In fact, as I announced at the Cayman Business outlook Conference in January, we are already proceeding with the appointment of the necessary professionals to carry out the respective feasibility studies to enable effective divestment as soon as possible.