As Premier I consulted with His Excellency the Governor Martyn Roper earlier today and requested that pursuant to section 84 (2) of the Cayman Islands Constitution Order 2009 (as amended)  he issue a proclamation dissolving Parliament. 

Despite the fact that the Parliament was due to be dissolved on the 29^th March and no further meeting is being planned by the Government, the Opposition and others continue to press for the removal of the Speaker.  Currently, and for the second time, the Leader of the Opposition is circulating a letter seeking signatures of at least 7 Members to call a special meeting of the House to debate a motion of no confidence in the Speaker.  He has not yet obtained the requisite number of signatures, but it is plain that as long as Mr. Bush remains as Speaker, the controversy over his recent convictions will not abate.

The Unity Government, which I lead, is made up of 7 members of the Progressives Party, 3 Independents and 2 members of the CDP, which Mr. Bush leads. Mr. Bush has indicated repeatedly that he will not resign the post of Speaker and as I have said publicly on more than one occasion, I believe the forcible removal of Mr. Bush by the Government would threaten the stability of the Government. Were that to occur, it is almost certain that the Governor would be forced to dissolve the Parliament in any event.

A rancorous session of Parliament debating the no confidence motion may not end with the removal of Speaker Bush as some Opposition members may decline to vote in favour of the motion despite having signed a letter calling for a special meeting.  But it will create rancor in our community and likely amongst members of my Government. Without question it will be a massive distraction from the critically important work we are engaged in, which ranges from dealing with the COVID-19 pandemic and efforts at reopening the economy while keeping Cayman safe, to addressing the continued threat of EU blacklisting.

After careful consideration, I have therefore determined that it is in the best interest of the country for Parliament to be dissolved immediately, which will have the effect of vacating the seat of the Speaker.  Mr. Bush will no longer be the Speaker of the House and the country, by way of earlier elections, will determine who they wish to serve as their representatives – this includes the voters of West Bay West deciding whether they wish Mr. Bush to be re-elected to Parliament.

The contract signing for the completion of construction for the Bodden Town Church of God multi-purpose hall located on Shamrock Road, took place at the Ministry of Commerce, Planning and Infrastructure recently, (December 2020).

The selected contractor for the project is Edgewater Development Limited.

In attendance were Hon. Joey Hew, Minister of Commerce, Planning and Infrastructure; Dwayne Seymour, Minister of Health, Environment, Culture and Housing; Kris Bergstrom, Debi Bergstrom, Milton Buchanan, Edgewater Development Limited as well as Public Works Department representatives.

The proposed works will include the partial demolition and alteration of an existing building as well as the completion of construction of approximately 14,058 gross square-feet of unfinished building and other ancillary facility.

On completion the building will function as a hurricane grade shelter which will be fitted with hurricane rated specification for the roof covering and framing, doors, windows, electrical installation including a stand by generator, air conditioning and liquefied petroleum gas provision.

The building if only used for sitting and standing will accommodate a capacity of 441 people. If the building is used for bed and cots only, the capacity is 220 people and where the building is used for a mixture of standing, sitting and beds/cots the estimated capacity is at 330 people.

The projected duration for the $2.55 million contract is seven months.

My thanks, President Mike, for that introduction and a very good afternoon to all of you.

I thank Past President Woody Foster, the Chamber Council, member businesses and Wil and his team for their important contributions throughout the past year, particularly work done with Government on issues of national importance.

This HAS been an extraordinary year for all of us; for government, for businesses and for the Chamber. In such testing times, you really see the mettle in those with whom you work. On behalf of Government, I believe we have not only seen the mettle of the leadership of the Chamber and its members, but also the examples you have given to remind us that business is not just about profit, but also people.  

It was the leadership executive as well as leaders across several business sectors with whom we first sat down to map out what would likely happen as we moved to lockdown.

From the first, very difficult decisions the government had to make last March in the face of the COVID-19 crisis, the support of the Chamber has been absolutely invaluable, particularly in assisting the people of our Islands as much as possible.

The willingness of Wil and his team to get messages and advice out to members in a timely manner and then the willingness of the business community to stick to the rules has been absolutely vital in achieving what has been a singular public health success story for these Islands. I want to thank everyone in this room, and the wider community, for the part you have played in that success. I know the very real challenges that these times have created for you and yet your resolve and support have been tremendous.

It is gratifying, but unsurprising to me, that business has responded in the way that it has over the last year. It is unsurprising because it is the result of the confidence and trust that has grown between the government and the business community over the last eight years my two governments have been in office.

If the past year seems like a lifetime ago, it is perhaps difficult to remember what things were like when my first Progressives-led Administration took office in May 2013. But for those whose memory might be a little hazy, let me remind you.

The Cayman economy was on its knees. Any recovery from the crisis caused by the financial crash of 2008-2010 was at best faltering. Our tourism numbers were at the lowest in over a decade. Small businesses were struggling while the construction and development sectors were in the doldrums. The economy was straining to grow at a little over 1 per cent. Caymanian unemployment was high and hard-working families, through no fault of their own, were facing real hardship. Government and the national finances were in disarray; and, unsurprisingly, the private sector lacked the confidence to make crucial investments that would help spur recovery.

Through that first term, we worked hard to turn things around. In my view, our biggest achievement was to bring stable and effective governance back to these Islands. The most obvious expression of that was the transformation of the nation’s finances. We brought the government finances into compliance with the financial tests set out in the Public Management and Finance Law. And we controlled government spending to bring back consistent budget surpluses, while delivering on our pledge to repay debt and not to raise taxes or fees. In fact, we reduced a number of those fees, bringing relief both to businesses and hard-pressed families. We invested in capital projects to improve national infrastructure but we did so using existing revenue streams. In short, over the two consecutive terms in which I have been Premier, Cayman has gone from a financial basket case to being a case study in effective financial management and good governance.

As I don’t need to tell you, business confidence was restored and investment started to flow again. Not only did our tourism numbers begin to improve, but significant financial investment came from the development sector. Investment also came through our continued support of the development of Health City and the influx of new ventures attracted to the benefits of our Special Enterprise Zones.

More and more Caymanians were confident enough to start their own new businesses while existing businesses invested for growth. Unemployment fell significantly as more Caymanians found employment in our flourishing private sector.

That is the fuel of Cayman’s economy and the result was strong sustainable levels of growth throughout the first six and a half years of this Government’s two terms, culminating in 3.8 per cent growth recorded for 2019 and a further 1.9 per cent rise in GDP for the first quarter of 2020.

Looking across our two terms, by 2019 we had a buoyant Cayman economy that was the envy of the region. Our growth averaged over 3 per cent in the previous five years, Caymanian unemployment was below 5 per cent and jobs were continuing to be created for Caymanians. Our tourism had grown to record numbers while the financial services business activity grew at almost 4 per cent on average. Our development sector was flourishing and in 2019 alone nearly 750 projects were approved with a combined total value of more than $890 million.

That is a track record of success that I am proud of, that my Government is proud of and that all of Cayman can be proud of.

At the start of 2020, with just over a year to go until the next election, we were all working hard to get important projects and initiatives over the line and to continue to build Cayman’s success story.

Even at that time though, it was becoming clear that storm clouds were gathering. Those of you who were at the Cayman Economic Outlook Conference in early March last year will have heard me warn that spread of a new coronavirus, COVID-19, could have potentially devastating effects on Cayman if it escalated internationally. My Government was hoping for the best, but hope is no strategy and so we had begun preparations back in January for the possibility of the virus reaching our shores.

By the end of March the virus was here and we had community spread. We made the decisions we had to in order to give the country the space it needed to keep the virus at bay.

I believe that we took the correct decisions.

In the Chamber’s October response to the Cayman Islands Government Economic Assessment and Stimulus Plan, the introduction said, and I quote, “We believe the Government has struck the right balance between safety and protecting our economy. This has resulted in an enhanced image of the Cayman Islands as one of the safest countries in the world”. Well of course I could not agree with you more!

But as welcome as that endorsement is, I do understand that behind it lies real concerns for you in the business community.

I know the impact of COVID-19 has had far-reaching ramifications to businesses and the economy. However, in the longer term, businesses and the economy would have been hit even harder if we had vacillated between repeated phases of lockdown and opening up. The experience in the UK and elsewhere has demonstrated that the costs to business of preparing each time the economy opens up, only to have to again close, offsets any financial gains. And the impact on people’s health has been nothing short of catastrophic.

While times remain challenging here, particularly for those reliant on tourism for their income, it is not a coincidence that we are now able to enjoy, if not ‘normality’, then at least a lot more freedoms than in most of the rest of the Western world. The recent announcement that up to 1,000 people can now gather freely outdoors in Cayman stands in marked contrast to the strict lock-downs in the UK and much of Europe.

It will be some time before we know the full impact of the virus on Cayman’s economy, but we do not need to see detailed statistics to know how hard it has been. But this Government has not just stood by and watched as those things have happened. From the very outset we acted to mitigate the potential impact of the crisis on Caymanian businesses and families.

The government responded immediately to the crisis facing our tourism industry, instituting a monthly stipend of $1,000 for tourism workers who have been displaced. In the coming days we will make announcements on further assistance for those impacted in the tourism sector. In addition, we have funded stipends to those on permanent financial assistance and a one-time stipend to families receiving food vouchers.

The Government-funded isolation facility and home isolation programme has aided with compliance and eased any financial issues for those needing to isolate.

We have provided laptops for children so they can learn remotely to ensure that we can continue to drive educational improvement, even in these circumstances.

In addition to the creation of the Small Business Centre, our grant scheme has provided direct financial support to businesses. I thank Minister Hew for his leadership and the public can look forward to further announcements from him in the coming days regarding assistance to small businesses.

I also want to commend the five local banks that worked with Minister McTaggart to develop a Government Guaranteed Loan scheme that assists eligible Caymanian businesses obtain the necessary bank financing – with government backing – to allow them to remain in business, serve their clients and keep staff employed.

We understand fully that the country will not prosper if business does not do well and that business cannot prosper if the country does not do well.  Keeping what are essentially viable businesses afloat through this period means that our economy can recover more quickly in the future.

While this crisis has not yet passed, there is every reason to be optimistic for our future. The roll out of the vaccine is going well here and once again I applaud our health professionals.

I would also like to again thank the UK Government and the Governor and his office for ensuring that British subjects in the British Overseas Territories have not been forgotten as the UK rolls out its vaccine programme.

Internationally the vaccines are providing hope for respite in this crisis, including the United States; by far still Cayman’s biggest source of tourism revenue.

So, if there are grounds for optimism, what should we expect for the future?  Well, first of all, the successful roll out of mass vaccination programmes offers the prospect that we can now think positively but cautiously about re-opening Cayman. Additionally, provided that enough people take the vaccination, we can be confident that our population will have a great deal of protection against COVID-19 disease and that we should not see the ravages that have unfortunately affected many other places – this is a good news issue, and one we should be grateful for.

However, I must stress two things. Firstly changing circumstances mean that of necessity today’s plans must be flexible. With the arrival of new COVID-19 strains and concerns over how much protection the current vaccines will offer against these new variants, it has become increasingly challenging to develop a firm timetable to get the Cayman tourism economy up and running again. Unfortunately like some countries in the region, which opened their borders early on, have seen such as Bermuda and Barbados the risks of opening too soon may have negative consequences for the health of both the people and the economy if community spread restarts, forcing renewed restrictions and lockdowns.

Just yesterday Barbados announced that with effect from next Wednesday it will re-enter lockdown with curfew following detection of community spread of the new variant where even most construction will be asked to stop work.

Circumstances are changing so quickly that it is unwise to think we can predict how things will be even just weeks into the future. However, we must look ahead and try to chart the most appropriate path forward. I will talk shortly about the general shape of Government’s thinking in that respect but before I do I want to make my second point about why our plans remain necessarily broad at this point.

That second reason is that Cayman will continue to pay proper regard to public health in all its decision-making. We have come too far and we have borne too much to risk allowing the virus, in whatever form it takes, to re-enter our community and to rip across our Islands.

Government must continue as best we can to balance the risks and make well-informed judgements about the future pace of re-opening.

Given concerns with new strains detected in travelers coming to Cayman, we must reassess. My Caucus and Cabinet are awaiting updated information on our current vaccination programme and the situation with COVID-19, including the new strains, and the impact these have on plans to reopen the border. Whilst we need to consider how best to further open up, any decisions taken will be done with safety and public health as a major consideration.

We remain committed to finding a way to re-opening safely despite the new challenges that seem to be changing weekly. And so we remain hopeful to be in a position to enjoy an improved stay over tourism high season. This will not be ‘business as usual’ but there is a real prospect that it could be ‘business as near normal as is possible as we close 2021 and enter 2022.’

I am less clear, I have to say, on prospects for the cruise tourism sector. However, as I have said, it is doubtful to the extreme that we will see cruise tourism start this year based on the challenges that I believe the cruise sector will be facing.

There are still challenges ahead for Cayman but just as I am confident that we will see the restart of our tourism industry, I am even more confident in our wider economy. The factors that allowed economist Marla Dukharan to call Cayman ‘the strongest economy in the Caribbean’ are still in place.

Our Financial Services Industry, so important to Cayman’s prosperity, is in good health. The success of the legislative and operational reforms put in place and the engagement by Government and the Financial Services Industry have seen Cayman’s name removed from the EU’s so-called blacklist. That is a signature achievement. But as we have seen in some headlines emanating from the EU, we still face challenges. As we have always done, we will respond to any challenges while continuing to demonstrate our transparency and our willingness to comply with international regulatory standards.

Our construction industry continues to do well and the flow of projects coming through the planning process is testament to on-going investor confidence in these Islands and in this Government. The best example of that is the announcement in December by Aster DM Healthcare that it will invest US$350 Million in medical facilities in these Islands.

We are also seeing more confidence from small and micro-sized businesses. More are setting up and more are bringing forward plans for growth.

Solid prospects for Cayman’s economy but, as you are aware, when those prospects are so reliant on confidence, then those prospects are inherently fragile.

Over nearly eight years, this government has worked tirelessly to win and then maintain business confidence. As you would expect, I make the case here today for the return of a third Progressives-led government. With so much external uncertainty and risk, and with so much left to do to secure Cayman’s return to prosperity while keeping us safe, I believe that case to be overwhelming.

First, this government has shown that we can deliver on the commitments we make.

In education, we have implemented a challenging new curriculum and promoted improvements in the quality of teaching that are driving higher educational standards, creating the workforces your businesses need for the future. The new John Gray High School is under construction and the first phase will be ready for the next academic year with the full school open the following academic year.

On the environment we have delivered a massive extension to the Marine Parks programme, designated new environmentally protected sites, and safeguarded more public open space for people to enjoy. The George Town landfill is being capped and we will shortly sign the contract to build a waste-to-energy plant that will end Cayman’s reliance on unsustainable landfilling.

The new Customs and Border Control Service is protecting our borders from external threats while the new Coastguard helps keep our seas safer. We have provided support and extra resources to the Royal Cayman Islands Police Service to boost neighbourhood policing and keep our communities safer while tackling future threats from cybercrime. Two new fully-equipped helicopters give Cayman an emergency response capability unparalleled in a nation of our size. Fire fighters are better trained and have access to better equipment. And the launch of the Cayman Islands Regiment has enhanced our ability to aid in national disasters at home and regionally.

The long term mental health facility will open this year and enable Caymanians to access state-of-the-art care here on Island, closer to their families. This will achieve better health outcomes for those suffering from mental illnesses and reduce costs to government. The opening of Habakkuk House finally separates the care for children from that for adults with special needs.

We have continued to support people and businesses by investing in our national infrastructure. The new airport terminal has opened and the runway improvements have been completed as we continue to deliver the priorities set out in the airport’s master plan.

 The road network has been enhanced at key sections across Grand Cayman and this year we have brought forward the works to extend the East-West Arterial Road in order to solve growing peak-hour congestion problems. 

The Plan Cayman process has kick-started our approach to effective national land-use planning and the National Energy Policy is being implemented.

Seafarers, veterans and those in need in our community have received significant increases in their monthly stipends. Dozens of new affordable homes have been built and our stamp duty reductions to first time Caymanian Home owners have helped many young Caymanian families achieve their dream of home ownership.

During this term, we achieved significant Constitutional advancements that provided needed protections for our Islands and gave Caymanians greater control over our own affairs, created an independent Parliament, finally enacted the long overdue Legal Services Act and implemented the Standards in Public Life Law.

The second key plank in the Progressives case is that we have ably demonstrated the strong and certain leadership necessary to steer the country in good times and bad. But effective political leadership also means being willing to work with others. The strength and stability of the Unity Government reflects the willingness of each of us involved to always put the country’s interest first. Never has the strength of leadership and unity of purpose been more important than in the current crisis.

Every member of Cabinet has stepped up and made sure that their Ministry is delivering the priority actions that the country needs at this time. 

As we look to the future, that certainty of strong and effective leadership remains essential if Cayman is to emerge successfully from this crisis and restore prosperity to all of our people. As I said in the House back in October, I can think of no one better suited to the task that lies ahead for our next Premier than Roy McTaggart.

His stewardship of the nation’s finances has been integral to the achievements of my government that I spoke about just now, but it also created the resilience that has allowed us to cope with the crisis so positively. Throughout his time in public office, Roy has drawn on his long and successful private sector career to inject business discipline into public service. He has done so with an assured and patient style that has won him admirers inside and outside of government. I have no doubt that he has the will, the determination and the credibility necessary to take our country forward. I feel confident that the Progressives Party, of which he is a member, will choose him at the Party Conference as the Progressives’ new political leader and I equally have confidence that not only will he be returned by the good people of George Town East, but that his colleagues will support his leadership as Premier.

As I close, and you will hear more of this as the election season opens, only the Progressives and those aligned with us have the kind of coherent vision and record of team work that this country needs for its future.

The right vision, put forward by leaders who have the track record of delivery to ensure that the vision gets implemented.

Not only do our achievements stand up on their own account, our case stands in marked contrast to the pronouncements you will hear from others. Now is not the time to gamble Cayman’s future. Not on those who currently sit on the opposition benches yet remain unclear on how to get things done in government and unable to work effectively together even on the relatively easy task of opposition.

Also we cannot gamble on the utopian promises of untried, inexperienced want to be politicians who cannot tell you who they will choose to lead this county and with whom they will form a government.

Finally, I hope you will allow me one personal reflection before I close. There is an expression - “The trouble is, you think you have time.” How often do we think about doing something but put it off, only to find that either the chance slips by or that circumstances change? One of the blessings or curses of being a politician is that you soon learn how precious time is. Not just in Cayman but the world over, one’s ability to effect the change you fought hard to get elected to achieve is conditioned entirely by the pace at which things happen in large public service bureaucracies and bounded by four-yearly electoral cycles. Just as newly sworn in President Biden is no doubt already thinking, there is never enough time.

I had thought that, after 20 years serving my country - eight as its Premier - I might retire to my farm. But I cannot in good conscience do so. Not with the future so uncertain. As we recover from the virus, I still feel a deep-seated commitment to continue to do my part in delivering Cayman’s return to prosperity. 

As I said just now, these times call for experienced and trusted leadership and as I also said, I have every confidence that as this country’s next Premier, Roy McTaggart, will provide that leadership. But as I also know, government is a team sport, and the new Premier, and his Deputy, will need experienced hands there to help and support him. I will be pleased following the elections in May to offer to serve my country in whatever capacity the new Premier sees fit. Indeed he deserves the support and the allegiance of all experienced heads on the Government bench when the new Government is formed following the May elections.

These are extraordinary times and they call for extraordinary efforts from all of us. It is not a time for learning on the job.

Lastly, when I visit the Chamber website, three words jump out in big capital letters as the mission that you are pursuing:

SUPPORT, PROMOTE, COLLABORATE.

Those, I believe, should be watchwords not just for the Cayman Islands Chamber of Commerce but for the way in which government, the business community and civil society need to come together for the years ahead as we restore Cayman to prosperity.

I stand ready to do my part. I call on everyone in this room to do the same.  Let us support each other; not seek to undermine each other’s efforts. Let us collaborate to share our understanding and develop solutions to the challenges facing us in a spirit of true partnership. Finally, let us all promote these Islands as a first class destination to live, work, visit and do business.

Cayman has a bright and positive future that is ours to shape. It will be better and it will be stronger if we shape it together.

I thank you once again for the powerful support that the Chamber has given not just during the recent crisis but over the last seven and a half years. I look forward to continuing to work with you in the years ahead.

Thank you.

Distinguished guests, ladies and gentlemen, boys and girls; good morning.

I thank you for joining us as we continue to celebrate our National Heroes and honour our Seafaring Heritage.

We started our celebrations in Cayman Brac on Saturday where we paid tribute to the seafarers from Cayman Brac and Little Cayman. Yesterday we were at Pedro St James celebrating seafarers from the districts of Bodden Town, East End and North Side. And today we pay tribute to our great seafarers from George Town and West Bay.

There was a time when every Caymanian male was expected to go to sea.  Going to sea was a way of life back then; it was also a rite of passage for young men who more often than not started their careers in their mid-teens.  Being called to join a ship was a time for leaving boyhood behind and starting the journey to becoming an adult, making an honest living and helping provide for your family.   Equally important, it was also an opportunity to make something meaningful of your life. I grew up in a time when it was still considered that a life at sea would make the poorest of boys a good man.

And so, from time immemorial, Caymanians from all three Islands looked to the sea for a livelihood and sustenance and also for enjoyment. 

We have a rich seafaring heritage of which every Caymanian today is still justly proud.

Caymanians were not only renowned seafarers but also excellent builders of magnificent schooners, ships, and boats of all sizes. These were all incredible sailing vessels. Two that instantly come to mind for many Caymanians are the CIMBOCO, built in 1927, and the Goldfield, built in 1930. There were many more.

There was a time when Caymanian boats with Caymanian captains and crews plied the waters - fished, ranged for turtles and carried goods and people to and from our Islands, and sailed across the western Caribbean to Jamaica, Cuba, Central and South America and the southern United States.

Some have surmised that it was our relative isolation, when we were considered the Islands that time forgot, that drove the need for our forebears to become such excellent shipwrights, master mariners and sailors. Whatever the reason, undoubtedly our great seafaring heritage is intrinsically linked to the Caymanian pioneering spirit.

To my right, here in Heroes Square, is a sculpture of the famed Caymanian Catboat, that in my view, can be considered the epitome of that pioneering spirit and our boat building craftsmanship. As many may know our distinctive Caymanian catboat was designed and built in 1904 by Capt. Daniel Jervis on Cayman Brac, but in no time at all the design was copied and in use throughout all three Islands. 

So excellent was the maneuverability of the humble Catboat that it became the vessel of choice for Caymanians during the first half of the 20th Century - not just for turtling or fishing but also for transport of goods and people.   Indeed, I have heard the catboat referred to as the pickup trucks of yesteryear.  Given the role they also played in getting people ‘to and fro’ I would add that they were the minibus of yesteryear as well.

The presence of the sculpture of the Caymanian catboat on these grounds is an affirmation of the significance of that vessel to Caymanian life and livelihood during the first half of the 20th Century.

I commend Kem Jackson, Jerris Miller and Ned Miller III, and all members of the Cayman Islands Catboat Club, for their important work keeping the Caymanian catboat tradition alive.

It is said that over 300 schooners and ships were built in these Islands during our glorious shipbuilding years.

But by the end of World War II, fewer Caymanian schooners and boats were being built and our men took to working onboard foreign ships.

In the late 1940s, the 1950s, 1960s and up until the early 1970s many hundreds of Caymanian men left home for better pay on merchant ships, particularly the large bulk carriers and tankers owned by National Bulk Carriers. The increased income earned on these vessels not only supported the needs of families at home but also greatly improved their lives and in so doing boosted the development of all three Cayman Islands.

We cannot recall our Seafaring Heritage without paying homage to Miss Gwendolyn Bush, the matriarch of Cayman seafarers. Miss Gwen worked for Pan Carib Agencies, which was the agent for National Bulk Carriers and other shipping companies.

It was Miss Gwen who received the telegraphs from the shipping companies stating what seafarers were needed and it was she who told the ‘men’ that they had gotten 'the call'.

She made sure that passports and all the necessary documents were in order for the men to sail. At any given time, there were hundreds of Caymanians at sea and to Miss Gwen, they were all her boys; boys because most of them were 16 when they joined their first ship.

We also must remember Rosingdell Bodden, better known as Capt. Dell, of George Town. He was a bit older at 35 when he joined National Bulk, but he started going to sea with his father, a mate on the Webster cargo ships, at the tender age of 15.  Capt. Dell had a storied career working on ships owned by Texaco Oil, the Standard Fruit Company and the United Fruit Company. He also served in the British Royal Navy, serving on minesweepers. By 1944 he attained the position of Chief Petty Officer and he is thought to be the only known Caribbean-born Commissioned Officer to serve in the British Royal Navy during World War II.

It is said that while sailing with National Bulk Carriers as a Chief Mate he befriended Captain Merrill Southwell and Daniel Ludwig, the owner of National Bulk. He told them about Caymanian seamen and their staunch work ethic. They were impressed, and as they say, the rest is history.

In 1998 Capt. Dell was cited by the Cayman Islands Seafarers Association for his contribution to our economic development through seafaring.

As part of our celebrations, we are looking to discover the names of all Caymanians who today still carry on our seafaring tradition.  Two that we are aware still working are Capt. Radley Scott, our last known captain who is still at sea, and Gentry Lee Tatum who is sailing on articulated tug barges in the United States.

Both Capt Scott and Gentry are from Cayman Brac. 

Though we no longer have hundreds of seafarers still active at sea, the Cayman Islands still plays a pivotal role globally on the maritime stage with our Cayman Islands Shipping Registry, which provides flag-state services to ship owners and their vessels.

The registry was begun in 1903 and from its records, we are able to learn a great deal about the history and tradition of the Cayman Islands' seafaring and maritime industry. Through the early schooners such as the Explicit, built and owned by Joseph Taylor Ritch of Cayman Brac in 1916 to the Armistice, built in 1918 and others that were involved in the turtle trade that, alongside thatch rope, were our first real means of international commerce. Turtles and thatch rope were for many years our chief exports.

Those boats, along with the names of Nunoca, Cimboco, Lady Slater, the Arbutus, Clara C. Scott, Goldfield and many, many others found in our shipping registry, remind us not only of the incredible numbers of boats built in our Islands but also how significant they were to commerce and the vital sea links for transporting people and freight.

 Few may be aware that the Lady Slater, because of her size, today could be classified in the same category as a superyacht - she was used to run the Kingston, Cayman and Tampa route to carry people as well as freight.

In recalling these great ships, we are reminded of our famed Caymanian boat builders such as James Arch, Rayal Bodden, Joseph Ritch, Keith Tibbetts, John Miller and many others. They are all being honoured and remembered this weekend.

We must remember and honour the history of our great ships and shipbuilders as well as our brave seafarers – they are an integral part of our proud history. A history that reminds us how much we owe to that great generation of Caymanian men and women. 

It has been reported that during the so-called Southwell Years, over 2,000 Caymanian men sailed every sea and ocean in the world.

The Cayman Islands Government Report for the Years 1953-54 provides good insight into the number of Caymanian men at sea in the 1950s when it noted, Quote "The business of the Dependency nowadays is the export of seafaring men". Unquote.

Succinct but true.

So important was the economic activity created by our seafarers and the allotments that they sent home that our first commercial bank, Barclays Bank, started operations here. As our economy grew, and as tourism and the construction sectors were beginning, our seafarers were able to use the skills learned aboard ship to get work at home, or to start businesses, and so the need to go to sea for a living dwindled.

Seafaring that served as the backbone of the Cayman economy well into the late 20th Century increasingly became unattractive as a way of life. It was a tough and dangerous job that left fathers separated from their families for many months, and at times for years. And so, our seafaring way of life gave way as opportunities at home increased.

Nonetheless, the seafaring period of our history remains stitched into our very being. We are reminded of it everywhere, in the stories still repeated at family gatherings; and  even in our national symbols.

Our Coat of Arms with three stars, representing our three Islands, resting on blue and white 'waves' above the words from Psalm 24 "He Hath Founded It Upon The Seas" remind us of it.

Our National Song, 'Beloved Isle Cayman', written by Mrs Leila Ross-Shier of blessed memory, speaks poignantly to being in far off lands and longing for home. 

I am sure in many ways the words in that great song express how our seafarers must have felt on board ship, far from home and counting down the days until returning to their beloved islands 'set in blue Caribbean Sea'.

Cayman Brac's own, and indeed the Cayman Islands own, Andy Martin also summed up these feelings in his popular song 'Letter from Sea' and I look forward to hearing from him shortly. "Letter from Sea was not only a hit song in our islands but was also very popular in the jukeboxes of seaports from Honduras and Nicaragua through the Southern USA.

I thank all of you who took time out on this holiday Monday to be with us here today to honour our Seafaring men and women.

I thank those whose hard work has made these celebrations possible – Minister Seymour and Acting Chief Officer Nellie Pouchie and the staff in the Ministry responsible for Culture, Cabinet Secretary Samuel Rose, the Protocol Office, the Celebrate Cayman Committee, and the many others on Cayman Brac and in Grand Cayman who have given of their time and talents.

I also thank  the members of the Cayman Island Seafarers Association in Grand Cayman as well as the members of the Veteran's and Seafarers Association of Cayman Brac and Little Cayman, for not only helping make this Heroes Day a success but also for the work you do every day to keep our seafaring heritage alive and to provide assistance and camaraderie to our seafarers.  I thank the members of both organisations for your service.

I have two important announcements to make regarding two aspects of our year-long celebration of our Seafaring Heritage that will help to permanently memorialize the seafaring heritage that these islands are so proud of.

The first is that in the coming months we will rename Harbour Drive to Seafarers Way to celebrate and highlight our seafaring heritage and the points of significance along the George Town harbour front.

The second is that we will develop Seafarers Park with groundbreaking next month. The park, to be located on the site of what was known as the Tower Bulding, will create a downtown public space where the community can gather, play and be inspired by our Seafaring Heritage through design and installations.  These will include a bust of Miss Gwen Bush in recognition of her contributions to our seafaring legacy.

Later in the programme today we will also add new busts of our National Heroes to Heroes Square. We will memorialize Mr Ormond Patton, Mr William Warren Connolly and Ms Evelyn Wood.

And this year I am also very excited to let you know that the Cabinet has decided to name a new National Hero – Leila McTaggart Ross-Shier.

This honour recognizes the significance of her contributions as a patriot and nation builder. Not only was Mrs Ross-Shier renowned for our national Song Beloved Isle Cayman, but she was also the author of many poems that reflected the Caymanian people, our spirit and our life.

She first penned Beloved Isle Cayman in 1930 and the song was recognized as our official song in 1993. It is treasured as our national song not only because of its unique style but the words also engender much pride, emotion and patriotism in the hearts and minds of all Caymanians and everyone who calls our beloved Isles home. I know that I am filled with a sense of pride every time I hear our national song.

I am pleased to name Mrs Ross-Shier our newest National Hero.

As we honour and celebrate the efforts and achievements of those who have gone before us and those still with us contributing to the well-being of our Islands, let us also acknowledge the blessings of the present and look to the promise of the future with excitement, expectation and optimism.

Before I close, I wish to read a few words that in my view speak eloquently of our glorious seafaring heritage. These words are from a document titled "Vessels Built and Owned in the Cayman Islands" that is part of an interview in August 1988, of Mr Heber Arch as interviewed by Mrs Arthurlyn Pedley.

I quote: "The days of sailing are long past for most of these proud ships – but their memories will live on in the chronicles and in the hearts of the people who remember the thrill of sighting a gleaming white sail on the horizon … a tiny speck, which promised the return of men long at sea, husbands, fathers, sons or friends.

"The ships still come and the men still return, but seldom can you see the stately beauty of ship under full sail, her sticks thrusting skyward, and her sails straining to move her homeward… and the cry, which still could bring a thrill to the stoutest seamen in this snug Cayman harbour, 'Sail Ho'."

May God bless you all and may He continue to bless these Cayman Islands that He hath founded on the seas and established upon the floods.

Distinguished guests, ladies and gentlemen, boys and girls, and especially seafarers good afternoon.

I thank you for joining us as we celebrate our National Heroes and honour our Seafaring Heritage.

There was a time when every male was expected to go to sea.  Going to sea was more than a way of life back then; it was a rite of passage for young men who often started their careers in their mid-teens. 

Being called to join a ship was a time for leaving boyhood behind and starting the journey to becoming accepted as an adult, making an honest living and helping provide for your family. It was also an opportunity to make something meaningful of your life.

And so, from time immemorial, Caymanians from all three Islands looked to the sea for a livelihood and sustenance and also for enjoyment.

 Caymanians were not only renowned seafarers but also excellent builders of schooners and ships who made fantastic sailing vessels. Two that instantly come to mind for many Caymanians are the CIMBOCO, built in 1927, and the Goldfield, built in 1930. There were many more.

There was a time when Caymanian boats with Caymanian captains and crew plied the waters between or fished, ranged for turtles and carried goods and people to and from our Islands, and sailed across the western Caribbean to Jamaica, Cuba, Central and South America and the southern United States. It was our relative isolation, when we were the Islands that time forgot that drove the need for our forbearers to become such excellent shipwrights and sailors. It was this seafaring heritage that led to the birth of our Caymanian pioneering spirit.

However, by the end of World War II fewer Caymanian ships were being built and our seamen took to working onboard foreign ships.

In the 1950s and 1960s hundreds of Caymanian men left home for better pay on merchant ships, particularly the large bulk carriers and tankers owned by National Bulk Carriers. The increased income earned on these vessels not only supported the needs of families at home, but also greatly improved their lives and in so doing boosted the development of all three Cayman Islands.

In addition to the early development of the economy the Islands, our seamen also passed down their knowledge and helped grow the seafaring industry.

Seafarers, like fishermen, all love a good story. I fondly remember the many seafaring stories I have heard or read over the years. You often never quite knew whether they were real or not but they were often entertaining.

One story, as told to the Cayman Compass by Andrew Eden of Savannah noted that he joined his first crude oil tanker, the Dea Maris, with National Bulk Carriers at the age of 17 as a messman, but he quickly worked his way up the ladder making chief engineer at age 25.

He recalls a scare on his first trip to sea when just after 6 in the morning the fire alarm screamed and the mess hall was full of smoke.

An oil line in the engine room had burst and caught fire.

“Luckily we had one guy from Cayman who was an oiler at the time and he stayed down there to eventually get the fire out whilst others fled the engine room, including the 3^rd engineer. Luckily the Caymanian oiler stayed down there and really saved us.”

And in North Side people may recall John “Jackie” Miller, a pastor, farmer and who is also considered one of our most proficient shipwrights who along with his son Wilbanks had a shipyard near the private Miller Cemetery. They not only built 17 schooners but they also rigged and sailed them.  

Keeping with the North Side Miller family, Capt. Ned Miller of blessed memory joined the S/S Bulk Trader in January 1954.

In his notes, which he submitted to the crafters of the book The Southwell Years, Capt. Ned wrote that his first ship took him between Pennsylvania and the Persian Gulf and it was the extreme cold in the winters and searing heat in the summers that convinced him to rise in ranks quickly to get off the deck. And so he studied and applied himself.

It was on his second ship sailing from Japan via the Panama Canal to the Bahamas that his desire came true.

Sporting a new pair of cowboy boots and making a racket while walking on deck, Capt. Ned was summoned by the captain to the bridge.

“Of course, I hastened to get to the bridge, not expecting to hear what I heard,” his notes read. “The Captain said ‘Mr. Miller, you walk on this ship as if you own it.’ I said, I’m sorry sir, I’ll change the shoes. To which he replied, ‘It’s OK, I have something to say to you. I am promoting you to Third Officer.’ No one but me will ever know how I felt at that moment, Capt. Ned confessed. This was the launching of my ambition to one day master my chosen profession.”

I believe that what Capt. Ned said at the end of his writing summed up just about what every other seaman was thinking during the Southwell Years.

“National Bulk Carriers was a real Godsend to the Cayman Islands during the Southwell Years. However, it must not be forgotten that the Caymanian seamen were also good for National Bulk Carriers. Cayman seamen needed National Bulk Carriers’ jobs while National Bulk Carriers needed Caymanian seamen to operate their ships.”

And the family tradition of keeping our Seafaring Heritage survives with Capt. Ned’s grandson Ned Jerris Miller III who has honed his boat building skills at the International Yacht Restoration School in Newport, Rhode Island, in the United States. He was the first recipient in 2011 of the Gwen Bush Memorial Scholarship, which was created to revive the boat building trade.

But not every story has a happy ending.  Like all seafaring countries, we also know the heartbreak caused when a ship is lost at sea and our loved ones do not return home. This brings me to the tragic story of William Smiley Connolly of East End. Smiley was married to Eunice, who was a widow, and she and her two children moved to Smiley’s home in East End in 1877.   

Sadly any expectation of a happy family life was dashed when the couple and the children embarked on a turtle-fishing voyage to the Miskito Coast. The journey was disrupted by a powerful hurricane and they all perished.

These are more than mere stories, they tell of real lives and are a reminder of a time now long gone when our men, and at times our women, took to the sea to seek opportunities and to provide for their families.

As hard and dangerous as going to sea could be, seafaring provided tremendous opportunities for Caymanians that were not available elsewhere at the time. 

Though we no longer have hundreds of seafarers still active at sea, the Cayman Islands still plays an important role globally on the maritime stage with our Cayman Islands Shipping Registry, which provides flag-state services to ship owners and their vessels.

The registry was started in 1903 and from its records, we can learn a great deal about the history and tradition of the Cayman Islands’ seafaring and maritime past - including vessels built here.  These include the early schooners such as the Explicit, built and owned by Joseph Taylor Ritch of Cayman Brac in 1916 to the Armistice, built-in 1918, and others, that were involved with the turtle trade; one of our first real means of international commerce.

Those boats, alongside the names of Nunoca, Cimboco, Lady Slater, the Arbutus, and many, many others found in our shipping register, remind us not only of the incredible numbers of boats built in our Islands but also how significant they were to our commerce, including the vital link for transporting people and freight.

And they remind us also of our famed Caymanian boat builders such as James Arch, Rayal Bodden, Joseph Ritch, Keith Tibbetts, John Miller and many others. They are all being honoured and remembered.

It is vital that we do remember and honour the history of our great ships and shipbuilders as well as our brave seafarers – they are all an integral part of our proud history. A history that reminds us today how much we owe to that great generation of Caymanian men and women. 

The Cayman Islands Government Report for the Years 1953-54 provide good insight into the number of Caymanian men at sea in the 1950s when it noted, Quote “The business of the Dependency nowadays is the export of seafaring men”. Unquote.

Succinct but true.

So important was the economic activity created by our seafarers and the remittances they sent home that our first commercial bank, Barclays Bank, started operations here.   As our economy grew, and as tourism and the development sectors were beginning, our seafarers were able to use the skills learned aboard ship to get work at home, or to start businesses, and so the need to go to sea for a living dwindled.

Seafaring that served as the backbone of the Cayman economy well into the late 20th Century increasingly became unattractive as a way of life. It was a tough and at times a dangerous job that left fathers separated from their families for many months and at times for years.  And so, our seafaring way of life gave way as opportunities at home increased.

Nonetheless, the seafaring period of our history remains stitched into our very being. We are reminded of it everywhere, even in our national symbols.

Our Coat of Arms with three stars, representing our three Islands, resting on blue and white ‘waves’ above the words from Psalms 24 “He Hath Founded It Upon The Seas” remind us of it.

Our National Song, 'Beloved Isle Cayman', written by Mrs. Leila Ross Shier of blessed memory, speaks poignantly to being in far off lands and longing for home. 

I am sure in many ways the words in that great song express how our seafarers must have felt on board ship, far from home and counting down the days until returning to our beloved islands ‘set in blue Caribbean Sea’.

Cayman Brac’s own Andy Martin also summed up these feelings in his popular song ‘Letter from Sea’ and I look forward to hearing from him shortly.

I thank all of you for taking time out of your busy Sunday to be with us here today to celebrate and remember and pay tribute to our seafaring men and women and to honour our Seafaring Heritage.

I thank those whose hard work has made these celebrations possible – Minister Seymour and Acting Chief Officer Nellie Pouchie and the staff in the Ministry responsible for Culture, Cabinet Secretary Samuel Rose, the Protocol Office, the Celebrate Cayman Committee, and the many others on Cayman Brac and in Grand Cayman who have given of their time and talents.

I also thank the members of the Cayman Island Seafarers Association in Grand Cayman as well as the members of the Veteran's and Seafarers Association of Cayman Brac and Little Cayman, for not only helping make this Heroes Day a success but also for the work you do every day to keep our seafaring heritage alive and to provide assistance and camaraderie to our seafarers.  I thank the members of both organisations for your service.

Our celebrations continue on Monday where we will be in Heroes Square honouring our Seafarers from George Town and West Bay. I will also have some exciting news to announce with regards to important plans as we start a yearlong celebration of our seafaring heritage.

As we honour and celebrate the efforts and achievements of those who have gone before us and those still with us contributing to the well-being of our Islands, let us also acknowledge the blessings of the present and look to the promise of the future with excitement, expectation and optimism.

May God bless you all and may He continue to bless these Cayman Islands that He hath founded on the seas and established upon the floods.

Distinguished guests, ladies and gentlemen, boys and girls; most importantly seafarers, good afternoon.

It is a distinct honour and privilege to be with you this afternoon.

They say it’s an ill wind that blows no one any good and I think I can say that in this context because of the COVID-19 pandemic, Cayman Brac gets to have its own Heroes Day celebration and I am especially pleased about that as I myself celebrate my last Heroes weekend celebration as Premier.

Given the importance of our Seafaring Heritage, our celebrations will not end on Monday but we will continue throughout the rest of this year with a calendar chock full of events, activities and initiatives.

There was a time when every male was expected to go to sea.  Going to sea was more than a way of life back then; it was a rite of passage for young men who often started their careers in their mid-teens.  Indeed, there are some stories told by many and some of which I believe I have to take credibly because my mother told me of them of conspiracies by various people even in government to do what was necessary to allow young men or young boys to leave even before they were 18. The conspiracy was about the date on which they were born because of the critical need that many understood their families had for an income. So many young boys left at 16.

Being called to join a ship was a time for leaving boyhood behind and starting the journey to becoming accepted as an adult, making an honest living and helping provide for your family.  It was also an opportunity to make something meaningful of your life.

When I graduated from high school in the late 70s I too wanted to go to sea. Indeed about 10 of my schoolmates left but the industry was then waning in Cayman and I had a most difficult and uncomfortable conversation with my father about this because he had gone to sea and sailed for 10 years.

My father was not one who was given much to crying, but when I told him this is what I want to do he did cry. And when I saw you form a seafarer’s march down the aisle, I remembered that occasion. And he looked at me and he said ‘my son, I did that so wouldn’t have to. Go back to school’.

Really from the earliest settlement of these Islands, all three of them, Caymanians from looked to the sea for a livelihood, sustenance and also for enjoyment.

Brackers were renowned seafarers, indeed for its size and population. I don’t think it exceeded a population of 2,000 ever in its history. Cayman Brac had an incredibly large number of officers, particularly sea captains - the monument outside the Veteran’s and Seaman’s Hall, just down the road from here, lists over 200 sea captains and over 200 seamen of different ranks. That is an extraordinary accomplishment and I believe must be some kind of world record.

In addition to sailing the seas, Cayman Brackers were active and inventive boat builders, using native hardwoods to build magnificent schooners and boats of various sizes.

As we all know, it was here in Cayman Brac that the distinctive and renowned catboat was first created when Capt. Daniel Jervis designed and built a short, wide, planked boat that was much more maneuverable than a canoe.

In no time at all turtle rangers on all three Islands were using the distinctive catboat and the vessel was so prevalent that over time it became recognized throughout the Western Caribbean as a symbol of Caymanian ingenuity and boat building craftsmanship.

High praise indeed and it started right here in Cayman Brac.

Not only was the Brac famous for its catboats, but there were also a dozen or so locally built and owned schooners, some of them three-masted.

And of course, as the sloops, schooners and ships were built, they had to be launched. I am sure that many of you in this company will remember the launch of the Trial in 1967 at Watering Place. This was the last of the ships built by Capt. Keith Tibbetts and indeed the last ship launched in Cayman Brac.

After the end of World War 2 fewer Caymanian ships were built and our seamen took to working onboard foreign ships.

In the late 40s, 50s, 60s and even 70s, hundreds of Caymanian men left home for better pay on merchant ships, particularly the large bulk carriers and tankers owned by National Bulk Carriers. The increased income earned on these vessels not only supported the needs of families at home but also greatly improved their lives and in so doing boosted the development of Cayman Brac as a whole.

Of course, our seamen will also have seen their fair share of storms and challenges while at sea. We as a people have known the heartbreak caused when a ship is lost at sea and loved ones did not return home.

One of those lost at sea was Talbert Smyth Tatum whose ship, the SS Tunisia, was destroyed by a German bomber in World War 2 off the coast of Ireland in 1941. His name, alongside many others, is engraved on the Tower Hill Merchant Seaman’s Memorial in London. I’ve been there and I’ve seen it as well as the names of many other Caymanians. He is being remembered here today with a Memorial Scroll. Talbert’s sons - Cardel, Don and Arlin - all went on to become seafarers with their own distinguished careers.

As hard and dangerous as going to sea could be, it did provide tremendous opportunities that were not available at home at the time.  But many of our seafarers longed to work closer to home and their families.

I was a teenager in 1977 when Cayman Energy Ltd. Began its ship-to-ship oil transfer operations in the waters around Cayman Brac and Little Cayman. This was a Godsend to Brackers then as good-paying jobs that required seamanship skills were available right here on the Brac. It also allowed the Government to earn much-needed revenue from the trans-shipment royalty, while Cayman Brac as a whole benefitted through greater employment and the money spent onshore by crews of visiting ships.

And so, seamen like Capt. Harold Banks came to work for Cayman Energy, serving as the company’s chief mooring Master and manager. He did eventually ship out overseas, but in his later years Capt. Banks worked as chief pilot for Bodden Shipping, guiding huge cruise ships safely into George Town Harbour. We are delighted he can be with us here this afternoon.

Capt. Radley Scott also worked with Cayman Energy and today he is still plying the waters, working out of the United States. Capt. Radley is the oldest and only captain from the Brac who is still at sea. Our youngest active seafarer is Gentry Tatum, who is sailing on articulated tug barges in the United States.

Though we no longer have hundreds of seafarers still active at sea, the Cayman Islands still plays an important role globally on the maritime stage with our Cayman Islands Shipping Registry, which provides flag-state services to ship owners and their vessels.

The registry was started in 1903 and from its records we can learn a great deal about the history and tradition of the Cayman Islands’ seafaring and maritime past - including vessels built in the Brac. These include the early schooners such as the Explicit, built and owned by Joseph Taylor Ritch of Cayman Brac in 1916 and the Armistice, built-in 1918, and others, that were involved with the turtle trade, alongside thatch rope; two of our first real means of international commerce. Turtles and thatch rope were for many years our chief exports.

Those boats, alongside the names of Nunoca, Cimboco, Lady Slater, the Arbutus, the Clara C. Scott and many others found in our shipping register, remind us not only of the incredible number of boats built in our Islands but also how significant they were to our commerce, including the vital link for transporting people and freight between our three Islands, Jamaica, Central and South America, and Florida as well as other parts of the southern USA.

And they remind us also of our famed Caymanian boat builders such as James Arch, Rayal Bodden, and Capt. Keith Tibbetts among so many others. They are all being honoured and remembered.

It is vital that we do remember and honour the history of our great ships and shipbuilders as well as our brave seafarers – they are all an integral part of our proud history; a history that reminds us today how much we owe to that great generation of Caymanian men and women. 

The Cayman Islands Government Report for the Years 1953-54 provides good insight into the number of Caymanian men at sea in the 1950s when it noted, Quote “The business of the Dependency nowadays is the export of seafaring men”. Unquote.

Succinct but true.

So important was the economic activity created by our seafarers and the remittances they sent home that our first commercial bank, Barclays Bank, started operations here. As our economy grew, and as tourism and the development sectors were beginning, our seafarers were able to use the skills learned aboard ship to get work at home, or to start businesses, and so the need to go to sea for a living dwindled.

Seafaring that served as the backbone of the Cayman economy well into the late 20th Century increasingly became unattractive as a way of life. It was a tough and dangerous job that left fathers separated from their families for many months and at times for years. I know my father’s first voyage he was gone for three years. And so, our seafaring way of life gave way as opportunities at home increased.

Nonetheless, the seafaring period of our history remains stitched into our very being. We are reminded of it everywhere, even in our national symbols.

Our Coat of Arms with three stars, representing our three Islands, resting on blue and white ‘waves’ above the words from Psalm 24 “He Hath Founded It Upon The Seas” remind us of it.

Our National Song, 'Beloved Isle Cayman', written by Mrs. Leila Ross-Shier of blessed memory, speaks poignantly to being in far off lands and longing for home. 

I am sure in many ways the words in that great song express how our seafarers must have felt on board ship, far from home and counting the days until returning to our beloved Islands ‘set in blue Caribbean Sea’.

Cayman Brac’s own Andy Martin also summed up these feelings in his popular song in the 70s ‘Letter from Sea’, which was a massive hit not only in Cayman but all across Central America and the United States, especially the southern states and I look forward to hearing from him shortly.

I thank all of you for taking time out of your busy Saturday to be with us here today to celebrate and remember and pay tribute to our seafaring men and women and to honour our seafaring heritage.

I thank those whose hard work has made these celebrations possible – Minister Seymour and Acting Chief Officer Nellie Pouchie and the staff in the Ministry responsible for Culture, Cabinet Secretary Samuel Rose, the Protocol Office, the Celebrate Cayman Committee, and the many others on Cayman Brac and in Grand Cayman who have given of their time and talents.

I also thank the members of the Cayman Island Seafarers Association in Grand Cayman as well as the members of the Veteran's and Seafarers Association of Cayman Brac and Little Cayman, for not only helping make this Heroes Day a success but also for the work you do every day to keep our seafaring heritage alive and to provide assistance and camaraderie to our seafarers who remain.  I thank the members of both organisations for your service.

Our celebrations continue tomorrow as we honour our seafarers from Bodden Town, East End and North Side. On Monday we will be in Heroes Square honouring our Seafarers from George Town and West Bay. I will also have some exciting news to announce with regards to important plans that will, I hope, permanently cement in this nation’s psyche the importance of seafarers and seafaring to our history.

As we honour and celebrate the efforts and achievements of those who have gone before us and those still with us contributing to the well-being of our Islands, let us also acknowledge the blessings of the present and look to the promise of the future with excitement, expectation and optimism.

May God bless all of us and may He continue to bless these Cayman Islands that He hath founded on the seas and established upon the floods.

As we bid farewell to 2020 I know we will all be sharing the hope
that 2021 is a much better year.

Undoubtedly 2020 will be remembered as the year that everything
changed, as the COVID-19 virus spread from Asia across the
whole world in a matter of mere months, causing havoc to the
health systems in many countries and bringing first sickness and
death and then economic hardship as the world battled the
disease.

Over 81 million people worldwide have been infected, with
infections rising as far too many countries experience a
resurgence. Tragically, some 1.8 million people have died

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because of the virus, including two people here at home. As
infections increase, inevitably so too will deaths.

It was back in January that we started planning for the possible
arrival of the virus on our shores, and held the first press briefing
on February 3 rd to update the public on those plans. Despite any
efforts to keep the virus away the public health advice that we
received indicated that it was not a case of whether it would arrive
here, but rather when.

On March 12 th that advice proved true when we had our first
confirmed case of COVID-19. That triggered the implementation
of our COVID-19 response plans - with the closing of our borders,
the introduction of the hard and soft curfew regimes and the other
public health measures to help eradicate the virus in the
community and to protect health and life. Those measures were
hard on all of us, but I remain convinced that the swift and
decisive action we took helped to contain the community spread.
The phased opening of our local business sectors, starting at the

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end of May and continuing through July, along with increased
testing, helped keep our community safe as we opened up. With
our safety secured I am grateful that much of our local commerce
has been able to return.

Regardless of how well most of us are doing there are those of
you who have lost jobs or are working reduced hours because of
the harsh economic realities of the pandemic. As in most
countries, it is those working in tourism and hospitality who have
been hardest hit.

The various relief programmes initiated by Government have
helped many during these tough times. The ability to access your
pension, combined with the pension holiday and the direct
financial assistance provided by Government to tourism workers
and businesses has helped ease the financial pain until we can
once again safely welcome tourists back to our shores in
numbers.

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The private sector and civil society have also helped in significant
ways, including through charitable assistance to those in need.

The temporary loss of our tourism sector has also left a hole in
Government's revenues. However, Government’s financial
stewardship over the past seven years provided significant cash
reserves, some $522 million at the start of this year, as a buffer
against an economic downturn. This has allowed us the ability to
fund the fight against the virus while keeping the country running
and providing economic assistance to families and businesses.

I am pleased that the Minister of Finance and his team
successfully negotiated a US$403 million standby line of credit
with a consortium of local banks to provide added funding should
Government need it. As things currently stand, the line of credit
will not be needed until perhaps the second half of 2021.

The Minister of Finance and his team also separately negotiated a
Government Guaranteed Loan scheme with five local banks. This
loan scheme is fully managed by the banks and will assist eligible

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Caymanian businesses obtain the necessary bank financing, with
government backing, to allow them to remain in business, serve
their clients, and keep staff employed during the period of the
economic downturn.

These initiatives, combined with those from the private sector, will
help families and businesses survive the months ahead as we
move from responding to the virus to rebuilding - particularly our
tourism and hospitality sectors.

Rebuilding will take time and it will take resolute effort, but I have
every confidence that our Islands and our people will emerge
stronger from the challenges we have faced.

The availability of vaccines early in the New Year offers the safest
way for us to open up our country and our economy more broadly.
Our first shipment of vaccines will arrive in early January and we
will then roll out our national vaccination plan.

By March we hope to have successfully vaccinated and protected
a sufficiently large number of our population, including all of those

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at most risk. If we can achieve that target, we should be able to
open our borders once again.

However, having struggled so hard to get through the worst of this
crisis, we are determined to keep Cayman safe. Therefore, we will
require that arriving travellers have also been vaccinated and
received both a negative COVID-19 test before arriving, and a
second negative test on arrival, along with any other public health
requirements. Travellers not meeting these requirements will have
to quarantine.

Despite the focus on COVID-19, we have been able to progress
key Government projects including improvements to our road
network to reduce traffic congestion; enhancing the Owen
Roberts Airport runway; and the work to cap the landfill and to
move closer to a final contract signing for a modern waste to
energy facility. Work on the new John Grey High School is also
progressing.

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In February the European Union included our Islands on its list of
non-cooperative jurisdictions for tax purposes. We worked
diligently throughout the COVID shutdown to address their
concerns and in October we succeeded in having Cayman
removed from the list by the EU; a very good result for our Islands
in a not so good year.

As 2020 ends there is much that as a Caymanian and as Premier
that brings me great satisfaction and hope for our future.

Despite the challenges of COVID-19, our economy will
strengthen with growing private sector confidence, and increasing
investment. This confidence was recently demonstrated with the
announcement by Aster DM Healthcare of their intended phased
investment in a US$350 million medical facility, focused on
specialist healthcare tourism, an assisted living and independent
living facility, and a medical school on Grand Cayman, as well as
a medical clinic on Cayman Brac. Construction should begin in
mid-2021. These types of projects are hugely welcomed as they

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help to further diversify and strengthen our economy, providing
opportunities for Caymanians now and into the future.

As I reflect on the last seven and a half years I am proud at how
much this Government and the last administration I led have
achieved.

In coming into office in 2013 we faced an economy struggling to
grow at just over 1% and with Caymanian unemployment at
10.5%. Tourism numbers were the lowest they had been in over
a decade; the development and construction sectors were hurting
and small businesses were struggling.

Fast forward to 2019 and we had a Cayman economy that was
the best in the region. Growth averaged over 3% during the
previous five years with Caymanian unemployment below 5%.
Tourism had grown by record numbers while financial services
business activity grew at almost 4% on average. The
development sector was booming and in 2019 alone nearly 750

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projects were approved with a combined total value of over $890
million; a tremendous accomplishment by any measure.

It was Government’s political leadership and strong financial
stewardship over those seven years that provided the business
sector with the confidence to invest and fuel the economic growth
that created opportunities and thousands of new jobs for
Caymanians. Even against the backdrop of a global pandemic
and challenging economic times those investments are
continuing.

Continued investment is critical to the rebuilding of our economy;
and investment will continue as long as the business sector
remains confident in the political and fiscal leadership
Government is providing.

This Government, and the last, has certainly demonstrated fiscal
leadership by creating substantial surpluses over seven years that
were used to reduce debt by more than half, rebuild cash
reserves and to fund large infrastructure projects from cash

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without increasing taxation or debt. Few other past
administrations can claim similar accomplishments.

This administration, however, has an unprecedented track record
of delivery to set alongside the achievements of the previous
administration that I had the honour also to lead.

And this is before even considering the significant Constitutional
advancements, the creation of an independent Parliament, and
many significant pieces of Legislation, such as the Legal Services
Act, which will benefit Caymanians far into the future.

These accomplishments did not occur by happenstance but
through sound planning, judgement and leadership. The very
same planning, judgement, and leadership that prepared the
country financially for an economic downturn and helped guide
these Islands through the worst of 2020.

And so, heading into this New Year, and into an election season, I
take considerable heart that on all the main issues that matter to

11 | Page
Caymanians, residents and investors, we continue to head in the
right direction.

Our Financial Services Industry remains robust and despite
recent challenges will grow from strength to strength.

The development sector as I have said also remains strong.

Over time we will see tourism recover, which will further help our
economic growth.

Newer sectors such as healthcare tourism will continue to expand
and become an even more important part of a diversified
economy, whilst simultaneously significantly improving medical
care for those who live here.

Our Islands have been made safer with the launch of our new
Customs and Border Control service that is using the latest
intelligence-led approaches to detect and arrest criminals entering
our borders, bringing in drugs and weapons or illicit cash.

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Our Coastguard is protecting our waters and making those waters
safer for us to enjoy. Our second helicopter has strengthened the
ability of the RCIPS Air Operations Unit to fight crime and to
assist in the protection of seas and in search and rescue.

And with the launch of the Cayman Islands Regiment we have the
start of an important uniformed institution that will be trained, as
we have already seen, to help keep us safe in times of hazards.

The government has also provided more assistance to those in
need by greatly increasing the stipends paid to veterans and
seafarers and increased the ex gratia payments for those on
social assistance.

We are building a new mental health facility and we have opened
Habakkuk House so that separate specialist care can be provided
for adults and children with special needs.

The improvements in education are bearing fruit as seen by
improving exam results and the work of teachers to drive

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improvements in standards as being evidenced by the school
inspectorate.

This past year has seen work started to cap the George Town
Landfill, further serving to reduce fire risks. In the coming year, I
expect work to begin on the new waste to energy plant that, when
complete, will allow us to close the landfill for good.

The Government has helped more Caymanians to achieve the
dream of homeownership. Our reductions in stamp duty to first
time Caymanian homeowners and support for the extended
Guaranteed Home Assisted Mortgage scheme are making homes
more affordable while housing units provided by the National
Housing Development Trust are making more homes available for
young Caymanian families.

We have achieved much over this term. But we know there is still
more to deal with, particularly with the pandemic and its
consequences. We will not waver in our commitment to deliver
on the ambitions we share for our people. We came together as

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a government of national unity and in this time of crisis, that unity
has been more important than ever. We need to remain united
and resolute as we see through what we have started and enable
Cayman to grow and recover, ensuring that all Caymanians have
the opportunity to share in the success we believe our country
can enjoy.

In January on National Heroes Day, we will begin the year-long
celebrations for our Seafarers, an integral part of our history,
identity and heritage. I am confident that as the vaccine
programmes roll out both here in Cayman and across the world,
there will potentially be much more to celebrate in 2021.

We can look forward with renewed confidence. It is a confidence
born not just in the success of science in defeating the virus but
forged in the history of our people. In a short sixty years, Cayman
has grown to become a modern economic powerhouse. That has
happened because of the resilience and entrepreneurial spirit of
our people.

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The last year has not dimmed that spirit. Indeed, if anything, our
shared experience has renewed that spirit – I see evidence of that
all around me. From the way, our community has come together
to help each other to the dozens of small businesses starting up
with advice from the new Small Business Centre.

From our new Parliament to volunteers working on community
clean-ups and environmental projects. From the students in our
schools, working hard to succeed in difficult circumstances, to the
front-line workers who responded so magnificently when our
community needed it.

Cayman is the place I am proud to call my home and I am
humbled and honoured to serve as Premier of these Islands.

This year has been a tougher time than any of us can remember.
Yet as a country we have come through the worst of this crisis
and while there is still a long road to travel, as I have said, we are
on the right path.

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Let us face 2021 with a proud self-confidence that we will come
back stronger. Most importantly, let us face 2021 together. It is
our unity of purpose that has brought us to this position and it is
our unity of purpose that will deliver us the rest of the way.

I wish each and every one of you a Happy and Healthy New year.
May God bless our people, and May God continue to bless these Cayman Islands.

“I will honour Christmas in my heart and try to keep it all the year.”
That is a line from the Christmas classic A Christmas Carol written 177 years ago by Charles Dickens, but the words still ring true today and they hold a special place in my own heart.
This is one of my favourite times of year and the feelings of, love, kindness and generosity that come with this special season are those that I truly wish we could keep all year.

This will not be a usual Christmastime but despite the challenges of COVID-19, we have managed to fare rather well and are able to do what many across the world unfortunately can’t do this time of year, celebrate our traditions with our families and friends and freely attend places of worship.

We knew coming into this year that a new virus had been identified in Asia and had the potential to find its way here. What we did not know was that it was going to be a year like we had never experienced before.

Shortly after ushering in 2020, we experienced a major earthquake that shook us to our core and reminded us of how unexpected events have the potential to change our lives.

While we were shaken, our resilience saw us through. Little did we know how much resilience we were going to need to face even more challenges in the coming months as COVID-19 moved throughout Asia to Europe and the Americas, and yes, eventually to our Islands - and our lives have certainly been changed.

Things have not been easy for many of us over these past months because of the impact of COVID at home and across the world. As is the case everywhere else, those working in Tourism and Hospitality – including businesses that focus on those sectors – have been especially hard hit.

The decisions Government took to protect life and health also regrettably impacted the livelihoods and businesses of Caymanians and residents like never before. But it was because we took those hard but important decisions that today we are able to live our lives with relative ease and to celebrate Christmas as we traditionally have done.

I cannot find words sufficient to express my gratitude and appreciation at the way the people of this country rallied and sacrificed personally to help eradicate the virus for the greater good. It was proof positive that those of us who live, work and make up our community are truly like members of a family.

I also cannot adequately express how eternally grateful I am for the many people who sent, and still send, well wishes and prayers to myself and all in Government and beyond who fight to keep us safe. I also want to thank the many charities and individuals who have been working for months and continue to work to help people in need.

I will never forget those days during the toughest part of the lock down when none of us knew how things would turn out – but we kept the faith. My faith in my people and your faith in me and in your Government.

I believe it is our ability to pull together in times of crisis that has helped us survive all that this year has thrown our way.

While we are relatively safe in the Cayman Islands, many of our friends and families live in areas across the globe that are experiencing surges in COVID-19.

We collectively pray for their safety and welcome the Christmas gift of vaccines that have the potential of bringing this virus under control across the globe.

We have many reasons to celebrate and recall our blessings during this Christmas season. As a country and as a Government we have managed our resources very well over the past seven years as we not only built up our reserves preparing for rainy days but we also repaid more than half of the debt that we found when we took office in 2013.

We have also funded all of the current Government projects from cash without taking on any new borrowing or increasing taxes on families and businesses.

It is because of these preparations that we have been able to assist thousands of individuals and businesses impacted by the economic downturn while keeping our borders secured and controlling access to avoid the community spread and resurgence of the virus that many of our neighbours are experiencing.

This may have been a difficult year for us as a whole, but we are truly very blessed.

In the book of Luke we read the words of Elizabeth to Mary when she was told that Mary was pregnant with the Christ child. “Blessed among women are you and blessed is the fruit of your womb!”
It is that Christ child that we celebrate at this wonderful time of year.
And it is his admonition to us that it is more blessed to give than to receive that we take to heart at Christmastime. Indeed, the more we give of ourselves the more blessed we are.
I will realise my blessings when I spend my Christmastime with my wife, sons, sisters, other family and friends. I hope that you too have an opportunity to pause and reflect and take time to share the holiday with family, friends and neighbours.
I sincerely hope that each of you has a joyous Christmas and the feelings of goodwill and generosity we are feeling at this special time are truly kept in your hearts all year long.
On behalf of Government, my family and myself, I wish each of you a wonderful Christmas filled with love, laughter and blessings. 

Thank you for joining us today as we make this exciting announcement regarding a partnership between the Cayman Islands Government and Aster DM Healthcare to develop a new modern world-class medical facility in these Islands – Aster Cayman Medcity. Immediately following this press conference we will execute the agreement.

Dr. Moopen, I suspect, will speak to you about Aster.  But to provide some background as to why this announcement today is important, I wish to point out that Aster is a large well-respected healthcare group, headquartered in Dubai and has been in existence for over 30 years. I understand that it has over 19,000 employees working in some 350 various medical facilities across eight countries.

Aster is also a publicly traded company on India’s National Stock Exchange, the leading stock exchange in that country.  Dr. Moopen I am advised that when the news of Asther’s entry into Cayman was announced to the financial press a few days ago that the financial market responded very favourably indeed to the news.  That in my opinion not only speaks highly of the decision of Aster’s management in expanding to this region, but it says much about  how well the Cayman Islands is viewed internationally as a place for world class tourism and commerce as well as an emerging healthcare tourism centre.

My point in noting the size of Aster is to indicate that the Group is a significant medical services entity across the countries that it operates in, providing every aspect of healthcare.

Aster Cayman Medcity, when complete, will provide healthcare services primarily to medical tourists, but also to the residents of the Cayman Islands. The Project will be done in phases and will comprise a hospital, assisted-living and independent living quarters, and a medical university. The total cost of the project is estimated at some US$350m.

Phase 1 will comprise a 150-bed multi-specialty hospital on Grand Cayman offering primary, secondary, tertiary and quaternary care - very specialized medical care that is not currently available here.

Phase 1 is expected to be completed over some three years. During this phase Aster will also establish a clinic on Cayman Brac.

Phase 2 will provide an assisted-living and independent-living facilities, each comprising 100 units. The plans anticipate Phase 2 to start about three years after the hospital has been operational.  

Phase 3 will comprise a medical university, which will be integrated with the hospital. It is expected that the hospital will also be expanded to about 500 beds during this phase and the assisted-living and independent living centre will also be expanded. Phase 3 is expected to start about seven years after the hospital has been operational.

As a part of this agreement, Aster will use local contractors and local service providers during construction. Additionally, the Company will be employing suitably qualified Caymanians over the various phases of construction and when the facilities are operational. 

Of course those who come from elsewhere to work with the hospital will need homes to rent or buy and will shop in the local economy. 

I am pleased that a local partner in the Project is Mr. Gene Thompson.  Not only is Gene a successful Caymanian businessman but he was instrumental in the buildout of Health City Cayman Islands and worked to successfully establish that facility and thus brings a wealth of knowledge in the healthcare tourism sector.  And as we all know, during the development of Health City Gene also worked hard to ensure that Caymanian businesses and Caymanian workers benefited from the construction of that project.  I know he will do the same with this project.  

As part of the agreement Aster will develop and implement, in collaboration with the Ministry of Education, an educational program for local students who are interested in healthcare.  They will also fund an annual scholarship which will be administered by the Department of Education for US $50,000 yearly, for a period of 2 years, and US $75,000 yearly for the next 2 years and US $100,000 for the fifth year.

And as I have mentioned, Aster will also establish and maintain a clinic in Cayman Brac with supporting services, including telemedicine, and an infusion centre.

The Government has agreed to the following to help facilitate the earliest completion, and the future success, of the project:

• No duty on life-saving equipment and medical supplies for a period of 25 years after the commencement of construction of Phase 1.
• No duty on other medical equipment and supplies for a period of 25 years after the commencement of construction of Phase 1.

For clarity, Government will not defer, waive or reduce custom duty for materials, equipment, supplies or items of any kind to be used in or for the construction of Aster Cayman Medcity or any of its facilities, nor will it waive or reduce stamp duties on the purchase of any land being purchased for the development of the facility.

The duty concessions only extend to medical equipment and medical supplies intended for the use and consumption of Aster Cayman Medcity and its patients. Aster cannot re-sell any medical equipment or supplies to anyone but its patients.

The Government has also undertaken to use its best endeavours to assist Aster with efficiently moving through its various applications and license requests needed to complete the project.  However, the company will need to meet the requirements of all applicable laws and regulations related to construction and development, work permit applications, or for health care facility licenses etc. 

The Government has also agreed that over a five-year period from the date the hospital commences operations that no other non-Caymanian/non-existing medical tourism provider will be permitted to come to the Cayman Islands to compete in the field of large-scale medical tourism.

However, such exclusivity from competition does not extend to:

• any provider of medical tourism services that is already designated as medical tourism;
• to any non-Caymanian company that currently offers medical services in the Cayman Islands;
• or to any Caymanian who intends to establish health-care facilities of any kind in the Cayman Islands.

Given the size of the project a five year non-compete clause is not unusual but what is important is that it is only for five years and does not apply to Caymanians or existing medical businesses here.

Before closing I want to add that I am delighted that an organisation of Aster’s caliber is investing in such a substantial way and in such a meaningful project in our Islands - especially at this time of such uncertainty globally.

Aster’s willingness to invest several hundred million dollars in the Cayman Islands economy to develop this world class facility, in spite of the global economic impact caused by COVID-19, speaks volumes of their confidence in the Cayman Islands and it also speaks volumes of its confidence in the resiliency of our economy and our people.

To sum up: 

This project will not only help to further diversify and strengthen our economy, in particular our healthcare tourism product, but it will also provide employment and new opportunities for our people during the construction phase and when the facilities are completed.  Aster Cayman Medcity, together with Health City and the smaller medical tourism facilities on Island, will further put the Cayman Islands on track to become the pre-eminent regional centre for healthcare tourism.

Aster will also provide needed tertiary and quaternary care services to our own domestic healthcare market, including a clinic in Cayman Brac.  Add to the mix a healthcare education programme, a US$350K five year scholarship programme, a future medical school and assisted living and independent living facilities.  

Again this is a very positive and beneficial project for the country.

I thank Dr. Moopen and the Aster Group for their confidence in the Cayman Islands and the Caymanian people.   I also thank Gene Thompson for working to help bring Aster DM Healthcare to the Cayman Islands.  And I thank the Minister for Health Hon. Dwayne Seymour and his staff as well as the Government’s legal team who have worked for several months to get us to this stage. Finally, I thank my Cabinet colleagues for supporting this important initiative

Mister Speaker, I rise today to announce that Cabinet has approved a National COVID-19 vaccination plan for the Cayman Islands this week.

Mister Speaker, we have had much success with the control of COVID-19 on these shores and much depends on us maintaining this momentum. We will build further on our achievements with this plan, and provide a strong foundation for the safe recovery of the Cayman Islands’ global economic interests while safeguarding the health of our people.

We have all been waiting for the availability of a safe and well-tested vaccine against the dangerous viral disease, COVID-19.  One such vaccine, with a very convincing success rate, has now been approved separately in both Canada and the United Kingdom. The Pfizer/BioNtech vaccine is already being rolled out in the UK, a veritable Christmas gift in a country where tens of thousands of people have died as a result of the pandemic.  Approval from the Food and Drug Administration in the United States of America is expected shortly. 

To support the OT’s in the fight against this virus the UK Government is arranging to deliver supplies of vaccinations and it is anticipated the deliveries will start in early January. Mr. Speaker, we are hopeful that Cayman will see its first batch arrive in the first week of next year.  We anticipate receiving a sufficient number of vaccines in the first batch to immunise several thousand people. Additionally, Government has contracted with the coronavirus Covax facility organised by the international vaccines agency, Gavi, to provide further vaccines through this mechanism, which also supports countries less able to fund vaccination programmes themselves.

Mister Speaker, the approval of the vaccine in the UK brings us closer to ensuring the safety of those at greatest risk from the effects of COVID-19. This includes those who are older, and who have certain defined conditions and diseases that make them more vulnerable to the effects of the coronavirus. And while I am not yet in those ranks, Mr. Speaker, I will say that I will be one of the first in line to take the vaccine to lead by example and to demonstrate my confidence in the safety of the vaccine.

A question that is already on everyone’s lips is how Government will prioritise vaccination throughout our community. I can tell you that the objectives of the National Plan closely align with those set out by major public health agencies such as the Pan American Health Organisation and Public Health England.  Our goals are as follows:

• To protect the integrity of the health care system and infrastructure for the continuity of essential services, by vaccinating health workers at all levels of care, and other essential services established in the country.

• To reduce the severe morbidity and mortality associated with COVID-19 by protecting the populations at greatest risk from the disease, and,

• To reduce transmission of infection in the community and generate widespread immunity by expanding vaccination to other groups. This will be achieved when vaccines become more available through 2021.

There is work to be done to successfully reach these objectives before the vaccine arrives, much of which is already under way.

• Government has already begun to implement a communication plan to answer any concerns the public may have, and to address the considerable misinformation that is already in the public domain. Since last week, detailed information about COVID-19 vaccinations has been available from the Frequently Asked Questions section of the Government’s coronavirus website exploregov.ky/coronavirus. Further information will also be forthcoming shortly in this regard.

• The Health Services Authority has large quantities of syringes, needles, sharps boxes and equipment on order for delivery of the doses.

• Specialised freezers have also been ordered by the Health Services Authority, and there is already one such freezer at Health City Cayman Islands with spare capacity able to meet our needs.

Senior management and Public Health teams at the Health Services Authority are confident they will be able to commence this mass vaccination programme using existing resources. 

Mister Speaker, consultation has also been undertaken with both private and public healthcare providers to better inform them of the plans and to allow them to offer their resources to deliver the vaccinations.

Health officials believe that with all preparations in place they should be able to vaccinate some 3,000 people per week.

Once the vaccine arrives on Island a number of groups have been prioritised for the voluntary vaccination.  These include:

1. Healthcare workers and institutional residents, because this reduces the risk of spread between care givers and those they care for, and protects those that are not able to physically distance because of their situation
2. Frontline customer facing staff working at ports who are constantly exposed to the risks from travelers
3. Those over age of 60, and people suffering from conditions liable to put them at increased risk if they were to contract Covid-19
4. Workers who are essential for the continuity of Government services.

Mister Speaker, the second stage of the voluntary vaccination programme will consist of the delivery of the vaccine to:

• Essential service workers, teachers and school staff
• Those living in the households of anyone from the stage one vaccination programme.

The Ministry of Health has proposed the further opening of borders after stage two, around one month into the start of the overall vaccination programme, by which time we should be have  vaccinated our most vulnerable.

The following restrictions would apply for people arriving from overseas:

19. All travelers entering the Islands must be able to show that they have received an approved vaccine course against the virus which causes COVID-19. This should have been completed before arrival, according to recommendations by the Public Health Department. They must also receive negative results from a PCR test upon arrival. Persons who meet these conditions will be exempted from quarantine, if living in households where the other residents have also received a vaccine.
20. All people who are exempted from quarantine in this manner, including their households, will undergo repeat testing on day 5, day 10 and day 15 following the arrival date.
21. Regular PCR screening will continue with safety restrictions for healthcare workers, healthcare establishments, nursing homes and prisons.
22. Those involved in hosting travelers, including all port workers, hotel workers, restauranteurs, bar workers, leisure companies, taxi drivers and anyone else working in tourism, will be required to be screened for COVID-19 disease at regular intervals.

Mister Speaker, additional PCR testing capacity by the HSA, Doctor’s Hospital and Health City Cayman Islands, should be able to match any increase in demand. The HSA and Public Health Department will also monitor the situation and promptly request any additional human resources necessary to this goal. Rapid testing may also be used to provide simpler access to testing for COVID-19 disease. But Mr. Speaker, I use the word may because it should be noted that widespread use of this in city-wide sampling programmes elsewhere has shown disappointing sensitivity in that it has only picked up between 50% and 70% of people who have COVID-19.

The final stage of the vaccination programme will consist of vaccinating the remainder of the population for whom the vaccines are intended.

Again Mister Speaker, I underline that taking the vaccine is voluntary, while the vaccine has yet to arrive in the Cayman Islands, I would like to take this opportunity to encourage all those people listening to these proceedings to do their due diligence, and to keep their minds open to the many benefits that participation in the voluntary national vaccination programme will offer.

It is an opportunity for us, as individuals, to take action to protect this community that we love so much, and which has done so much for us, while at the same time we protect ourselves.

I will end by assuring this honourable House that Government will remain vigilant throughout this process, as we monitor the roll-out of the vaccination, the proposed travel changes, and their impact on our society. Should there be an indication of substantial and worrisome community transmission of COVID-19 cases in the Cayman Islands, or if we were required to move up a suppression level, preventive measures will be promptly tightened through Public Health regulations, as they have been in the past. If this happens we will see a return to the wearing of masks in public places, physical distancing and the use of protective barriers to minimise further spread of the COVID-19 disease.

Mr. Speaker as I said before the successful development and imminent arrival of the vaccine seems like the Christmas gift we have all been waiting for. At the same time the vaccine is still not yet here. When it arrives, it will greatly reduce our chances of getting COVID-19, and the potential severity of the illness if we should contract it, but nothing is guaranteed. 

Mister Speaker, we must continue to practice the preventive measures that we have followed thus far, including: washing hands, practicing respiratory hygiene, and following social distancing recommendations. Doing so will ensure that we in the Cayman Islands stay safe through the holidays and into 2021.

Since 14^th October 2020, the documentation to bring into effect such a Loan Scheme has been reviewed extensively by the five (5) local Class-A licensed Participating Banks, Ministry of Finance officials, Government’s Legal Department and a private sector law firm.

As a reminder to Honourable Members of Parliament, the key features of the Loan Scheme are:

• The Purposes of the Loan Scheme are:

to assist qualifying Medium and Large-Sized businesses to meet their operating and capital expenditure needs, as well as any needed re-financing of existing debt;

• Definitions of Medium and Large-Sized businesses are:
• a Medium-Sized business is defined as a business employing between 13 and 50 staff or, it has an annual gross revenue of Cl$750,001 to Cl$5,000,000;

• a Large-Sized business is defined as a business employing over 50 staff or, has a gross revenue of over Cl$5,000,000;

• Eligibility Criteria:

To be eligible for a loan under the Scheme, businesses must:

• be at least 60% Caymanian owned;
• be a Cayman-registered company, a Caymanian Sole Proprietorship, or Partnership on 22^nd March 2020;
• have 13 or more employees as at 22^nd March 2020;
• be in good credit standing with their bank; and
• satisfy all credit approval and other requirements of the Participating Banks;

• The Participating Banks in the Loan Scheme are:
• Butterfield Bank (Cayman) Limited;
• Cayman National Bank Ltd;
• FirstCaribbean International Bank (Cayman) Limited;
• RBC Royal Bank (Cayman) Limited;
• ScotiaBank & Trust (Cayman) Ltd; and
• Further Detailed Aspects of the Loan Scheme are:
• the maximum that each Medium and Large-sized business can borrow is up to Cl$750,000 and Cl$3,000,000, respectively;

• the maximum interest rate on the Loans will be the prevailing Cl Dollar or US Dollar Prime Rate plus, a margin of up to 1.50%. The Current Cl Dollar and US Dollar Prime Rate is 3.25%.

• the Participating Banks will charge their usual application, commitment and legal fees and may require other security from borrowers, in addition to the Government Guarantee;

• the Government will provide a Guarantee equal to 50% of any loan approved by a Participating Bank under the Loan Scheme, for a Medium or Large-sized business;

• inclusive of a 1-year moratorium period on interest payments for the first year of any loan, the maximum repayment period is 7 years and businesses will have up to one (1) year to apply for the loan from the announced start date for the Loan Scheme;

• the Government will waive the 1% - 1.5% Stamp Duty that may be applicable to any charges placed over assets to provide security for the loans; and

• the Participating Banks will make available a total of CI$200.0 million under the Loan Scheme and, Government’s 50% 7-year Guarantee thereof, is a maximum of CI$100.0 million.

On behalf of the Government, I wish to thank the Participating Banks for their willingness to partner with the Government in assisting Medium and Large-sized entities in any financial difficulties they may be experiencing.

Mister Speaker, I am pleased to announce that the commencement date for the acceptance of applications under the Loan Scheme – by the Participating Banks of Butterfield Bank (Cayman) Limited; Cayman National Bank Ltd; FirstCaribbean International Bank (Cayman) Limited; and ScotiaBank & Trust (Cayman) Ltd  –  is 9^th December 2020.  RBC Royal Bank (Cayman) Limited will accept applications from Monday, 14^th December 2020.

Medium and Large-sized entities that meet the Eligibility Criteria and the size definitions may approach any of the Participating Banks to make an application for a loan under the Scheme.

In making this announcement today, I thank my colleagues and all Members of this Honourable House for their support of the program. A huge thank you to the Financial Secretary and those in the Ministry of Finance and Attorney General’s Chambers who worked steadfastly and with purpose to put the program together.

Mister Speaker, thank you for allowing me to make this important Statement.

Mister Speaker, on 6 November 2020, the Ministry of Finance and Economic Development arranged for the Gazettal of the Unaudited Quarterly Financial Report for the Core Government of the Cayman Islands for the period, four days ahead of the deadline of 10 November 2020 (or within 6 weeks of the third quarter ending), as stipulated by the Public Management and Finance Law.  Honourable Members of the Legislative Assembly were also sent this Report by e-mail on 8 November 2020.

Overview of the Financial Report for the nine- month period ended 30 September 2020

Mister Speaker, the information referred hereto is based on records obtained from the General Ledger of the Government’s financial management system on 12 October 2020. It is also based on the representations and judgments provided by the Chief Financial Officers of Ministries, Portfolios, Offices, and Statutory Authorities and Government Companies (SAGCs).

Mister Speaker, all of the amounts that I will provide from this point onwards are in Cayman Islands Dollars. The Statement of Financial Position, as at 30 September 2020, on page 7 of the document, shows that the Core Government ended the period with $2.5 billion in total assets, $0.9 billion in total liabilities, and therefore with $1.6 billion in Net Assets (or Net Worth).

Cash and Cash Equivalents (including fixed deposits with maturity durations not exceeding 90 days), were $112.1 million and Marketable Securities (comprised of fixed deposits with maturity durations exceeding 90 days) were $386.7 million, for a total of $498.8 million with respect to bank account balances. Due to the significant cash balances on-hand, the Government continues to place funds on longer-term fixed deposits. These longer-term deposits are reflected as Marketable Securities (on the Statement of Financial Position), and are not included in the definition of ‘Cash and Cash Equivalents’, which only represent deposits that are 90 days or less, to maturity.

The Public Debt for the Core Government stood at $261.4 million at 30 September 2020. This was $143.2 million lower than the debt balance at 30 September 2019. Therefore, Core Government’s debt has been reduced by $143.2 million over the one year period and will continue to be reduced with regularly scheduled principal repayments.

Honorable Members will recall that in November 2019, the Government repaid its US$312 million (i.e. CI$261.3 million) bond using a significant portion of our cash and deposit balances and incurred borrowings of CI$153 million as a means of refinancing a portion of the bond balance.

The Statement of Financial Performance for the period, shown at page 11 of the document, shows that Core Government earned Total Operating Revenue of $604.5 million and incurred Total Operating Expenditure of $574.1 million. The resulting Operating Surplus for Core Government was $30.4 million.  SAGCs contributed an additional $1.7 million to the Operating Surplus, as a result of their favourable performance. The Entire Public Sector has produced an Operating Surplus of $32.1 million for the quarter (or 62% below budget).

Mister Speaker, revenue recorded for the first nine months of 2020 was $68.1 million below budget expectations. This negative variance was mainly concentrated in the category of Coercive Revenue, which are revenues received by Government by virtue of the coercive powers of certain laws.  Coercive Revenue recorded for the period was $74.6 million less than budgeted expectations and $66.0 million less than the prior year-to-date actual results. The significant fall in revenues is directly attributable to the effect of COVID-19 on the economy with one such area being the closure of the borders to international travel. For the first nine months of 2020, both air arrivals and cruise arrivals have declined by 69% and 59.8% respectively.

Coercive Revenue items performing below budget expectations include:

• Work Permit Fees, $28.9 million less than budget expectations;
• Tourist Accommodation Charges, $17.8 million (64%) less than expected for the period;
• Other Import Duty, $16.6 million less than budgeted;
• Cruise Ship Departure Charges, $5.3 million (62%) below budget expectations; and
• Gasoline and Diesel Duty, $4.5 million less than the expected revenue for the period.

These negative variances from the budget expectations are partially offset by positive variances in other revenue items such as:

• Stamp Duty on Land Transfers, a $12.2 million positive variance;
• Mutual Fund Administrator Fees, a $4.3 million positive variance.

Despite lower coercive revenues, investment revenues for the period were $3.5 million above the year-to-date budget of $4.1 million.

Donations received for the period were $2.4 million, which were $2.2 million above budget.  These include donations of $1.8 million towards the costs related to COVID-19 mitigation.

Other Revenues also outperformed budget for the nine-month period ended 30 September 2020 by $4.1 million. Sales of supplies and other items to combat COVID-19 to other jurisdictions and facilities amounted to $1.7 million, and revenues from the air bridges from London, UK were $2.5 million. 

Mister Speaker, expenses incurred for the period of $574.1 million were in line to the year-to-date budget of $574.4 million.  The areas that achieved the largest underspend were Personnel Costs and Supplies and Consumables, offset by significant overspend in Outputs from Statutory Authorities and Government Owned Companies and Transfer Payments.

Costs relating to personnel for the period amounted to $265.7 million, which reflects an underspend in Personnel Costs of $9.7 million (3%) compared to a budget of $275.4 million. This favourable variance is the result of several Ministries and Portfolios having vacant posts which, to 30 September 2020, remained unfilled.

Supplies and Consumables were also lower than projected, with an underspend of $28.5 million (32%). 

Within the Supplies and Consumables classification, the most significant underspend related to the category Purchase of Services which accounts for 58% or $16.5 million of the overall positive variance in the Supplies and Consumables classification. Ministries, Portfolios and Offices indicate that spending is anticipated to increase as the year progresses and costs will realign closer to budgeted projections by the end of the 2020 year.

Outputs from Statutory Authorities and Government Owned Companies of $119.4 million were $20.6 million (12%) more than the year-to-date budget of $98.8 million.  This variance relates mainly to increased support to Cayman Airways Limited and the Health Services Authority.

Transfer Payments of $43.5 million were $8.3 million (24%) more than budgeted for the period. The variance is mainly due to the overages in financial assistance programmes offset by savings in other expenditure areas.  These programmes include:

• Sports and Cultural Tourism Programmes Assistance, $6.4 million more than budgeted;
• Support for Business Initiatives, $3.4 million in excess of budget expectations;
• Temporary Financial Assistance, $2.6 million more than expected for the period; and
• Education, Agriculture and Land Services - COVID Response and Recovery, $2.2 million more than budget.

The Statement of Cash Flows, on page 16 of the Tabled document, shows that the net cash inflows from operating activities totalled $50.1 million. The net cash outflows used by investing and financing activities totalled $27.7 million and $17.9 million, respectively. 

Investing activities include a $5.0 million drawdown on an approved interest free temporary loan of CI$20.9 million to the Cayman Islands Airports Authority (“CIAA”).  The purpose of the temporary loan is to enable the CIAA to meet its ongoing operational and capital obligations while the Government seeks the approval of the Foreign, Commonwealth and Development Office (“FCDO”) for a third-party loan to the CIAA. The temporary loan will be repaid to the Government by the end of the 2020 financial year once CIAA draws down on third-party loan funds.

In the course of my twenty years as an elected representative, but particularly over the course these seven and a half years as Premier, I have taken part in many events of national significance. The sixty years celebrations of our Coat of Arms and our Constitution, numerous Heroes’ Day celebrations, the visit of the Prince of Wales and Duchess of Cornwall are just a few. I felt immensely privileged to be part of all of them.

However, I also felt somewhat humbled by such events. Recalling the struggles and achievements of the Caymanian women and men, including our National Heroes, on whose shoulders we now stand, puts into clearer perspective our own life and times.

Yet, I must confess that I have also taken great pride in those events. Pride, yes, at my own small part in things, but much more I have felt great pride at what our tiny nation has achieved. We may still just be three small Islands in the Caribbean, but we are no longer ‘the land that time forgot.’ 

We have come of age in this world. 

The Constitutional journey that began at a meeting at Pedro St. James or Pedro Castle as I grew up knowing it, on December 5, 1831, has had its twists and turns but it has taken us to where we are today. I pause here to note that tomorrow December 5, 2020, will be the 189^th anniversary of that historic meeting at Pedro St. James. Those present that December day so long ago could not have imagined how significant their early steps toward democracy would be or how far we would have come over time.

Throughout our journey, these past two centuries, our National Heroes, and the founders of our Constitution and our democratic system are Caymanians of whom we are naturally proud and whose achievements we rightly celebrate. 

But I am equally proud of, and honour, all Caymanians, nation builders all, many unsung who in their own ways have contributed to our success and the enviable position we are in today.

The seafarers and shipbuilders who laid the foundation for our prosperity and growth; the entrepreneurs and those who labour with them who have helped drive forward our economic success; the community organisers and volunteers who have made Cayman such a great place to live; the public servants who keep the wheels of government turning and provide necessary services to the public; the mothers and fathers who have raised children who will grow beyond us to take Cayman forward – I celebrate and honour all of them with pride.

I also appreciate and honour those who have come and settled amongst us, who love these Islands, and who have worked shoulder to shoulder with us to help build and uplift these three Islands and our people. Indeed many have lived and worked amongst us over the decades and have gained the distinction of becoming Caymanian.

In many respects, today represents a recognition of the contribution of all Caymanians, whatever their heritage. We are gathered here to change the name of a building.  But we are doing so much more than that. This building has always stood as a symbol of our national identity and our potential as a free, self-governing people. A people who some 61 years ago decided that we wished to maintain our historical and political relationship with the United Kingdom, but to also provide the ability for that relationship to mature.  Today we gather to witness one more aspect of that maturity.  

The change of the Legislative Assembly to become The House of Parliament is symbolic of the United Kingdom’s recognition of our growing maturity. It also reflects on our achievements as a people and as a nation. I hope that everyone here today, and everyone who visits or just looks upon this building in the months and years ahead will reflect on just how far we have come as a people and a nation in the last 61 years.

During that time, we have gone through several changes in our constitutional arrangements. Each has represented a progression toward greater local autonomy and increased responsibility for our affairs. In the many years since the adoption of the 1972 Constitution, we have moved from the Executive Council or Cabinet and the Legislative Assembly being merely advisory bodies to the Governor - who was the ultimate decision-maker for all matters - to the position where Cabinet and Parliament have, within the confines of the Constitution, exclusive responsibility for local affairs and local laws.

So the progress toward more local autonomy continues with the changes to our Constitution that were agreed by the Privy Council last month. The change we are celebrating today – the re-designation of the Legislative Assembly as a Parliament is rightly the centre-piece of the Constitutional Amendment Order. This is a proper reflection of the work that Members do in this building and a proper reflection of our national self-confidence and ability to run our affairs.

But it also carries with it other benefits. This Administration, as did the last one that I led, has made it a priority to increase Cayman’s profile overseas. That is about Cayman being more assertive in promoting and protecting our interests but it is also crucial as we look at the future of our Islands and our ability to attract and retain the drivers of future economic growth and prosperity.

As we deal more directly with members of foreign governments and foreign business leaders, it helps that Members can call themselves Members of Parliament. Quite simply, it just carries more weight with those with whom we are dealing and opens more doors to us as we look to open our doors to new opportunities. 

As well as the establishment of our own Parliament for the first time, these Constitutional amendments include changes that are important both symbolically and in terms of the substantive enhancement of Caymanian self-government that they bring.

I will highlight four of those today. First and foremost is the clear Constitutional recognition of the primacy of our new Parliament and the Cabinet in all matters of domestic policy and the consequent requirement now placed on the UK to consult Cayman on all legislation before the House of Commons that directly impacts these Islands. 

This is the first time that the United Kingdom has made such a concession in the Constitution of an Overseas Territory. It is highly significant as it provides us with the opportunity to influence UK legislation before it gets into the public domain and political positions are fixed. While this provision does not prevent the enactment of legislation that may not be in Cayman’s best interests, this amendment significantly reduces the likelihood of such detrimental provisions being imposed upon us.

Secondly, the Governor’s power to approve the Standing Orders of our new Parliament has been removed. This amendment stands alongside the legislation we enacted in the last meeting of the old Legislative Assembly to give the legislature, not the executive, the control over its administration, staffing and resources of the Parliament. Together these changes mean that our new Parliament is itself a properly autonomous, sovereign institution, able to determine its affairs and answerable to the people it serves, not to the executive.

Thirdly, the new Constitution Order allows the creation of a Police Service Commission to act as an independent voice in the appointment of senior officers in the Royal Cayman Islands Police Service. I have repeatedly paid tribute to the work the current Commissioner has done to restore confidence in the RCIPS among local communities. By creating an independent voice in senior appointments, this change represents a further step in ensuring that the RCIPS continues to be a locally responsive and accountable organisation.

Finally, the change to become a Parliament also means that we are now able to replace the role of councillors with that of formally appointed Parliamentary Secretaries. This affords proper recognition to the hard work of those elected members who work with Ministers to do so much to ensure the effective delivery of government priorities.  I know from the experience of the last seven years how much I and my elected Cabinet colleagues have depended upon the support we have had from Councillors. I thank them on behalf of all of my Cabinet colleagues for what they have done, and we look forward to working with them in their new, enhanced roles.

So, with the recent constitution enhancements, the UK is acknowledging both the status of our legislative body and the right of Cayman to determine its future by advancing the Constitution. We are rightly celebrating these achievements today.

The last 61 years have shown that we cannot assume that our Constitution is fixed and that no further change is necessary. On the contrary, our development as a nation will continue and further Constitutional change will be necessary to keep pace.

I have said before, and I say again this afternoon, that I regard Independence for Cayman to be as inevitable as my own death but like my own death, I hope it not to be soon.  For the immediate future, I believe Cayman’s best interests are served by staying as a member of the United Kingdom family. Not just our economic success but our culture and traditions are bound up in being part of the UK family. 

But I would also add that as the UK prepares to leave the EU and seek a new place in the world as Global Britain that it too has a renewed appreciation for the value of its Overseas Territories as a part of the British family. This renewed appreciation of the OT’s must include an appreciation that we, like other nations that form a part of the British family, should be allowed to take greater responsibility for decisions that affect our people.

I have noted on several occasions in conversations with UK Ministers, UK parliamentarians and FCO officials over the years, including at the recent virtual Joint Ministerial Council meeting, that if the UK indeed wishes to retain her Overseas Territories over the long term, it is important that she continues to loosen the apron strings.

Increasingly across all of the Overseas Territories, our populations tend to bristle when they perceive the UK Government is telling us what to do. The idea of a partnership of progress and prosperity is important but it also needs to include mutual understanding and respect.  

If the UK wishes to avoid driving the Territories to choose independence, particularly before they are ready, then it must allow the OT’s greater autonomy over our destinies. This includes the ability for the Territories to make our own mistakes and to learn from them. The UK must not feel that it is bound to intervene every time it believes that a Territory has made or is making a mistake.

On the other hand, those of us who govern in the OTs must accept that if we expect greater autonomy, then with that comes greater responsibility and the need for the courage to make difficult, and at times unpopular, decisions. Decisions we make must have the maximum respect for the rule of law.

The Constitutional amendments that have been made starting in 2009 have given our Islands a great degree of self-government.

But, as I have said, there is equally no doubt in my mind that further change will be necessary. As His Excellency the Governor knows, I believe that despite the important changes that we are celebrating today, the Constitution still retains some provisions that could most charitably be described as ‘anachronistic.’

I still believe the retention of Section 81, allowing the Governor to legislate directly in areas of the Governor’s special responsibilities, is one such provision that needs to be abolished. However, the UK Government has made clear that, as they have had to recently use the provision, they have determined that now is not the time to remove it. I truly hope that a future Cayman Government can persuade the UK that, despite its misgivings, this section must go.

As the UK and His Excellency the Governor are aware, I still believe fervently that the Cayman Islands Cabinet must come to be chaired by the Premier who holds the highest elected, representative office in the Territory. If it were ever in doubt, this most recent Constitution Amendment Order makes it absolutely clear that the Cayman Islands Cabinet has autonomous responsibility for domestic policy.

As such it is a real anomaly, and indeed a contradiction in terms, that the UK-appointed Governor still presides over Cabinet – a Cabinet of which the Governor is not a member and in which he or she has no vote.

It is said that this provision is important in enabling the Governor to properly discharge his or her role.  In arguing otherwise, I should make clear that I have nothing but respect for Governor Roper personally and for the office he holds. Indeed I have come to regard him as a good friend and a most excellent Governor.

My position on this issue is one of principle.  Indeed Governor Roper is the 4^th Governor that has chaired Cabinet since I have been Premier. However, I believe the Governor can and should fulfil his or her responsibility without the need to assume a role that is naturally and logically that of the Premier.

I say that after seven and a half years in that role and I am fully cognizant that I have only six months remaining as Premier and so this change would not be one I seek for myself, but rather for future Premiers.

My issue, as I have said, is that the Governor chairing Cabinet actively detracts from the position of the elected Government having primacy over our domestic affairs that the rest of the Constitution now enshrines.

I hope that a future Premier will convince the UK Government to correct the situation and make the necessary change to allow the Premier to chair his or her Cabinet.

No doubt when that day comes, there will be other adjustments to be made. Ours is a living Constitution, not a dusty parchment to be viewed under glass by children on a school visit to a museum. It will continue to evolve as our nation continues to grow. Neither we nor the United Kingdom should be afraid to make further necessary changes.

But those are matters for the future. Today, we are here to celebrate a landmark achievement in our Constitutional journey with the designation of our legislature as a full Parliament.

Many people have been involved in achieving the Constitutional improvements that we celebrate today along with the renaming of this building to the House of Parliament.

I wish to pay tribute to all members of this House for their support for the Constitutional amendments and in particular to those who worked with me and the team, including visiting the UK and attending the various meetings with the Foreign and Commonwealth Office to ensure that we achieved these critically important constitutional reforms.

I wish to thank the Member from North Side Mr. Ezzard Miller, who was the then Leader of the Opposition, and the Deputy Leader of the Opposition and Member for Newlands Mr. Alva Suckoo, who formed the Opposition’s part of the delegation.   

Special thanks also to my team on the Government side including Minister Joseph Hew (Minister for Commerce, Planning & Infrastructure)  and Minister Tara Rivers (Minister for Financial Services & Home Affairs) as well as the learned Attorney General Samuel Bulgin, QC, and the Cabinet Secretary Samuel Rose, Chief Officer Eric Bush, my political advisor and Head of Office of the Premier Mr. Roy Tatum, as well as Mr. Jason Webster from the Cabinet Office, Mr. Charles Parchment in the Cayman Islands London Office, and my Personal Assistant Ms Jana Pouchie-Bush for the role that they played in the success of the negotiations.

 I especially thank Sir Jeffrey Jowell, QC, who has played an instrumental role in assisting the Cayman Islands for over two decades on matters of constitutional reform, including the 2009 Constitution, and whose advice and assistance during the recent negotiations played a pivotal part in helping to put together the package of reforms that we presented to the United Kingdom Government.

I also thank the Celebrate Cayman team of Alfonso Wright, Marzeta Bodden and Kristy Watler, the Hon. Speaker, Madam Clerk, and the many others who worked diligently to make this day a success.

Finally, I must thank His Excellency the Governor for the good faith and, I must say, considerable good humour he has shown throughout the last 18 months or so of negotiations. Thanks are also due to him for the representations he has made on our behalf in Westminster and Whitehall and for the reassurances he has been willing to give to decision-makers as they considered the proposed changes. Final agreement on the amended constitutional order was achieved, in no small part, thanks to the Governor’s willingness to support us in the dialogue with London.

Before I resume my seat, I wish to be somewhat introspective. I have dedicated a good deal of my elected life to building our democratic institutions and advancing our constitution – the bedrock of our democracy.  It is some of the work of which I am most proud – not because of any benefit to myself but rather because of the benefit to the Caymanian people and these Islands that I love.  To borrow the words of a great American President Abraham Lincoln.  “I want it said of me, by those who know me best, that I always plucked a thistle and planted a flower where I thought a flower would grow”. The advancements to our constitution, starting in 2009 through to today, and the recognition of this institution as the House of Parliament are indeed flowers that I am proud to have helped plant and that I know will bloom and grow for the benefit of our people for many years and many generations to come. 

Today is a special day. We celebrate our past. We take pride in our achievements. And we look with renewed confidence and God’s constant guiding hand towards our bright future

What a blessing it is to be with you this evening as we officially kick off Christmas season with the 55th year of the Rotary Club of Grand Cayman’s annual lighting of the Christmas tree.

Frankly, I am glad to be here with you as we put paid to the year that has been 2020.

We knew that coming into this year we would face a new virus dubbed COVID-19. What we did not know as we rang in 2020 that it was going to be a year like we had never experienced before.

Shortly after ushering in 2020 we experienced one of the largest earthquakes when a 7.7 temblor shook us to our core.

We were shaken, but our resilience saw us through. Little did we know how much resilience we were going to need to face more impending challenges. Shortly on the heels of the earthquake we dealt with a massive fire at the George Town Landfill and then in March we found ourselves facing a pandemic the likes of which none of us have never experienced.

And while we are still in the throes of a global pandemic, life in the Cayman Islands has pretty much returned to normal. I believe it is our ability to pull together in times of crisis that has helped us survive all that this year has thrown our way.

The response of Cayman and its people to the COVID-19 crisis has been a source of considerable pride and inspiration for me. The response of the community, both in terms of a willingness to follow the rules that Government moved so swiftly to put in place and in the way we have come together to look after each other is something to indeed be proud of.

I know that life has not been easy for many of us over these past few months, what with the tough decisions that Government had to make. Those decisions curtailed liberties and impacted the livelihoods of Caymanians and residents like never before. But it was because we took those hard decisions that today we are able to gather together once more to celebrate and officially usher in Christmas.

It is because we made those timely decisions to intervene and close things down that we saved lives and maintained public health while the testing and tracing arrangements have been crucial in containing community spread and providing public reassurance.

And while we have made major milestones in keeping the virus at bay in our community, we know that the virus is also what will keep many of our loved ones away during this Christmas season. While we are relatively safe in the Cayman Islands, many of our friends and family live in areas across the globe that are experiencing spikes and surges in COVID-19 and those who do come to our shores face time in quarantine before they are able to go about enjoying all the wonders of our beautiful Islands.

For some, the trip just is not practical.

But there is joy in knowing that no matter where our friends and family are, we can all share in the excitement of Christmas and give thanks for the reason of this season – Jesus Christ.

Luke reminds us of the advent of the Son of Man in the second chapter of that great gospel:

“In those days Caesar Augustus issued a decree that a census should be taken of the entire Roman world.  And everyone went to their own town to register.

“So Joseph also went up from the town of Nazareth in Galilee to Judea, to Bethlehem the town of David, because he belonged to the house and line of David. He went there to register with Mary, who was pledged to be married to him and was expecting a child. While they were there, the time came for the baby to be born, and she gave birth to her firstborn, a son. She wrapped him in cloths and placed him in a manger, because there was no guest room available for them.

“And there were shepherds living out in the fields nearby, keeping watch over their flocks at night. An angel of the Lord appeared to them, and the glory of the Lord shone around them, and they were terrified. But the angel said to them, ‘Do not be afraid. I bring you good news that will cause great joy for all the people. Today in the town of David a Savior has been born to you; he is the Messiah, the Lord. This will be a sign to you: You will find a baby wrapped in cloths and lying in a manger.’

“Suddenly a great company of the heavenly host appeared with the angel, praising God and saying, ‘Glory to God in the highest heaven, and on earth peace to those on whom his favor rests.’ ”

I never grow tired of hearing or telling that story.

And to me it rings especially true this year because it reminds us of the resolve and resiliency of a young woman and man who were charged with bringing forth Jesus Christ.

Here in Cayman we have proven our resilience and resolve in the ability to cope with the trials and tribulations of this past year by working together, remembering that we are a special community made up of the people who God sent his own Son to save.

This is an enchanting time of year for both the young and the old, and it is even more precious this year because of what we have been through together.

I pray that the feelings of goodwill and charity that Christmas brings will spill over into 2021 and that the New Year ahead of us will be much kinder than the one we will usher out at the end of December.

I appreciate the opportunity to be with you tonight to officially kick of Cayman’s Christmas season. On behalf of Government, my family and myself, I wish each of you a very blessed Christmas season

Good morning,

Today we celebrate Remembrance Day to honour, recognize and remember those who died in the two World Wars and other military conflicts, as well as those seamen who died at sea. We also celebrate our surviving veterans and seamen who continue to contribute to our community and our nation.

In normal times we would all be gathered to lay wreaths at the Cenotaph and then at the Seaman’s Memorial.

But as we all know, these are not normal times. We are still in the precarious position of dealing with the COVID-19 pandemic and as such, the Executive Council of the Veterans Association made the wise decision that in lieu of the regular ceremony with throngs of people, they would instead meet in a small group to pause for a minute of silence and then lay wreaths in remembrance of those who gave their lives for our freedoms.

I thank the Veterans Association for taking into consideration the safety of not only themselves and their families but of all who normally take this solemn and important event to heart and attend this ceremony in George Town each year.

But I thank them too for finding a safe way to carry on this time-honoured tradition.

World War I began on 28 July, 1914, and officially ended on what was called Armistice Day on the 11^th hour of the 11^th day of the 11^th month in 1918, leaving a death toll of some 20 million people. A mere 21 years later in September 1939 the world was again at war with Britain being drawn into one of the fiercest battles of all times and indeed fighting for its very existence.

Cayman had many men of valor who did not hesitate to defend the Mother Country and fight against tyranny and so Caymanians entered into the fray wherever they were able – the British Armed Forces, United States Military, Trinidad Regiment and Reserves, and the Home Guard here at home.

During this conflict the harbours of the Western Atlantic and the Caribbean provided valuable bases for the allied navies, while Trinidad held strategically valuable oil resources. Because Trinidad’s oil provided the fuel and lubricants necessary for the allied war machinery, guarding this location in the southern Caribbean was of vital importance.

The Trinidad Royal Navy Volunteer Reserve was strengthened with more than 200 Caymanians in its own force and it is believed that at least 1,000 Caymanian men – two-thirds of the adult population at the time – saw service world-wide during World War II, including in the Merchant Marines. Many did not return home.

It was during the war that our own Home Guard was established on Grand Cayman in June 1942 to protect our shores. Many men were commissioned, but there were also others who served duty as civilians behind the scenes.

While we were never a target for enemy attack, the US realized our strategic position near Allied shipping lanes. Some of the older ones will remember the establishment of a US base on Grand Cayman in 1942.

My Uncles Norman Rudolph McLaughlin and Carlyle Burton McLaughlin, both of precious memory, served during the war with Uncle Rudolph serving in the Trinidad Royal Navy Reserves while Uncle Carlyle served on Grand Cayman in the Home Guard.

I remember their stories of those times and of the fine men who maintained a 24-hour coastal watch during World War II.

While the Home Guard dissolved decades ago, it was those stories that came flooding back to me a few months ago as I watched the military “passing out ceremony” of the newly established Cayman Islands Regiment.

I look forward to future Remembrance Day ceremonies and the participation of the Cayman Islands Regiment in uniform as part of the customary parade.

As for today, we are adjusting to the new needs of the times with social distancing and keeping everyone in these beloved Islands safe and healthy. While this Remembrance Day isn’t filled with the usual pomp and circumstance, it is fitting that we remember and salute those who have passed on to greater rewards defending liberty and those who we still have the pleasure and privilege of listening to tell their stories and share their lives.

I appreciate each of them and their families who made sacrifices and served the Cayman Islands well. They will live on forever in our hearts.

Good evening everyone,

2020 graduates of the University College of the Cayman Islands, I am delighted to be here with you this evening to deliver these few remarks as we celebrate this most auspicious event.

I congratulate each of the more than 200 of you who will receive a degree or certificate this evening for all of your hard work and achievement. I also congratulate you for completing your studies despite the challenges of COVID-19.  

I am sure you have heard that oft quoted expression “an investment in education gives you the best returns”.  And so I encourage you to not stop here but to continue enhancing your knowledge.   

This year’s commencement theme is fitting: “Embracing Change, Exceeding Expectations”. If there is one thing that the year 2020 has taught each and every one of us is how to live with change, and we have certainly seen a lot of change over the course of this year.  But living with change means that we not only have to accept that things are different and to rearrange our lives to accommodate those differences – but to really succeed we must also embrace change.  I am sure most of us came to this realization over the last few months with the changing rules as we fought against COVID-19 community spread.  We all felt, I know I did, if we were to survive this year we were going to have to come to grips with a new reality and to consider where our future might be.  Not only have we needed to reset our expectations but to really excel in this very changed world we would have to exceed them. 

 The fact that you are graduating tonight is proof that you not only overcame, but embraced the changes brought on by the COVID-19 pandemic and retooled your learning arsenal to keep up with your studies.

You have certainly learned a valuable lesson that I believe you will need to carry with you as you embark on your careers or continue with your studies: the train track of life can be derailed at any moment by any unexpected event and you must be ready to adjust to keep going.

If you have drawn the map of your future self and still think that it’s a straight line taking you into old age, erase it. Yes, be focused, set goals and make an earnest effort  to achieve them, but remember the likelihood of how you get to a future place that you  envision today is going to run into the reality that is life;  and probably sooner rather than later. And that’s not a bad thing. 

If there is one piece of advice I can give you, it is this:  Your future is going to happen whether planned or unplanned – embrace the changes that life brings and indeed embrace life however long you may be on this earth. Yes life will bring you thrills but also disappointments. There will be moments that will be frightening and heart wrenching, but others that are breathtaking and wonderful. Life is change – embrace it. 

I congratulate all of you being recognized tonight. I also take this opportunity to congratulate UCCI on its 45^th anniversary. You have come a long way from the little Community College established in 1975.

I also applaud the faculty, staff, families and friends who nurtured these students as they burned the midnight oil to make it to this achievement. Please keep encouraging and supporting them on their journey.

Thank you again for the invitation to join you this evening.

Thank you Mr. Speaker, as Father of this House I think it was only fit and proper that you should regale us in that way with not only some humorous stories but some very poignant ones about those days long gone by, and indeed some individuals who have been called before us. And Mr. Speaker I’m a full sixteen years behind you in seniority in this House but I have been here long enough myself to have a few tales that on the appropriate occasion I hope to be able to share. I hope I have the opportunity before I’m too old and infirmed to do so.
Mr. Speaker, during the past two Administrations that I have had the honour and privilege to lead, several milestones have been achieved in these Hallowed Halls.
Today, sir, as you have noted we mark another most significant milestone. When the gavel sounds at the end of this First Meeting of the 2020/2021 Session of the Cayman Islands Legislative Assembly it will mark the end of a storied era as we say adieu to the institution known as the Legislative Assembly.
When next we meet in these hallowed halls, this place shall be known as the House of Parliament.
Growth and maturity bring with them change. This august institution that is the Legislative Assembly first began in its current form some sixty years ago during a period of much change globally, regionally and indeed change here at home.
Change that brought in our Coat of Arms on 14 May, 1958 - our first symbol of national unity and pride, the design of which was debated and agreed by the Assembly of Justices and Vestry on 5 February, 1958.
Change that also brought our first written constitution that came into effect on 4 July, 1959; the document that has played a pivotal role in helping guide our further development and prosperity.
And change that remade and renamed the Assembly of Justices & Vestry that began life in 1831 at Pedro St. James they call it now, Pedro Castle we used to call it, to the Legislative Assembly that has existed these past 60 years. Change that not only modernised the role of this House but did away with the bi-cameral system of Justices and Vestry, and installed a uni-cameral system comprising Members of the Legislative Assembly.
And Mr. Speaker we are about to change again and with that change we in this House will also transition from being Members of the Legislative Assembly to being Members of Parliament. This I am sure is a matter of pride for every one of us here and indeed for every Caymanian. A pride that is not about us as individuals but instead is one of national pride in the advances we are making as a Legislature and as a country.
Mr. Speaker, as we are all aware, the renaming of this institution to Parliament was agreed between a delegation of all Members of this House, Government and Opposition and the United Kingdom Government in a package of important enhancements to our Constitution that are expected to come into effect next month. Those enhancements, Mr. Speaker, acknowledge the growth and maturity of our Islands and provide an important added level of control over our own affairs. These amendments combined with the 2009 Constitution, will not only guide our maturing relationship with the United Kingdom but will also be the foundation for our continued prosperity.
Mr. Speaker before we close this chapter, I would like to delve into a bit of history as to how we evolved from that first meeting of democratically elected representatives on the 31st December, 1831; some 189 years ago to this Legislative Assembly.
In the foreword to her booklet, “1832-1982: 150 Years of Parliamentary Government in the Cayman Islands”, National Hero, and the first Clerk of the Legislative Assembly, The Hon. Sybil McLaughlin wrote, and I quote: “Self-government is a state of affairs that has never come easily to nations. Even today there are tens of millions of people in the world whose every move is governed by alien forces far from their own borders.
“By this measure, then, the Cayman Islands must surely be counted among the blessed lands on this planet since our roots of self-government can clearly be traced back 150 years to the first meeting of democratically elected representatives of the people on the 31st of December, 1831.”
At the time this was written by Ms Sybil as we called her in 1982 we were celebrating 150 years of Constitutional Democracy, and our early and important moves towards self-government; early moves that began with a meeting as recorded in documents found in the Public Records Office in London that note, “At a meeting held in Saint James’s on the 5th of December, 1831, it was resolved that Representatives should be appointed for the different districts throughout the Island for the purpose of forming local laws for its better Government. The Representatives were accordingly elected on the tenth of the same month, and assembled at George Town, pursuant to Advertisement on the 31st December, 1831, and the 2nd January, 1832.”
And so Mr. Speaker the first elections in these Islands were held on 10 December, 1831, and then on 31 December the first Assembly of Justices and Vestry met in George Town. This first meeting was ceremonial with the official business meeting being held in January the following year.
That first group of elected representatives were George W. Wood and James Hunter Wood of Bodden Town; James Coe Sr. and William Eden Sr. of Prospect; John Hew of South Sound; James Parsons Sr., William I. Bodden and Thomas L. Thompson of George Town and Samuel Parsons and William Bodden of West Bay.
The first Magistrates were John Drayton, senior magistrate; Robert S. Watler; Waide W. Bodden; John S. Jackson; James Coe Jr.; Abraham O. Fuertado; Edwin John Parsons; and Nathaniel Glover who resigned and was replaced by William Eden Sr.
At a meeting on 2 January, 1832, legislation titled “An Act to Regulate the Legislative Assembly of the Cayman Islands” was passed formalising the rules and regulations governing the operation of the Assembly of Justices and Vestry. That first sitting of the Assembly was bi-cameral; in other words it was divided into two houses, one senior to the other.
The first, or lower house, was comprised of elected “Vestrymen”, also called “Representatives” who held their deliberations in a different room from the appointed “Magistrates”, which comprised the second or upper house. Laws passed in the Assembly were required to be sent to Jamaica for assent by the Governor of Jamaica.
In many instances years would pass before the Governor of Jamaica would get around to placing his signature on the Cayman Islands legislation; in fact the first Act of the Cayman Islands Legislature passed in 1832 was not assented to by the Governor of Jamaica until 1865.
I would note for completeness that prior to these events in 1831 and 1832 local public affairs were administered via Justices of the Peace appointed by the British Governor in Jamaica. One of their number was then named as the local Governor. And so with the advent of elected representational government in 1831, Caymanians put an end to the administering power directly appointing those who would not only create the laws, but who also sat as judges, and who administered the affairs of these Islands.
After 1832, the role of the local Governor was changed to that of Custos who was appointed by the Governor of Jamaica, and who served as the head of both the elected and administrative functions.
By 1898 the role of a Custos was changed to Commissioner who, as did a Custos, combined administrative duties with that of a judge of the Grand Court. The Commissioner also presided over the Assembly and as such prepared Legal Reports to the Bills passed in the Assembly. A powerful position indeed on three small Islands with a small population.
Despite the longstanding role of the Governor of Jamaica in the administration of the affairs in the Cayman Islands, it was not until the passage of ‘The Cayman Islands Act’ on 22 June, 1863, by the United Kingdom Parliament that the Cayman Islands was declared, and administered as, a dependency of Jamaica. With that the Governor of Jamaica had the same powers and authority in respect of the Cayman Islands, as if these Islands had been part of the Island of Jamaica.
The Legislature of Jamaica also had authority to consent to laws passed in the Cayman Islands as well as to make laws for the peace, order and good government of the Cayman Islands. All acts or laws that were valid in Jamaica would be applied to the Cayman Islands. With the direct imposition of the Jamaican Legislature in the affairs of our Islands, the 1863 Act of the UK Parliament could be viewed as a ‘stumble’ on our journey toward increased self-government. None-the-less, the Caribbean Sea and the distance that separates us from Jamaica, along with our small size allowed us a useful measure of autonomy.
Ms Sybil noted in her booklet on 150 years of government that during the whole of the 19th Century, governors of Jamaica visited the Cayman Islands on only four occasions and representations were made that the Islands were suffering from neglect. But Caymanian lawmakers did not let that neglect stand in their way and they continued to exercise legislative powers without any interference from Jamaica. Over time the majority of assemblymen came to believe that the local autonomy they enjoyed was a right rather than a privilege conceded by Jamaica.
And so, over the next 90 years we continued our slow march toward nation building; building an economy and building our capacity and our confidence as a people and as a country.
For most of that time our Islands were a fairly quiet place and it was not until events of the 1950s that the national pride of Caymanians was stirred sufficiently to pay attention to the politics of the region and the potential changing future of these Islands.
The West Indies Federation that was promoted by the United Kingdom after the Second World War was eventually formed in 1958, but dissolved in 1962 as Jamaica and Trinidad opted for independence and self-determination rather than Federation. The years leading up to the formation of the Federation, through its demise, were pivotal years for Caymanians as our future hung in the balance.
Despite the post-war trend that saw a number of UK colonies opt for Federation and then later for independence, the Cayman Islands was determined to not just be swept along in the wake of our larger neighbours. It was hugely important to Caymanians then, as it is today, to maintain as much of our independence as we could and to protect our way of life and our livelihood.
And so on 7 April, 1955, six Caymanian assemblymen sent a petition to the Colonial Secretary through the Governor of Jamaica. They stated that “we wish to restate as clearly and strongly as we can, three main aims. First, we wish to retain the right to control entry to our Islands. Secondly, we wish to retain our rights to decide what taxes should be imposed upon us. Thirdly, we wish to retain our right to maintain our established channels of trade and employment overseas”.
These matters were not settled immediately, but continued to be debated locally as well as in Jamaica and in London for several years.
Mr. Frank Hill wrote in the Daily Gleaner of Jamaica on 19 November, 1956, that “these are real fears that the ordinary man on Cayman’s dusty roads can easily understand and get angry about; and during the past months he has been led into flaming anger that has brought these three Islands a new and dramatic political vitality”.
And so the road that both Jamaica and the Cayman Islands traversed during discussion on the formation of the West Indies Federation was difficult and rocky. But in the end, the matter was resolved in 1962 when, after a heated Assembly meeting, the following resolution was passed by the Legislative Assembly: “To continue Cayman’s association with Her Majesty’s Government in the United Kingdom and to negotiate with Her Majesty’s Government in the United Kingdom for internal self-government, taking into account the wishes of the people of the Cayman Islands as to timing”.
And so we chose to cut our link to Jamaica and the Federation and take greater control of our destiny by becoming a British Crown Colony in our own right.
Mr. Hill, the same Mr. Frank Hill, in his report in the Daily Gleaner, commented that “it is easy to admire and respect the Caymanians. They may be rough and ready, many of their leaders unlettered and inexperienced in political niceties, and their vision may be limited by the debit and credit columns of their trading accounts. But they are a steady, thrifty, diligent people with unbending pride and natural dignity that counts no material costs when they are aroused. We in Jamaica have much to learn from them in the things that concern the spirit of many and the consistent toil and sacrifice that are necessary to keep that spirit free”.
Mr. Speaker, as I have indicated our slow march to increased democracy and autonomy took a giant leap forward with the grant of our first written constitution on 4 July, 1959. The changes brought in under it specifically exempted the Assembly from the control of the Jamaican Legislature and placed it directly under the authority of the Governor of Jamaica. The Commissioner was retitled Administrator and retained almost all the executive, legislative, and judicial powers held by the Commissioner. The Administrator was to be guided by the British Governor of Jamaica and to keep him informed, corresponding directly with the Colonial Office in London only with the Governor’s authorisation.
The changes to the Legislature in the 1959 constitution were much more radical. After 129 years, the unique body of Vestrymen and Justices was replaced by the Legislative Assembly and membership was reduced from 35 to 18; 12 elected, three nominated and three official.
The elected members of the first Legislative Assembly in 1959 were Dr. Roy E. McTaggart, E. Ducan Merren and A. Colin Panton of George Town; Arthur H. Ebanks, J. Cadian Ebanks and T. William Farrington of West Bay; Noland B. Foster and Keith P. Tibbetts of the Sister Islands; Malcom Eden and A. James Miller of Bodden Town; William Allen McLaughlin (my grandfather) of East End; and Craddock Ebanks of North Side.
The Official Members were James Rufus Astwood (Stipendiary Magistrate), Ernest O. Panton (Assistant Administrator), and Desmond V. Watler (Treasurer). I should point out Mr. Speaker that Desmond V. Watler is now a National Hero as is Mr. Willie Farrington and Dr. Roy McTaggart. Nominated Members were William Warren Conolly (another National Hero) and Theophilus R. Bodden, who later resigned and was replaced by Ormond L. Panton (another National Hero) in March 1960. The Administrator was Major A.H. Donald, OBE, who functioned as both Chairman and Speaker, or presiding officer as they called the position.
In addition, Mr. Speaker the 1959 Constitution introduced an Executive Council (ExCo), which consisted of the Administrator, two official members, one nominated member appointed by the Governor, the Governor of Jamaica, and two elected Members who were nominated and elected by the Members of the Assembly. Whilst in the minds of many Caymanians the Executive Council was a decision making body, in fact it was not. The 1959 Constitution merely required the Governor and the Administrator to consult with the Executive Council in the exercise of all powers conferred upon them by the Constitution. However, the Governor (that is the Governor of Jamaica) and the Administrator were not required to act upon any advice given following this consultation. None-the-less the ExCo arrangement was an advance on what previously existed, as it acknowledged that elected members of the Assembly should have a role in the administration of the affairs of the Islands.
Mr. Speaker It is important to note that removing the Assembly from control by the Jamaican Legislature was significant as local legislators now had autonomy over passing its own laws, albeit these had to be consented to by the Governor of Jamaica.
It was the decision by the Cayman Islands to forge our own way as a British Crown Colony that allowed our own people to begin to make what were, clearly in retrospect, fundamental policy decisions and to pass the early laws on which we have built our Tourism and Financial Services industries.
The next significant changes to the Legislative Assembly happened with the 1972 constitution, which did away with the system of nominated members. However, three official members – the Chief Secretary, the Financial Secretary and the Attorney General – together with 12 elected members comprised the Legislative Assembly, over which the Administrator, laterally termed Governor, presided.
The 1972 Constitution did provide for the Governor, as president of the Assembly, to be replaced by a Speaker appointed by the Assembly once this change was voted by a majority of members. But Mr. Speaker as you have spoken about this evening, as late as May 1989, when a private Member made a motion to appoint a Speaker and the vote was tied, the Governor, in his role as presiding officer, used his tie-breaking vote to maintain the status quo. The following year, on the 5th September, 1990, the Assembly voted on Private Member’s Motion 20/90 to replace the Governor as presiding officer and appoint a Speaker of the House. Indeed Mr. Speaker, as you have indicated it was you who brought that motion and on that occasion the vote for the motion was successful.
Veteran civil servant and the first clerk of the Legislative Assembly and now National Hero the Honorable Sybil McLaughlin became our very first Speaker. In later years the Hon. Sybil McLaughlin was named a National Hero for her significant contribution to the development of the work of this Assembly and to democracy in our Islands. And Mr. Speaker I dare say she was the first female clerk in the entire Commonwealth, a fact that is not well known.
Time moved on and membership to the House increased to 15 elected members from 12 when the Constitution was amended in 1992. Amendments in 1994 caused members of the Executive Council to became known as Ministers, with a fifth Minister added to ExCo; and in 2003 the ExCo itself was renamed the Cabinet.
The 2009 Constitution introduced further modernisation of the Legislative Assembly, including the appointment and role of a Premier and the Leader of the Opposition, and an increase in membership of the House. It also allowed for the creation of single-member constituencies.
Under the 2009 document the Cabinet evolved from a mere advisory body to the Governor to become the body with the exclusive responsibility for all aspects of government except those that remain the special responsibilities of the Governor - defence, internal and external affairs, and the public service.
Mr. Speaker, the last administration that I led introduced single member constituencies with one person one vote rather than a system of multi-member and multi-votes that had gone before. Mr. Speaker, this Government has worked with the United Kingdom Government to make additional constitutional reforms, which provide unique protections as well as allowing more control of our own affairs, and of course the renaming of the Legislative Assembly to Parliament. Mr. Speaker I wish to pay tribute to all members of this House generally but in particular to those who worked with me and the team including visiting the UK and attending the various meetings with the Foreign and Commonwealth Office to ensure that we have achieved these critically important constitutional reforms. I pay a special tribute Mr. Speaker to the member from North Side Mr. Ezzard Miller and to Mr. Alva Suckoo who formed the Opposition’s part of the delegation and indeed Mr. Speaker to my own team on the Government side including Minister Tara Rivers and Minister Joseph Hew as well as the learned Attorney General and the Cabinet Secretary, my political adviser and essentially Chief of Staff Mr. Roy Tatum, as well as Mr. Jason Webster from the Cabinet Office and my Personal Assistant Ms Jana Pouchie-Bush for the role that they played in those very intense and at times difficult negotiations.
Mr. Speaker there was a tense period this morning when the Governor spoke to me and said there may be a problem because of the COVID-19 four week lockdown in London with this matter proceeding. But subsequently we were advised that the Foreign Affairs committee has actually sent the draft constitutional amendment order to the Privy Council and the Privy Council will proceed to meet on the 11th of November. So we pray Mr. Speaker that nothing interferes with the process and that in due course and soon, but very soon, the order will be made.
Mr. Speaker, as I stated when I began the renaming of the Legislative Assembly to the House of Parliament is yet another significant milestone in the history of these islands.
The members of this House also effected another milestone change on Friday last when we approved the passage of The Legislative Assembly (Management) Bill 2020 that provides for the administrative independence of the Legislature. Mr. Speaker for those of us that have been here a while this has been talked about for more years than we can remember and finally Mr. Speaker, finally we have moved this forward. I am incredibly grateful to all members of this House for their contribution in this regard, and Mr. Speaker without them and their cooperation this would not have occurred. Mr. Speaker I ought not to have forgotten the involvement and advice of Professor Jeffrey Jowell, QC, who was – as he has been for many, many years - the Chief Constitutional Advisor to the Cayman Islands Government for the role that he played in ensuring that we did achieve that significant milestone.
Mr. Speaker all of the changes, from 1831 to today, have been made by Caymanians who were looking to the future; who were looking to improve these three jewels in the Caribbean Sea and to improve the lives of our people. That was true in 1831, it was true in 1959, it was true in 1972, it was true in 2009 and Mr. Speaker it is true today.
That sense of purpose, improving the lives of our people, was made clear at the final session of the Legislative Assembly of Justices and Vestry on 3 July, 1959. It is fitting that I draw from the words spoken there as I begin my closing.
Vestryman Edgar Ducan Merren reminisced about the important work of the Assembly, of those serving in it, and the positive impact that work can have on the lives of our people.
He said, and I quote, “Since 1952 we really started moving ahead, and this progress is gaining momentum each year... we undertook to build an airport at a cost of over 105,000 pounds. As a result of having air transportation we were able to invite tourists to the Island, which meant the erection of hotels to accommodate them, a great move to improve the economic condition of these Islands.
“To add to the improvement of our little Island, we undertook the rebuilding of our roads where people can now travel comfortably.
“I should also make mention of Cayman Brac, which is sharing with us in this wave of prosperity.
“Both Grand Cayman and Cayman Brac are proud of the elaborate homes built on their Islands by foreigners, but more proud to see the elaborate homes built by Caymanians themselves.
“The Cayman Islands are on the map and are being known throughout the world. There are greater things to come, which will mean the spending of millions of dollars and it will not be long before these developments become a reality.”
Mr. Speaker, those were indeed prophetic words and I can feel the pride in Vestryman Merren’s words as he contemplated the progress and promising future of our Islands and our people.
Legislators back then understood well from whence we have come; they understood hardship and they also understood the importance of moving our Islands continually forward. They understood instinctively that while development benefited the developer it also brought real and lasting benefits to Caymanians so that no longer would we be the Islands that time forgot.
Also speaking at that last meeting was Mr. Ernest O. Panton, clerk of the Vestry, a gentleman that I knew well in his latter years, who sagely noted:
“At the end of today’s session of the Assembly the President could announce ‘Here endeth the chapter of the book according to the Legislative Assembly of Justices and Vestry of the Cayman Islands’.
“In these words there will be recorded, were the President to say them, a closed chapter, which has been of greatest importance to the Cayman Islands – an honourable body of men will cease to function as Legislators under the Act of 1832.
“…this Assembly should pay tribute to members of this Assembly who are no longer with us, but who served their time and generation in this Assembly faithfully and well… These men… handed down to us a torch that must never be extinguished. They have left us a great heritage.”
Mr. Panton concluded with “I feel that I can end these few words by saying ‘Hitherto has the Lord led us,’ and under His guidance may the future to us be a glorious expectation.”
Mr. Speaker I pause to interject, I should realise as I get older that my memory is now more fallible than once it was and when I try to remember the names of people who contribute off the top of my head I inevitably leave someone out and get in trouble. I do not know Mr. Speaker how I could have omitted from my little vote of thanks, Mr. Eric Bush who was Head of the Cayman Islands Government Office in London and without whose organisational skills, ability and great advice we would have struggled much more than we did in those negotiations. It is even worse Mr. Speaker as he is now one of my Chief Officers but I beg his forgiveness, a slip of the tongue no fault of the brain.
Mr. Speaker I know that we are facing many challenges with the onset of the global COVID-19 Pandemic but I know that each of us here believes that with hard work, perseverance and the help of almighty God, our best days are still ahead of us.
There are indeed greater things to come; and much of that will be guided by the work that we do in the halls of this Legislative Assembly and in the offices of Government. I urge all members here to never lose sight that the reason we are here is not only to serve those who elected us, but to also leave a strong foundation for those who follow us to build upon.
So my fellow Members of the Legislative Assembly, the next time we meet here we shall be meeting in the House of Parliament and I shall greet you as fellow Members of Parliament.
I sincerely trust that you are as proud as I am that we are here together at this historic moment at the closing of one chapter and preparing to begin another. All of the United Kingdom’s Overseas Territories share a long and storied history of parliamentary democracy. Our paths over the centuries have been different, but in many respects we are more similar than we are different. We all have similar forms of government and constitutions though some are more advanced than others. As I stand here today there are only two of our Sister Territories’ legislatures that are Parliaments, but when we next meet in this House there shall be three, as we join with Bermuda and Gibraltar.
Mr. Speaker I look forward very much to this next chapter. As you know I have devoted much of my working life and much of my time here to advancing the affairs of our Islands, including advancing our constitutional and political affairs. I have held almost every role that is possible in this House save that of Speaker and I am grateful, more grateful than they will ever know, to the people of George Town who first elected me almost twenty years ago and who have supported me over all these years. It is because of their trust and support that I have proudly been allowed to contribute to the development of these Islands and our people by the work that we do within these honourable walls and outside them.
Mr. Speaker, this final meeting of the Legislative Assembly is not only historic; it has been incredibly productive and successful, all to the benefit of the people of these Islands. As I have indicated, not only have we passed legislation to make this Honourable House independent of the Executive, but we have also passed legislation that undergirds the newly formed Cayman Islands Regiment, an institution that I know will over the years come to be one of significance in these Islands. These are achievements of which we can all be truly proud.
I wish to put on record, Mr. Speaker, my thanks to my colleagues on the Government bench for their hard work and support and I also wish to thank members of the Opposition for their cooperation and support over the course of this Meeting.
Thank you too, Mr. Speaker, for all that you do to keep order in this Honourable House and I look forward to when we next meet to welcome you as the first Speaker of the Parliament.
Mr. Speaker, I also want to thank the clerk and all our staff for the tremendous work they do not just on this occasion but all the time to help make this place function and to make members comfortable. Mr. Speaker as this Honourable House prepares to close this Legislative Assembly and turn the page to welcome with pride a new era as the House of Parliament, I reflect on the challenges and hurdles we faced to reach this point. Over the past few years there have been obstacles, missteps and missed opportunities. But finally here we are. As most people know I am fond of poetry and prose and have derived much inspiration from them over the years. One of my favourite poems is Longfellow’s “A Psalm of Life”, which I find apropos to this occasion.
Tell me not, in mournful numbers,
Life is but an empty dream!
For the soul is dead that slumbers,
And things are not what they seem.

Life is real! Life is earnest!
And the grave is not its goal;
Dust thou art, to dust returnest,
Was not spoken of the soul.

Not enjoyment, and not sorrow,
Is our destined end of way;
But to act, that each to-morrow
Find us farther than to-day.

Art is long, and Time is fleeting,
And our hearts, though stout and brave,
Still, like muffled drums, are beating
Funeral marches to the grave.

In the world’s broad field of battle,
In the bivouac of Life,
Be not like dumb, driven cattle!
Be a hero in the strife!

Trust no Future, howe’er pleasant!
Let the dead Past bury its dead!
Act, — act in the living Present!
Heart within, and God o’erhead!

Lives of great men all remind us
We can make our lives sublime,
And, departing, leave behind us
Footprints on the sands of time;

Footprints, that perhaps another,
Sailing o’er life’s solemn main,
A forlorn and shipwrecked brother,
Seeing, shall take heart again.

Let us, then, be up and doing,
With a heart for any fate;
Still achieving, still pursuing,
Learn to labor and to wait.

Mr. Speaker may God continue to guide us all and may he continue to bless our beloved Cayman Islands.

It has not been easy over these many months Mr. Speaker.  To try to eradicate the virus, to save lives and protect health, we acted decisively.  We closed our borders, put curfews in place to limit movement, and required most of our people to stay home, indeed with many working from home.  Add to this the closure of all our schools and restrictions put on access to elderly care homes, our hospitals, and the prisons. Access to beaches was also restricted. When it was safe to do so, we removed most restrictions in phases over several months. Hopefully, things have gotten better, and we are not where we were in early March, but the impact of COVID-19 has been disastrous to our Islands; especially to our economy. Not only did our tourism sector come to a grinding halt but all local business has been hit badly during the period of lockdown. The same thing has happened around the world, Mr. Speaker. The impact of COVID-19 has been tough for business and for our people, including our children and the elderly. But it has also been tough for Government. But despite the challenges, there is no doubt that it is the strength of our response, and the understanding and compliance of our people that have helped to almost eradicate the virus here and has enabled us to return to some sense of normalcy. And because of this, much of the local commerce, save for tourism, has for the most part been able to return.

We are indeed in a much better place now than we were in the early phases of our response – but I shall never forget the direness of the situation as we all saw the news reports on television. We watched in horror early in the year as this deadly virus caused havoc in China, and throughout Asia, moving to Europe and eventually to North America. It seemed there was no stopping it. By the time we had our first confirmed case of COVID-19 in March there were more than 125,000 people infected and almost 5,000 deaths across the world. The entire country of Italy, with over 60 million people, was in lockdown. Today there are more than 45 million confirmed cases across the world and more than one million deaths. Those are staggering numbers and they continue to rise.

Mr. Speaker, as we started our COVID-19 response I could not have predicted these numbers, but the potential for calamity was obvious early on. And as our world, both here at home and abroad, began to change in March we all understood clearly that in the weeks and months ahead our priority had to be to keep our people healthy and to save lives. As I said several times over those months Mr. Speaker, we can rebuild an economy, but we cannot bring people back to life. 

I am appreciative Mr. Speaker that my Government along with the Governor, the Deputy Governor, the Chief Medical Officer, the Medical Officer of Health and others all agreed that saving the lives and the health of our people had to be at the forefront of Government’s decisions and actions. We saw what was playing out in much larger countries that had many more resources than us, yet we were determined that our fate would be different.

Many thoughts went through my mind in those early days and I, like many of you Mr. Speaker, got very little sleep, given the hard decisions I knew had to be taken. But often on those nights when I was alone with my thoughts and worries, a quote from Winston Churchill kept returning to me. 

“Things are not always right because they are hard.  But if they are right, one must not mind if they are also hard". 

I have reminded myself of this regularly over the past months as we took the difficult decisions that we needed to take, knowing that what we were doing was hard, but believing that the reasons we were doing them were right.  

Whilst the lockdown of the country began in March, Mr. Speaker, Government along with our medical experts had been keeping an eye on COVID-19 from late December 2019 when the virus was detected in Wuhan City in China. By 20 January the Republic of Korea, Thailand and Japan were also reporting cases of the virus.

On 31 January the World Health Organization (WHO) declared the outbreak to be a public health emergency with 9,826 confirmed cases globally then. The virus had now spread to 19 other countries with the global risk assessment level rated as high by the WHO. 

So, Mr.  Speaker, in late January I and the Health Minister held a cross-Ministerial meeting with Chief Medical Officer Dr. John Lee, and key personnel from the Health Services Authority, the Ministry of Health, the Ministry of Employment and Border Control, the Customs and Border Control Agency, and others, to gauge our readiness to deal with COVID-19 and to explore what was needed for us to do our own testing. 

We also discussed the readiness of our health system, including the potential number of beds and ventilators, personal protective equipment, and other equipment that could be needed if the worst was to happen. Our goal was to bring in enough equipment as we could to be better prepared to deal with the virus. And over time we initiated broader plans to help us prepare should COVID-19 inevitably reach our shores.

Meetings were also held with the wider medical community which, like Government, was extremely worried over the potential damage the virus could bring.

On February 3rd we held our first press briefing, which included the Health Minister, Chief Medical Officer Dr. John Lee and Medical Officer for Health Services Dr. Samuel Williams giving the public useful information on the virus and providing assurance that we were preparing to manage the virus when it arrived here. We confirmed that Government had also been working with international public health agencies such as the Pan American Health Organization; the Caribbean Public Health Agency and Public Health England regarding plans and protocols to deal with the virus. Mr. Gary Wong, with Customs and Border Control, also provided the public with an update as to the precautions being taken at our seaports and airports to protect our Islands from COVID-19. 

The additional scrutiny at the border assisted our decision on February 26th to deny entry of a cruise ship, the MSC Meraviglia, where a crew member had been isolated with flu-like symptoms. At the time our borders were still open to incoming tourists at the airports and via cruise ships, but we were watchful for anyone with flu-like symptoms. 

 On Feb 29^th, the Costa Luminosa stopped in Grand Cayman. The ship had confirmed to local authorities that no one onboard had any flu-like symptoms. However, there was a 68-year-old passenger who had suffered two heart attacks aboard the ship and was in need of urgent medical care. He was taken to Health City Cayman Islands where he was put in isolation at the facility’s Medical Intensive Care Unit and treated for his cardiac condition. 

On 3 March our preparation continued as we activated the National Emergency Operations Centre (NEOC) in anticipation of the national threat posed by the virus. Government also put in place travel restrictions for people coming into the Cayman Islands from mainland China where the virus originated and was rampant, as well as suspending all non-essential official business travel.

Also, in early March we welcomed a consultation team from Public Health England (PHE), led by Ms. Autilia Newton, to discuss our strategies on COVID-19 prevention as well as to support our efforts to upgrade the Health Services Administration laboratory services to enable on-Island testing for COVID-19.

PHE also conducted scientific modelling to predict the likely impact of COVID-19 on the Islands. The results of this were quite sobering and indicated that with no intervention almost 1,000 persons across our Islands could die because of the disease should it strike here as it was doing elsewhere. This bolstered our view that the strategy to be undertaken had to include firm interventions to suppress the virus to save lives and protect the health of a large segment of our population. We instinctively knew that in our small Islands of close-knit communities, saving lives and keeping people healthy had to be our paramount concern.

Mr.  Speaker, on  March 9th we learned that there were five people at Health City Cayman Islands being tested for the virus - four staff who isolated at home, and the fifth being  the cruise visitor from the Costa Luminosa who was a patient at the hospital.

By March 12th it was confirmed that the cruise visitor at Health City was indeed COVID-19 positive. Fortunately four healthcare staff that treated the patient were negative. We awaited one more test result and had also arranged to test more staff from Health City.

The confirmation that we had COVID-19 in the community was indeed a watershed moment for us in the Cayman Islands, as was the death of the cruise visitor two days later on the 14^th.   

On the afternoon of March 12th we held a press briefing to update the public on events and to again provide assurances that we were taking the situation most seriously. I also advised that Cabinet would hold an emergency meeting the next day to consider various options, including increasing travel bans on more countries and other measures. 

I noted then that “We are going to have to make some radical and drastic decisions that are going to impact social behaviour, travel and, indeed, people’s economic circumstances. But we believe that unless we do so, the results will be potentially devastating, indeed tragic, for these Islands. We will not allow, because of a lack of willingness to make hard decisions, the situation to obtain, which is currently the case in places like Italy and the United States.” 

Mr. Speaker the words of Churchill had stayed with me - “Things are not always right because they are hard.  But if they are right, one must not mind if they are also hard". 

Over time Health City would report that some staff had unfortunately tested positive for COVID-19, the hospital was closed for two weeks and staff were quarantined. Fortunately all staff at Health City recovered without complications.

On March 13th His Excellency the Governor, the Health Minister, the Chief Medical Officer Dr. Lee and I updated the public on Government’s response to suppress and eventually eliminate the virus from our shores. These measures included:

• A further ban on travel from those countries that presented a risk given the high number of growing infections, hospitalizations as well as deaths.
• That effective March 16th we would ban all cruise ship visits, initially for 60 days. This was later amended to start from Sunday, March 15th. All educational institutions would initially close from March 16th until April 27th. Children, as we came to understand, were unwitting ready carriers of the virus.
• A ban was placed on all public gatherings involving more than 50 persons until further notice.

I also advised that there were other interventions under consideration to reduce the risk of the virus gaining ground in our community. These would be advised the following week.

And so on Monday, March 16^th, at the press briefing I advised the country that the Government had held a series of meetings over the weekend with representatives of several of the main business sectors. I also confirmed that other similar meetings were planned that week with other business sectors. Discussions focused on the potential implications of the disease on our Islands and the various interventions being considered by Government to suppress the virus. I have to say Mr. Speaker that I was appreciative of the positive, and patriotic, response of our business sector to working with the people of these Islands during a time of crisis.

I also advised the country that Government, along with the Governor, the Chief Medical Officer, and other relevant persons had agreed that other interventions to suppress the virus were needed. These were:

• To close our airports to international passenger travel for an initial temporary period of three weeks starting on Sunday, March 22^nd, at 11:59 pm. This was later extended.
• That only residents to the Islands could return just prior to, and immediately after, the closure of the borders.
• That with immediate effect residents returning from overseas would have to quarantine for 14 days after arrival. 
• Travel to Cayman Brac and Little Cayman from Grand Cayman was restricted to residents of the Sister Islands. 

Given what we knew would be challenging economic times ahead I also advised the following:

• That banks had agreed to offer loan payment holidays to those in need. Similarly, the utility companies had undertaken not to disconnect customers for up to 90 days and would work with clients to arrange payment plans.
• With the assistance of Public Health England we had been able to upgrade our Health Services Authority lab so as to become the first Overseas Territory to have the ability to test for COVID-19.
• That we spoke with supermarkets, shipping companies and fuel importers and received confirmation that at that point there were no concerns regarding food or fuel sources or shipping capacity.
• And we implored people to not panic buy. 

With the quick closing of borders around the region, several people who wished to leave our shores became stranded here. Thanks to the Governor’s Office we were able to create an important travel air bridge with the United Kingdom using British Airways. Thanks, too Mr. Speaker to the Deputy Premier and Cayman Airways we were also able to organize emergency repatriation flights to the United States and eventually to other regional countries once borders reopened. Both the BA and CAL flights were instrumental in allowing those needing to leave the Islands to do so, and for those residents stranded overseas to return home. 

Mr. Speaker to date over 3,000 people have arrived home on the repatriation flights,  and 7,460 people, including over 1,600 Caymanians, have departed these shores. Mr. Speaker, I am told that included in the arrivals are 1,307 Caymanians, 1,226 residents, and 225 visitors who have arrived so far this month.  These repatriation flights will continue for the next few months but we do anticipate that over time other airlines will also fly in as CAL and BA move back to commercial flights with necessary safeguards in place.   

 Mr. Speaker we knew the closing of our airports and seaports, save for cargo, mail and express delivery services would cause economic hardship for people, businesses, and eventually even Government. But this was unavoidable if we were to sufficiently suppress the virus.

By March 23rd the number of positive cases locally had increased and many residents, particularly students, were returning home from countries with large numbers of COVID-19 cases. Government mandated the set-up of quarantine facilities with the assistance of several hotel properties. The protocol of testing those quarantined prior to release was also implemented. This testing, coupled with mandatory isolation, has helped ensure that we were not allowing imported cases of COVID-19 from readily entering the local population and adding to whatever numbers we had here already. If anyone still doubts the wisdom of this I can say today that almost every flight that has brought people here has had COVID-19 positive persons onboard.

By this point there were a number of strategies being advised by the World Health Organization that Government, the Chief Medical Officer and our health officer thought sensible, including the need for social distancing to suppress the virus. The virus spreads easiest when people are in proximity to each other – keeping people apart as much as possible was necessary to prevent  the virus moving from one person to the other. We saw this work in China, as they locked down, as well as in other parts of Asia and Europe.  

On March 24th as ‘shelter in place’ measures were being introduced to keep people home so as to help protect lives, we had our first suspected case of community spread of the virus. Community spread was later confirmed on March 31^st. This was another watershed moment for us. The new measures taken to suppress further community spread included night time curfews across all three Islands and further limiting the number of persons allowed to congregate to 10. There were exemptions for some businesses - supermarkets for example. Public transport was also shut down. Restrictions were placed on those able to visit our hospitals, elderly care facilities and prisons in order to protect these at-risk communities.

An entity we called Curfew Time was created as the competent authority responsible for deciding and issuing exemptions that allowed businesses and their staffs to operate legally and move about during curfew hours. An Online Self-Assessment Tool was also launched to help people understand whether they were experiencing any COVID-19 like symptoms. This was in addition to the COVID-19 telephone hotline that was set up.

On 28 March new shelter in place public health regulations were issued bringing into effect what came to be called a soft curfew during the day. These regulations mandated that individuals should remain at home unless they were either exempted persons under the regulations or determined exempt by Curfew Time. Individuals were also allowed to travel to essential places such as supermarkets, banks and pharmacies on certain days and between certain hours of the day. Exceptions for daily exercise were also allowed and later fishing from shore was added. Night time mandatory curfews became known as the ‘hard curfew’.

I am grateful to the Royal Cayman Islands Police Service and in particular Commissioner Byrnes and Customs and Border Control and all those who assisted in patrolling our streets, watching over us from the sky, and for manning roadblocks and check points to ensure that no one was out and about in breach of the soft curfew or night time hard curfew.

By April 1st confirmed COVID-19 cases had grown to 22, and so Mr. Speaker we increased restrictions further to better protect health and lives. During the first full week of April the alphabet system that had previously been adopted to restrict the days people could shop at supermarkets was expanded to almost all activity in the Cayman Islands, allowing people to go out for essential services based on the start of their surname. Everyone was under full lockdown for the days of the week that didn’t allow them out, save for purchase of food or medical reasons, with Sunday being a hard curfew day for all.

These curfews were part of a multi-pronged strategy to keep people apart and to limit the density of people congregating so as to suppress the virus. The other part of the strategy involved ramping up our testing capability.

April had challenges with the first COVID-19 case on Cayman Brac reported, followed by our decision to close public beaches indefinitely on 13 April. Regrettably Mr. Speaker there were too many people not appreciating the risk and who were behaving irresponsibly on beaches. Mr. Speaker, we had seen what had happened in the US when beaches remained open, people acted irresponsibly and new cases of the virus spiked afterwards. Keeping beaches open was not worth the risk.

It was also in April that we had another watershed moment with the purchase of 200,000 test kits from South Korea at a cost of $4.4 Million US dollars. The purchase of these kits came about with the help of several people including those who assisted us in making the initial contacts in South Korea, the Governor’s office, the British Embassy in Seoul and two benefactors who helped toward the purchase and shipping costs of the test kits. This purchase was important and allowed us the ability to increase our testing strategy beyond those who were symptomatic or who we thought potentially had COVID-19.

On 21 April we began mass testing for the virus on all frontline staffs and on 28 April a British Airways flight brought us extraction kits and swabs, which along with equipment already on-Island, provided support for the mass testing protocol. It was my belief that the results from the mass testing would reveal that the percentage of positive rates would be reduced. By the end of April our beloved Islands had the fourth-highest per-capita COVID-19 testing rate in the Caribbean and we were number 46 in the world among a list of 173 countries that were testing. At that point 1.4 per cent of our population had been tested, giving us a higher testing rate than the Netherlands, Sweden, France and the United Kingdom. By 6 June we were approaching the important milestone of having 20 per cent of our population tested, putting us in the top three countries in the world for per-capita-testing. That put us in a very good place.

Having implemented in March and April the measures needed to suppress the virus we also started to think about the conditions that would allow us to be able to reverse the restrictions. We knew that any removal of restrictions had to be done in a phased manner, allowing a minimum of two weeks before further changes so that we could detect any increases in the numbers of people infected. Our planning recognised five broad suppression levels from Level 5 Maximum Suppression (where we were then at) to Level 4 High Suppression, Level 3 Moderate Suppression, Level 2 Minimal Suppression and Level 1 All Clear.

In moving between these levels we also had to be confident that our medical community was prepared to manage any increases in positive cases that might occur as more people interacted with each other. By this time not only had we increased our testing capacity, but we had increased the number of emergency beds available to us as well as available respirators and Personal Protection Equipment.  So we were as prepared as we could be to remove restrictions safely provided we did so slowly and continued increased testing, including screening front line people at supermarkets, banks, the Health Services Authority, pharmacies, restaurants and so on.

With our testing capabilities improved, and with the trend in positive cases going the right way, the month of May seemed a bit brighter with the first phase of reopening of the Cayman economy with additional essential services now including money transfer, pool maintenance and landscaping services and other businesses being allowed to reopen. This allowed about 6,000 people back into the broader community.

On 5 May the curfew was lifted on Little Cayman and some restrictions were lifted on Cayman Brac on 7 May.

Mr.  Speaker, with these restrictions on Grand Cayman being reduced, we were able to move from Level 5 Maximum Suppression to Level 4 High Suppression of the virus. Shelter in place provisions remained as the country continued our fight to suppress the virus. Night time hard curfew and the Sunday curfew also remained.

Two weeks later on 19 May with testing going well, we were able to lift restrictions further and work to Level 3 Moderate Suppression allowing beach access Monday to Saturday by last name protocols and strictly for exercise, including swimming. Shoreline fishing and fishing by boat with a limit of two fishermen was now allowed. Moving to Level 3 was an important achievement for our society and economy. It increased outdoor recreation as well as added economic activity by allowing more businesses to operate, including hardware stores and home depots in readiness of the reopening of the construction and development sectors later in May.

Prior to the development sector coming back on stream, we put into place a testing regime to determine the extent of any infections in this segment of the workforce. Similar testing regimes had now been implemented for other essential workers.

Unfortunately the school buildings and places of worship had to remain closed. With schools having been closed from mid-March, parents were juggling work and helping educate their children from home. We know the strain that this presented on parents was great but school systems, both private and public, had to quickly figure out how to use technology and the means to support children’s education and the parents who were now part time educators. Our churches similarly used technology to reach their congregations. 

Still, whilst we had had some hospital admissions from COVID-19 these were few and the individuals had happily recovered. Our testing had drastically increased and although our positive cases were increasing, they were not alarming. Our efforts to contain and suppress the virus were working. And so Mr. Speaker I was filled with hope.

I said on the 29th of May that if we continued that trend to suppress the virus, then we would be okay to move to Level 2 Low Suppression on 21 June. Key to this was to ensure that given the increasing numbers of people now interacting across our Islands that we were carefully monitoring our test results before moving forward.  

On Sunday, 21 June, we were able to move into Level 2 Minimal Suppression with a greater easing of restrictions. More businesses were now operating and many more people were on the roads. Helpers and child care providers were allowed back to work and education facilities were allowed to open with appropriate protections in place.  The night time and Sunday curfew regimes had also ended. 

I am pleased to say Mr. Speaker that even with the majority of people now moving about their life with some sense of normalcy; we did not see a spike in the virus. And so on July 5th, more restrictions were lifted.  

Then on 17 July, we announced an additional reduction of restrictions to come into effect on Sunday, 19 July. At that point, Cayman had conducted an impressive 27,000 tests and had had only two positive cases from 3,000 tests in July,

That allowed us to announce that we were planning a phased reopening of the borders to start on 1 September; this date was later moved to 1 October.

The further softening of restrictions included inter-Island travel by air and boat with the need for testing before travel; we increased the number of people who could gather from 25 to 50; and we allowed dancing and karaoke in restaurants and bars as long as social distancing restrictions were followed.

Visits to residential care homes was now possible, with certain restrictions, and up to 50 people could visit the Sandbar and Stingray City on a commercial craft with Wildlife Interaction Zone licenses. But social distancing restrictions, as well as mask wearing, remained in force. 

On 25 August we announced that because of the negative spread of the virus, face masks were no longer mandatory but would still be required in healthcare and residential home care facilities, prisons and airports as well as in public buses, taxis, school vehicles and buses, including both passengers and drivers.

We also increased the number of people allowed to gather from 50 to 250, including on boats, as well as introduced a pilot programme of monitoring visitors who have homes here, or access to homes, and plan to stay longer than two weeks. That programme started on 17 September with the arrival of a British Airways plane bringing Caymanians, residents and permanent residents back to our shores. Prior to travelers being allowed to quarantine at home, all travelers were required to quarantine in a government-run quarantine facility and to be tested after two weeks on Day 15.  Only then would they be allowed to leave provided their PCR test was negative for COVID-19. This requirement for 14-day quarantine with testing on Day 15 also applies to those in-home quarantine. In addition, those quarantining at home are also required to wear a ‘geo-fence device’ that will cause an alarm should the person leave the area they are quarantined in. Individuals quarantining at home also receive home visits and phone calls to ensure that they are where they are supposed to be. And Mr. Speaker, they are also mandated to do a test upon arriving at the airport.

And as we pushed toward the phased opening of our borders we were intent that we would keep security and safety front of mind, but we understood that we had to find a way to open up, albeit safely.

With the advent of the pilot programme of home monitoring, we put in place new public health regulations making it an offence for those quarantined at home to permit another person to visit them. Those who breached the quarantine faced a fine of $1,000 and six months imprisonment. As we are all aware Mr. Speaker this House approved changes to the Public Health Law last week to increase the fine for breaking quarantine to $10,000 and two years’ imprisonment, given the significant health risks and economic costs that a possible return of community spread of COVID-19 would bring.

Mr. Speaker, on 2 October we began our home quarantine pilot programme with 110 people arriving on six flights, all of whom went into the Quarantine at Residence Programme at 72 different homes. The remaining passengers arriving that day were quarantined at government-approved facilities.

In October further changes to the COVID-19 regulations included increasing the number of people allowed to gather to 500 and permitted people to fish outside our territorial waters without having to quarantine on their return, under certain conditions. This is to aid in our ongoing goal of allowing a return to normalcy in as safe a manner as possible. 

Mr. Speaker we are looking at how best to safely expand the number of people who can arrive here over the coming months. As this House knows, one consideration is the introduction of what is called a Hotel or Resort ‘Bubble’.  In other words, to allow visitors to come here and to remain at a hotel or resort that keeps guests separate from the rest of the population. Of course the hotel or resort would, as best as possible, ensure that physical distancing and wearing of masks and protective equipment, and so on, would be practiced. These visitors would also be tested on arrival and their health watched while here. Staff, too, would need to be tested periodically.  But for this to work as a true ‘bubble’, it would mean that staff would need to remain at the resort as well, away from their families and friends. This is not an easy ask and has been but one of the challenges, and there are others, in considering this option. 

We have also been looking at a proposal from stand-alone villas as to how to allow them to be a part of the solution. They are often self-sufficient homes with beaches and in theory would allow people to visit, be tested, and to remain at the villa. But this too has some risks. But like the Hotel ‘Bubble’ concept Government has not been ruled that possibility out. 

One programme that has been in the planning for some time has been The Global Citizen Concierge Programme, which is strategically designed to welcome high net worth individuals here for several months and indeed up to two years. The programme has just launched and the interest to date has been promising. Individuals will be required to comply with the usual testing and quarantine regime and after which they will be able to live their lives among us in safety and security whilst also working remotely at whatever their jobs are in their home country. They will not be allowed to do any work for businesses in the Cayman Islands, Mr. Speaker.  

Mr. Speaker, all of these initiatives are promising, but we are still being cautious, because we know we are still nowhere near out of the proverbial woods just yet. Indeed, a few weeks ago we had a slight fright. As I said in my State of the Nation address, an irresponsible blog site caused some unnecessary panic after a student at Red Bay Primary had tested positive - albeit a weak positive - for COVID-19. Subsequent testing showed the student, the parents and siblings, to be negative, but Public Health and the Ministry of Education instituted proper protocols and classmates, teachers and parents of the Year 2 class were all tested with no positive results.  And indeed Mr. Speaker those exposed were required to isolate until the requisite fourteen day period following contact with the positive student had occurred.

And speaking of testing Mr. Speaker, I want to update this Honourable House on where we stand with testing and COVID cases to date. As of yesterday, 29 October, we have done 46,733 tests, which puts us 14th globally for testing. So far we have had a total of 240 confirmed COVID-19 cases, of which 221 have recovered. We continue to screen healthcare workers, frontline staff at the ports, nursing homes and the prisons, in addition to testing those travelling here and of course anyone residing here can request a COVID-19 test at any time if they think they need to. Testing remains free to the public with Government picking up the costs.

Meanwhile Mr. Speaker, Worldwide there are 45.1 million cases; 30.3 million people have recovered and 1.18 million people have died. There are more than 9 million cases in the United States and almost 1 million cases in the United Kingdom.

Mr. Speaker, besides two weak cases found in the community in recent months all other new positive cases over the last three months have been imported as people arrive here from overseas. We know cannot remain closed forever Mr. Speaker and we must do what we can to open up. But we are determined to do so with safety as our first consideration. 

Mr. Speaker we all understand that we have to get more of the economy working. But I am sure that we all also appreciate the devastation to what economy we now have should we be forced to lock down again and should we return to community spread. But what we may not appreciate Mr. Speaker, is the impact on our children, particularly their education and mental health. Indeed, our elderly and the broader population would bear a heavy burden. I do not believe any of us are ready for that – neither physically, economically or emotionally.

All around us we are seeing increases of the virus and new lockdowns Mr. Speaker.  The UK and Europe in particular are now struggling as the virus takes off again and they return to strict lockdown measures. 

The virus in the United States has also been rising as that country struggles with its response to the pandemic. This is a danger for them and for us. So we shall be careful in how we open up Mr. Speaker, we shall be careful.

I say again that we cannot remain locked down forever so a way must be found, and we will need to accept some level of risk. But my Government will ensure that the risk is reasonable and that our people will remain safe and that any risk from reopening is low compared to the danger of leaving our borders closed. 

Mr.  Speaker, this has not been an easy row to hoe these past seven months; not for Government and certainly not for the people and businesses of these Islands. I will forever be grateful to my people who not only understood the need to do what we did to save lives but also buoyed me and the entire Government up along the way with prayers and well wishes. I thank my Government in particular the Minister of Health and the Governor, and all of our health care community, public and private – including the Ministry of Health, as well as the many civil servants, private sector people and charitable organisations who worked tirelessly over these many months to help us get where we are today.

I also want to record my appreciation to those who served on the front line; the men and women in the public service who toiled relentlessly to carry out Government’s policy decisions and to faithfully serve the people of the Cayman Islands. It is due in large part to their courage and professionalism that it has been possible to maintain steady progress in the fight against COVID-19.

I also commend our communications team for their tireless work in keeping the public informed and the members of the National Emergency Operations Centre for their 100 days of endless service.

And Hon. Attorney General, I also thank you and your team for your guidance and efforts over these many months as we traversed how to implement the safety regulations that were needed to keep people safe. And I thank the able staff in my office along with my Chief Officers and the Cabinet Secretary for their assistance and friendship and support over these difficult months.

But there is more to be done.  

So, Mr.  Speaker, seven months on from the action this Government took to lock down these Cayman Islands how do things stand?  Well, mercifully, as I have indicated we have so far come through far better than anyone could have ever imagined. And for that, I know we are all grateful.

I recognise the tremendous response of the Caymanian people to the stringent demands placed upon them. It took Government, acting on the best public health advice available, to identify what was needed and to do so swiftly. But it took the people of these Islands to respond and I am proud of the way thousands of Caymanians did as we asked of them despite the hardships and privations. 

It was because of their steadfastness that the spread of the virus was kept to manageable levels and the most vulnerable have remained protected. And it was because the spread was kept manageable that we could implement the test, track and trace regime that we knew would be critical in helping us both to manage the crisis and navigate our way forward.

As we now look to the future, we need that partnership between Government and the people to be carried forward. I have felt through this crisis a closer connection between Government and our people that we must not lose. I do not mean that in any party political sense. I am talking about a connection between people and the institution of government. We have seen people willing to trust that decisions are being made in the best interests of everybody. We have seen people once again valuing the contribution of our key-worker public servants, in our hospitals, our emergency services, at schools and on our garbage trucks.

Mr. Speaker we face more tough times ahead. There will be difficult decisions for government and tough times for families and businesses in our communities. This crisis has shown however, that we can face the uncertain future together and that by working together Cayman will grow even stronger.

Our focus since March has been on the immediate public health crisis. I make no apology for that. Had we not maintained that focus I believe that instead of now being able to talk about how we will open things back up we would still be trying to come to terms with a greater crisis and attending funerals.

However, during that period we have not simply ignored the realities of Cayman’s economic position and we have not forgotten the families and businesses facing hardship.  Instead, we have acted swiftly and positively to put in place a range of short-term measures that help to get us through the immediate crisis period.

We have channeled money to families in need both with direct grants, notably for those in tourism-related jobs and for our veterans and seafarers, and through the Needs Assessment Unit. We have brought forward measures to support small businesses including with access to grants and loans. We have safely facilitated the opening of the economy with the reopening of construction. We have acted to allow people who need funds to access their pensions and we have worked with banks, credit providers, and utility companies to reduce the pressure of regular bills on hard-pressed family budgets.

These measures add up, Mr.  Speaker. The economic impact assessment report released by the Economics and Statistics Office calculated that government’s actions will boost GDP by a total of around $185M and will reduce by more than one-third the expected contraction of the economy this year. This means nearly 1,500 jobs saved, hundreds of which will be jobs held by Caymanians.

Mr. Speaker I must thank my Ministerial colleagues and the entire Caucus for the enterprise and creativity they have shown in putting these actions in place. Our focus has been unequivocally on public health but we have by no means neglected the economy or families in need through this difficult period.

Mr.  Speaker, over the last many months, we have all found that some of our preconceived ideas have been challenged. Many of us have had to change the way we work and make adjustments in our daily lives. I am no exception. I have always tried to take a strategic view, believing the role of the Premier was to look after the long-term interests of the country. Over the last few months, my focus has been however has been on getting through today and tomorrow. At times, the long term has looked like the end of the week. 

This crisis Mr. Speaker has focused me and many in government on the here and now.  We have been ruthlessly focused on the actions needed to deal with the immediate crisis. We have put in place the measures necessary to contain and to deal with the public health emergency. We have taken action to help businesses through this shut-down period. We have responded to the needs of the families in our community who needed help.

But now Mr. Speaker is the time to look ahead once more. As we on these Cayman Islands begin to get back to something approaching normal, we need to chart a new course back to economic prosperity for all Caymanians and residents. And, Mr.  Speaker, I have no doubt about our will or ability to achieve what we set out to do. I have spoken before in this House and elsewhere about the entrepreneurial spirit in Cayman that has lifted three small Islands in the Caribbean to become a major financial services centre and a premium tourism destination.

Those things happened not by accident but because government, people and private sector organisations worked together to make them happen. So will it be as we rebuild our economy as this crisis passes. It will take time. It will involve difficult decisions. There will be problems along the way. But we will get there and we will get there together.

What seems like an age ago now, Mr. Speaker, I promised this House and the country that in my time here over this term I would push hard to achieve the things I was elected as Premier to do. I concluded that I would leave everything on the field.

I guess, now the field has changed. What has not changed, Mr.  Speaker, is my commitment to do all I can – to achieve all that I can – so that Cayman is in the best possible position for the Premier who follows me to lead our country forward. Cayman’s recovery make no bones about it will be a long-term project.

But Cayman’s recovery has already started. As I said earlier, the actions my Government have taken have already ensured that the recession will not be as deep as it otherwise would have been. I assure the House today that the Government I am privileged to lead will move at pace to turn our economy back to growth, to support business, and to help families. We are a Government of national unity and the need for unity of purpose is stronger now more than ever it has been. This government has that purpose and the resolve necessary to bring prosperity back to Cayman.

May God continue to guide us and bless these beloved isles Cayman.

Mr. Speaker, it gives me great pleasure to rise today to provide this Legislative Assembly with an update on a matter of national identity and pride. 

At the beginning of this Government’s term, we embarked on a journey to revive and relaunch the Order of the Cayman Islands society of Honours. 

I previously noted during the debate on the National Honours and Awards (Amendment) Law bill, 2018, that the granting of Honours is a lasting and tangible way for a Country to pay tribute to those who exemplify the greatest qualities of citizenship and whose contributions enrich the lives of their community. 

Nor is this anything new or unprecedented because of the 195 countries in the world, only about five do not possess an Honours System.  Among our fellow British Overseas Territories, Turks & Caicos and Bermuda are known to operate their own National Honours system alongside the UK Honours system.

Mr. Speaker, therefore it was in keeping with this established practice that in 2010, legislation titled the National Honours and Awards Law was introduced by the administration that you led.  This original legislation created an honours scheme known as the Order of the Cayman Islands.  While a number of Honours under this system were awarded, regrettably the honours scheme did not fully take root and no other ceremony was held.

In acknowledging the importance of recognizing our own people and after much research and consultation including with experts in the United Kingdom, my Government revisited and revived the Order of the Cayman Islands with a fresh approach.  It was within this context that the National Honours and Awards (Amendment) Law 2018 was passed by this Assembly. 

Mr. Speaker, I can now confirm that the Nomination period for the Order of the Cayman Islands is open through 27^th November, 2020, and that these nominations shall be reviewed by the newly appointed Council for the Order of the Cayman Islands in accordance with the National Honours and Awards (Amendment) Law 2018. 

Mr. Speaker, The Council is chaired by His Lordship, the Chief Justice Hon. Anthony Smellie and he is joined by former Chief Secretary, Mr. James Ryan, former Member of Executive Council, Mr. Norman Bodden (both of whom were nominated by me as Premier as prescribed by law).  

Furthermore, Mr. Malcolm Eden, was nominated to serve on the Council by the Hon. Leader of the Opposition, and Mrs. Celene Crance was nominated to serve by your good self - Mr. Speaker.   The Council has already started to meet, determine its procedures and to prepare for this initial nominations process.  I wish to record my gratitude to His Lordship the Chief Justice, and each member of the Council for accepting this very challenging yet important endeavour with tremendous energy and enthusiasm and for helping to re-establish what it is hoped will become a greatly revered and highly respected system of National Honours. I also wish to thank you Mr. Speaker and the Hon. Leader of the Opposition for your support in the successful relaunch of the Order. 

I was deeply gratified to know that each of these distinguished and highly respected individuals have agreed to serve as members of the Council for the Order. Above all else, it is essential that this new system enjoys the confidence of the public and I believe the important work of the Council could not have been placed in better hands. 

Mr. Speaker The Cabinet Secretary serves as Secretary to the Council. As Premier, by virtue of this office, serve as Chancellor of the Order and the Principal Companion of the Order. However all of the very difficult work of vetting and deliberating on nominees falls squarely within the remit of the Council. 

In opening this Nomination Period, it is hoped that names of worthy and fitting individuals will be put forward for the Council’s consideration and if all goes to plan, the first investiture ceremony under this new law will occur during the National Heroes Day Ceremony on January next year. 

Mr. Speaker, please allow me just a few more minutes to offer a brief overview of some of the key changes to our newly relaunched system of Honours.

Fixed Annual Quotas for Membership

The initial 2010 Honours System was a very good and important first step in the establishment of a local Honours System. However given the advice that we have received from experts in the UK, we have determined that necessary improvements were needed to enhance the Honours Scheme.

Therefore Mr. Speaker we now have only three levels of membership: Companion, Officer and Member.  To further ensure exclusivity of membership of the Order, an annual quota is also set within the amendment Law. In other words, the Council can award no more than 2 persons as Companions, no more than 3 persons as Officers and no more than 5 persons as Members of the Order in any given year.

Chancellor’s Special Nomination

Mr. Speaker under the amended law, the Chancellor of the Order also has the authority to make appointments defined as “Special Nominations” to the various classes of the Order separate and apart from the Council of the Order.  However, the number of special nominations are also restricted and kept within an annual quota of only one awardee under each of the three levels of Companion, Officer and Member.

This provision was included in order to make accommodation for unique situations such as when an individual deemed worthy of an Honour, may be terminally ill, or in the event it is deemed impractical to wait until the official nomination period overseen by the Council occurs.  

Design of the Order of the Cayman Islands

We have redesigned the insignia and ribbon of the order for each of the three levels of membership and they are now compatible with BOTC UK insignia and their production quality is more lasting.

No conflict with UK Honours

Mr. Speaker, I wish to also confirm that receiving the Order of the Cayman Islands would not impinge on a person’s eligibility for recognition, at some later stage, for an award by the UK.

There are many advantages to continuing with our very own Honours System.  First, it affords the Government greater opportunities to give recognition to worthy citizens.  Also, running in parallel with the UK Honours system gives greater scope to those who are charged with ensuring that achievement and service is recognised whenever possible.

Message to Previous Recipients

Mr. Speaker, this week during a press briefing on this subject, I have sought to assuage any concerns from previous recipients of an Award under the first iteration of the scheme.  Section 10A of this amendment legislation includes a provision that confirms that any awards previously issued before the amendment law came into force are to be considered valid under the new law. 

Therefore the option is open to current holders at the level of Commander, Officer and Member should they wish to re-classify their individual awards and receive the appropriate new class in exchange. No nomination will be required for this; however, the Council will only embark on this re-classification after the first investiture ceremony occurs under the new regime. 

There are many precedents internationally for this course of action, not least in the UK.  When the George Cross was established in 1940, recipients of the old Albert Medal and the Edward Medal were allowed to exchange their medals for the new Cross.  Some did but equally many chose to retain their original medal and we expect that many will wish to do the same here, given that their original insignia and award is a unique part of Cayman’s history and will never again be offered.

So Mr. Speaker, I trust that Hon. Members of this house will encourage people in their constituencies to download the nomination form from www.gov.ky/order-of-the-cayman-islands  and encourage their communities to put forward the names of those who have made outstanding contributions to our community and indeed our world.   Mr. Speaker I am grateful for your support on this endeavour and that of my colleagues in this honourable house.

Mr. Speaker, I rise to introduce the Legislative Assembly (Management) Bill, 2020; a bill for a law to provide for the independent management of the administrative functions of the Legislative Assembly and for incidental and connected purposes.

Mr. Speaker, it was on 15 October, 2015, when I moved a motion on the floor of this House that required that “responsibility for the administration of the Legislative Assembly be assigned to the Honourable Speaker and managed by the Clerk of the Legislative Assembly, and that the necessary measures to affect this transfer of responsibility be completed by 30th June 2016 by the parties concerned.”

We did not meet that date. In fact it has taken us five years, but I am certainly glad to be here today to present this bill for it to become law.

But, sir, that was not the first iteration of the idea to make this honourable assembly independent of the Civil Service. A similar motion was made in 2006 under the first Progressive’s Administration and indeed has been a topic of discussion since the conflict between the Legislative and the Executive was officially recognized for the first time in 1954 in a famous tussle between Commissioner Andrew Gerrard and Mr. Ormond Panton.

Mr. Gerrard, who was the presiding officer of the Assembly, moved a motion involving his own salary or pension and offered to vacate the chair of the Assembly while it was debated. He proposed the Assistant Commissioner Mr. Desmond Watler should sit in his stead. 

Assemblyman Panton objected on the basis that just as the Commissioner had a conflict of interest, so too would Mr. Watler. The Standing Orders at the time said the Assembly could appoint a chairman from among themselves and Mr. Ormond was proposing Mr. Warren Connolly.

Neither man backed down.

The Commissioner stormed out of the Town Hall where the legislature was being held, jumped into his car and drove off in a rage.

There were more encounters involving Mr. Panton that would lead to an eventual separation of powers.

Mr. Panton and his father operated a shop and had a truck that they used for deliveries. Back then you could license a truck quarterly, half-yearly or yearly. Mr. Panton had licensed his for half a year and had forgotten to get it renewed. In all some 14 people had failed to renew their licenses, including the Clerk of the Courts.

The Commissioner ordered the clerk to write to the 14 offenders about the licenses issue. Mr. Panton recalled in his biography, A Special Son, that his letter said that he should go to the Commissioner’s office and explain why he had willfully failed to pay this tax. Mr. Ormond refused and it escalated when Mr. Panton learned that the Commissioner – who was also head of customs and resident magistrate – was going to try him himself after Mr. Panton had elected to be tried by two Caymanian JPs.

On the day of the trial Mr. Panton made objections to the Commissioner trying the case since in his capacity as Collector General, he was the same person who instituted the proceedings. Mr. Panton, found guilty and ordered to pay 8 pounds, immediately announced his plans to appeal.

A Jamaican judge came to Cayman, heard the appeal and reduced the fine to 4 pounds, which Mr. Panton still refused to pay, saying “I can’t be 50 per cent wrong and 50 per cent right. If I accept this, I am accepting some wrong and I am not wrong. First of all he had no business writing me that I had willfully neglected to pay my taxes and secondly it was wrong for him to sit on the bench and try me when he had introduced the proceedings”.

He tried to appeal the matter to the Appeal Court in Jamaica, but Government told him that cases tried in Petty Sessions Court in the Cayman Islands could be appealed only to the Grand Court and no further; the conviction would have to stand. To make a long story short, Mr. Panton wrote to the Lord Chief Justice in England. A law backing up Mr. Panton’s right to appeal to the Jamaica court was unearthed in no other place than the British Museum. He won the appeal and his conviction was quashed.

In another instance, Mr. Panton spoke out against a decision made by Judge E.M. Robinson who was president of the Cayman Sports Club to suspend from the club three young men who had been charged with the theft of liquor.

Mr. Panton is quoted as saying in his biography: “I went to him and told him I didn’t think that was the right thing to do because he was prejudging the case and that he should withdraw the letter. He told me he would think of it, but he did nothing”. A few days later, after Mr. Panton had closed his shop for the day, he wrote out three copies of the following message: “I Ormond Lauder Panton, like to think of Mr. ABCDEFGHIJKLMNOPQRSTUVWXYZ Robinson in terms of the old proverb I once read: When monkeys are prone to their antic passes, the higher they climb the more they expose their asses.” He went out into the night and put one copy on Judge Robinson’s door, the other on the notice board in front of the court house and the third on his shop window. About 1 o’clock the next day two armed police officers went to Mr. Panton’s Cardinal Avenue store to arrest him.

Judge Robinson vowed to try him on the spot on the three charges he faced: The uttering of words to a police officer which tended to deter him from his duty; the unlawful publication of words which tended to a breach of peace; and for the publication of words which tended to scandalise the Government by abusing the magistrate.

Mr. Panton protested Judge Robinsons’ judging a case with which the judge was involved, to which Judge Robinson yelled “Shut up”. Mr. Panton requested a two-week postponement, but received only one week. Eventually Judge Robinson’s temper subsided; another magistrate heard the case and the charges were dismissed.

Mr. Panton would later recall: “With that, I filed against Robinson on the grounds that he was out of order to try me and that the charges were made without reasonable cause”.

I have gone into that bit of detail to describe the untenable situation of having a Commissioner act as collector, judge and jury; in other words to point out the necessary separation of powers in Government, an issue previous successive governments have attempted to address in this House.

So for many years we have paid lip service to the autonomy of this Legislative Assembly. It is my hope and prayer that the passage of this bill will end the lip service and put into motion the removal of the Legislative Assembly from the authority of the Deputy Governor and the Civil Service. It is also my hope and prayer that this bill receives the same support that my motion did in 2015 when 15 members of this Honourable House approved the motion with two members being absent.

When I moved the motion in 2015 for Legislative Assembly autonomy I had only 19 months remaining in that administration as Premier. I left it in the hands of God and the people to determine if I would lead the government for another four years.

Mr. Speaker, I said then that the modernization of our constitutional electoral and parliamentary framework had been something that I have always been keenly interested in, and I still am.

With God’s good graces and the will of the people I was returned as Premier of the Cayman Islands in 2017 and I now have the privilege of following up on my 2015 motion – delivering to our people a bill that will finally place the responsibility of the Legislative Assembly where it should be; with the Honourable Speaker and the Clerk.   

If this bill does not become law the administration of the Legislative Assembly will remain vested with the Deputy Governor; who by the way wholeheartedly supports this bill. The result of the current arrangement is that direct administrative responsibilities for this House is in the hands of a non-elected senior civil servant and, by extension, ultimately in the hands of the Governor who has responsibility for the Civil Service.

Mr. Speaker, as you well know, until 1989 this very House did not have a Speaker at all. Indeed, the Governor sat as the presiding officer in the House. As a country, we have matured and progressed past that time, vastly improving our democracy. The acceptance of this Bill will help to further enhance the democracy of the Cayman Islands.

The following considerations informed the Motion that I brought in 2015:

The following considerations informed the Motion:

1. Responsibility for the administration of the Legislative Assembly has historically been vested in the Deputy Governor and his predecessor, the Chief Secretary;
2. It is of fundamental importance that the doctrine of separation of powers not only be recognised, but also observed, and that the Executive and Legislative branches of the Government are independent of each other;
3. It is desired to make the Legislative Assembly independent of the Portfolio of the Civil Service (PoCS); and
4. It is desired that responsibility for administration of the Legislative Assembly be assigned to the Honourable Speaker and managed by the Clerk of the Legislative Assembly.

Mr. Speaker, subsequent to the passage of the Motion, Terms of Reference were established for the Select Committee on Administrative Autonomy of the House, which included, among other matters, the establishment of the Parliamentary Service Authority Law.

A subcommittee was established including the following members:

1. The Hon. Juliana O’Connor-Connolly, the then Speaker;
2. Myself as Premier;
3. The Hon. Franz Manderson, Deputy Governor;
4. The Hon. Samuel Bulgin, Attorney General;
5. The then Leader of the Opposition, the Hon. McKeeva Bush;
6. Alva Suckoo (MLA);
7. Ezzard Miller (MLA);
8. Gloria McField- Nixon, Chief Officer of PoCS;
9. Zena Merren-Chin, Clerk of the Legislative Assembly; and

• Robert Lewis, a Cabinet Office resource to the Committee.

Mr. Speaker, following months of deliberations, a draft Bill was prepared; however, the matter was not concluded prior to the dissolution of the Legislative Assembly in 2017.

In 2018 work resumed by the technical advisors of the Subcommittee, with continued reference to the 2017 key documents, namely the draft Bill and the research undertaken by the Cabinet Office as to how other jurisdictions approached such matters. Following extensive research, focus narrowed on five jurisdictions – Barbados, Canada, Trinidad and Tobago, Malta and the United Kingdom, due to the extensive information available on their form and function and their similarity to the Cayman Islands.

After much consultation and work to progress this matter, we now have the Legislative Assembly (Management) Bill (2020), which allows for the establishment of a Management Commission to carry out the independent management of the administrative functions of the Legislative Assembly.

Mr. Speaker, the Bill makes provisions for the autonomy of the Commission by creating a unique entity, whose defining characteristics are more similar to an independent office, such as the Office of the Ombudsman, which is similarly overseen by a parliamentary committee and whose budget is ultimately subject to the approval of the Cabinet and the Legislative Assembly. Mr. Speaker, the Commission will not be classed as a statutory authority, as neither the Public Authorities Law nor the Labour Law will apply. Similarly, the Commission will not be categorized as a Government-Owned Company, as the Commission will be established in law rather than being incorporated.

The functions of the Commission will be to:

1. Carry out budgetary, financial and operational matters;
2. Establish the executive, management and administrative structure of the Commission;
3. Prepare regular budgets and reports;
4. Provide staff to enable the Legislative Assembly and its committees to operate efficiently;
5. Provide advice on parliamentary procedures;
6. Provide accurate reports of proceedings and meetings;
7. Provide library and research facilities;
8. Provide security services within the Legislative Assembly precincts;
9. Sell laws and earn revenue; and

• Maintain the Legislative Assembly building

The Management Commission will establish a Council comprising the following:

• The Speaker, who will serve as the Chairperson;
• The Premier;
• The Leader of the Opposition;
• Three members of the Legislative Assembly appointed in writing by the Speaker, acting in accordance with the advice of the Premier;
• One member of the Legislative Assembly appointed in writing by the Speaker, acting in accordance with the advice of the Leader of the Opposition; and
• The Clerk of the Legislative Assembly, who will serve as the Council Secretary and will be an ex-officio, non-voting member.

Mr. Speaker, the research conducted highlighted that Commission or Board membership size varied significantly between jurisdictions, ranging from five in Malta to a high of 12 in Barbados. There was no correlation between the population of the jurisdiction and the number of members. For instance, Malta, a small jurisdiction, has five members and the United Kingdom, a much larger jurisdiction, has six members. Informed by the comparison between the jurisdictions, the Select Committee on Administrative Autonomy of the Legislative Assembly decided on a Commission with relatively small membership; hence, the size of the Commission being proposed for the Cayman Islands is fairly small and falls within the range of those countries we benchmarked against.

I would now like to discuss the organizational structure of the Commission, including changes in title, functions and responsibilities. The Clerk of the Legislative Assembly will become the Chief Officer of the Commission and will:

1. Be an employee of the Commission;
2. Be appointed, supervised and terminated by the Speaker, acting upon the decision of the Council;
3. Have the powers, duties and functions of other Chief Officers as set out in the Public Service Management Law (PSML), with the exception of where the PSML conflicts with the Legislative Assembly Bill, the Legislative Assembly (Immunities, Powers and Privileges) Law or the Legislative Assembly Standing Orders; and
4. Be entrusted with the day-to-day administration of the Commission, including managing/overseeing the budget voted by the Legislative Assembly for the Commission, all monies paid into the Commission, preparing annual financial estimates of expenditure and submitting budgets to the Minister of Finance.

Vacation of Office by a Council Member shall occur when the member:

1. Resigns his or her office as the Speaker, Premier or the Leader of the Opposition;
2. Resigns as a member of the Legislative Assembly or otherwise ceases to be a member of the Legislative Assembly;
3. Is disqualified as a member of the Legislative Assembly pursuant to section 62 of the Constitution;
4. When appointments made by the Premier or Leader of the Opposition are rescinded in favour of another MLA, where the MLA breaches conflicts of interest safeguards in section 9 or where the appointed member resigns.

Mr. Speaker, as it relates to employment and remuneration, the Commission may employ staff at such remuneration and terms and conditions, including retirement medical benefits, as it deems fit. Terms and conditions shall be equivalent to those under the PSML.

Schedules 1 and 2 of the Legislative Assembly (Management) Bill, 2020, specify the pay and allowances of the Cabinet, Speaker and Members of the Legislative Assembly. 

The Chief Officer shall manage the staff of the Commission including discipline, transfer and termination.

Mr. Speaker, I will now speak to the structure of the Commission. The structure of the Commission will empower the Council by Order:

1. To prescribe the executive, management and administrative structure of the Commission; and
2. Amend the Schedule which sets out the salaries, allowances or other benefits of elected members of the Cabinet, the Speaker, Deputy Speaker and elected members of the Legislative Assembly. Such orders are subject to affirmative resolution in the Legislative Assembly.

Cabinet, after consultation with the Commission, may make regulations to underpin the Legislative Assembly (Management) Bill, 2020. Additionally, the Commission may make rules to regulate its own internal management; however, such rules are to be tabled in the Legislative Assembly and are subject to affirmative resolution.

Mr. Speaker, in closing, all that I have outlined is necessary to establish the Legislative Assembly as an autonomous body. This change is of fundamental importance as it will ensure that the doctrine of separation of powers is both recognised and observed, and that the executive and legislative branches of the Government are independent of each other.

Mr. Speaker, I would like to thank you and the Members of this Honourable House for your time and attention to this most pertinent matter.

Mr. Speaker, my statement today takes the form of a State of the Nation address. These occasions are usually an opportunity to place on the record Government’s achievements and its plans for the year ahead. For those of you looking forward to that, I hope not to disappoint.

As I contemplated putting pen to paper and the thoughts that would fill the lines I considered the teachings of Ralph Waldo Emerson, the late American essayist and thinker and his poem, “A Nation’s Strength”, which he penned in 1847. Permit me, please, to paraphrase:

“What makes a nation’s pillars high

And its foundations strong?

What makes it mighty to defy

The foes that round it throng?

It is not gold.

And is it pride? Ah, that bright crown

Has seemed to nations sweet;

But God has struck its lustre down

In ashes at his feet.

Not gold but only man can make

A people great and strong;

Those who for truth and honour’s sake

Stand fast and suffer long.

Brave men and women

Who work while others sleep,

And who dare while others fly…

They build a nation’s pillars deep

And lift them to the sky.

As I reflect on those words and the achievements we have made as a nation and a Government, I am buoyed in the belief that the foundations of these Islands have indeed been strengthened and built on pillars deep by the work we have done these past seven and a half years.

And so, if I were asked to sum up in one word the strength of our nation as we sit here today, I would use the word resilient. We began this year in a strong fiscal position with the economy continuing to grow and unemployment low – all things this Government had promised would be delivered during our term in office. 

Indeed, for the first three months of this year, the country was doing exceptionally well.  Cayman’s economy grew by 3.2% in 2019 and unemployment was at a low 3.5%. It appeared that our major challenge was to overcome the problems of success. Inflation was running at 5.7% and the government was acting to deal with rising prices. Commuters were spending too long in traffic jams so we had embarked on highway improvements to ease congestion.

But in the space of mere weeks, the situation changed out of all recognition.  We have estimated that growth for 2020 will decline by 7.2% with unemployment rising to 6.9% and inflation falling to 0.4%. A similar story is seen across every country in the world.  Indeed, many economies both in this region and globally are faring much worse than Cayman.

But whilst there are many here who are doing reasonably well, my Government and I appreciate that there are also many Caymanians, especially in the tourism sector, whose livelihoods have been impacted by this pandemic. But we are working hard to not only try to safely get some tourism jobs back online but also to provide assistance to these families and businesses and I will speak more to this later.

Mr. Speaker, I had warned in early March, at the Cayman Economic Outlook Conference, of the threat posed by a new virus, which could have potentially devastating effects on Cayman. By the end of March, the COVID-19 virus was with us and we were forced to shut down the economy to defeat the virus and stop community spread. That decisive action was necessary to protect public health and to save lives. Only by taking that firm action could we give ourselves the best chance to rebuild even stronger.

The alternative would be ‘death by a thousand cuts’ with repeated lockdown and opening up because we failed to do what we knew had to be done in the first place. Our people would have suffered from the virus itself while in the long term our economy would have been hit even harder as confidence was adversely impacted. I am not guessing at this. We can all see what is happening in the United States, the United Kingdom, France, Spain and elsewhere. That was not an outcome anyone would want.

Today, despite our significant challenges we are doing reasonably well and our economy has indeed proved to be resilient, and in some cases even robust - particularly international financial services and much of the domestic sector. Our revenues are impaired but the Government’s finances are still strong and will help get us through most, if not all, of next year.

But Mr. Speaker the world around us, including our major trading partners, is filled with uncertainty.  Given the turmoil of the last seven months, the normal patterns of our society and our economy have been seriously interrupted.  As such it is not easy for us to understand exactly how things will develop as we move into 2021. Equally, there is so much left unknown about how events will unfold from here that it is difficult to plan properly for what is to come.

Therefore, Mr. Speaker, I cannot think of a time when it has been more necessary for a Caymanian Premier to make such an address as this. 

Events beyond our control have created a set of circumstances facing these Cayman Islands today that I think are unparalleled in our still short history as a self-governing nation.

But Mr. Speaker, despite the uncertainties around us, of this I am certain, we are, to a very great degree, still masters of our destiny. 

We need to move forward as a country and as a people and to do so determinedly, together. Crucially, I am thinking, Mr. Speaker, of the need to maintain vigilance in the face of the current public health crisis that we are not yet through and of the need to chart a course back to economic prosperity, and to do so together.

One of the things that give me confidence in our ability to come together, Mr. Speaker, is the experience we have had over the last seven months.  The response of Cayman and its people to the COVID-19 crisis has been a source of considerable pride and inspiration for me. I think all who live and work in these Islands should have those same feelings.  The response of the community here, both in terms of a willingness to follow the rules the Government moved swiftly to put in place and in the way we have come together to look after each other, is a story we should be proud of, Mr. Speaker.

Just last week we again saw the community comes together in response to a positive case, albeit weakly positive, at the Red Bay Primary School. Setting aside some initial panic caused unnecessarily by an online blog site, the school and education and public health officials all acted responsibly, professionally and quickly to determine the facts and then to contain the situation. Thankfully after some 207 tests were done of contacts and possible contacts there have been no other positive cases found.

I am glad the child and her family are well and I wish the very best to them as well as to the many families now quarantined as a result of that incident. But it served as a good reminder, if we needed to be reminded, that we still need to be vigilant to avoid a serious outbreak and a return to strong measures. We do not want to go back there Mr. Speaker. I do not want to go back there and I am sure none of us do.

This Government has made some tough decisions over the last seven months. Tough decisions that have curtailed liberties and impacted the livelihoods of Caymanians and residents in ways that no one on these benches would ever have wanted to see happen in these Islands. But it was those measures that have now allowed us to go about our lives in reasonable safety.

In that context Mr. Speaker, I must take this opportunity to thank my colleagues on the government side of the House for their steadfast support during this difficult time. I also thank the members of the Opposition for their support of Government’s measures. Both in their willingness to support the general government effort and in the steps that they have taken within their Ministries, I believe they have provided exemplary political leadership in a hugely difficult period in Cayman’s history.

Thanks too to the Governor and the official members of Cabinet for their support and the long hours of work they have put in to keep these Islands safe. The Governor attended every one of the 65 or so press briefings that we have held since March. The Governor’s office played a key role in obtaining necessary equipment and medicines, including the test kits that were such an important game-changer for us.

We could not have made it through the worst of the pandemic without the able assistance of the learned Attorney General, the Deputy Governor, Cabinet Secretary Samuel Rose, my Chief Officer Eric Bush who oversaw Curfew Time and Travel Time, Employment and Border Control Chief Officer Wesley Howell and their respective teams.

Thanks are also due to all civil service leaders and staff who have adapted and reshaped the way they work to new demands and changing circumstances so that much needed public services could be delivered through these times.  This includes the stellar work done by the Ministry of Community Services, headed up by Teresa Echenique and in particular the Needs Assessment Unit. They were at the forefront of much of the Government’s assistance to those in need and impacted by COVID.

I should also acknowledge the tremendous work of the Ministry of Education on the Department of Education Services. Equally the work of the Ministry of Tourism led by Stan Bodden of the Department of Tourism led by Rosa Harris deserve recognition and appreciation.

It is perhaps invidious to single out an individual amidst a collective effort of this magnitude but I want to place on the public record my appreciation for the work of Chief Medical Officer, Dr John Lee. His clear and unflustered advice has been crucial to the Governor and I, and fellow Cabinet Members, as we came to terms with the unfolding public health crisis. 

First, we were able to make timely decisions to intervene and close things down in a way that I believe has saved lives and maintained public health in the Cayman Islands. Secondly, the quarantine and testing and tracing arrangements put in place from a standing start have been crucial in both containing community transmission and providing public reassurance. 

Clear political leadership was possible because of the quality of the advice we received from Dr Lee and Dr. Samuel Williams-Rodriguez, Medical Officer for Health Services, and their health colleagues, including those at Public Health England who supported Cayman. I believe the nation owes them all a debt, one I would like to acknowledge in this House today. Dr. Lee’s appointment as an Officer of the Most Excellent Order of the British Empire by Her Majesty the Queen is thoroughly well deserved and I congratulate him on this. 

I also congratulate Angela Tanzillo-Swarts, forensic DNA specialist at the Health Services Authority, on her award of Honorary Member of the Order of the British Empire for her contribution to helping build Cayman’s capacity and ability to carry out wide-scale testing. Indeed, I congratulate all those who were recognised for their contribution.

I also thank the many who worked very hard to get us through the hardest days of the pandemic and I want to recognise the capable efforts of the Commissioner of Police and the Royal Cayman Islands Police Service, of Cayman Border Control, of WORC and the other uniformed organisations that assisted.

We also must recognize and thank the private sector and our generous charitable community for all they have done and are still doing to assist people in need during this time.

Mr. Speaker, we continue to follow the best public health and scientific advice as we move now to carefully re-open Cayman and its economy to the outside world. The changes that came into place on the first of the month represent an important first step on the path back to a more ‘normal’ relationship between Cayman and the rest of the world. As you have seen we are acting cautiously and slowly.  We hope further steps will be possible and have several initiatives being worked on that can be introduced when we are confident that we can do so safely. 

I will make a separate statement on the COVID-19 position during this meeting, Mr. Speaker, but, for now, suffice it to say that the Government recognises that we must get the tourism sector moving again but we will do so in a way that does not jeopardise the hard-won position we now have achieved. 

Getting tourism and the broader economy moving again, however, does not mean just turning back to the way things were before.  This crisis has changed Cayman. It has changed the world. It has created an unprecedented economic shock.  It has changed consumer behaviours. Things will not just spring back as they were.

For all those reasons, Cayman now needs to think anew about its future and take the opportunity it gives us to re-chart our path back to prosperity.

The good news is that we are not starting from zero. The development sector is still doing well and has helped jump-start the domestic economy as we reopened - a very good indicator of the confidence in our Islands.

The Financial Services Industry and its support eco-system has carried on through the recent turmoil, if not uninterrupted then certainly in strength. 

The task of Government in respect of the Financial Services Industry is two-fold.

First, we will continue our engagement with the European Union and building relationships in Brussels. Mr. Speaker, it feels to me that I have spent more time this term than anyone could have wanted travelling around Europe trying to persuade the EU of the bona fides of the Financial Services Industry in Cayman. Or travelling to the USA to reassure investors about the future of the jurisdiction. But this has been necessary and ultimately fruitful work.

I know we were all pleased that earlier this month the European Union acknowledged the work we have done to further strengthen our regulatory regime regarding funds and removed us from their list of non-cooperative jurisdictions for tax purposes. This was a significant achievement with all hands working over many months despite the pandemic. This work was greatly aided through our programme of engagement. But the job does not end here. As we know there will be other initiatives aimed at us and we will be ready.  

Secondly, the partnership with the industry must continue and be strengthened. Government and industry have separate but complementary roles to play in keeping the sector strong. However, we must and will move forward in lock-step to secure the future of the Financial Services Industry. 

The Minister for Financial Services has provided first-rate support through the process and her work in partnership with the industry has been crucial in providing the European Union and others with the evidence of Cayman’s commitment to the highest standards of international regulatory compliance. I thank the Minister for her hard work.

Let me quickly add Mr. Speaker, that whilst some may complain about the added requirements on a significant part of our Funds business, many in the sector believe that many benefits will accrue to these Islands, not least of which is the possibility of additional jobs and opportunities for Caymanians. 

In addition, the economic substance rules require that appropriate businesses must have an adequate amount of operating expenditure incurred in these Islands, have an adequate physical presence here, and have full time qualified employees also located here. Also, the new requirement for annual audited financial statements for closed-ended funds will add to the work needing to be done here. 

All this means that the changes are creating new job opportunities for Caymanians both directly in the financial services sector and indirectly as more money gets spent in our domestic economy.

The other pillar of our economy, tourism, still has an important part to play in Cayman’s future. It will recover but it will recover slowly and unevenly.

Both business economics and the on-going public health concerns dictate that it will be stay-over tourism that recovers here first.  ‘RB5 – The Road Back to 500K Air Arrivals,’ the three-year plan published by the Deputy Premier, charts a realistic course by which Cayman can in time recover to its pre-COVID position of half a million stay-over visitors a year. I commend the clarity and thoughtfulness of the plan that he, his Ministry team and the industry itself have devised.

Across government, we are working to make sure that the implementation of that plan can be achieved with minimum risk to Cayman’s population. The key will be in the continued partnership with the industry to make sure Cayman’s hotels, when they reopen to business, are COVID-secure locations, maintaining the highest standards. The Government will give them the advice and support they need. The ‘resort bubble’ is one solution that is being worked on to help restart tourism in a phased and careful manner. As is the Global Citizens Concierge programme that will be launched shortly to attract longer-term visitors to live and work here. We are also in conversation with Villa management companies as to how to allow visitors to stay and quarantine at what is effectively a self-contained villa.

While we will continue to err on the side of caution as we reopen our borders, we understand that reopening Cayman successfully is required. We cannot stay closed indefinitely. While a successful reopening acknowledges that we will have some risk, we will take great pains to minimise the risk of an outbreak of the virus.

Mr. Speaker, we will need to be flexible and responsive as the situation changes. Once the serious threat of COVID-19 is abated we must make sure that we maximise the benefit from the visitors who do come to the Islands. We must get them out of hotels and apartments and broadly spending money in our economy from West Bay to East End and North Side and over to the Sister Islands along with the other districts in between. This offers real opportunities for Caymanians and the plan proposes a New Visitor Experience Development Fund to help provide funding and guidance to new business start-ups looking to exploit those opportunities.

Inevitably, the opening of Grand Cayman to the cruise industry will take more time and, in my view, it will take time for consumer confidence to return to that industry in any case. We cannot expect the numbers of cruise visitors we have been used to. The Government will therefore continue to offer both short term help to those impacted by that reality and longer-term support in terms of retraining and small business support to create more opportunities for Caymanians.

I have throughout my time as Premier spoken of the need to diversify the Caymanian economy. In particular, we need to embrace the opportunities offered by digital business and the knowledge economy.

The Government has made important steps in that direction.  The framework of protections we created for intellectual property was a crucial step and we have seen initiatives like Enterprise City and Tech Cayman attracting increasing numbers of new businesses to our shores as a result.

The Virtual Assets Law, which this House passed in May, is another really important step forward. On the one hand, it is a significant regulatory provision to support the development of our financial services in the fast-moving world of cryptocurrencies and digital assets.

On the other hand, alongside the intellectual property regime, it opens the way for creative industries in Cayman to prosper.  For young people looking to develop their interest in gaming or app development or music into a career, it offers them the chance to create digital content and receive safe payment here in Cayman. In the rapidly developing digital world, I believe Cayman’s young people have the creativity to drive success. This Government is providing both the legal frameworks they need and also the skills development and business support necessary to turn great ideas into viable income streams.

In the face of this current crisis, I recognise that we now need a step-change in our efforts on diversification. My government is willing to do more to support the location of knowledge-based business in the Cayman Islands.  Discussions with the market leaders suggest that to attract and retain such businesses, Cayman needs to consider a third undersea communication cable to both increase capacity and improve resilience. Therefore, the Government has sought expressions of interest in providing that third cable.

I am determined that these developments, exciting as they are, must not just be about attracting overseas investment.  Mr. Speaker, they must be about creating new opportunities for Caymanians.

Those opportunities will come in two forms. First, the investment will create new jobs in the digital industries. We have recognised that if Caymanians are to be in the best possible position for employment in the jobs being created, then they need the best possible education and training to equip them in the new marketplace.

The improvement of Cayman’s public schools is a long haul but this Government has made good progress. I want to thank the Minister of Education for the strategic approach she has taken, which is tackling some of the long-standing problems that were revealed through the important work on baseline assessments carried out during the government’s first term.

Central to the strategy has been improving the quality of teaching. Investment has been made in training for our teachers and salaries have been raised. The increases we have provided recognise the value of teachers in our society and also help to attract and retain the best to teach in our schools.

A testament to that was the special mention at the Clifton Hunter High School graduation this month of three students, Diamond Chambers, Joshua Peart and Aaliyah Powell, for attaining top performance status and being named in the top 10 for the Caribbean Region for their academic performance in external examinations in Integrated Science, Human and Social Biology and Electronic Document Preparation and Management.

I congratulate these young graduates, their parents and teachers on their outstanding achievements.

The latest round of inspections of our public schools is recognising the progress that has been made.

High-quality teachers need to be teaching the right things.  The education system needs to challenge students and support them to achieve. For that reason, a new curriculum has been introduced in Cayman’s primary schools. That curriculum, based on that in place in England, expects more of our young people but, in doing so, gives them the education they need to be successful. Regrettably, the COVID crisis has delayed the further rollout of the new curriculum but that will be the key priority for the coming year.

The education system increasingly recognises the need to individualise the experience as far as possible so that each student is supported to reach his or her potential. The system is one that promotes excellence but remains inclusive. The Government has therefore also invested heavily in improving support for students with special needs so that no child is left behind.

The disruption of recent months has also delayed the changes to school governance that the Government wishes to bring forward. The key to maintaining the path towards excellence, the path that Cayman’s schools are on, lies in creating better accountability to ensure improved performance. New school governing bodies will provide an important new element in that system of accountability.

This is a new idea for Cayman and while we can learn from elsewhere, we need to design the right school governance arrangements specifically for Cayman. The Minister has therefore delegated authority to the Education Council to develop and implement a pilot project during 2021. 

As well as jobs, Cayman’s increasingly diversified economy will create business opportunities for Caymanians. The new digital industries require an extensive eco-system of businesses to support them, which will provide new opportunities for Caymanian entrepreneurs to start or expand their enterprises.

Through the last seven months, the Government has stepped up to extend the support available to small businesses.  Financial support, totalling CI$3 million, has been made available as a grant to meet immediate needs but in the longer-term access to the right advice and support is the most important factor in helping businesses to grow. The new Small Business Centre is offering a one-stop-shop centre of excellence for businesses to find the advice and support they need.  Also, a recent initiative has established a $5 million fund to provide additional grants for micro and small businesses. This second phase of grants will assist qualifying Caymanian micro and small businesses with wages, commercial rent, digital enablement, business continuity, and business process innovation. Microbusinesses will be able to access up to CI$10,000 and small businesses packages up to CI$20,000. Those wishing to apply can find the information and application forms at www.cpiministry.gov.ky.

I would like to thank the Minister of Commerce for the work his Ministry has done both to create a lifeline that meets the immediate needs of small businesses and to bring forward their plans and to open the new centre ahead of schedule.

Infrastructure provision by Government will remain a key enabler of growth in the new Cayman economy.  Despite the interruptions of the last few months, the Government has made considerable progress on national infrastructure priorities.

Work on the runway improvements and other enhancements in the airport development plan has continued apace.  Work on short term improvements on the highway network and the longer-term extension of the East-West Arterial Road has also progressed. With the problems of congestion re-emerging as the schools re-opened, the completion of these much-needed improvements is crucial for the longer term.

As I have said before, however, highway network expansion cannot be the only thing we rely on.  Cayman needs a new approach to meet future transportation needs that does not just rely upon private vehicles. Before the onset of COVID, the Government was starting the work needed to identify the right public transport solution for these Islands. This project was slowed during the lockdown but the Request for Proposals will go out by the end of this month for a company to do the analysis and recommend a suitable solution or list of solutions for the Government to consider and progress.

A successful public transport system is also one plank of the climate change strategy that this House has agreed is necessary.

What is clear, Mr. Speaker is that the current changed circumstances offer Cayman the opportunity not just to devise a new strategy but to take action that will benefit Cayman and contribute to reducing climate impacts. 

In addition to transportation, another good example is the scope we have to accelerate the delivery of the National Energy Policy that my previous Administration devised. Two key actions stand out for their ability to genuinely move the dial on the Policy’s ambitions. In doing so they will both also create new jobs and business opportunities for Caymanians in a similar way to that offered by the digital economy I spoke about earlier.

The first is to reduce energy consumption by improving the energy efficiency of the existing building stock. The Government needs to take responsibility for its footprint in this respect and we are commissioning a series of energy audits for public sector buildings. The result will be a programme of energy-saving measures that can be implemented in the future, achieving energy and financial savings.

I want to see the same approach extended to private sector buildings in both the domestic and commercial property sectors. Government has a responsibility to support this work. Most obviously, some of the least energy-efficient buildings are houses occupied by some of those least able to finance improvements to those buildings. The Government will therefore look at the possibility of providing grants and incentives that do not just repair but also improve the energy efficiency of them.

These kinds of improvements will not just yield energy benefits. They will reduce the cost of living for poorer households, reduce fuel poverty and help improve outcomes for health issues linked to poor housing. 

These types of programmes create jobs in the retrofit sector.  Energy-saving measures are relatively labour intensive to implement and therefore the impact on jobs could be potentially significant, provided these jobs are taken by unemployed Caymanians. 

As much of the technology may be new to the Islands, training and skills development would be required. The apprenticeship centre at the Public Works Department and the trade schools operating on the Island with the Government’s support could rapidly expand to provide the necessary training places for Caymanians as part of our existing strategy to revise this country’s approach to technical and vocational skills development. In short, I believe there is the potential for Cayman to develop as a centre of excellence in energy efficiency for the entire Caribbean region.

The second Energy Policy initiative is to accelerate moves to more renewable energy in line with the 70% target in the National Energy Policy. Solar energy provides the swiftest and easiest path to achieving that target and the Government has welcomed CUC’s announced plans to seek a partner in a further utility-scale solar project.

We also believe that there is the potential to look afresh at the contribution of distributed networks. The experience with the CORE programme gives us a place to start but the experience globally has moved on and new models have been developed from which we can learn. The Government has therefore welcomed the Governor’s offer to seek expert technical support from the United Kingdom to move work in the renewables sector forward.

Solar energy is not the only renewable energy source that we can utilise.  The Integrated Solid Waste Management Project that is being progressed by the government will generate electricity from incoming solid waste and landfill gases from the George Town landfill site once it has been capped and remediated. The primary purpose of the project is, of course, to achieve the closure of the existing landfill through alternative means of waste disposal but in achieving that, the government is moving to an approach that utilises waste as a resource rather than simply as garbage to be disposed of. 

I am delighted with the progress the contract negotiations are finally making. I must thank the Minister for Health and the Environment for his fortitude and perseverance in keeping the project moving forward. As we announced yesterday, early works contracts have been signed that will complete the capping of the existing area of completed landfill over the next year and which will start the planning and environmental impact assessment work for the new plant.  These are signature achievements of this Government.

The capping and remediation of the George Town landfill will also virtually eliminate fire risks and minimise the environmental impact of the site.

Other important environmental programmes being delivered thanks to this Government include the massive extension to marine parks; new public parks and open spaces; and the designation of new protected conservation areas.

Regrettably, these achievements got talked down during the public debate over the proposed cruise dock. I do not mean that just from a political standpoint.  It is also regrettable that the hard work of many civil servants, community groups, charitable organisations and individual members of the public who, for example, put their own time into helping bring open space into public use, got lost in that debate. I hope that the whole of Cayman will now be ready to acknowledge that work and that effort as I do.

I want to emphasise too, Mr. Speaker, that this is a Government that will do all it can to support vulnerable Caymanians and those in need in our community.

During the recent crisis, we have acted to provide additional support. The vital measures that we have put in place included a one-off payment of $425 to the disabled, seafarers and veterans, and other persons in need who get financial assistance from Government. Also, a one-off stipend of $600 was provided to taxi drivers and Caymanian tourism workers and in subsequent months all unemployed tourism-related workers received $1,000 per month. Over 200 musicians and artists also received support totalling CI$226,000. 

Assistance with health insurance costs from April through June totalling over $419,000 was also provided to workers who had been furloughed – covering over 1,200 individuals, employees and dependents. We also assisted individuals in the community with masks at a cost of over CI$131,000.

With food security in mind one million dollars was provided to farmers to help buy feed and supplies. 

No one should be surprised, Mr. Speaker, by the extent of the help we have offered to our people. The Government made it clear from the outset that we would stand up for the vulnerable and the needy.

One of the first promises we kept was our commitment to raising the minimum income of our veterans and seafarers and those in need of welfare support.  In our first budget, we raised that minimum income figure from $550 per month to $750 per month. We also extended that benefit to long-standing civil service pensioners in recognition not just of their need for help but as a reward for their valuable service to this country.

And we did not stop there, Mr. Speaker. In our budget presented to the House last year, we further increased the minimum income guarantee to $850 per month effective January this year and with a further increase to $950 per month in January 2021. As a result, by the time this term is over, the income of over 2,000 Caymanians most in need in our community will have increased by approximately 73%.

This is a Government, Mr. Speaker that looks after Caymanians and their families.

It is also a Government that looks after the national finances.  We set out an ambitious delivery programme for our term in office but we also committed that we would achieve the objectives we had set while living within our means.

In particular, we promised that we would deliver year-on-year surpluses; we would impose no new fees or duties on our people; and we would pay down Cayman’s debt, financing our investment priorities from operating surpluses.

It is a source of regret that the events of recent months will break our strong record of sticking with those promises.  The reduction in economic activity is impacting government revenues while we have had to increase our spending to make the vital interventions to support businesses and families across these Islands. Clearly, we will not deliver a surplus in this our final year in office.

Yet despite that, remarkably, we will finish our term without needing to raise new fees or duties and, we hope, without needing to resort to borrowing. Very simply, that is because of the extremely strong position that our public finances were in as we entered this year. We have enough cash in the bank, we expect, to get us through the current difficulties. 

Mr. Speaker as at 30 September this year, the Cayman Islands Treasury held roughly CI$500 million in cash and deposits, representing operating cash and reserves and restricted cash.

I must remind the House and the country, Mr. Speaker that the cash we hold is only there because we achieved the financial strategy we committed ourselves to.  It is the direct result of seven years of successful financial management by this government and the previous administration.

We have also secured a US$403 million line of credit, which is before this House for approval in this meeting from a consortium of local banks should it be necessary. That is the prudent thing to do so that we can access favourable terms now and do not go to the market in a weak position at the point of necessity.  However, as I explained when we announced that this arrangement had been secured, it is an insurance policy should we need it.  In any case, on current projections there should be no need to access the credit available before the latter part of next year, if at all. But I would add, Mr. Speaker, that the willingness of the market to offer credit on very favourable terms is yet another demonstration of confidence in this Government and the country as a whole.

Contrast this position, Mr. Speaker, with that elsewhere in the world. As we sit here today, Cayman has taken its income reduction on the chin. We have provided considerable support for families and business.  And our national debt has increased by……. zero. Not one dollar has been borrowed.  To take two other examples. In the same circumstances, national debt in the United Kingdom has increased by around £250 billion since this time last year and now exceeds £2 trillion, larger than the size of the UK economy. Meanwhile, in America, the Government has borrowed an eye-watering $3 trillion since 1st March.

Cayman’s position has not come about by accident.  I repeat, Mr. Speaker, it is the direct result of this Government’s fiscal strategy. I must, in particular, pay tribute to the Minister of Finance. The country has been fortunate indeed to have a figure of his stature and experience at the helm at this time.  His stewardship of the public purse has been notwithstanding remarkable.

Another accomplishment of the Minister is the arrangement between the Government and five local banks to a government-guaranteed loan scheme that will provide up to CI$200 million to assist medium and large-sized businesses that are at least 60% Caymanian owned, with meeting their operating and capital expenditure and refinancing their debt. Under the scheme, banks will consider applications for loans from eligible medium and large-sized businesses where each medium and large-sized business can borrow up to CI$750,000 and CI$3,000,000, respectively. Decisions will be made solely by the banks and must satisfy all their usual credit approval and other requirements. The Government will guarantee 50%, or a total not to exceed CI$100 million, of the loans granted as an additional incentive to have banks loan money to our struggling businesses. 

This House will also consider and vote on this scheme during this meeting.

I promised earlier, Mr. Speaker, that I hoped not to disappoint those expecting to hear about the Government’s achievements.  But time is running short.  There are a whole host of other achievements I do not have time to go into in detail, Mr. Speaker. From establishing the new Plan Cayman process to the improvements to the airport and runway; from finding new courtroom space to implementing the Standards in Public Life Law; from opening a new 25-metre competition swimming pool on Cayman Brac to providing new trucks to make garbage collection more reliable; from enhancements to our public beaches to celebrating Cayman - this Government continues to deliver on the promises we made to the country when we came into office. It is a track record of achievement that I believe is unparalleled in Cayman’s recent political history.

I also promised to speak about the Government’s future plans. I have touched on many of those, from renewed economic growth to protecting the environment. 

At the end of eight years in office, it might be expected that there would be a tired feeling attaching to the Government. I can report to the House and to the country that I detect no such feeling in my colleagues.

Far from proposing to rest on its laurels, this Government remains ambitious for the future of our country. There is more left to do as the country moves forward from the current crisis. On these benches sit the people with the experience of delivery and the strength of vision to do it.

 This Government has proven its ability to lead the country through crisis and adversity. On these benches sit the people who the country recognises can provide the leadership to bring us back to prosperity.

I thank all of my colleagues, Ministers and Councillors for their hard work and dedication to the people of these Islands.

Next May I will complete two consecutive terms as Premier and 20 and ½ years as a representative of my people. Although I will not be Premier again, I will stand for re-election in the constituency of Red Bay and God and my constituents willing, I hope to continue to represent my people and assist in governing this country I love so very much following these elections. But more important than that by far is that I am confident that the man who has managed this country’s finances during this term is more than up to the task of succeeding me as Premier.

Next May, Mr. Speaker, the country has a really big decision to make. Does it retain its confidence in those whom it has seen deliver on the promises we have made and who have set out a clear and important vision for the future of our country? Does it stick with those who four years ago committed themselves to put aside political differences in the national interest and who have remained steadfast in that commitment? Or does it instead turn to a mismatched group of individuals who in the past four years have shown that the only thing that unites them is political ambition and political opportunism?

No doubt beyond the official opposition, there are others already recruiting their committees and planning their campaigns against those on this side. We have heard many of them clogging the airwaves and social media platforms to spread their particular mixture of platitudes and misinformation.  I have heard lots of talk but no solutions, nor indeed who they will work with to deliver for the Caymanian people.

Going back to Ralph Waldo Emerson, with whose poem I began, in 1841 he gave a lecture in which he distinguished between the “Party of Memory” and the “Party of Hope”. So it is in Cayman today. Some are lining up to stand in our forthcoming elections essentially arguing that now is the time to wind back the clocks; to forget the commitment to growth and to improving life-chances for Caymanians that has served us so well. Instead, they prefer to search for some mythical golden age that exists only in their rose-tinted remembrances. 

But theirs is a view of our future that stands on self-imposed limitations, created in memory and turned into a political programme that distrusts our Caymanian ability to forge our own successful future. Its self-appointed leaders want to limit Cayman to some replay of their imagined past because they doubt Caymanians’ capacity to achieve and to thrive in a future that is there to be grasped if we have the courage to do so.  I wholeheartedly reject that view. 

I am proud of Cayman’s heritage. Next year, I am pleased we will be able to honour our seafaring tradition, not just on Heroes Day but throughout the year. But we also celebrate our advancement as a people. The recent celebrations of 60 years of our Coat of Arms and our Constitution were about the achievements of our pioneers but also about recognising the progress we have made over the last six decades.

The new Constitutional Order that will hopefully be made by the Privy Council in the next few weeks will give us another opportunity to celebrate and recognise our continued development. The Legislative Assembly Law, the new Law for the autonomy of this House that we will debate during this meeting is another important step in our maturity. Both these developments are important way-markers to Cayman’s future.

I am proud of Cayman’s past but I have no desire to live there again.

I am honoured to lead the Progressives. The Party of Progress. But I am also privileged to have led this National Unity Government over this term. Working together in the national interest through these toughest of times, we have retained our shared hope for the future. We have had challenges and, yes, we have had our differences along the way. But we have achieved much progress and created hope and confidence in Cayman’s future by working together and staying together.

Where the Party of Memory says Caymanians must have over-weaning protection to be successful, we say Caymanians need only full access to opportunity and then their inbuilt drive and determination will deliver success. 

Where they say our country should fear growth because we are surrendering to outside special interests, we say that growth comes by combining innovation and creativity of the Caymanian people with the knowledge, expertise and financial clout that only comes here because we are bold and visionary.

Where the Party of Memory would limit Cayman’s place in the world to remaining three small Islands adrift in global seas at the mercy of the winds of fortune, we offer the opportunity for Cayman to continue to grow, to punch well above our weight on the global stage and to control our own future.

I do not know exactly what the future holds for Cayman, Mr. Speaker but there is a saying widely repeated in the tech industry that goes “the best way to predict the future is to create it.” 

I believe that we have in our power now the ability to create a new future for our Cayman Islands. As this crisis passes, the years ahead will require us not to batten down the hatches but to be bold, and unfurl the sails.

I have confidence and optimism in the future of our people.  And, Mr. Speaker, I have confidence that faced with the choice I have highlighted, the choice of regressive malaise versus the bold progress we offer,  our people will return those on these benches for an effective third term, unprecedented in Cayman’s political history.

The Minister for Finance and Economic Development, Hon. Roy McTaggart is pleased to inform the public that the Government of the Cayman Islands and five (5) local financial institutions (“the Banks”) have agreed in principle to a government guaranteed loan scheme to assist medium and large-sized businesses with meeting their operating and capital expenditure and re-financing debt needs.

Under the loan scheme, the Banks have agreed to consider applications for loans from eligible medium and large-sized businesses up to a maximum of CI$200 million – where each medium and large-sized business can borrow up to CI$750,000 and CI$3,000,000, respectively. The Government will guarantee 50%, or a total not to exceed CI$100 million, of the loans.

The Banks that are working with the Government to provide the scheme that is still subject to formal credit approval are:                 

• Butterfield Bank (Cayman) Limited;

• Cayman National Bank Ltd;

• FirstCaribbean International Bank (Cayman) Limited;

• RBC Royal Bank (Cayman) Limited; and

• ScotiaBank & Trust (Cayman) Limited.

To be eligible to apply for a loan under the scheme, businesses must:

• be at least 60% Caymanian owned;

• be a Cayman-registered company, Caymanian Sole Proprietorship, or Partnership on 22 March 2020;

• have 13 or more employees as at 22 March 2020 and;

• be in good credit standing with their bank; and

• satisfy all credit approval and other requirements of the participating financial institutions.

A medium-sized business is defined as a business employing from 13 to 50 employees or it has gross revenue of CI$750,001 to CI$5,000,000 and a large-sized business is defined as a business employing over 50 employees or it has gross revenue of over CI$5,000,000.

The interest rate will be variable at the prevailing CI Dollar or US Dollar Prime Rate plus up to 1.50%. The current CI Dollar and US Dollar Prime rate is 3.25%.

The banks will charge the usual application, commitment and legal fees and may require businesses to obtain insurance in a sum at least equal to the loan amount, among any other internal requirements and may also require other security from borrowers, in addition to the government guarantee.

There will be a 12-month repayment moratorium period where businesses will only pay interest during the first 12 months. The interest for the first 12 months will be deducted from the approved loan amount and placed in an escrow account.

The maximum repayment period, including the 12-month moratorium period, is 7 years and businesses will have up to one (1) year to apply for the loan. It is anticipated that the loan scheme will be available for businesses to apply on 1 November 2020.

The Government will also be waiving the 1 – 1 ½% stamp duty that may be applicable to any charges placed over assets to provide security for the loans. Other stamp duties and normal charges may be applicable.

As the government guarantee will require the approval of the Legislative Assembly, the Government intends to present a motion during the upcoming Meeting of the Legislative Assembly – which commences on 14 October 2020 – in order to seek the Legislative Assembly’s authorisation of the scheme and the issuance of a loan guarantee.

The Minister for Finance stated, “The loan scheme will provide much needed relief for medium and large-sized businesses in the Cayman Islands by providing access to loans which might not otherwise be available, and the Government is pleased to be able to help ease the economic and financial hardships caused by COVID-19.”

Two weeks after the Cayman Islands Government began field testing its multi-layered strategy to protect the islands from COVID-19, all reports indicate that the testing phase is proceeding as anticipated and no breaches have been reported. Evaluations will continue on the technology, processes and procedures in readiness for 1^st October, when an increased number of flights are expected and more returning travelers, including home owners, will be quarantining at approved locations.

29 travellers who arrived in the Islands on 17 September are helping to test the monitoring technology while quarantining at home for 14 days. All of the participants will be tested again on day 15 and will require a negative PCR test result signed off by the Medical Officer of Health for their quarantine period to cease.

Meanwhile, various working groups within the public sector are continuing to work collaboratively to further test, refine and enhance the government’s border opening processes.

With the safety of the Cayman Islands community remaining a top priority, government has combined several distinct layers of protection to safeguard residents and minimise the risks from COVID-19. These include an element of personal responsibility, supported by repeated PCR testing, monitoring through geofencing technology, random checks and strong penalties for non-compliance.

Hon Moses Kirkconnell, Minister for Tourism explained that “As a result of stringent policy decisions, Cayman has experienced minimal cases of Covid-19 through community spread in comparison to many other regions of the world. Although we are in a relatively safe bubble, the economic impact of remaining closed to the rest of the world is increasingly translating into business closures and job losses, leaving Caymanian families facing significant hardship. Government is doing as much as we can to provide relief programmes and financial support to those most affected, but this will not be sustainable over the long term.

In the meantime, we are continuing to monitor and learn from the experiences of jurisdictions that have already opened and we are putting robust health and safety mechanisms in place so that when it becomes safe to do so, tourists can gradually be welcomed back to our shores, enabling people to return to work.”  

Travel Process from October - What You Should Know

Travel Time Approval

Until further notice, all persons wishing to travel to the Cayman Islands must register their inbound travel request with Travel Time, and complete the online form at www.exploregov.ky/traveltime in order to receive pre-travel approval. Travellers who have not completed this process will not be permitted to board a repatriation flight. Questions or concerns pertaining to inbound travel should be directed to Travel Time by emailing traveltime@gov.ky or by calling 649-6913 between the hours of 8:30am and 5:00pm, Monday to Friday.

PCR Test on Arrival

From 1st October onwards all inbound travellers (aged 5 years and over) will be tested at the airport for COVID-19, prior to undergoing mandatory quarantine for 14 days with a further PCR test on day 15. A negative PCR test result signed off by the Medical Officer of Health is required in order for the quarantine period to cease.

Quarantine at Residence Pilot Programme

Effective 1st October government will launch its Quarantine at Residence pilot programme which will allow travellers to quarantine at home provided they meet established criteria, agree to wear monitoring technology and their homes have been pre-approved by Public Health. If the traveller resides with other people, all members of the household will be subject to the same quarantine requirements.

Travellers will be required to state whether they wish to quarantine at home (or quarantine in a government or privately run facility) on their Travel Time application.  Permission to quarantine at home is not guaranteed and is subject to approval by the Medical Officer of Health.  Travellers who are approved to quarantine at home will be notified by Travel Time when they receive their travel approval. 

Persons who are not approved to quarantine at their residence will be required to quarantine either at a government or privately run facility.  In both cases, the quarantine period is 14 days followed by a PCR test on day 15. A negative result signed off by the Medical Officer of Health is required for the quarantine period to cease.

Monitoring Device with Geofencing Technology

Each individual approved to quarantine at their residence (aged 5 years and over) will be provided with an iMSafe wristband. The device communicates via bluetooth to a custom mobile app on a smart phone and creates a virtual perimeter around the quarantine location. If the wearer goes beyond the perimeter of their quarantine location, an alert will be sent to the monitoring team. Alerts will also be sent if the wristband stopped communicating with the phone, or the phone with the servers, or if it is tampered with or damaged.

While a household is in quarantine, food, medication and essential supplies should be ordered from suppliers who accept contactless payment and offer delivery service. Delivery personnel, relatives and friends are not allowed to enter the home or have physical contact with the occupants while they are in quarantine.   

Any member of the household who does not comply with the quarantine at residence conditions issued by the Medical Officer of Health, could be in breach of the Prevention, Control and Suppression of Covid-19 (Partial Lifting of Restrictions) (No.4) (Amendment) Regulations. If the breach amounts to a criminal offence they may be warned for prosecution and could be required to complete the remainder of their isolation period in a Government run isolation facility. The revised Regulations note that persons found to have committed an offence will face a fine of $1,000 and imprisonment for six months.

Cost of Quarantine at Residence Programme

During the month of October, persons who are approved to quarantine at their residence will not be charged a fee for the monitoring wristband or for the PCR tests which they undergo.     

Health Insurance

Travellers are strongly encouraged to have insurance which includes COVID-19 coverage before travelling to the Cayman Islands. From 1st October, 2020 all inbound travelers will be required to attest to a statement which confirms that they possess health insurance which includes COVID-19 coverage, or that they understand the financial risks they are taking and that they have independent means to cover their medical costs.

Categories of Visitor Expanded

For the month of October and until further notice, the groups of persons eligible to visit Cayman will be extended beyond the current categories of approved travellers (i.e. Caymanians, permanent residents, work permit holders and their families), to also include:

• Persons who own residential property within the Cayman Islands,
• Other approved visitors such as students with a valid visa to study in the Cayman Islands, and persons with close family ties to residents or work permit holders; such as spouses, fiancés, parents, grandparents and siblings.

Repatriation Flights to the Cayman Islands

Until borders are fully opened, only private charters and repatriation flights operated by Cayman Airways and British Airways are allowed to enter Cayman. Although approval to leave the Island is not required, Government continues to caution residents that travel should be limited to essential or medical needs only.

Cayman Airways is currently providing repatriation service to Miami, USA; Kingston, Jamaica and Le Ceiba, Honduras, while British Airways continue to operate a fortnightly service between Grand Cayman and London, Heathrow.

For the latest news and information regarding travel to and from the Cayman Islands please visit  https://www.exploregov.ky/travel

The Minister for Finance and Economic Development, the Hon. Roy McTaggart is pleased to confirm that the Government of the Cayman Islands has awarded the provision of a stand-by line of credit (LoC) to a consortium of local banks. In addition, any use of this LoC will be converted to a long-term loan facility with the consortium. The LoC is expected to close on or before 15 October, 2020.

The consortium is comprised of the following banks with each committing to provide the below amounts:

A total of US$403 million is being made available under the LoC and the same amount is available under the long-term loan facility.

CIBC FirstCaribbean International Bank is the Structuring and Administrative Agent for the consortium. Butterfield and Republic Bank Limited acted alongside CIBC FirstCaribbean International Bank as Lead Arrangers.

The tendering process for the facilities commenced and concluded with, respectively, the Ministry of Finance‘s Entity Procurement Committee’s approval and the Public Procurement Committee’s review and scrutiny.

The Honourable Minister for Finance stated, “The terms submitted in the bid are keenly competitive.  These facilities demonstrate that the Government of the Cayman Islands continues to be regarded as a high-quality sovereign as is reflected in our Moody’s rating of Aa3. The tender followed all required procurement guidelines. It is very pleasing to me that we are seeing local commercial banks come together and submit a single bid to the Government of the Cayman Islands, thereby demonstrating their confidence in the Government and the country as a whole. This is a win for Government and a win for the people of the Cayman Islands.”

Premier Hon. Alden McLaughlin said, “This Government’s strong fiscal management, with past healthy annual surpluses, paying-down debt and growing our reserves, meant we were in a good place economically and financially before COVID-19. This has provided the necessary buffer that we knew we would need one day. Because of our strong fiscal position we are in a better place than most countries. Whilst we have access to this line of credit, we do not expect to need to use it before the end of Q2, 2021. In effect, this is a much needed “insurance policy” for the Cayman Islands. I would like to thank Minister McTaggart and his team for the stellar job in getting this line of credit and the long-term loan facility successfully awarded and soon to be  in place.”

An Appropriation for a possible CI$500 million borrowing will be presented to the Legislative Assembly at its next Meeting and to the Foreign, Commonwealth and Development Office for approval prior to accessing any of the funds from the LoC. This Appropriation will include the possible US$403 (CI$330) million loan under this line of credit as well as provide the ability of Government to borrow an additional sum up to CI$170 million, if it becomes necessary.

At the expiration of the 18-month LoC, any amount advanced and unpaid under the LoC will be converted to a 15-year, fixed interest rate amortising loan. Both the LoC and the long-term loan are priced at 3.25% per annum – the current Prime Rate offered by local banks. The cost to put the LoC and long-term loan facility in place will be approximately US$2.4 million.

Any use of the funds will address needs resulting from Government’s loss of revenue and its increased expenditure related to COVID-19 – particularly increased expenditure by Government to support the vulnerable in our community and business entities across the Islands that have experienced financial hardship as a result of the pandemic.

Premier Hon. Alden McLaughlin congratulates Prime Minister Andrew Holness and the Jamaica Labour Party on their landslide victory in the general election in Jamaica yesterday.

“I applaud Prime Minister Holness, the Jamaica Labour Party and the Leader of the Opposition Peter Phillips and the People’s National Party for running a fair and peaceful election.  I’m sure it has not been easy campaigning and getting the population to come out to the polls when a pandemic such as COVID is at large in the community.”

“The Cayman Islands and Jamaica have strong connections that have endured over the decades.  I and my Government look forward to continue working together with Prime Minister Holness and his team for the mutual benefit of our countries and I look forward to once again meeting with him in person when we are able.”

As Premier, I am utterly humiliated that because of our failure to do our duty as a Legislature, the UK Government has been forced to legislate for us.  Notwithstanding our firm faith in God and strong Christian heritage, Cayman is not a theocracy but a democracy, and no democracy can long survive if it does not respect the rule of law.  I have been shocked that so many of our Legislators and, indeed, members of the broader community believe that it was right to urge the Government to ignore a declaration of our own Court of Appeal. And, that they also believe that the Government is free to decide what category of persons are entitled to enjoy the constitutionally guaranteed right to private and family life.

But I pray that now that the Civil Partnership Law has been assented to by His Excellency, the Governor, it will be accepted as the law of the land and the campaign against same-sex relationships will end along with the demeaning rhetoric which has unfortunately characterised the public debate. 

My faith tells me that we are all created in the same ‘image’ and must reckon with God each for ourselves.  Jesus urged us to do unto others as we would have done to us. The introduction of the Domestic Partnership Bill was the right thing to do as a society that values each and every person within it, regardless of race, creed, gender or sexual orientation.

Regrettably, much of the debate inside the Legislative Assembly and in the media has caused our sisters and brothers in the LGBT community to feel belittled, undervalued and ostracised. Jesus never treated people in that way, ever.  I am hard pressed to find a reference in the gospels where Jesus castigated ‘outsiders’ even when their lifestyles didn’t comply with his view.  Let us as a community now seek to do as Jesus did.

The Cayman Islands Government has today announced that having continually monitored the rate of infection in other countries, particularly in the United States where the pandemic is still widespread, Cabinet has taken the decision to extend the Islands border closure for an additional 30 days, until 1^st October 2020, at which time a further decision will be made.

During this time, repatriation flights by Cayman Airways will continue to operate on an ad hoc basis and the air bridge between the UK and the Cayman Islands will also remain open, as this provides a vitally important link between the two countries.

With the start of the academic year in September, it is recognized that parents are keen to confirm travel plans to accompany students needing to travel overseas to continue their education.  The Governor’s Office has confirmed that a British Airways flight will leave the Cayman Islands for London, Gatwick on 28 August, which is mainly for students and their parents. The Governor’s Office is also in advanced discussions with British Airways to introduce a regular fortnightly service to London, Gatwick. We hope to release more details on this next week.

Cayman Airways is also providing a series of repatriation flights to Miami, USA; Kingston, Jamaica and Le Ceiba, Honduras which are scheduled to depart the Cayman Islands on dates listed below. Although there are no restrictions on outbound travel from the Cayman Islands, non-essential travel is strongly discouraged, as options to return are limited and travellers may have to remain overseas longer than anticipated.

Miami, USA:

September 1, 4, 11, 18 and 25

Kingston, Jamaica:

September 2, 16 and 30

Le Ceiba, Honduras:

August 19 and September 23

Travel time procedure for booking flights

While the Cayman Islands borders remain closed, all persons wishing to travel inbound on board a repatriation flight must register their inbound travel request with TravelTime, and complete the online form at www.exploregov.ky/traveltime in order to receive pre-travel approval. Travellers who have not completed this process will not be permitted to board a repatriation flight. Questions or concerns pertaining to inbound travel should be directed to TravelTime by emailing traveltime@gov.ky or by calling 649-6913 between the hours of 8:30am and 5:00pm, Monday to Friday.

The Cayman Islands Government, through TravelTime are making every effort to assist residents with returning home. However, travellers should remain aware that we are in uncertain and challenging times and with inbound travel restrictions in place, delays in securing a return flight should be expected.

Furthermore, Government policy stipulates that all persons entering the Cayman Islands must be quarantined for 14 days in a Government facility and will require a negative PCR test prior to returning to their own accommodations.   

Referencing the extension of the Islands border closure, Hon Moses Kirkconnell, Minister for Tourism stated “From the outset of the pandemic the government has placed the highest priority on public health and safety and we are approaching the reopening of the Islands borders with the same degree of due care and attention. It is unfortunate that this decision had to be taken but we believe it is the most prudent thing to do given the environment beyond our shores. Waiting to open our borders is allowing us to learn from the experiences of other countries and is ensuring that sufficient time is allocated to putting all of the necessary precautions in place keep our Islands safe and people protected.”   

Direct Airline Bookings

The Cayman Islands government is aware that some airline website are offering flights to the Cayman Islands and accepting future bookings. The public is reminded that while the Cayman Islands borders remain closed, approval has not been granted for the operation of any commercial flights.  Travellers who make reservations directly with any airline while the Islands borders are closed are doing so at their own risk. It should also be noted that airline vouchers issued by other airlines for such flights are not transferrable to the British Airways repatriation flights, nor are they valid for use on Cayman Airways.

Current information about the Cayman Islands Covid-19 response and suppression strategies is available at https://www.exploregov.ky/coronavirus

His Excellency, Martyn Roper, OBE, Governor of the Cayman Islands, yesterday confirmed that he has received instructions from the UK Government, by way of the Foreign Secretary, to utilise the Governor’s Reserve Power under Section 81 of the Constitution to publish the Domestic Partnership Bill as presented to, and rejected by, the Legislative Assembly last week. After a 21-day consultation period, the Bill, with possible amendments depending on what arises during consultation, will be made law in early September.

This was entirely to be expected. I and other members of Government, as well as the Hon. Attorney General, took pains over and over again to remind members of the Legislative Assembly during debate that if the Legislative Assembly failed to do its duty and uphold the law and respect and act upon the declaration of our own Court of Appeal, then the UK Government would be obligated to do so. The declaration was explicitly clear: “Chantelle Day and Vickie Bodden Bush are entitled, expeditiously, to legal protection in the Cayman Islands, which is functionally equivalent to marriage.” 

The Court of Appeal continued “Moreover, proper fulfilment of its legal duty by the Legislative Assembly should provide the protection sought. We feel driven to make this final observation. This court is an arm of government. Any constitutional settlement requires the executive and the legislature to obey the law and to respect decisions of the court. It would be wholly unacceptable for this declaration to be ignored.”

The Court also noted “… in the absence of expeditious action by the Legislative Assembly, we would expect the United Kingdom Government, to recognise its legal responsibility and take action to bring this unsatisfactory state of affairs to an end.”

Those members of the House who are now seeking to deflect responsibility by pretending that this declaration of the court is merely akin to a suggestion are woefully wrong. The Grand Court of the Cayman Islands as well as the Court of Appeal of the Cayman Islands both ruled that the Cayman Islands and the Legislative Assembly are in breach of the Bill of Rights in our Constitution, and the European Convention on Human Rights, by the failure over many years to put in place a legal framework for same-sex couples that is functionally equivalent to marriage between heterosexual couples.

The Bill that I introduced to the Legislative Assembly satisfied the declaration and the law and provided the required framework that protected the rights of same-sex couples to private and family life whilst at the same time maintaining the institution of marriage as between a man and a woman. The Bill could not be some mere ‘watered down version’ of rights for same-sex couples. It would have to withstand the scrutiny of the courts and in particular the Privy Council that will be deciding early next year on whether same-sex couples here have a right to marriage or not. This decision in large part will turn on whether there is in place a sufficiently strong legal framework that protects the rights of same-sex couples as the Court of Appeal has ruled they are entitled to under our Bill of Rights. If the answer is no then the Privy Council will likely rule against us and introduce same-sex marriage.

I said when I introduced the Bill that this was about the rule of law and whether the Legislative Assembly understood its role in not only making laws but in respecting and observing them. I pointed out several times that if the Legislative Assembly did not do its duty then the UK Government or the Courts would stand in for us and do what is required under law.

These points were indeed painstakingly debated in the Legislative Assembly. But I also made them many times over many years to Church leaders as well as to all members of the Legislative Assembly.  In addition, in the weeks prior to the introduction of this Bill, and in the days preceding the debate and vote, I spoke to many on the Opposition bench, including the Leader of the Opposition, on what was at stake if we failed in our duty to abide by the law. 

Not only would we be depriving our own Caymanians of rights that they have under the law, but we would also be saying to the UK and the world that the Cayman Islands Legislative Assembly has not sufficiently matured and cannot be trusted to carry out a fundamental duty to respect the rule of law. The matter at hand was not one that was up for public consultation or debate. The matter was one of law that required the Legislative Assembly to pass suitable legislation to protect the rights of Chantelle and Vickie and other Caymanian same-sex couples as required in a modern society governed by the rule of law.  So with the failure of the Legislative Assembly to do what it was obligated to do, the UK, by way of Section 81 of our Constitution, has now instructed the Governor to pass a law that recognises and protects the rights enshrined in our own Bill of Rights. 

The result is that some version of the Domestic Partnership Bill will become law in a few weeks without further reference to the Legislative Assembly. What form this law will take is now beyond our control and will be decided by the UK and the Governor. This is a very shameful event and one that should have been avoided. I also know that both Baroness Sugg and Governor Roper deeply regret that they have been forced to take this action. But the failure of the majority of the elected members of the Legislative Assembly to discharge their constitutional duty has left the UK Government with no other option. What is also regrettable as a result of this is that the UK will undoubtedly now decide to retain Section 81 of the Constitution despite my having gotten them to agree to remove it as part of the pending Constitutional changes. I have always argued that it is unwise to encourage, and even worse to force the UK, as we have done, to act on behalf of the Legislative Assembly as having done so once they may find it easier to do so again in other circumstances. The failure of the Legislative Assembly to do its duty last Wednesday has set back our efforts at increased autonomy immeasurably. 

I am grateful though that the UK Government was open to persuasion to not utilise Section 81 to introduce same-sex marriage but to put forward the Domestic Partnership Bill for consideration. When enacted as law, this will preserve the institution of marriage as being between a man and a woman whilst protecting the rights of same-sex couples. It will also allow us the best opportunity to avoid the Privy Council putting in place same-sex marriage when they consider the matter next February. 

May the current division among our people soon disappear, may we all grow to love each other as God has loved us, and may He who hath founded these Islands continue to bless and protect us all.

Premier begins by reading the poem ‘If”

Those words of Rudyard Kipling penned so very long ago have been my mantra since I first read them at 14 years. A copy of that hangs in my office. I read it very often.

Yesterday and last night were very, very difficult. I left here entirely disillusioned and disappointed and fearful. I think I finally lost consciousness somewhere between 3:30 and 4 this morning and my eyes were open at 5:30.

The feeling of despair, disillusionment and disappointment disappeared when I arose this morning and a feeling of incredible peace has come upon me. The words of my dear departed mother came to me with such force I thought she was standing there. When a man has done his best even the angels in Heaven can’t do better.

My disappointment is not really about the fact that members of my own team have clearly indicated they will vote against a bill, which my Caucus and my Cabinet agreed we should bring and that I should present. I am long enough in the tooth and tough enough and my skin is thick enough to have faced more than one defeat in my almost 20 years in this House.

My worry and my concern, my disappointment is for the people of this country, the reputation of this Parliament and the interest of these Islands going forward. I do not for one moment doubt the sincerity and strength of feeling of some members in this House on the position of same sex relationships, but I also am discerning enough - as I believe are the listening public - to understand the political expediency of others who have swung one side of this issue or the other; wherever they felt the wins of public opinion were coming from. I say to those particularly the one who has predicted and proclaimed the demise of all who support this bill and who has been here for five minutes; people will respect your view and your position. What they will never respect is a man or woman on whom they cannot rely. I am not going to go down that road. That is not where I am trying to go. That is all I will say about that.

We shall see in due course who is here and who is not here next time around. I tried really hard to frame this debate in terms that would focus on what the issue is, which would as far as possible preclude or certainly not provoke statements, angry statements, about the evils of homosexuality and the gay life style. It wasn’t entirely successful but people will have to defend what each of them said. That’s not my job. I am not going to persecute anyone for what they said.

But this bill, the Domestic Partnership Bill, came to this House, was brought to this House by me on behalf of Government. Not because the government made some policy decision that that was what we thought we should do. It was brought because the Court of Appeal of the Cayman Islands found that this Legislative Assembly and by extension the Cabinet are in continuing and longstanding breach of Article 8 of the European Convention on Human Rights, which provides for the right to private and family life and the corresponding section in our own Bill of Rights, which is modeled on the European Convention on Human Rights – Section 9 (1) of that Constitution and that being in breach of those sections we are violating and have for years the rights of same sex persons to a formally recognized framework, which extends to them the same basic rights of heterosexual couples. Not marriage. That is why the bill is here. And notwithstanding that, I have heard some speeches, which have left the Honorable Attorney General and myself shaking our heads and asking did they not hear a word we said?

The 27^th of May was seven years since I was first appointed as Premier. I have tried, as has the Honorable AG, over the course of those two administrations, some six years ago to seek to persuade the members of our team, my team, and the team I lead. Some of the players have changed, some of the players are still here – that although the bill of rights in the CI constitution does only grant a right to marriage to heterosexual persons of marriageable age as determined by the law that that does not mean that you can simply ignore or trample upon the rights of persons who are not heterosexual to private and family life. And that the courts, not just here, but across the world have said that gay couples, gay persons, are entitled to the basic rights that are accorded to heterosexual couples such as pension, immigration, succession, the right to found a family, etc.

This is not some Cayman creation. As I said at the start, our Bill of Rights is modeled on the European Convention of Human Rights. The member from George Town Central spoke with derision about my role in the development of that Constitution and in particular the Bill of Rights. I spent the first nine years of my political career on both sides of this House battling to get us a new Constitution. The United Kingdom said and quite properly, quite correctly we will not grant you a Constitution unless you have in it a Bill of Rights, which accords the generally accepted human rights protections of the citizens. In case anyone thinks that human rights are some new concept, they came out, this idea that there should be a universal charter on human rights came out of the horrors of two World Wars, particularly the last World War and it was determined that never again should any state be able to do what was done by Hitler to other human beings. Those atrocities should never occur again.

We try, we try. When Chantelle Day, who despite what some on the other side may think, is as Caymanian as any of us. And who I believe resides in George Town Central. When Chantelle Day and Ms. Vickie Bush’s counsel wrote to us and said we demand recognition of our right to family life. Of course they wanted marriage but they said if we can’t have marriage let us at least have civil unions.

I tried again with the assistance of the Honorable Attorney General to persuade members of my team of the importance of us acting or there was going to be court proceedings. Over the course of the last six-plus years the Honorable Attorney General and I have met with members of the Ministers Association, the church minister’s association, many of whom I have on speed dial. I’m very good friends with many of them because when you’ve been around this long as the older members of this House will know you attend many, many funerals even if you don’t go to church otherwise. Know them well and love them all to a man and woman. We had nothing but absolutely civil, courteous discussions. We tried and we tried and we tried. We could not get support to bring any kind of legal framework legislation. Politics is the art of the possible. I’ve always understood that. If I had not understood that I wouldn’t be standing here today.

I am not an idealist. I am a pragmatist and a realist. I work hard never to compromise the fundamentals that underpin who I am. But I understand that politics is also the art of compromise. I do not usually begin battles I feel I cannot win. I wait for a more favorable wind or a better opportunity for the project to succeed. That’s how I operate. Anyone who works with me will tell you that. The proceedings were begun. We tried again, the Honorable Attorney General and I to find some means of reaching a compromise; something that our counsel could say to the Court on behalf of the Government.

To have pushed that particular envelope at the time would have resulted in the Government breaking up. In the previous administration I had two members, both of whom are still in this House, members from Savannah and Newlands walk across the floor because – I hadn’t even brought a motion. I stood on the floor of this House and said we have to do something about the situation with Dr. Leonardo Raznovich’s immigration status because, as I said I am a realist and a pragmatist. I was elected, as are all of us, to make decisions and judgements on behalf of our people. Otherwise you could send anybody down here. And one of the things I have always understood about leadership is leadership is not just about following public opinion. Public opinion is fickle. You are hero today and villain tomorrow. Of course who doesn’t want to have kudos and get kudos? Very few politicians I know don’t want to get re-elected. But the day you start making decisions and the only thing you think about is this going to get you re-elected you are in my view a useless representative. You are simply a mouthpiece. The day you fail to exercise your own judgement about the rightness the correctness of a position or not, you are just a mouthpiece.     

My good friend Roy Bodden – used to be fond of quoting Ed Burke. I cannot find the quote. But Burke put that in language that Mr. Bodden repeated over and over in his 16 years in this House; that as a representative you owe your constituents the benefit of your intellect and judgment, not just a matter of following their opinion. Edmund Burke the famed British politician is often cited with regards to matters of Parliament often about leadership and truly serving constituents. He said, “A representative owes you not his industry only, but his judgment and he betrays instead of serving you when he sacrifices it to your opinion.”

The great irony of the majority of the speeches that were made in this House in opposition to this Bill is that if persons vote as they have indicated and the Bill fails, what they consider to be the great disaster that would have attended the Cayman Islands if the Domestic Partnership Bill passes is going to be multiplied 10-fold and I will explain that in but a moment. I want to make one thing clear. This winding up speech of mine is not about trying to persuade one single person in this House on my side or the otherwise to vote otherwise than in accordance with your conscience. I want no abstentions. I want every man and woman to do his and her duty and vote their conscience. But I want every man and woman to also realize that while only they will have to live with their conscience, the entire country and every person here will have to live with the consequences of the decision. The decision doesn’t just affect you or me. We are deciding on behalf of the people of this country. Remember that. So let your conscience also contemplate the consequences of the decision. 

A number of the members on my side made extremely good contributions. When I say that the clarity of thought and presentation brought to bear by speeches like that of the Minister of Financial Services, the member from Prospect and others ought not to be ignored and no member in this House can say, having had the messages, which I began with reinforced by the AG and other members on this side about the consequences of this bill failing; no member in this House will be able to say they did not understand, at least credibly say, what the implications of this bill failing are likely to be.

I heard a lot of visionaries on the other side say what the UK will and won’t do and what they have done and will do. I don’t claim to be a visionary at all but I have not spent the last 7 years as Premier in the office of four governors and I’ve forgotten how many Ministers in the UK not to understand how that system works and not to be able to read what the careful statements mean. So the irony of which I earlier spoke is that a defeat of this Domestic Partnership Bill will almost certainly as the sun rises tomorrow result in the imposition on the Cayman Islands of same-sex marriage. Remember I said so today. And I have already requested the Hansards of this House of what every member said. Because I know when it comes and I promise you this is not going to be 36, 37 years from now. This is not even going to be 30 days. Remember that when it occurs it occurs because members of this House decided that a Domestic Partnership arrangement was not satisfactory, was going to be disastrous, and was going to undermine marriage in the Cayman Islands. That’s why the UK will act. It will not be those on this side who have brought and supported this bill that have caused same sex marriage be produced in Cayman. It will be those who have prevented the Government from introducing a parallel arrangement short of marriage but functionally equivalent thereto. Because I know that when it happens, when the inevitable occurs, there will be screams and shouts, weeping and wailing and gnashing of teeth, cursing of the UK and inevitably an attempt to blame Alden McLaughlin.  We have said over and over again in this House, outside this House, to the Ministers of Religion we cannot avoid providing a framework to recognize the rights of same-sex couples. We cannot. It is a constitutionally enshrined right. The Courts have decided that. It is not a policy decision of the Government. It is the duty of the Government and the Legislative Assembly to recognize a declaration of our Court of Appeal. I’m not even going to rehearse or rehearse again all of the important arguments of the rule of law. We’ve said them over and over again but I can tell you no Parliament can long survive in a democracy that does not respect the rule of law.

It will lose complete credibility. Not even, as the Honorable Attorney General said yesterday, not even the UK, which has a sovereign parliament, and those who believe this is a sovereign parliament are about to get a rude awakening. Not even the UK, which is a sovereign Parliament, will ignore rulings of its courts because government cannot function if the respective arms thereof do not recognize and respect their respective roles. I heard words about the government being cowardly, many have used that word. I heard the Leader of the Opposition say that we should have appealed the declaration. The Honorable Attorney General I think answered that absolutely and clearly; you do not appeal the unappealable. It is pointless. No one is going to argue it. You would get laughed out of court.  To say court after court after court has said that all people regardless of their sexual orientation are entitled to private and family life.

I am going to speak the unspeakable. All of us in here have friends or family who are gay. There I’ve said it. Are we going to say that our friend, our son, our daughter, our cousin, our niece or aunt or uncle that they are not entitled to private and family life because of their sexual orientation? I have two sons who – they have taught me so much. They do what was as a Caribbean male growing up in this place here Ii could not do. They have gay friends. They hang out with gay friends. If we tried that in my generation, you would definitely be made gay too as far as the people were concerned. Attitudes have changed and I think that’s a good thing. Younger people are more tolerant of people’s differences. Sexual orientation is a difference. They are different. I do not ask anyone to agree with someone’s lifestyle but it is their business not yours. That’s how I live my life.

It is other human beings that we are talking about. Other Caymanians. We are saying they are not to enjoy the same basic rights that the rest of us who are heterosexual have. The right to enjoyment of family, to have someone to be able to share in the things that you enjoy and participate in your life. Homosexuality has been around as long as man has. I know the Biblical teachings. I promise you nobody in this House has spent more time in Sunday school than me. Not because I wanted to go sometimes but I had to go because Althea was going to make sure of that.

I believe in God. I’m not someone who is in church, well I can’t say I’m not in church every weekend because I go to so many funerals. But I can say I go to a whole lot of church services outside the formal ones. But my faith is firm. In God I believe and trust. I have some ministers of religion who are my rocks. The rocks I lean on - although me being me probably don’t lean on as much as I should. But through this COVID crisis I came to one of the lowest points I have ever been in my life. I took a decision – I had to take a decision, which I am certain led to the certain death of a man because we, I, refused to give the ship permission to come ashore because it was a COVID-19 patient. And that very morning, our only COVID-19 patient had died and we shut down Health City. I could not expose my people to that. I sat by myself and I messaged Rev. Yvette Noble Bloomfield. And she helped me. So anyone who does not believe that my faith is sure does not know the man. So everyone is entitled to their own freedom of conscience and freedom of expression. But we are not free to trample on other people’s rights. That’s the whole point covered in the Bill of Rights. It is set up to ensure the State does not, by its various mechanisms and agencies treat one sector of the community different than other sectors except in very limited and permissible senses. Immigration is one.    

I heard a lot of predictions from the other side about how this was going to go. Let me make my prediction. The Domestic Partnership Bill that has been presented to this House sets up an alternative framework for the recognition of the rights for persons who do not wish to be married if they are heterosexual and exactly the same rights for persons in same-sex relationship. The Domestic Partnership Bill is not limited to same-sex couples. But it’s not marriage. But it does confirm a full range of rights because the injunction from the court is that it must be a system, which is functionally equivalent to marriage.

There are carve outs; we spent a lot of time… I hear there was no consultation. I know nobody on the other side perhaps except the member from Savannah had spent more time with the ministers of religion than the AG and I have on these particular issues over many years. We are incredibly sensitive to the religious views. The letter I read from Pastor Torrance Bob indicated that and said how grateful they were for the consultation opportunities and the regard and respect that we have had for their views and so we ensured that ministers of religion whose faith does not permit them to sanction same-sex relationships would not have to perform the ceremony to memorialize the relationship. In other words, they would not have to become domestic partnership officers and could remain as marriage officers only using their services for the traditional, conventional marriage.

If same-sex marriage becomes the reality I think it will be, all of that will be lost.  All marriage will be on the same plane subject to the same law, subject to the same rules so if you are a marriage officer you will have to marry a same-sex couple if they wish you too. If you don’t wish to, you will have to resign as a marriage officer. That is one of the significant differences that the Domestic Partnership Law will provide.

I want to explain a bit about how we get to where I think we’re going to get. When we were negotiating what became the 2009 Constitution, it actually started in 2001 – the negotiations took 8+ years. When we were getting toward the end of the process and the Bill or Rights had started to congeal, there were concerns – always concerns – about preserving marriage as the exclusive domain of heterosexual couples in accordance with Biblical teachings and principles. We believe in this country, those of us who go to church, that marriage is God-ordained so that’s what caused a number of things to happen. What is now Section 14 of the Bill or Rights – it appears in no other constitution that we’ve been able to find anywhere in the world – this is bespoke Caymanian drafting. Section 14 (1) Government shall respect the right of every unmarried man and woman of marriageable age (as determined by law) freely to marry a person of the opposite sex and found a family.

What that does is that it categorizes, defines as a human right the right of every unmarried man and woman of marriageable age to marry and found a family. It does not confer that right on same-sex couples. To add the belt and braces that were felt necessary in 2008 we came to this House with the full knowledge we were trying to get this constitution approved by the UK and then by referendum here and sought and made an amendment to the Marriage Law by amending Section 2 so that marriage in the Cayman Islands – and this is still the case - means the union between a man and a woman as husband and wife. It is those two sections, one from the Constitution and one from the Marriage Law that formed a big part of the constitutional challenge in the Day and Bush against the Attorney General case. And members of this House I am sure will remember that the Honorable Chief Justice was so outraged at the refusal or failure of the Government and this Legislative Assembly to put in place a framework to recognize same-sex relationships that he determined that by virtue of Section 5 of the Constitution he was entitled to modify that definition of marriage and he did so in the following terms. He modified Section 2 of the Marriage Law to define marriage as being the union between two people as one another’s spouses. So he as chief justice amended the Marriage Law. He drafted the amendment and that was the law of this land until the Court of Appeal ruling on the 7 November, 2019. It is that Chief Justice’s judgement that we appealed and the Court of Appeal said you are right Government, the CJ does not have the right to amend the marriage law in that way. Your constitution only guarantees the right of marriage to heterosexual couples and the European Court on Human Rights has said that same-sex marriage is not a human right.

You do, though Government and Legislative Assembly, have to ensure that the rights of persons who are not heterosexual the right to private and family life, which is also set out in the Constitution that you put in place the framework to recognize those. It is that that we are currently in breach of. The court has said so.

So, moving on, I think it was the member from Newlands who said, I think it might be the Leader of the Opposition as well, look at this stack of laws that are going to have to be amended in consequence of passage of the Domestic and Partnership Bill. You’re right. Absolutely right. Because we have to find some mechanisms to ensure those rights that are set out in the Domestic Partnership Bill are able to be enjoyed. So we’ve got to find a framework that deals with disputes and ultimately separation, division, pension, succession, all of those things. All of those that the legislation is geared to deal with marriage in the conventional sense. So if we are going to import those mechanisms as part of this framework we’re going to have to change those other pieces of legislation. It’s messy, complicated, and difficult. There are some pieces of legislation that we haven’t even thought of I’m sure. Because it always happens that way. There’s some piece of obscure piece that you never thought about.

From an administrative standpoint, the Chief Justice’s approach is genius. It flies completely in the face of the Constitution. But it’s genius from an administrative standpoint because he changed a mere 8 words from marriage means the union of a man and a woman as husband and wife to marriage means a union between two people as one another’s spouses.  In that simple amendment, all marriage is put on the same plain and all of the legislation that exists applies with equal force for everyone who is married whether they are a heterosexual couple or a same-sex couple. The genius is in its simplicity and I say that to make my prediction.

Before I make my prediction I need to deal with a point I think the member from Newlands raised, which – I know he’s going to law school now, but with the greatest respect I think he’s gotten it completely wrong.  Section 81 of the Constitution gives to the governor power to enact legislation. It is one of the provisions in the Constitution that still rankles every time I think about it. It irks me, which is why we pushed so hard and the member from Newlands was there. We pushed so hard to get the UK to agree to remove the power of the governor to legislate for this country. We said if you really fell that you have to do something, to ensure that Section 125 of the Constitution, which says there is reserved under Her Majesty the power to make laws for the peace, order and good government for the good of the territory, use your order in council to do so. We don’t want a governor, albeit on instruction of the Secretary of State, to continue to be able to make laws for us here. And the UK agreed, at least tentatively. They haven’t finally agreed until the Privy Council issues that order. But those around the negotiating table on behalf of Government agreed. And it’s still in the current draft. Section 81 is not limited in the sense that the member from Newlands claims. As the Honorable Attorney General has pointed out, the European Convention on Human Rights is brought into this particular dispute. The Court of Appeal has said that in recognition of the longstanding and continuing failure of the Legislative Assembly of the Cayman Islands to comply with its legal obligations under Section 9 of the Bill of Rights – that’s ours – and in recognition of the Legislative Assembly’s longstanding and continuing violation of Article 8 of the European Convention on Human Rights.

Those are international obligations to which the United Kingdom is still very much bound; very much within the parameters of Section 55 of the Governor’s special responsibilities under the Constitution. What I don’t think is fully appreciated by many is that while the constitutionally right to marriage is restricted under the Constitution to heterosexual couples, there is nothing in the Constitution or anywhere else that would prevent this House from passing – instead of introducing the Domestic Partnership Bill we could have introduced a same-sex bill and it would be for this House as it is for the Domestic Partnership Bill to decide whether or not we wanted to pass it. The Constitution does not prevent it or prohibit it. It just does not give it the status of a constitutional right.

And in the same way that this House could pass a same-sex bill, the governor can even more easily introduce one. So my prediction is because of the simplicity, because of the administrative ease and because it will put to bed once and for all the continued pressure from the gay lobby for same-sex legislation the UK will choose that route. Further, the UK is hugely embarrassed by the fact that the Court of Appeal has called on them – found it necessary – to call on them to act in this matter because of our continuing failure as a Legislature to do so.  It’s been read before, but for completeness let me read the final paragraphs of the judgement of the Court of Appeal.

We feel driven to make this final observation. This court is an arm of government. Any constitutional settlement requires the executive and the legislature to obey the law and to respect decisions of the court. It would be wholly unacceptable for this declaration to be ignored. Whether or not there is an appeal to the Privy Council in respect of same-sex marriage, there can be no justification for further delay or prevarication.

Moreover in the absence of expeditious action by the Legislative Assembly, we would expect the United Kingdom Government to recognize its legal responsibility and take action to bring this unsatisfactory state of affairs to an end.

As has been alluded to here as well, the decision of the Court of Appeal that same-sex marriage is not a constitutional right in Cayman’s Bill of Rights is under appeal to the Privy Council. If the UK acts as I have indicated the UK no longer has to worry about that appeal to the Privy Council. They will have killed not one but a couple of birds with one stone. And so that is why I come back to my point that the railings in this House and outside of it against the actions that the Government has taken in bringing this Domestic Partnership Bill are likely to result in precisely what those who are against same-sex relationships want less off all for same sex marriage to be put on exactly the same terms as heterosexual marriage.

The same-sex community will be overjoyed. So when it comes as I believe it inevitably will, all of us in this House will understand the part that we played in the introduction of same-sex marriage to this country. Some will cheer it, some will say disaster attends us. But it will be settled once and for all.

It has been a hard seven years plus; yesterday the hardest of all. I am man that if you are with me I will go to my neck in blood for you. I live by some basic principles – loyalty and trust are principle among them. I will say this: were it not that this country is still in a most precarious and dangerous situation over the COVID-19 pandemic my speech today would end very, very differently than it will.

But I love my country and I love my people even more than I love my own convenience and personal peace and satisfaction. I have given the best years of my life, the most productive years of my life to public service. I have no regrets in making that decision. I have always sought to do what I thought was in the right interest of my country and my people. I am human, I don’t always get it right, but I try very hard to and the older I get and the more war weary I get the better I find my judgment has become about issues and about people. That man that sits behind me gets very little kudos, gets very little praise but I shall call him by name: Samuel Washington Bulgin, QC is an exemplary public servant and an exceptional lawyer. Seven years plus as being legal advisor to the Cabinets I have led he has never once led us wrong on any issue of consequence. Even when others, including some on the other side of the House have criticized him, railed against his interpretation. I remember when the Grand Court judgement came down in this matter. The poor AG got it wrong. Even when the governor felt we should not appeal that decision, the attorney general in his quiet diplomatic way said I think it’s wrong. The case with the referendum law. I heard people on the other side cheering when the government lost that because I’m hoping they simply didn’t understand the implications for this House had that judgement stood. The AG says I think it’s wrong. We went to the UK. We sat around the table in Blackstone Chambers and certain lawyers said we shouldn’t pursue it and he said I disagree with you. I think it’s wrong. That’s a man as they used to say in those old western books that I used to read when I was a boy, a man to ride the river with.

I thank him. I thank his staff; exceptionally exemplary people who have worked so hard through this COVID-19 pandemic on everything we needed from regulations to this issue on those appeals, I don’t want to start calling names because I will leave someone out. Reads the names: Reshma, Celia, Darlene, Cheryl and Jose. They are unsung, unheralded, but this country is blessed to have that quality of legal advice and it’s not just advice. It’s the willingness to go the extra 10 miles to make sure to get it right.

I also want to thank my Cabinet colleagues for all of their hard work over all these years and all the difficult decisions that we make in Caucus and Cabinet every week. We don’t always agree, but that is why I think the government has been as good as it has been because I never learn from someone who agrees with me. Someone who causes me to think about what they’ve said and even to argue with them does help.

So this has been for me a disappointing and unhappy ending for this bill but as the AG has said to me, the sun will come up tomorrow.

I would urge us all as we speak our mind and our conscience to remember always the importance of compassion and tolerance and to understand that however strongly our views may be held, others are entitled to theirs as well. It is other people – other parents, children; others’ children’s parents – that we are speaking about. My point, we are all God’s creatures and we ought to, regardless of how strong we feel, to remember that.

Let me now describe what the Bill seeks to do. In broad terms the Bill contemplates two persons entering into a domestic partnership that is registered by the Registrar of Domestic Partnership. Madam Speaker those registering must be eighteen years or older, or if between 16 and 18 years old they must have the requisite consent of parents, guardians or the courts in the same way that consent is necessary for people of the opposite sex who propose to marry under the age of 18. Neither can at the time of registration be married or in a recognised domestic partnership; and of course, they cannot be related. 

In short, the Bill, if it becomes Law, will permit two adults to enter into a formal, legal partnership with defined rights recognised by the state. It will be termed a Domestic Partnership. It is not a marriage

That is what this Bill is about, Madam Speaker. Before I get into the details I need to just say a few things about what this Bill is not about.

First, this is not a Bill about the legality or morality of homosexuality. The issue of the legality of homosexuality in these Islands has been settled for almost twenty years now, as required under the United Kingdom’s Caribbean Territories (Criminal Law) Order, 2000, which took effect on 1 January, 2001. That Act, passed in the UK by Order in Council, decriminalised homosexuality in these Islands and all the Overseas Territories and confirmed that homosexual acts carried out in private shall not be an offence provided that the parties consent thereto. So regardless of our views on homosexuality, that has been the position in our Islands for 20 years. Homosexuality is not a criminal offence.

Despite that, Madam Speaker, when issues such as the one now before us are raised, often what we hear are thunderous speeches railing against homosexuality. I do not for a moment doubt the sincerity of the views held by many in these Islands on this subject, Madam Speaker. However, I do question the relevance of such views when it comes to the matter before us today and the issues contained in this Bill.

There is a very important principle at stake here today. But the rights and wrongs of particular lifestyles is not it. Rather, as I will explain, the principle at stake today and with this Bill is whether this Honourable Legislative Assembly of the Cayman Islands is willing to uphold the rule of law. 

In my view, for lawmakers, principles do not come much more important than that and I hope Members will focus their minds on it as we deliberate here today. The late president of the United States John F. Kennedy in his message to the American people in 1962 on discrimination is one that is appropriate for this House to consider on this occasion. He noted that while citizens are free to disagree with the law they are not free to disobey it

Secondly, this is not a Bill about marriage, specifically marriage between same sex couples. We have sought in bringing this bill to ensure that we maintain what our law says about marriage and also the views of many in our church communities. But we have also acknowledged the need to abide by the law and to provide protections for same sex couples that the law and the Courts have demanded of us.

I was heartened to receive a letter on July 16^th from the Cayman Ministers’ Association where they recognised the efforts that we have gone through to protect the rights of people on both sides of the debate.

This letter states as follows Madam Speaker:

Quote

Dear Hon. Premier

Greetings!

I write on behalf of the Executive of the Cayman Ministers Association, regarding the Domestic Partnership Bill.  We do appreciate the cordiality and consideration that both you and the Attorney General have always afforded us. We also sincerely appreciate your sensitivity to the concerns of the Church and the wider community regarding same-sex relationships.

You did express however, the need to address the lingering matter of same sex unions, especially in the light of the ruling of the Court of Appeal. We as a CMA Executive are further appreciative of the manner in which you sought to protect heterosexual marriage, according to our constitution, and also to protect marriage officers and churches from any obligation regarding domestic partnerships.

We do wish to submit very humbly and respectfully a Formal Position Letter, which we would like you to consider in your decision making. This we also would be making available to the other members of the Legislative Assembly. Attached also are comments from The Rt. Hon. Dame Joan Sawer, former President of the Court of Appeal and Chief Justice of the Bahamas.

We know that this is a very difficult matter and may God grant you wisdom in your decision making.

Yours Very Truly

Torrance Bobb

Chairman, Cayman Ministers Association

End Quote

Madam Speaker I will make available a copy of this letter and attachments on the table of this Honourable House.

The letter from the CMA spoke well to their recognition of our efforts to keep marriage and domestic partnerships separate.  So Madam Speaker I say again that this Bill is not about marriage. This point is important, Madam Speaker, and I will say more about that shortly. 

Before I do so, however, I need to remind the House of the background to this Bill.

Madam Speaker, the particular path that has brought us here is a complaint by Ms. Chantelle Day, a Caymanian Attorney, and Ms. Vickie Bodden Bush. A complaint that has been considered by the highest court in our land.

What the Courts – the Grand Court and the Court of Appeal - have determined lies behind that complaint is the failure over many years of this Hon. House to provide a solution that safeguards the rights of some members of our society.  It is that failure we are being charged to rectify here today.

In April 2018, Ms. Day and Ms. Bodden Bush wrote to the General Registry requesting a licence to enter into marriage in the Cayman Islands. The application was properly refused given the clear requirements of our Marriage Law, which stipulates in section 2, that marriage is the union between a man and a woman as husband and wife.

Therefore, Madam Speaker, as a matter of law the General Registry could not properly, and did not, issue a license to them to get married. 

That was the law then in August 2018 and that is the law today, in July 2020. Madam Speaker, more importantly, that will remain the law, even if this Bill is passed by this House. This Bill does not seek to change or supersede the existing Marriage Law. 

Madam Speaker, having properly met with a refusal by the General Registry, Ms. Day and Ms. Bodden Bush applied to the Grand Court for a number of reliefs because, they argued, the refusal of their application to be married infringed rights guaranteed to them under our Constitution.  In particular:

• their right to private and family life under S. 9(1) of the Bill of Rights in the Constitution;
• their right to freedom of conscience under section 10(1);
• their right to marry and found a family under S.14(1);
• And their right not to be discriminated against under section 16(1) of our Bill of Rights.

To correct what they viewed as a wrong they sought a declaration from the Courts that the Marriage Law should be read and construed with such modifications, adaptations, and qualification as may be necessary to bring it into conformity with the Constitution.

They had applied for a marriage licence so inevitably, their legal proceedings were focused on marriage. However, Madam Speaker, of particular significance to this debate today is their claim that while they were entitled to marry, they sought as a minimum, a declaration that provision should be made for them to enter into a “civil partnership”.

Madam Speaker, Honourable members would recall that the matter was heard by the Grand Court, and the Hon. Chief Justice delivered its ruling in March 2019.

The Grand Court ruled that the Bill of Rights in the Constitution did give Ms. Day and Ms. Bodden Bush the right to marry.  And by way of remedy, the Chief Justice ordered that section 2 of the Marriage Law be amended to read as follows:

“marriage means the union between two people as one another’s spouse”.

Madam Speaker, the Chief Justice also modified section 27 of the Marriage Law to bring it into conformity with the amendment he ordered to section 2.  Section 27 is the section that deals with marriage declaration. In other words, the Chief Justice, in seeking to provide Ms. Day and Ms. Bodden Bush with a remedy, legalised same-sex marriage in the Cayman Islands. That remained the law until the Court of Appeal judgment although the provision was stayed while the appeal was being pursued. This country has had same-sex marriage legalized here at that point. I say that because we may, if we fail to pass this bill, arrive back there very swiftly.

Madam Speaker, members will recall that my Government then instructed the Honourable Attorney General to appeal the ruling of the Grand Court. At stake in the appeal was not just the substantive issue of same-sex marriage but the principle that this House, not the Chief Justice, should write the Laws of the Cayman Islands. And so if a law is determined by the Courts to contravene the Constitution then it should be for this House to have the opportunity to fix it.  And so on that basis we pursued an appeal.

On 7^th November, 2019, the Court of Appeal issued its ruling. I am sure that we were all relieved that the Court of Appeal disagreed with the Chief Justice as it relates to the right to enter into same-sex marriage in the Cayman Islands.

The Court affirmed that under the current legal framework marriage is only permissible between persons of the opposite sex. The amendments to the Marriage Law that the Chief Justice had sought to impose were struck down.

On the face of it, this was a success for the Government of the Cayman Islands.  The Court had granted our appeal agreeing with our interpretation of the law and striking down the Chief Justice’s attempt to change the legislation without reference to this Honourable House.

However, having delivered a favourable verdict on our appeal, the Court of Appeal went on to issue a declaration in absolutely unequivocal terms as it relates to the legal obligations of the Cayman Islands to put into law a framework to protect certain constitutional rights relating to private and family life under section 9 of the Bill of Rights protections in the Constitution. 

Section 9, Madam Speaker, states that Government shall respect every person’s private and family life, his or her home and his or her correspondence. In other words, whilst Ms. Day and Ms. Bodden Bush do not have a legal right to marry in the Cayman Islands, the Court confirmed that they do have a right to private and family life and as such the right to a legal framework that is not marriage but one that provides similar legal resolution and security.

Madam Speaker, the declaration was not only unequivocal. It was robust and scathing.  Members of this House should be in absolutely no doubt of this. I have asked that copies of the judgment be circulated to all Members but I will read the exact language employed by the Court. Members can follow on page 36.

The appropriate declaration

“As we said in paragraph 6 above, the Appellants have finally accepted that section 9(1) of the Bill of Rights requires the Legislative Assembly to provide the Respondents with legal status functionally equivalent to marriage. Its failure to comply with its obligations under the law in that regard is woeful.  That it had such an obligation has been apparent for several years. As the Chief Justice set out in detail, the Respondents, in broad terms, offered to compromise the present litigation on appropriate undertaking from the Appellants to establish an institution of civil partnership.  Even now, when during the course of argument, the court sought information as to what the Appellants intended to do, we were merely told they were awaiting the outcome of the litigation.  It is difficult to avoid the conclusion that the Legislative Assembly has been doing all it can to avoid facing up to its legal obligations.  In the meantime, Ms. Day and Ms. Bush (and their child) suffer in the many ways the Chief Justice set out.

In our judgment, a declaration in the following form is appropriate:

“In recognition of the longstanding and continuing failure of the Legislative Assembly of the Cayman Islands to comply with its legal obligations under section 9 of the Bill of Rights

And in recognition of the Legislative Assembly’s longstanding and continuing violation of Article 8 of the European Convention on Human Rights,

IT IS DECLARED THAT:

Chantelle Day and Vickie Bodden Bush are entitled, expeditiously, to legal protection in the Cayman Islands, which is functionally equivalent to marriage.”

It is not appropriate to require undertakings from the Attorney General, as is urged upon us by the Respondents.  Moreover, proper fulfilment of its legal duty by the Legislative Assembly should provide the protection sought.

A final observation

We feel driven to make this final observation.

This court is an arm of government.  Any constitutional settlement requires the executive and the legislature to obey the law and to respect decisions of the court.  It would be wholly unacceptable for this declaration to be ignored.  Whether or not there is an appeal to the Privy Council in respect of same-sex marriage, there can be no justification for further delay or prevarication.

Moreover, in the absence of expeditious action by the Legislative Assembly, we would expect the United Kingdom Government, to recognise its legal responsibility and take action to bring this unsatisfactory state of affairs to an end.” 

Madam Speaker, I said earlier, that the principle at stake today is whether this House will uphold the rule of law.  The Court of Appeal has challenged us clearly and directly to do so.  As the Court describes, it would be ‘wholly unacceptable’ for this House to ignore the court’s declaration and to refuse to act. 

How can this Hon. House ask the Courts to implement and enforce the laws we pass in this Legislative Assembly if we ourselves refuse to be bound by the decisions of our Court of Appeal? Indeed, how we can expect the people of these Islands to be bound by the law if we as lawmakers refuse to do so.  If we claim some moral right to ignore a very clear instruction from the Courts, what is to stop every other participant in legal proceedings in these Islands from doing the same?

I have spent almost 20 years in this House. I have been proud to be a Member.  I have been proud to uphold the law and to observe the sacred oath that I swear – each of us swears - when taking office after each election. Madam Speaker, before taking up our seat in this honourable House, each of us is required to speak the Oath of Allegiance.  Indeed, we cannot act as Members of this House without doing so. 

Let me remind members of that Oath. “I swear that I will be faithful and bear true allegiance to Her Majesty Queen Elizabeth the Second, Her Heirs and Successors, according to law. So help me God.”

I will simply observe that the Constitution allows the words “So help me God” to be omitted by Members who wish to affirm.  But I also note that the words “according to law” may not be omitted.  That is the core of the Oath we take. “According to law.”  That is how we must act as Members of this House; according to law. 

Increasingly I am seeing and hearing calls for a People Initiated Referendum on this matter, or from some in this House and outside of it for a general referendum at the next election so that the public can decide on this issue. Madam Speaker this is not a policy decision. This is a matter of Law and indeed a Constitutional matter. To repeat again, our Courts are requiring that the Legislative Assembly provide the protections that they have identified. They are requiring that this Legislative Assembly cease the continuing breach of both Article 8 of the European Convention on Human Rights and Section 9 of the Bill of Rights of the Cayman Islands Constitution. Compliance with these provisions is not a matter of choice for this House or for this Government. Rectifying these issues is a matter of complying with the law as articulated by the Court of Appeal.

A People Initiated Referendum does not apply to Constitutional matters and a general referendum, as allowed by section 69 of the Constitution, is also not suitable to decide this matter.  It has been decided by the Courts that this Legislative Assembly as everyone in this house is aware.

Some have argued that we can, indeed should, continue to prevaricate. Why, some ask, are we rushing ahead with legislation when the matter is on appeal to the Privy Council? 

To answer that Madam Speaker I can do no more than repeat the words from the court of appeal.

“This court is an arm of government. Any constitutional settlement requires the executive and the legislature to obey the law and to respect decisions of the court.  It would be wholly unacceptable for this declaration to be ignored.  Whether or not there is an appeal to the Privy Council in respect of same-sex marriage, there can be no justification for further delay or prevarication.” That is why the Government must proceed as we’re doing today.

Honourable Members should recall that the Court of Appeal was almost incredulous that despite having conceded the legal principle the Government – my government, the government which I lead - had no plan or timetable for legislation to enact domestic partnerships. We do not have to wonder then what view would the Privy Council take if months later we go before them in February next year and still have no plans to resolve this impasse?

Moreover, I ask that Honourable Members also recall that the appeal to be heard by the Privy Council is not about domestic partnerships or civil unions. It is about same-sex marriage; what is being appealed by the appellants there is the decision of the Court of Appeal, which found in favour of the Government and the Legislative Assembly position that our Constitution does not require same-sex marriages. Members must also recall that it has already been established and affirmed by the Court that some form of domestic partnership, rather than same sex marriage, is necessary to safeguard the rights of individuals, such as Ms. Day and Ms. Bodden Bush.  That fact will not change. It will not.

And so if we fail to act then the Privy Council will, I am certain, act in our stead and implement same-sex marriage because they have no means of assuring that persons in same-sex relationships are protected as are required by both Article 8 of the European Convention on Human Rights and Section 9 of our Bill of Rights. The issue before them is solely that; whether or not same-sex marriage is required under our Constitution. And if we do not have a domestic partnership law in place then same-sex marriage will not be a difficult decision for them to make.

And we in this House would have only ourselves to blame Madam Speaker. And many of those public voices now against this Bill, despite whatever they say now, will hold us to account if same sex-marriage is introduced because we - this Legislative Assembly - failed to act.    

This is our moment of truth - we can act and have a hand in making our own destiny or we fail to act and dither and allow others to do as they see best.

Madam Speaker, the circumstances over recent months with our response to the COVID-19 Pandemic have caused a delay in bringing this forward, but as the Court made its expectations clear, we should delay no further.  We must act and we must act now. 

There is also, in my view, added risk in delay. Notwithstanding any appeal to the Privy Council, the Court made itself very clear that the protections sought by Ms. Day and Ms. Bodden Bush must be put in place.  Again, I quote:

“Moreover, in the absence of expeditious action by the Legislative Assembly, we would expect the United Kingdom’s Government, to recognize its legal responsibility and take action to bring this unsatisfactory state of affairs to an end.”

I can tell you that stated expectation certainly caught the attention of the UK Government. 

Some have argued that we should hold out against this change and let the United Kingdom impose it upon us.  They seem to believe that in taking what they regard as a principled stand and it is better for us to refuse to accept the change and have it forced upon us. 

I contend that approach is not one of moral principle that would lead us into further delay.  Rather it would in my view equate to moral neglect to not seize the moment and act when we should.  If we do not act then this House is abdicating its responsibilities.

But just suppose we do take such a course and delay. There must be an added risk that if the United Kingdom Government were the ones to push a change they would decide to impose same-sex marriage on these Islands rather than domestic partnerships. It would not take very much to simply reinstate the ruling of the Grand Court judge. And many of those public voices now against this Bill, despite whatever they say now, will hold us to account if same-sex marriage is introduced because we failed to act.    

There is, I think, a view that to accept domestic partnerships would be the thin edge of the wedge and that same-sex marriage would be bound to follow.  The experience in the UK and elsewhere in the world may indicate that there is some substance to that argument.

However, same-sex marriage has come about in those jurisdictions because legislators in the UK and elsewhere have voted for it. It was not imposed on them by the courts. I strongly believe that if we put in place these arrangements for domestic partnerships now that gives us the greatest chance of keeping future decisions about same-sex marriage in the hands of future Caymanian legislators. 

The issue about whether same-sex marriage should be part of our legislation should properly be left for the future and the future legislators who follow us. Let us not pre-empt their ability to make that decision by our failure to introduce the Domestic Partnership Law.

Rather, as I have said, the issue for us is whether this Hon. House will uphold the law.  Whether we will put in place the legislation necessary to safeguard the rights of a section of our population who do not have those rights protected now.  The Courts could not have been clearer about their expectations of the steps that this House needs to take.

There is one further risk I would like to highlight and that is a political risk of inaction. This Government, with the support of the Opposition, has invested considerable effort in negotiating a range of Constitutional amendments with the UK Government.  I have said before in this House that I believe these changes represent a step forward in our relationship based on the UK’s view that democratic institutions and governance arrangements are maturing in Cayman and that as such it is appropriate to give us more control over our own affairs. 

If we now refuse to act when obligated to do so by the Courts, we would be demonstrating not political maturity but adolescent irresponsibility. It would be hard in such circumstances to make the case to the UK that they should press ahead with the Constitutional changes we have fought for and which were supported on all sides of this House.

To be clear, Madam Speaker, no one on the UK side has yet threatened us with withdrawal of the proposed changes. There is no quid pro quo at play here. I am just realistic enough to recognize the risk and the consequent damage both to our much-improved relationship with the UK and to our wider international credibility.

It follows, Madam Speaker that in the circumstances the Government has an obligation to give effect to the pronouncement of the court.  The rule of law requires the government to do so.  Indeed, both leading Counsel from London who argued the case for us are quite firm in their advice that we should do so before the matter is dealt with at the Privy Council.

It is for that reason that I am asking all Members of this Assembly to support this Bill.

However, in so doing I have assured those in my Cabinet and on the Government benches that they can vote their conscience with regard to this Bill, or not vote as they see fit.  And I understand that the leader of the Opposition has also told those on his team to do the same.

I have a good sense as to who on my side supports the bill.  And based on what they have said to me, or said publicly, I believe that I have a good sense as to who on the benches opposite will also support the Bill. Of course, they may have changed their mind since last we spoke and I will certainly see once I take my seat.

But Madam Speaker, I must commend one-member opposite especially for his understanding that what is before us comes down to us doing our duty according to the law; but also it will provide protection to the Marriage Law as well as providing legal protections to individuals like Ms. Day and Ms. Bodden Bush. I speak of The Member for North Side. In his public statements he showed a clear understanding of what is at stake. In an interview to the Compass in November 2019, he said (Quote), “My fear has always been if we don’t do what we want to do, the United Kingdom will do what we don’t want to do, and that is tamper with our Marriage Law”. 

This summarises the position very well. I commend Mr. Miller for it. I commend him also for the strength of his conviction when he said in the same interview that if he would lose the election because of his support for civil unions, such as offered by the Domestic Partnership Bill, then so be it.  He went on to say “That’s my position and it is a considered position that is not a flippant position.”

Again, whilst I wait to see how the Member for North Side debates and votes on the Bill I certainly commend him for his publicly stated position.

Madam Speaker, the Member for George Town Central is a renowned fence sitter. I say this somewhat tongue in cheek Madam Speaker but on this matter the Member has certainly had his feet on one side of the fence or the other from time to time. But his statements to me personally and in the media does give the impression that he supports it.

Madam Speaker, Cayman News Service in an article on 21 July, 2020, noted that the Domestic Partnership Bill will Likely get the support from the two independent Members, Ezzard Miller and Kenneth Bryan, who have both said publicly that … “it is better for Cayman to draft its own legislation to deal with this controversial issue than have it imposed” on us by the UK.  Again, I completely agree with this sentiment and I congratulate the member from George Town Central for taking that position. I will see during the debate which side of the fence my colleague from George Town Central will be on when he rises to debate.

I am hoping that my debate here has successfully outlined the reasons why the majority of members present should vote in favour of and to pass this Bill into Law.  I hope too that

I have sufficiently outlined the risks if we do not.

Having asked Members for that support, I will just quickly outline the main provisions within the Bill, Madam Speaker, which reflects substantially, the arrangements which obtain in Bermuda following their Domestic Partnership Act 2018. 

Madam Speaker, as usual, clause 1 deals with the short title and commencement.

Clause 2 contains a number of relevant interpretations; including Madam Speaker, that of domestic partnership, which means a domestic partnership formalised and registered in accordance with this law.

Clause 3 Madam Speaker is of particular significance in that it contains an overview of the eligibility to enter into a domestic partnership.  In particular it stipulates that two persons over the age of 18 years may enter into such partnerships. However, Madam Speaker, it also provides that persons sixteen years or older but not yet eighteen may also enter into such a partnership provided there is parental consent or consent from a legal guardian or the court.

The clause also stipulates that if persons are already married or involved in a domestic partnership or an overseas formal relationship they would not be able to enter into a domestic partnership. Similarly, Madam Speaker, neither person should be in the prohibited degrees of domestic partnership, that is, must not be related as siblings, child, parents, etc.; the same prohibitions that obtain for marriage.

Madam Speaker, clauses 7, 8 and 9 together deal with the issue of notice and issuance of licenses for domestic partnerships.

In essence Madam Speaker, if there are no legal barriers or caveats then the Registrar is required to issue the requisite licence once the required notice period has been met.  There is also provision for a special licence to be issued by the Deputy Governor.

Part 4, Madam Speaker, which covers clauses 14 and 15 speak to the formalisation of a domestic partnership.  It provides that once either the Registrar, or a domestic partnership officer is satisfied that all the necessary legal pre-conditions have been fulfilled they may formalise the relationship. The formalisation will take place in the presence of two or more witnesses.

It should be noted that it also contains provision for what is called partnership in “extremis”, that is a type of “death bed” partnership where, in the opinion of a medical practitioner, at least one of the parties is in a dying state but is still able to comprehend the effect of entering into a domestic partnership.

Madam Speaker, a feature of the Bill is the ability for a person who has any lawful grounds to object by way of a caveat to the issuing of the licence for the domestic partnership.  Once an objection is lodged it has to be recorded by the Registrar and eventually transmitted to a Judge of the Grand Court for an administrative decision as to its merits.  If the caveat is upheld the partnership cannot go ahead.

Madam Speaker, part 6 of the Bill covers issues such as when a domestic partnership may be said to be void or voidable, including instances where there is lack of legal capacity by one of the parties to the relationship.

Madam Speaker, also of significance is part 7 of the Bill dealing with the formal registration of a domestic partnership.  Clause 21 in particular contemplates that the Registrar General shall maintain a Register of all Civil Partnerships, including all notices given, and all the domestic partnership entered into under the law.

Clauses 25-27, Madam Speaker cover matters dealing with the appointment by the Deputy Governor of domestic partnership officers and for the list of those officers to be published by the Registrar General.

Madam Speaker, it is worth emphasising that according to clause 29, a person who is a marriage officer is not permitted to formalise domestic partnerships unless that person is also expressly appointed as a domestic partnership officer.  Of equal significance Madam Speaker is the fact that a marriage officer cannot be forced to use any place of worship under his or her control to formalise a domestic partnership, hence Madam Speaker the reason for the caption protection of marriage officers at part 10 of the Bill.

Madam Speaker, like the issue of the ability to permit gambling on Cayman Registered Vessels in international waters, the issue of the ability to formalise domestic partnership has also been mooted for some time.

You may recall Madam Speaker that the gambling issue has been resolved, with an amendment to the Gambling Law (1996 Revision) in 2016. 

Madam Speaker, part 11 of this Bill seeks to address the granting of licence by the Hon. Deputy Governor to the master of a Cayman registered ship to be a domestic partnership officer and thereby facilitating formalising of Domestic Partnerships aboard such ships on the high seas.

Madam Speaker, in part 12 of the Bill are provisions that will, among other things, allow for the recognition, in the Cayman Islands, of certain overseas relationships to be treated as domestic partnerships. These Madam Speaker are relationships that are either specified in the Bill or having met certain other general conditions and that are registered in the relevant overseas countries. For these Madam Speaker, I would ask members to refer to schedule 2 of the Bill where both the countries and the description of the relationships are listed.

Another feature of the Bill Madam Speaker is found in part 13, which stipulates that in instances of breakdown and dissolution of a domestic partnership, the provisions in the Matrimonial Causes Law and the Maintenance Law would apply to their court proceedings.

Then Madam Speaker there is part 14 of the Bill, which creates certain offences to do with domestic partnership, e.g. a person who, not being a Registrar or a domestic partnership officer, purports to formalise a domestic partnership.

There is provision in clause 45 for the publishing of annual reports of summary of domestic partnerships registered during each year.

Then Madam Speaker there is part 16 of the Bill, which allows for references from other Laws to be also applied to domestic partnership, (see column in clause 46 for the list).

Part 17, Madam Speaker, seeks to, among other things, clarify the position as it relates to marriage, but also goes on to provide that certain overseas same-sex marriages, may be recognized if entered into before this Bill becomes law.

Also Madam Speaker, there will be a slight committee stage amendment to, among other things, provide that thereafter, such marriages can only be recognised and treated in Cayman as a domestic partnerships in certain circumstances.

So Madam Speaker that is a general outline of some of the main provisions of the Bill. It is not an exhaustive summary, given the length of the Bill. Additionally, Madam Speaker, I shall advise Hon. Members that if this Bill becomes Law, there will be a number of other Bills to effect certain consequential changes to other Laws in order to give full effect to the declaration of the Court of Appeal as it relates to “functional equivalency to marriage.”

These Madam Speaker include Laws such as the Penal Code Law, Mental Health Law, Immigration Law, National Pensions Law, Adoption Law, Succession Law, Wills Law and some others.

In closing, Madam Speaker, I would like to take this opportunity to thank the Attorney General and his staff for the work they have done to produce this Bill.  It is a necessarily complex piece of legislation given the requirements laid down by the Court and the need to ensure we can demonstrate that the resulting legislation reflects the needs to safeguard the Constitutional rights of those who were not previously offered such protections.

In asking Members to vote to pass this Bill, I am asking them to uphold the rule of law and the principle of respect for the decisions of our Courts. I know this is a difficult decision for some, including some of my colleagues on the Government benches. However, there is no place for us as lawmakers to hide. Either we accept the rule of law and make the changes we are bound by our Oaths of Allegiance to make or we do not. There is no middle ground. The idea that we might simply sit on our hands while either the Privy Council or the United Kingdom Government solve this for us is at best to abdicate responsibility and at worst to fail in the most fundamental tasks of government – to uphold the law and to safeguard the rights of our people.

This is now a question of political leadership. Are we, as lawmakers, going to face up to our responsibilities or abdicate them and leave it up to the Privy Council or United Kingdom Government to discharge the sacred function that we swore an oath to do?

Are we prepared to bear the burden of leadership as we were elected to do or shall we leave it to the United Kingdom either by their judges in the Privy Council or as a result of the extension of an Order in Council for these Islands to make the decision, which each of us in here campaigned that we were able and competent to do; that is the question which each of us must ask ourselves.

There is a reason why it is called the burden of leadership; it is often heavy to bear. We shall see whether we are capable of bearing that burden or whether it shall cause us to bow and pass that responsibility to another country and another people to discharge.

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Premier Hon. Alden McLaughlin said he was pleased with the Court of Appeal’s decision.

“Government’s decision to go forward with the appeal at this time was a matter of principle-- judges should not have the right to overturn policies that have been made by elected officials as they see fit,” said Mr. McLaughlin.

“I have never been a populist leader, nor am I a good politician in the generally understood sense. I have always striven to do what I believe is in the best interest of my country and people, without concern of political consequences,” he said. “Although I believe with all my core that Cayman will come to curse the day and damn the hour that the cruise and cargo port project was scuppered; that was not the reason for proceeding with the appeal. Were it so, we would not have appealed. 

“What was actually at stake was the right of the democratically elected Legislative Assembly to decide what legislation should be made and the content of those laws. We appealed against the judgment of a temporary judge who we believe usurped the function and role of the LA and arrogated to himself an authority to which he was not entitled. If the judge had been correct, then the role and authority of the legislature would have been greatly diminished, not just with respect to the Referendum Law, but generally. I shudder at the implications for my country when unelected judges are able to dictate public policy.”

Deputy Premier and Minister of Tourism Hon. Moses Kirkconnell concurred.

“I am pleased with the decision by the Appellate Court which accords with the Cayman Islands government’s position that the Referendum Law passed by this administration in October 2019 is compatible with Section 70 of the Constitution,” he said.

“The decision taken by the Grand Court to strike down that Law and compel the Cayman Islands Legislative Assembly to pass new Legislation, not only breached the principles of the separation of powers which underpin our democratic system, but equated to a significant judicial overreach. Major constitutional issues and serious ramifications can arise when the line drawn between the legislative and judicial arms of government becomes blurred. On that basis, the government felt obligated to appeal the Grand Court’s decision, and although it has been a lengthy process, I am satisfied with the outcome. 

“After the long and arduous journey to finally reach this pivotal point, the onset of the global COVID-19 pandemic has, in the meantime, recalibrated the country’s priorities. As a consequence, government has taken the difficult decision not to move forward with the cruise berthing and cargo port project.

“Government’s highest priority since the outset of this pandemic, has centered around putting the needs of our people first, while implementing one of the most proactive and decisive virus containment strategies in the world. With the country now at suppression level 2 and businesses slowly resuming operations in the ‘new normal’, government’s heightened focus on safeguarding public health and wellbeing will continue to be maintained.

“At the same time, a range of strategic initiatives are being implemented to revive our economy and rekindle the domestic tourism industry, so that our Islands can be as prepared as possible to welcome visitors back to our shores when it becomes safe to do so.”

Premier McLaughlin will make a statement on the ruling later today in the Legislative Assembly.

Madam Speaker, this Legislative Assembly enacted the Port Referendum Law 2019 and preparations were well advanced for the holding of the referendum.

Ms. Shirley Roulstone as a proxy for CPR; and the National Trust judicially reviewed the decision of the Legislative Assembly and the Cabinet. Justice Owen found in their favour-holding, among other things, that S.70 requires a general law and therefore the specific piece of legislation passed for the Port Referendum was unconstitutional.

Madam Speaker, the Government was always of the opinion that the ruling was wrong. Hence the reason why we appealed to the Court of Appeal.

Today the Court of Appeal agreed with the Government. The Court ruled that the absence of a general law does not in itself prevent or inhibit the right of every Caymanian voter to participate in a fair and effective people-initiated referendum and the Port Referendum Law 2019 was therefore not unconstitutional.

Of significance to the Government and this Legislative Assembly is the Court of Appeal's observation to the effect that the Section 70 power given to the Cabinet to set the question and fix a date and also the responsibility given to the Legislative Assembly thereunder to enact a law shows that the form of direct democracy created by S. 70 does not oust the representative elements of democracy.

Madam Speaker, the reference there to the roles of the Cabinet and Legislative Assembly is of enormous significance when read in the context of what Ms. Roulstone and the CPR would have us believe.

Indeed the court was firm in its rejection of their arguments to the effect that the Cabinet's role in setting the wording of the referendum question was limited to "drafting details" and the Legislative Assembly is no more than a party to the debate.

Madam Speaker, of immense relief to the Government is the Court of

Appeal's clarification of the doctrine of the separation of powers. The court, in its judgment reminds us all of the wise counsel of Lord Nicholls of the United Kingdom Supreme Court when he said that courts must abstain from any course, which might have the appearance of judicial legislation.

The Americans refer to that as judicial activism.

The Government accepts and supports the independence of the Judiciary and its role in interpreting the laws. And Madam Speaker the doctrine of separation of powers requires that the courts in return, respect the role of the legislative branch to enact laws. What form a particular piece of legislation takes is a matter for the legislature, provided it is otherwise constitutional.

The Government therefore welcomes this clarification by the Court of Appeal. We also welcome the court’s clarification of Section 70 of the Constitution. A clarification and an interpretation that the Government has always advocated.

Madam Speaker, it is only appropriate to observe that the government accepted before the Court of Appeal that there had been a number of "false starts" by government in seeking to enact the law. This is to be expected given that it was our first attempt at using S. 70 and there was not much precedent to guide us. However, the government was always of the firm view that because S.70 makes no express language about whether it should be a general or a bespoke law therefore it was open to the Legislative Assembly to enact a specific law for each referendum provided it was otherwise constitutional, and therefore that the Port Referendum Law 2019 was always constitutional.

Since we got the ruling I have seen a press release by CPR and stories on CNS about the ruling. CPR is still claiming victory. Without question their actions have had the effect of derailing the port project. For that they are celebrating and a number of people along with them.

One of the great ironies of this exercise is that CPR were arguing all along that what they were seeking to do is protect participatory democracy in this country to enable everyone who is entitled to vote to do so in the context of this project and the referendum, which it has triggered. But they have achieved the opposite result.

I do not think they were ever interested in the referendum and the people having the right to vote; instead, they had the narrow interest in stopping the project. They have prevented the electorate from being able to register their view on whether that particular cruise port project and ancillary cargo port project was a good thing or not. The country is no closer to knowing one way or the other whether this is something that should go ahead.

Those who labour under the misconception that the Port Referendum Law and the petition that triggered it will survive the next general election do not understand the basics of the election process or the constitution. Whichever administration comes in will come in with a fresh start. If it is their policy to press ahead with a cruise port that will be a matter for them.

What CPR have done is two things: they stopped the project but they also prevented the people from having the opportunity to vote whether it should go ahead or not. If that is not a perversion of the democratic process, I don’t know what else would be. This government is not going to pursue the project during the balance of the course of this term. But this project is not going to go away whether I am here or the Deputy Premier or any member of my government.

This is a crucial issue and a national decision that a future government is going to have to make; whether or not we want to resume a cruise industry in this country. We are going to have to provide proper facilities for those who come via cruise ship if this is a business we want to keep. That is a decision that is going to have to be part of the campaigns of the platforms of those who seek to contest the next elections. It is not going to go away.

The thousands of people who are unemployed who this government is trying to help are all going to need jobs, not just now, but in the future. If they do not have the opportunities offered by the cruise industry they will have to find work somewhere else.

Good afternoon everyone, I thank you for the opportunity to engage with you and share information with you about the current economic environment, share with you what stimulus measures we have taken and propose to take in the coming months and finally give you an update on government's financial performance. In so doing, I hope you will have a better understanding of the impacts we are seeing and the fiscal challenges we face. At the conclusion, I will be happy to answer your questions.

PRE-COVID-19 ECONOMIC PERFORMANCE

Ladies and gentlemen, "we woke up in 2020 and met a different world with COVID-19."

We concluded 2019 with a thriving economy growing at about 3%, led by construction growth of 6.1%, hotels and restaurants by 5.3%, inflation running at 5.7% and unemployment rate at 3.5%.

This state of affairs continued through February and in March when Covid19 was visited upon us, it turned our world upside down overnight and forever changed it.

So where are we now?

Economic Projections for 2020

According to the International Monetary Fund (IMF) in its April 2020 World Economic Outlook (WEO), the "great lockdown" will be the worst recession since the Great Depression and much worse than the 2008/09 global financial crisis. The IMF projects the global economy to contract by 3.0% in 2020. Advanced economies are expected to contract by 6.1% with the US forecast to decline by 5.9%.

For Latin America and the Caribbean, the IMF projects the region will contract by 5.2%. Among Caribbean countries, Aruba is projected to show the largest contraction, with a GDP decline of 13.7%. Regional GDP declines projected for other countries include Antigua and Barbuda (down 10%), Barbados (down 7.6%), St Lucia (down 8.5%), The Bahamas (down 8.3%), and Jamaica (down 5.6%) just to name a few. I hope that this gives some well-needed context to our economic projections that I am about to discuss.

Cayman Islands GDP performance

In the best-case scenario that was considered, the local economy would be reopen by the beginning of July 2020. This scenario also assumed that visitors to these islands would begin to arrive, in October of this year, albeit in small numbers. Under these scenarios, GDP is projected to contract by 11.4% with the unemployment rate rising to 11.6%. The number of displaced jobs was estimated at 8,859 (or an unemployment rate of 18.7%), of which 2,772 would be Caymanian jobs. The scenarios are conditioned on the gradual return of visitors (less than 20% of normal visitor levels that usually prevails at the high tourist season) beginning in the last quarter of 2020.

If international developments prevent the arrival of visitors to our shores for the rest of this year, then based on the economic projections, we would see a further uptick in the unemployment rate and a further contraction in the ability our residents to earn money. Under this scenario with a July 2020 lifting of most domestic restrictions, the income earning capacity (GDP) of these Islands is projected to contract by 12.2% with the unemployment rate rising to 12.3%.

As a result of the projected decline, the Caymanian unemployment rate is projected to jump to 19.7% (or 2,981 persons), and a total of 9,582 jobs (or 12.3%) would be displaced. It is disheartening for me to relay such bad news. Still, our government will continue to tell you the unvarnished truth, whether it be good or bad.

Consumer Prices

Despite a sharp uptick in food and medical/sanitary goods inflation for the first quarter of 2020, a reduction in non-food demand coupled with a decline in international commodity prices - including oil prices - is expected to relieve inflation pressures for the year. The global demand is expected to remain subdued for non-food items over the short term, especially in our source markets. In addition, locally, downward pressure on housing rental is expected as displaced ex-pats exit our shores, lower transport costs due to lower cost of fuel, and with the halt in visitor arrivals pushing domestic accommodation prices downwards. Consequently, these factors combined are projected to exert downward pressure on the average inflation rate to 0.4% in 2020, compared to 5.7% for 2019.

At the request of the Government, the Economics and Statistics Office prepared a report titled "The Cayman Islands Economic Assessment and Stimulus Plan". This Plan focuses on the Islands' estimated macroeconomic performance in 2019, together with an assessment of policies announced and/or implemented by the government in response to the COVID-19 pandemic to date. In addition, the report presents forecasts and assumptions for 2020 and recommends stimulus measures that could be adopted to incite economic recovery.

Some Recommended Stimulus Measures

Included in the report is an extensive list of measures submitted by government ministries, private sector entities, and civil society for consideration. All of the measures submitted are included in the report that has been received by Cabinet for consideration.

The policy measures recommended are based on three broad categories: Firstly, government policies aimed at leaving money in the hands of affected individuals. Secondly, policies that support small business survival by buttressing their bottom line. Third, policies that assist in the post-crisis recovery by making funding readily available, streamlining approval processes, and reducing business cost, aimed at stimulating growth in the core business sectors. And finally, policies aimed at maintaining fiscal prudence while stimulating the entire economy.

Current measures implemented or in the process of being implemented:

1. COVID-19 support funding. To further support the efforts of the health sector, the government allocated $3.0 million from the disaster relief fund to finance the initial costs associated with COVID-19.
2. Funding for vulnerable families. Increase staffing at the NAU to accommodate an expected increase in applications for assistance.
3. A one-off payment of $425 to the disabled, seamen, veterans and persons already receiving personal financial assistance from the government.
4. A one-off stipend of $600 paid to taxi drivers affected by the fall-out of cruise ship visitors.
5. A one-time grant of $600 to Caymanian tourism workers affected by the shut-down.
6. Expanding the NAU public assistance to allow work permit holders affected by the closure to apply for food voucher assistance.
7. Pension withdrawal and pension payment holiday. Amended the pension law to allow persons to withdraw up to 100 percent of their pension funds not exceeding $10,000, and 25 percent of funds above $10,000. In addition, to the suspension of pension payments from 1st April to 30th September for employees and employers.
8. Low-cost loan financing. A loan fund valued at $5.0 million was created and made available to micro and small businesses, which are 100 percent Caymanian owned. The loans will be provided through the Cayman Islands Development Bank at an annual interest rate of 1.0 percent after a six (6) months re-payment moratorium.
9. Grant fund for small and micro business. A grant fund valued at $9.0 million was created and made available to small and micro business. Assistance to evaluate qualification and to apply for the grant is also being provided free of cost.
10. Funding for technical assistance to Caymanian businesses. The government is providing funding of $500,000 for technical assistance to Caymanian owned businesses to assist with strategy and balance sheet planning. Similarly, funding of $200,000 is being provided for Caymanian owned businesses to receive training to assist them in planning and navigating this economic downturn.
11. Waived accommodation taxes and TBL fees. Tourism accommodation taxes, trade and business licence fees for a short period, etc.
12. Streamline the project approval process. To generate construction activity effectively after reopening the application and paperwork approvals should possibly be completed before reopening the economy, which will enable the projects to hit the ground running.
13. Approved enhancements to the capacity of the Planning Department to monitor and expedite construction projects and applications. The construction sector creates the most demand across all other industries and hence generate the most output in the overall economy. The Planning department human capital will be beefed up to handle the increased demand for services.

Economic assessment of measures announced and implemented to date.

The measures implemented to date by our government are expected to boost GDP value added by approximately $184.9 million in 2020, an improvement on the GDP contraction from -11.4% to -7.3%. This translates to roughly 36.0 percent of the projected falloff in real GDP. As a result of the measures implemented, more jobs will be saved, an estimated 1,468 jobs, of which 678 are likely to go to Caymanians.

Other Stimulus Measures that are actively being pursued or under consideration

I want to thank the Deputy Governor, civil servants, the private sector and the general public for participating in the process of submitting policy suggestions and ensuring that we have an abundance of policy measures to consider. The ESO through the Deputy Governor received more than 50 suggestions after merging the similar ones.

I appreciate all suggestions, but in the interest of time, I cannot go through them all here today. However, these are the stimulus measures that are currently being acted on and developed by government:

1. A low-cost loan program for small businesses most affected by the closure of the tourism industry;
2. Increase community employment programs (NiCE and others) post-COVID-19, using unemployed and displaced Caymanians;
3. Expedited resumption of Government's 2020/21 capital expenditure program, focusing initially on the resumption of construction projects that were in progress prior to the onset of Covid19. For example, this will include projects such as the Mental Health Facility in East End, enhancements to the road infrastructure by the NRA, and the John Gray High School.
4. A tourism strategic plan is being developed by the Ministry of District Administration, Tourism and Transport, to cerograph the resumption of visitor arrivals post COVID-19. Tourism represents about 20% of the Cayman economy, so it should be abundantly clear to everyone that the reopening of our borders to the resumption of tourists is of paramount importance to the government and the success of the country. We will however only do this when it is safe to do so.
5. Continue with efforts to diversify the local economy, with a focus on agriculture for domestic food security and resilience.

So the policy and stimulus measures we have implemented thus far is not the end; we continue to evaluate and continuously monitor the economy. If other rounds of stimulus measures are needed, then we stand ready to do whatever is necessary to regain and maintain a strong economy for these blessed Islands.

Government's Fiscal Performance to date

Before I conclude, it would be remiss of me if I did not take some time to provide the country with an update of government's financial performance for the year to date. Many of you have been asking for this.

Last week, the Ministry of Finance released the quarterly financial report for the three months ended March 31, 2020, and reported on by the local media. That report may be found on the Ministry's website. Because of the continued strong performance of the economy through the majority of that period, it gave very little foresight into the financial disaster that unfolded in April, and will continue to play out in the months ahead. Let me share those figures with you now:

For the four months ended April 30, 2020, Core Government:

Revenues were $376m, $28m less than the $404m budgeted;

Expenses were $248m, $10m less than the $258m budgeted;

Surplus was $127m, $18m less than the $145m budgeted.

Contrast that with the results for the three months ended March 31, 2020 where:

Revenues were $353m, $1m more than the $352m budgeted;

Expenses were $181m. $26m less than the $207m budgeted;

Surplus was $172m, $27m more than the $145m budgeted.

What this means, is that for the month of April, 2020:

Revenues were $23m;

Expenses were $68m;

Deficit was $45m

.

We also burned through $38.5m of our cash reserves.

Depending on the outcome of the stimulus measures implemented and the timing of the opening of our borders to tourism, the ESO estimates that our Revenues could contract to between $632m to $649m for the year. If this holds true, this would represent a decline in revenue of between $211m and $227m for the year, or 24% to 26%. With the increased spending required to manage the Covid19 crisis, government could be faced with a deficit of $250m this year.

I hope to have a more detailed and complete picture that we can share with the public once the Ministry of Finance completes their exercise to re-forecast the 2020 budget. At the present time however, we believe that the earliest we can reasonably expect to return to a fiscal surplus will be in 2022.

In light of the significant deterioration in governments' fiscal performance and in order to give the country the financial security and build the resilience that we need, Cabinet last week authorized the Ministry of Finance to issue a Request for Proposal for the establishment of a Standby Line of Credit in the amount of $500m for a period of 18 months. This line of credit will be utilized, or drawn down, only if we find ourselves in the unfortunate position of having exhausted all of the cash reserves available to us. We will of course need to seek approval of the Legislative Assembly and the Foreign and Commonwealth Office if and when we need to draw down on the Line of Credit. We anticipate that the Request for Proposal will be issued sometime within the next week and will be posted on the Governments Bonfire Procurement Portal.

Conclusion

You know, the resilience of these Islands' is astounding. Our ability to rise from the destruction of Hurricane Ivan in 2004 was a testament to the resolve of all residents, especially Caymanians. We can replicate that in 2020! While the challenges are indeed enormous and may seem unsurmountable, I would posit that our actions so far have left us in a strong position and well placed to eradicate COVID-19 from our community.

We have been safely navigating the single largest health disaster in this generation, and this is a demonstration of this government's commitment to the lives and livelihood of all residents. However, we are aware that this is not the end and we remain resolute and committed to charting the next steps in this journey just as we have charted the previous phase, in a prudent, responsible and professional manner that is befitting of what the Caymanian people deserve.

Amidst this crisis our Islands' have become a beacon to the region, Moody's in its latest credit report published April 13, 2020 maintained Caymans' Aa3 rating with a stable outlook, amidst this economic uncertainty. They noted that "prudent government planning has left the islands with fiscal space to deal with the economic impact of the coronavirus pandemic." Those were the words of Moody's, not mine. Arguably, even the worlds' largest debt rating agency has confidence in our little islands and our government.

One of the region's best-known economists, Marla Dukharan of Barbados, notes that "The sudden-stop will affect both fiscal and external accounts, and the countries best positioned to mitigate these impacts are those that have built buffers, giving them the space to implement counter-cyclical policy through fiscal and monetary stimulus." The Cayman Islands is one of those countries that has built such buffers, and we will answer that call as we managed prudently during the last few years, and we will respond with targeted economic stimulus measures when its safe to do so. Let's take one step at a time; our focus at the outset is preserving the life, health and wellbeing of our people, take care of taking care of those who are most vulnerable, preserving jobs, and supporting our private sector.

Cayman, I reaffirm my government's commitment to do all that is humanly possible to address our economic fundamentals and get these islands up and running again. We, as the government, will continue to be prudent while seeking out the best ways to impact the lives of our citizens in the most positive ways.

Please allow me to say a special 'Thank You' to all the hard working public servants in my Ministry for their tireless efforts in very difficult circumstances. I truly appreciate all that they are doing and continue to do to keep government functioning.

A big shout out to my management team, led by Chief Officer, Kenneth Jefferson, Deputy Chief Officers Anne Owens and Michael Nixon, Accountant General Matthew Tibbetts, Director of the ESO Adolphus Laidlow, Postmaster General Sheena Glasgow, Director of the Procurement Office Taraq Bashir. Also to CEO of CINICO Michael Gayle, and CEO of CIDB Tracy Ebanks.

Thank you!

The Department of Commerce and Investment (DCI) has processed and issued over 1400 trade and business licences since March 25.

Of that number, 305 have been new trade and business licences, 1014 trade and business licence renewals and 136 trade and business licence amendments.

Commerce Minister Hon. Joey Hew has commended the DCI team for their tremendous work in processing the large number of licences within a short timeframe. “DCI continues to go over and beyond to ensure business owners are able to meet requirements where current licences are being requested to obtain exemptions and financial assistance. The team meets weekly and Board meetings are continuing, with the use of technology”.

“I cannot underscore enough the importance of small businesses to our Islands. In the past few weeks Government has renewed the small business incentive grant programme, temporarily waived trade and business licensing application fees for some 3000 business and also provided assistance of over $14 million in relief measures to support relief measures for micro and support businesses. We will continue to find ways to provide further support to businesses owners affected by this global pandemic,” continued Minister Hew.

Government recently approved the Trade and Business Licensing (Temporary Reduction in Fee) Regulations 2020, which waives the payment of trade and business licensing application fees for businesses, from May 1 to July 31 2020.

In addition, late fees from March 1 to July 31 2020 have been waived for all applicants.

Members of the public can also visit the Department of Commerce and Investment website, www.dci.gov.ky for trade and business licensing and other information.

Local companies and exempt companies can contact info@dci.gov.ky to submit applications on a limited basis.

The National Roads Authority (NRA) has announced that it will be accelerating critical road infrastructure projects while taking advantage of the reduction in the number of vehicles on the Island’s roads during this time.

Commerce Minister, Hon. Joey Hew has announced that the Government has approved the Trade and Business Licensing (Temporary Reduction in Fee) Regulations 2020, which will waive the payment of trade and business licensing application fees for businesses, effective 1 May to 31 July 2020.

In addition, late fees from 1 March to 31 July 2020 will be waived for all applicants.

“COVID-19 has caused significant economic dislocation across the globe, with the Cayman Islands being no exception. It is in an effort to arrest this disruption that the Government continues to propose a number of relief measures to assist businesses at this time, particularly our micro and small enterprises,” Minister Hew stated.

Minister Hew continued, “As a result of these regulations, those fees which are usually collected by the Department of Commerce and Investment upon application for a trade and business licence are now temporarily waived in an effort to reduce the amount of fees incurred by businesses during this time. We have been engaging in discussions with members of the business community, such as the Chamber of Commerce, and other stakeholders to find interventions to lessen the impact of COVID-19 on our businesses and the economy”.

The temporary waiver for payment of trade and business licensing application fees and late fees will benefit over 3000 businesses.

The Government, through the Ministry of Commerce, Planning and Infrastructure recently announced assistance in the amount of Fourteen Million, Five Hundred and Twenty One Thousand Dollars (14,521,000.00) to support relief measures for micro and small businesses across the Islands. The relief measures being implemented will be in the form of a Low Interest Loan Programme; Technical Assistance Programme; Training and Handholding Programme; and a Micro and Small Business Grant Programme. .

Information on the Trade and Business Licensing (Temporary Reduction in Fee) Regulations, 2020 can be found at www.gov.ky/coronavirus. Members of the public can also visit the Department of Commerce and Investment website, www.dci.gov.ky for trade and business licensing and other information.

He noted that since 2018, Cayman has adopted more than 15 legislative changes in line with the EU’s criteria.

In April 2019 the EU confirmed that Cayman had satisfied its economic substance requirements, with the exception of economic substance for funds, also known as collective investment vehicles (CIVs). This is a specific EU requirement, as Cayman’s economic substance legislation was evaluated in June 2019 as “not harmful” – the highest rating possible – by the OECD’s Forum on Harmful Tax Practices. 

On 31 January 2020, Cayman passed The Private Funds Law and The Mutual Funds (Amendment) Law, both of which address the EU’s concerns for CIVs. The laws were enacted on 7 February 2020.

Premier McLaughlin said the EU was duly notified that Cayman would pass the CIVs-related legislation by 31 January 2020. However, it appears that the listing stems from Cayman’s legislation not being enacted by 4 February, which was the date of the EU’s Code of Conduct Group (CoCG) meeting to advise the EU Finance Ministers, prior to the Finance Ministers’ decision regarding the listing today.

“While Cayman consulted with a number of stakeholders on our legislation, including our financial services industry, the principal components of our new and revised laws were shaped by the EU’s criteria,” Premier McLaughlin said.

This includes Cayman’s commitment to a six-month transition period for registering funds that are now required to do so, in accordance with the new Private Funds and amended Mutual Funds laws.

Since the EU began its listing process in December 2017, almost 30 countries have been listed as non-cooperative. The majority have been subsequently removed, once required actions have been taken.

Premier McLaughlin said the Cayman Islands Government acknowledged the EU’s statement today, which said dialogue will continue with listed jurisdictions. He said the Cayman Islands also remains fully committed to cooperating with the EU, and will continue to constructively engage with them with the view to be delisted as soon as possible. 

As I look around the room this morning, it is great to see so many leading figures in the Cayman financial services industry alongside our visitors from around the globe.  To our returning visitors, I say welcome back - and to those who are here for the first time – make sure to enjoy our Island.

This Island is unique in the region in combining first class infrastructure and top class hotels and restaurants with unspoiled beaches, crystal clear water and a laid-back Caribbean feel. And of course, our people will offer you a warm Caymankind welcome during your time here.

Today’s theme concerns a high digital, low carbon future.  I will address that shortly but I hope you will forgive me if I also say a few words about tomorrow subject matter, preparing for geopolitical challenges.  The two themes are, of course, inextricably linked.

Some might think it unnecessary for the people of three small Islands in the Caribbean to be concerning ourselves with geopolitical challenges.  However, we have compelling reasons to do so.

If one of the most significant challenges facing all of us is climate change, then islands like ours are in the front line. As you may have observed, Grand Cayman is very flat, with even the highest point on the island only being about 60 feet above sea level.  Sea level rise poses an obvious threat.  At the same time, we are exposed to increasingly severe hurricane risk as weather patterns grow more extreme.

In Cayman, we have to think differently about development if we are to meet these challenges successfully.  It is the Caribbean, so everyone wants to build as close to our beautiful sea as possible. And in order to keep the feel of the Islands, we wanted development heights to be restricted. The result has been sprawling development along our coastlines. 

In the future, we need to think in terms of greater set-backs and higher building heights so we give room for the sea. We must also use the spaces created for more natural and green spaces - for both humans and our diverse flora and fauna.  All these issues are being addressed in the comprehensive ‘Plan Cayman’ process that my Ministry is leading on behalf of the Government.

Looking beyond our shores, prospects for the global economy are at best uncertain. The International Monetary Fund’s latest report on the global economic outlook, released last month, paints a mixed picture.  The IMF has downgraded its growth forecast for each of the next three years but generally sees more positive market sentiment and takes the view that risk, while high, is lowering. However, they note that ‘few signs of turning points are yet visible in global macroeconomic data’ and they make clear that the materialisation of the identified risks ‘could lead to rapidly deteriorating sentiment, causing global growth to fall below the projected baseline’.

Overlaid on that economic picture, there is a range of other threats.

Events in China remind us of the risk of global pandemic. There is the ever-present risk of international terrorism. Significant military conflict may result from tensions in a number of regions, while cyber-attacks pose a critical risk for both governments and the private sector.

I understand that for many in this room, understanding and dealing with these risks is what your business is all about. My purpose is not to paint a picture of doom and gloom to kick off this conference. Far from it.  Rather, I believe that the approach we have developed here in the Cayman Islands over the last 50 years demonstrates that it is by continuing to innovate that we can continue to grow. 

It is that spirit of innovation that I hope you will reflect upon as you take part in the sessions planned for the next two days.

That innovation is most apparent in the development of Cayman’s financial services industry. In Cayman, we have just celebrated 60 years of our first written Constitution which gave us formal responsibility for our own affairs. That was a responsibility we took on with pride.

 A significant early development was the 1960 Companies Law on which our financial services industry was built.  Over the last 60 years, we have continued to support the growth and development of the financial services industry which now accounts for over 50% of Cayman’s GDP. 

We continue to support the sector now and we will do so in the future. 

Cayman remains one of the premier offshore jurisdictions as a tax neutral conduit for international transactions and it has continued to grow from strength to strength.  We have maintained our approach of keeping up with global regulatory frameworks, and despite those who believed it would spell doom for the industry, the changes to our regulatory framework to introduce ‘economic substance’ requirements is, by all accounts, further growing the financial services sector. 

Government’s approach is being matched by the industry that continues to innovate in our traditionally strong sectors such as funds and insurance and is becoming increasingly active in emerging markets - notably block chain and crypto-currencies.  We are developing our legislative approach on digital assets in tandem with the work going on in the sector.

We recognise that virtual asset markets have the potential to revolutionise how financial services are provided to consumers globally. As a jurisdiction, we welcome innovation and encourage the adoption of new technologies, but we are determined that a framework has to be put in place to ensure that only legitimate actors are able to operate from our shores.

As such, we are currently developing a regulatory framework which will be technology neutral; protect consumers and users of key virtual asset services; and be compliant with evolving global standards set by the Financial Action Task Force.

The framework will also include a regulatory sandbox regime which will be flexible enough to allow for unconventional, innovative technologies to be monitored by our regulator and applied to financial markets in a controlled manner.  

The proposed framework will create effective supervision for virtual asset service providers alongside licensing, registration and enforcement regimes that satisfy anti-money laundering requirements.

This will require a series of amendments to existing regulatory laws, such as the Mutual Funds Law and Securities Investment Business Law, to bring some virtual asset services into scope of existing legislation.

We are currently working on a draft of the framework which will be fit for consultation, and I hope that when it is made public in the coming months you will all respond to the issues it raises.

By working with the industry, we intend to create a regulatory regime for digital assets that fosters innovation while ensuring proportionate but robust regulation. 

Which brings me back to today’s theme.  Cayman’s very future is high digital, low carbon.  It cannot be any other way.

The government recognises that alongside maintaining our strength in financial services and our position as one of the world’s premium tourism destinations, we must diversify Cayman’s economy.

On a small Caribbean island with few natural resources, service and knowledge-based industries will be central to that diversification.  It was for that reason that this government, during our first term, put in place a world-class framework of legislation to protect intellectual property. 

We already have, of course, some of the best professional service firms in the world, able to support the development of business in Cayman.  With the legislative framework and the support eco-system in place we have begun successfully to attract new digital businesses to Cayman.

However, we recognise that we cannot just sit back and wait for business to come to us.  You all know that simply putting up an ‘open’ sign does not bring you customers.  While we believe there are huge opportunities for Cayman, this is a globally competitive marketplace.

To maximise our ability to take advantage of the opportunities we believe that the future will bring, the government has established a new ministry - the Ministry of International Trade, Investment, Aviation and Maritime Affairs.  The Chief Officer of the Ministry, Eric Bush will address you in this equivalent slot tomorrow morning so I will not steal his thunder. 

For now, I will just say that we believe Eric’s ministry will help Cayman to advance our international reputation while making this jurisdiction easier to do business with, so attracting more inward investment.

The low carbon aspect is equally important.  Two weeks ago, I shared a platform alongside the Prime Minister of Jamaica, The Most Hon. Andrew Holness, to present on strategies for advancing infrastructure, sustainability and resilience in our respective islands at the 4^th annual Caribbean Infrastructure Forum.  Throughout that conference there was a recurring emphasis on low carbon solutions for the future infrastructure needs of the island nations of this region.

I would just like to single out two current projects being run out of my Ministry here in Cayman and then mention one more idea that you all might further consider.

One of the most pressing issues on our Island is traffic.  As we continue our strong economic growth, we are attracting more and more people to come here to live and to work. This is putting strain on our infrastructure, particularly our road network.  Quite rightly, therefore, this Government has prioritised the delivery of network improvements that will increase road capacity and reduce congestion.

However, in the longer term, we need a different answer for Cayman’s future transportation needs.

Again, there is an opportunity for Cayman to approach this issue in a new and innovative way.  If we consider the total daily traffic movements around Grand Cayman - made up of daily commuters and visitors - then new public transport solutions become economically viable. We intend to use the time that road improvements will give us - to identify and deliver the best option for public transport in Cayman.

Central to our efforts to create a low carbon future is to move towards more sustainable energy production and usage. Our National Energy Policy represents an ambition to transform our approach including a target of 70% renewable energy in our energy mix by 2037.  We will achieve that through “enhancing and embracing a sustainable life style through responsible and innovative energy supply and consumption”.

The policy gives us a 20 year roadmap for change.  We are now turning that into a clear set of tangible initiatives to deliver the transformation we are seeking.  We will encourage green energy through the increased use of solar panels and other forms of renewable energy across all three Islands, including at Government facilities. The renewable mix will include power from our new waste-to-energy plant that also end this country’s unsustainable reliance of landfill. 

This approach makes sense for our environment but it also delivers on two other crucial objectives.  First is the need to create technical and vocational jobs for the next generation of Caymanians.  The needs of a low carbon energy sector require the creation of significant numbers of such jobs.  We will work with the sector to ensure that training is there to equip Caymanians to take on those new jobs. 

Alongside such employment opportunities, we believe there are also opportunities for Caymanians who want to start and grow businesses. In recent years, this Government has slashed red tape for small and micro-businesses and we have reduced a range of costs through lowering or eliminating fees and charges imposed on such businesses.  Our new Small Business Development Centre will provide the advice and support that start-ups and growing small businesses need.

Secondly, we need to improve Cayman’s energy security.  At present we are the mercy of world fossil few markets and, as I mentioned earlier, events in the Middle East have demonstrated both market volatility and the potential for supply to be interrupted.  Renewables give us a path to self-sufficiency in energy generation.

I think what this illustrates is the recognition that sustainability is not just about the environment. It is about a future economy that delivers sensible growth and employment. It is about social progress and the resilience of people and communities. This is captured in the United Nations sustainable development goals to which Cayman is firmly committed.

From all that I have said this morning, I hope you can see that Cayman is both realistic about future challenges and excited about what we believe are huge potential opportunities -  opportunities that existing businesses can exploit; opportunities for new investors and entrepreneurs looking for a safe and welcoming place to do business; and, of course, opportunities for Caymanians.

Whether you are already doing business here in Cayman or visiting this conference to find out more, I hope you will share this Government’s optimism about the potential the future holds.  I hope you will want to be part of that future.

Ladies and gentlemen, thank you.

Premier Hon. Alden McLaughlin said “I was delighted to meet with Tim Ryan, President of the Institute along with the Provost, Chef Mark Erickson.  We had the opportunity to talk about the prospects of possibly establishing a campus in the Cayman Islands.  They have four campuses already established outside of New York including one in Singapore.  We believe that there is an opportunity to compliment the role that the Cayman Islands is now playing as the culinary capital of the Caribbean by having one of the premier culinary institutes in the world with a campus in Cayman.

Mr. McLaughlin continued “Not only will this increase the image of Cayman and compliment our tourism product, but will also create opportunities for Caymanians to attend this facility, as well as the opportunity to attract students from all over the world, but in particular from the Caribbean and Latin America.”

The Premier invited President Tim Ryan and his team to visit Cayman and see for themselves the opportunities that exist and to explore collaboration between the Cayman Islands and CIA.  At the meeting Mr Ryan commented that he was aware of Cayman’s leading place in the Caribbean as a preeminent tourist destination with many options for fine dining and quality food.  He was also familiar with the Cayman Cookout event and the many world class chefs who took part in it, including graduates and friends of the Institute. He commented that he was looking forward to having follow up meetings in the Cayman Islands and seeing what may be possible.

The Cayman delegation were also provided with a tour of the Campus.  Also attending the tour and meeting were Dan Scott, Cayman Islands Education Council Chairman, Attorney General the Hon Samuel Bulgin, Eric Bush, Chief Officer of the Ministry of International Trade, Investment, Aviation and Maritime Affairs, and Roy Tatum, Head of the Office of the Premier.

Prior to the Premier speaking Mr Jude Scott, CEO of Cayman Finance gave the opening remarks and His Excellency the Governor welcomed those present to the briefing and spoke about the role that Cayman plays in Global Finance.  Ms Heather Smith, Head of the Investment and Securities Division at CIMA, provided an update on the work of the Authority over the past year.   The Hon Tara Rivers, Minister for Financial Services and Home Affairs, delivered the main remarks and provided an update on the recent financial services legislation, including on ‘economic substance’.

Later that afternoon The Premier, Minister Rivers, The Attorney General along with the Cayman delegation and members of Cayman Finance held meetings with senior managers from the Bank of New York Mellon and with Citibank.  Matters discussed included recent legislative changes on economic substance and other regulatory matters as well as an update on Cayman’s economy.  Both banks provide important correspondent banking services to the Cayman Islands and these meetings are a good opportunity for the bank’s management to hear directly from Cayman’s political leaders and to better understand the changing legislative framework.  Both organisations noted that they continue to value their relationship with the Cayman Islands and with Cayman Islands banking institutions. 

Later that evening the delegation attended the 2nd Cayman Finance New York Reinsurance Round Table. With more than 600 Captive insurance and Reinsurance companies and several large Reinsurance companies domiciled in the Cayman Islands, this is an important sector for Cayman’s Financial Services Industry. The Governor spoke briefly about the Cayman Islands followed by Minister Rivers who provided remarks about the growing reinsurance sector in the Cayman Islands.  A panel discussion on Caymans reinsurance market then followed led by Adrian Lynch, Managing Director of AON.  Participants included David Johnson, Chairman and CEO of Topsail Re; Mike Minnich, Executive Chairman of Midwest Holdings; Suzanne Sadlier, Deputy Head – Insurance Supervision CIMA; and Jaime Sahara, Founder and CEO of Rivington Partners. 

The engagements during the day, at the Breakfast Briefing, with the correspondent banks, as well as with the New York Reinsurance market was very successful by those attending to hear what Cayman’s leaders and financial services professionals had to say.  The Premier and the Cayman delegation continue on Wednesday with planned meetings and networking opportunities, including with the prestigious Culinary Institute of America 

Minister of Commerce, Planning and Infrastructure, Hon. Joey Hew was speaking today at the Caribbean Infrastructure Forum in Jamaica.

The Most Hon. Andrew Holness, Prime Minister of Jamaica and Minister Hew sat on the Caribbean Leaders panel and addressed the topic of growth, innovation and sustainability within the context of the islands progressing towards UN sustainability goals.

The Premier Hon. Alden McLaughlin delivered remarks this morning at the 7th Annual Cayman Finance New York breakfast. He was joined by HE The Governor Martyn Roper, Hon. Tara Rivers, Minister Financial Services and Home Affairs and Jude Scott, CEO Cayman Finance.

Good morning,

It is unfortunate I couldn’t bring some of our warm Cayman weather to share with you, but despite the cold, I am happy to be back in New York City at this Cayman Finance New York Breakfast Briefing. This is an opportunity for us to share our thoughts with you and to hear directly from those who do business in the Cayman Islands.

But gatherings like this also provide a platform for me as Premier to say how much we appreciate and value the business relationship of the people in this room – those of you who bring business to us and of course to your clients. You are all an important part of the Cayman Islands economic fabric.

As we embark on a new decade, I am really excited about the prospects for the future of the Cayman Islands.

While there are global uncertainties, I am confident that the Cayman Islands will continue to be the financial services jurisdiction of choice for those who rely on the invaluable professional expertise that we have to offer in providing a variety of solutions for international business, including for funds and insurance.

Indeed, we are enjoying a robust period of economic activity with solid, sustained growth across all sectors, combined with low unemployment, and moderate inflation. Economic growth that along with prudent financial management has provided strong and stable Government finances with operational surpluses that has enabled us to invest in major infrastructure projects and improving public services, while reducing public sector debt and growing our reserves.

To provide some perspective, between 2013 and 2018 the Cayman Islands economy has grown at an average rate of 3.0 per cent per year in real terms. The last two years have been exceptionally good with GDP growth of 3.4 per cent in 2018 coming in stronger than the estimated growth in many of the world’s most advanced economies.  And when the final numbers are in, we anticipate that 2019 will see growth of at least 3% for the year.

Economists, however, continue to warn of a coming recession but are undecided on the timing.  As such we have conservatively, and I think wisely,  forecast slower growth for this year and next, bearing in mind the lowered growth projections of the International Monetary Fund for the Worlds advanced economies over the coming period.

That said,  I believe that the foundations that we have put in place in the Cayman Islands will continue to provide a platform for growth in the medium term and that we are today better placed to face any future economic downturn than we were prior to the last recession.  So much so that against the backdrop of an anticipated global slowdown the Cayman economy is still projected to achieve growth of 2 to 3 per cent. A demonstration of the strength and vitality of today’s Cayman economy, but in particular our financial services industry.

Our important financial centre  role as a tax neutral conduit for international transactions has continued to grow from strength to strength. Despite the prophets of doom, the changes to our business regime to introduce ‘economic substance’ will by all accounts further grow the financial services sector and will bring other benefits to our economy as new businesses of various types open offices and bring staff to the Cayman Islands.

All of this creates new activity and new opportunities for Caymanians for employment as well as for developing and growing businesses into the future.

And as we continue to further develop as an international financial services centre we will always take our international responsibilities seriously regarding tax cooperation and crime prevention. We have a long history of complying with global regulations.

Sadly, our track record remains largely ignored. Many people, who should know better, are still willing to fall back on the tired old trope of Cayman as a haven for shady dealers and dirty money. Some politicians in Europe would rather attack Cayman’s tax neutral status as being unfair than deal with their own crippling tax regimes. Authors and film and television producers seem too lazy to find out facts when they can just use the words ‘Cayman Islands’ to wrongly signify financial secrecy or money laundering.

The latest example of this has been AT&T’s “just okay is not okay” advertising campaign that featured a dodgy accountant and his frequent trips to the Cayman Islands. We responded immediately with a letter demanding they cease and desist. Their response goes through the necessary two paragraphs telling us they do not accept they were at fault (I am an attorney, I get that) before agreeing to change their advert as ‘a goodwill gesture’.

This is now how we will operate going forward. We will not hesitate to challenge illegitimate portrayals of Cayman in the media. Alongside that, however, we will be on a charm offensive, seeking to demonstrate to those with influence in the media industry that Cayman can be represented in a new way – as the great place to live, work, visit and do business that we know it to be.

I know that we can count on the people in this room to assist in these efforts

I thank you for your kind attention this morning and I appreciate the invitation to be with you.

At the meeting the Premier will deliver remarks promoting the Cayman Islands as a reliable and stable jurisdiction in which to do business. Those attending the meeting will learn about the latest developments in the Cayman Islands Financial Services Industry from the Premier and other speakers.

Later that day the delegation will attend the 2^nd Cayman Finance New York Reinsurance Round Table. With more than 600 Captive insurance and Reinsurance companies and several large Reinsurance companies domiciled in the Cayman Islands, this is an important sector for Cayman’s Financial Services Industry.

Attending with the Premier will be Attorney General Hon. Sam Bulgin; Financial Services Minister Hon. Tara Rivers; Director of the Department of Financial Services Michelle Bahadur; members of the Cayman Islands Monetary Authority; Ministry of International Trade, Investment, Aviation and Maritime Affairs Chief Officer Eric Bush; Senior Political Advisor to the Premier Roy Tatum; and Personal Assistant Jana Pouchie-Bush.

Some of the themes to be covered in the agenda include investment in infrastructure, financing and construction of world class projects across the region, developing robust energy matrices and public-private partnerships mechanics for the Caribbean

Hon. Joey Hew will represent the Premier Hon. Alden McLaughlin in the keynote opening session alongside Prime Minister of Jamaica, The Most Hon. Andrew Holness, as they present on strategies for advancing infrastructure, sustainability and resilience in their respective islands.

Minister Hew will also serve as a panellist with other leading voices in the region to address the topic, “Walking the Walk – Adoption of Sustainable Energy to Power Island Governments”.

The Minister of Commerce, Planning and Infrastructure will be accompanied on the trip by Chief Officer Alan Jones, Energy Policy Coordinator Kristen Augustine and other Ministry staff.

Mr. Jones and Mrs Augustine will also visit the parishes of Clarendon and St. James where they will tour New Fortress Energy’s Floating Storage Regasification Terminal and their Bogue LNG Terminal.

Over the years, CARIF has hosted Premiers, Prime Ministers and senior ministerial representatives across the Caribbean. The audience at the event will include private and public sector decision makers, utility representatives, multilaterals and representatives across the financing space from the Caribbean and other regions.

The event is organised by New Energy Events and IJGlobal, the infrastructure arm of Euromoney Institutional Investor.

One of Ms Roulstone’s claims was that the Government’s proposed referendum question “Should the Cayman Islands continue to move forward with building the cruise berthing and enhanced cargo port facility” was not neutral.

Submissions made by Ms Roulstone’s legal counsel recommended that the word “proceed” would be acceptable in place of “move forward” and the words “enlarged and “refurbished” would be acceptable in place of “enhanced”.

In its final meeting last year on 17 December, Cabinet took the view that whilst there was nothing wrong with the original wording, it would none-the-less be pragmatic to tweak the wording in order to help save time and costs in the case.

The revised question on the referendum ballot will therefore be: “Should the Cayman Islands continue to proceed with building the cruise berthing and enlarged and refurbished cargo port facility?”

The new wording was published in the Government’s public gazette, available online, on the 18^th of December, 2019.

The resources we have available to us in terms of Cayman Airways, our helicopters, uniformed officers, and personnel trained in hazard management are vital to our safety and security but are also valuable resources for our neighbours in times of need. This is proof again of the increasingly important role the Cayman Islands is now playing in the region and is something that I know all Caymanians are proud of. 

I believe that the Cayman Islands Regiment, once up and running, will be another source of pride for Caymanians and an important resource to our islands and to our neighbours.  

We can also be proud of an economy that is continuing to grow from strength to strength with businesses, large and small, across all sectors performing well. Because of our buoyant economy, more Caymanians are in work and in 2019 we achieved the lowest Caymanian unemployment rate 4.8% in over a decade. 

The economic prosperity that these Cayman Islands have built and enjoyed over the decades, including during the two Administrations that I have had the honour to lead, is a great achievement and one that all of us can be proud of because we built it together through our willingness to innovate and the entrepreneurial spirit that defines Caymanians.  

It is up to us as Government, business and individuals, to maintain that economic prosperity. In so doing we will protect our progress as a country, our political and financial stability, and our social cohesion that is so important. All of this has been hard won over many decades but can be easily lost should we take it for granted.  

However, as we have also seen over the decades, a growing economy comes with challenges - these days that includes traffic woes. In 2020, the National Roads Authority will continue working to smooth traffic flows at critical junctions and to increase capacity. These improvements once completed will help bring relief to commuters as we reduce congestion.  

In the New Year work will also begin on determining the best solution for an improved, fit for purpose, public transport system that will negate the need for the growing number of cars on our roads.   

Also to be completed in the New Year are the Constitution reforms approved by the UK, and debated and passed in the Legislative Assembly in early December. I am grateful for the way my colleagues on the Government and Opposition benches united to pass these important reforms ahead of the December 12th UK election.  

These reforms will provide us with increased autonomy and underscore our right to manage our own affairs without undue interference by the UK. They also mark the continued acknowledgement by Her Majesty’s Government that the Cayman Islands has developed as a mature, self-governing democracy.  

These constitutional changes come as we continue the celebration of the 60th Anniversary of our first written Constitution in 2020 when we gather at Heroes Square at the end of January to celebrate National Heroes Day. This year we will honour the men and women involved in shaping that first Constitution.

There are other important constitutional matters to be settled in early 2020 when our Legislative Assembly must turn its attention to the issue of ‘same-sex partnerships’ and our Courts consider the Judicial Review on the People-Initiated Referendum on the cruise berthing and cargo port project.  

Both issues have proven to be divisive ones. I hope that whatever the outcome on each that we all accept the decisions and come together as Caymanians and residents and continue the work to build and grow our Islands for the benefit of all our people - not just the privileged. A more just society is, after all, a better society. 

Regarding ‘same sex partnerships’ as I have said previously it is important that legislators determine the best way forward for our Islands and find a solution that works for Caymanians. If we abrogate our responsibility to do so, we must accept that the UK will legislate for these islands as the Court of Appeal has suggested they do. That would be the worst possible result for these Islands, not just with regard to same-sex partnerships, but more generally. 

I remain confident that the cruise berthing and enhanced cargo dock project is supported by most Caymanians and that once the referendum is over, we can continue the work to move that project forward.  

If I am wrong and most of the electorate decide at the referendum that they want to see the cruise berthing and cargo enhancement project halted then the project will be stopped and the Government will accept that result.  

But if I am right that most people support the project, and so the ‘No vote’ fails to reach the required threshold, then I call on those opposing the Government’s case to accept the result for the project to go ahead.  

This does not mean that the day after the referendum there will be dredging in George Town Harbour. Instead, the work to determine how best to mitigate the environmental concerns will continue. 

What I hope is that those opposed will work with us on the ambitious programme of environmental mitigation that the government has from the start insisted on as part of the project.  

Cayman will get a better result if we can come together to work for the benefit of our Islands. It is only by continuing to work together that we can ensure our future success. 

As Cayman continues to grow and to thrive, we must ensure that no Caymanian is left behind. For that reason, in the new budget, the government has continued to prioritize help and support for the most vulnerable members of our community. 

This New Year begins with good news for elderly seafarers, veterans, those in need of financial assistance, and some long-serving civil service pensioners who will all again see their monthly income rise in January from $750 a month to $850 a month. We plan a similar further increase for January 2021. In the lifetime of my Administration, we will have increased the incomes of over 2,000 of Cayman’s most vulnerable and hard-pressed households by at least 73%.

We are also providing additional support for Cayman’s seniors by reducing or waiving duties on a range of items for those aged 65 and older. Through these measures, many of our seniors will have a little more money in their pockets at the end of each month. 

Also going into effect in January is a 5% cost-of-living salary increase for civil servants in well-deserved recognition of their hard work and dedication to public service. It also recognises that over the past year food, housing and utilities have gotten more expensive. This salary increase will benefit the many Caymanian families in our civil service who work hard to teach our children, nurse our sick, keep us safe and perform many valued services needed to keep our country running.  

I expect that this cost-of-living salary increase should also spur private sector employers to stimulate wage growth elsewhere in the economy. If businesses are profiting from this booming economy, then they should share that benefit with their employees – the backbone of a business.  

This coming year will also see the extension of the government’s scheme to help first-time Caymanian home owners so that the first $400,000 of the purchase price of a new first home will be free of stamp duty. That amounts to a saving of $30,000 for many young Caymanian families. This is a start but more work will be done in 2020 to address the need for affordable housing solutions across all communities.  

This unity Government has shown our intention and our ability to complete the work we promised to do, including completing the key infrastructure projects we started.  

The New Year will see 'capping’ begin on the George Town Landfill. This is an important first step in ending Cayman’s unsustainable reliance on the existing unlined landfill. Instead, we will see increased recycling, as well as creating energy from our garbage with the construction of a modern waste-to-energy plant.  

The coming year will also see progress being made in East End on the long-term mental health facility, which we expect to open in the second quarter of 2021. 

Works will also be visible at John Gray High School, Bodden Town Primary School and the new Sunrise Adult Training Facility. And work will also continue on modernising our airport and on the George Town Revitalisation initiative.  

All of these are possible because of our strong economy. 

I believe in a strong and prosperous future for Cayman. I have worked toward that all my political life. I have confidence in the vision, strength and fortitude of the people of our Islands and in our ability, if we work together, to build that future. 

The coming year will undoubtedly also bring plenty of challenges. However, if we face 2020 with our ambition for our country renewed; with our support for each other steadfast; and with our faith in God unswerving, then this will also be a year of continuing opportunity for Cayman as a nation and for Caymanians as a people. 

On behalf of my Government, and from my family to yours, I wish each of you a very Happy, Healthy, Peaceful and Prosperous New Year. May God continue to find favour with our beloved Cayman Isles.

We are fortunate, all of us, to live, work and to raise our families in these three verdant isles.  In a very troubled world, our beloved Cayman Islands remain a paradise, despite the challenges we face.

Challenges are nothing new to Caymanians.  The iron men and women who made these islands by their toil and devotion faced much greater challenges. Yet they persevered and with faith in God and each other built and shaped these islands into homes and communities.  Communities that shared what they had, looking after each other and working to make these Islands a better place.  Each generation has played their part to progress our Islands and provide greater opportunities for their children and for the generations to come.  

The past year has reminded us of this as we reflected on and honoured the important events and people who, some sixty years ago, set us on a political and economic path that has brought us continued stability, financial independence, and a standard of living that is the envy of much of the world. I pray that we never forget those nation builders or take for granted the foundation they built.  

Like them, we should never forget from whence we have come, but seek always to forge an even better Cayman Islands.  That has been my singular motivation over my nineteen years in public office - to serve my people and to move our beloved country forward.

I believe most would agree, our Islands are in a far better place today than we were when I first took office as Premier in 2013. Over the remaining seventeen months of this term, I intend, along with my Government, to ‘roll up our sleeves’ and work even harder to ensure that a progressive Cayman provides opportunities for all Caymanians, regardless of social standing, now and into the future.

Your unity Government, as we have shown in our recent budget, will complete the work we promised to do and have started, including key infrastructure projects. 

We remain steadfast in our ambition to improve the lives of our people, especially the most vulnerable.  We will continue the fight to protect the opportunities for employment and prosperity of all Caymanians and residents for years to come.  

We will continue to ensure that the opportunities created are available for Caymanians from all walks of life - not just the privileged.

Yes, this past year has been one of many blessings and challenges.   And I recognise that some in our community have not always agreed with the Government's plans to move the country forward. But that is proof that democracy is alive and well in our Islands.  And I would not have it any other way.

Because we live in a democratic society we have many freedoms, one of which is the right to worship and with that the ability to celebrate Christmas and the season of joy.

It is at Christmas that we recognize the greatest gift of all, the birth of the Christ child. We recall and celebrate that God sent his only begotten Son, Jesus, to be born amongst us, bringing great joy and love to the world.  

Christmas in these Islands is a religious time but it is also a time for family and for the carrying on of traditions.  It is family and traditions that help bind us together as a people.

I wish each of you happiness as you take time to be with families and friends, gathering to reminisce and catch up, eating Christmas beef or ham but in true Caymanian tradition always sharing our food, our stories and creating new memories with loved ones.  

I know that I will cherish this day as I slow down a bit and spend time with family and friends.

Sadly, there are some families, my own included, that will have an empty chair at the table this Christmas.  But we cherish the time we had with the loved ones who have gone on and while we miss them, we remember them and Christmases past with fondness and affection.  

As we celebrate this Christmas, let us also pause and reflect on the many blessings we have received over the past year.  And let us remember Christ’s admonition to us – that it is more blessed to give than to receive.

On this Christmas Day, we have much for which to be thankful and we are blessed when we give, whether it is a shiny present, fellowship, a hug or a simple smile. 

On behalf of myself and my Government, I wish each of you a wonderful Christmas filled with love, laughter and many blessings.

The people of the Cayman Islands have an opportunity to examine the contents of the package of Constitutional reforms and offer Government their feedback.

While the content of the package of reforms have been agreed by the United Kingdom, the Cayman Islands Government and the Opposition, both the Government and the Opposition believe it is important that the people of the Cayman Islands get the opportunity to scrutinize the planned changes and to ask any questions they may have.

The key documents can be found at www.exploregov.ky/constitutionalreform and are available by clicking the links at the foot of the page.

Questions and comments can be submitted by email to constitution@gov.ky

Once that process if finalised, the revised Constitutional Order will go through the formal process in the United Kingdom and it is expected that the new Order will be confirmed by the Privy Council in February 2020.

The Cayman Islands had been in constitutional discussions with the United Kingdom since last year because of concerns about unilateral actions of the UK Parliament in seeking to legislate for Overseas Territories.

The Cayman Islands sought these discussions because of a breach of convention and possible constitutional overreach in May 2018 when the House of Commons legislated for the British Overseas Territories in the area of domestic policy. Responsibility for domestic policy has been devolved to the territories under the terms of their respective Constitution Orders made by Her Majesty in Privy Council. 

The Cayman Islands sought safeguards that confirm that the Cayman Islands Government has autonomous capacity in respect of domestic affairs, and that the UK will not seek in the future to legislate, directly or indirectly for the Cayman Islands without, at a minimum, consultation with the Cayman Islands Government.

Because the Constitutional Reforms have been agreed by the UK and the Cayman Islands Government and Opposition, the UK deemed it unnecessary to hold a referendum on the important but uncontroversial changes.

Caymanians 2025 mobile app is available in both the Apple and Android app stores and it is free to download onto any smart device. 

Link to Android store:  https://play.google.com/store/apps/details?id=com.app.caymanians

Link to Apple store: 

https://apps.apple.com/ca/app/caymanians-2025/id1487324982

Facebook:  facebook.com/caymanians2025

Twitter:  @caymanians2025

Instagram:  @caymanians2025

Email:  contact@caymanians2025.com

Mr. McLaughlin continued “The Government is doing much to ensure that you have the information that you need to play a full part in the national debate.  Not least in the current referendum, Cayman has important decisions to make and that is why in addition to the Government’s efforts my colleagues and I have personally put together a resource (independent of Government) to help get the information you need into your hands.  We’re working hard to make sure it contains everything you need to know about the decisions that affect you.”

Caymanians 2025 is about where we want to go next as a people of the Cayman Islands.  The app is a portal for news, views and facts for all Caymanians. 

There’s information about ongoing programmes that relate to jobs, the economy, health, education, infrastructure, environment, housing, security, tourism, transportation and the Sister Islands.

“I’m inviting everyone in Cayman who feels their questions have not been answered. Ask me now” said Mr. McLaughlin “Ask me by posting on Facebook at Caymanians 2025; send me your questions on Twitter at caymanians2025, or simply email me at contact@caymanians2025.com I will answer your questions through the app, through social media and through a video podcast you will find on the YouTube channel, Caymanians 2025.”

Inevitably, at this time, most of the questions being asked focus on the debate about whether Cayman should move forward with building the cruise berthing and enhanced cargo facilities. As time goes on, discussions will move on to other important issues that will guide our future. 

Mr. McLaughlin continued “In the meantime, I hope you will agree with me that the referendum is not a matter to take lightly. It’s our opportunity to take control over what happens to us today and tomorrow. I don’t want any of us to feel we were not prepared to make this decision. Please use the mobile app, use the email, reach out through social media and get the information you need”.

Mr. McLaughlin concluded “I believe in Caymanians.  I came into politics because I wanted to help shape the future of our Islands.  I still do.  The launch of the Caymanians 2025 app gives you the opportunity to take part in the debate about what the future might be for the benefit of the next generation of Caymanians.  Please join me as we chart Cayman’s future course.”

*See Attached Statement from Premier Hon. Alden McLaughlin

Please click on the link to go to the speech. http://www.theprogressives.ky/speeches/

“I am pleased that the Court of Appeal has agreed with Government that the original ruling brought significant ambiguity surrounding the Constitution and Bill of Rights and the interpretation of and ability of the Court to amend laws. We believed it was critical that the country had the benefit of clarification on these very important constitutional issues,” Mr.  McLaughlin said. “While I do appreciate the ruling, I am mindful that it comes with a declaration that requires immediate action from the Government.”

The Court of Appeal declared that “Chantelle Day and Vickie Bodden Bush are entitled, expeditiously, to legal protection in the Cayman Islands, which is functionally equivalent to marriage”.

Government had three primary points of concern with the original ruling of Chief Justice Anthony Smellie, QC:

• Firstly, the implications of the Court’s decision for other types of marriages (for example, polygamous marriage), and whether Government would now be bound to give effect to or recognise such marriages if an application for a marriage licence is made for a man to marry multiple wives.
• The second concern related to the extent of the powers of the Court under section 5 (1) of the Constitution to modify legislation on matters such as the right to marry, bringing into question the appropriate separation of powers under the Constitution and whether by exercising these powers under section 5 (1), the Court has exceeded its mandate under the principle of separation of powers.
• And a third concern was whether, given the language in section 14 (1) of the Constitution, it was open to the Court to find that the right to marry and found a family, could be located in other rights within the Bill of Rights, namely, sections 9 and 10 of that document.

The Government will carefully consider the full judgment to determine how best to proceed.

The Premier today delivered his speech as a debate for the Referendum (People-Initiated Referendum Regarding the Port) Bill, 2019.

To read his speech, please click on the link. http://www.theprogressives.ky/speeches/

In his statement on October 3rd 2019 the Premier provided a summary as to the process followed by Cabinet in determining the question.  This is worth noting again. 

Specifically, whilst no guidance is given in the Constitution on how Cabinet should go about settling the wording of the referendum, the Cabinet as far as possible had followed several common sense and natural justice principles.  These were that the question should be:

• clear and simple, easy to understand and written in plain language;
• to the point, that is directed at the core issue in contention;
• definitive and not ambiguous or open to a variety of interpretations; and
• neutral, which means the wording should not create any encouragement for voters to consider one response more favourably than another and should not mislead voters.

Again Cabinet did follow the above principles.  Cabinet also had regard to the Council of Europe’s Commission for Democracy Through Law (the Venice Commission) in its Code of Good Practice on Referendums.

In addition, Cabinet sought to ensure that the referendum question reflected the intention of the petitioners, specifically Cruise Port Referendum Cayman (CPR). The wording of the CPR referendum petition did not readily assist in helping determine a question that met the criteria above as it is not written in plain language, nor does it set out any definitive proposition.  Rather it simply asks that “the proposed cruise berthing facility……be decided solely by referendum”.

However, CPR’s initial referendum website (https://cprcayman9.wixsite.com/website) offered two rationales for the petition that people were being asked to sign.

First, it states: “The purpose of the Petition is….to bring about a people-initiated referendum in which registered voters can vote through ballot ‘Yes’ or ‘No’ on whether the country should proceed with the proposed Cruise Berthing Facility.” (emphasis added)

Secondly, it states “The aim of this petition is…to start a people-initiated referendum…on whether the country should move forward with the proposed Cruise Berthing Facility.” (emphasis added)

These statements make clear the underpinning the rationale for the CPR petition and can be relied upon to represent what it was people were signing up for.  Taken together, therefore, they provided a starting point for the Cabinet in drafting an appropriate question, including the question requiring a clear yes or no response and whether the country should proceed or move forward with the project.

Whilst the petitioners have focused solely on cruise berthing, an enhanced cargo port has always been an intrinsic part of the Government’s plans to provide for a long-needed, modern port facility that includes cruise berthing and an enhanced cargo port.

The Government has at all times acted in good faith and will ensure that the referendum process is completed timely and in a manner that is fair to all sides.

The Referendum (People-Initiated Referendum Regarding the Port) Bill, 2019 will be debated in the Legislative Assembly tomorrow (Monday 28th October).  The debate will be aired live on CIGTV or on the CIGTV YouTube channel.

The roads included Selkirk Drive and Abbey Way where NRA’s work crew is raising the level of the road two and half feet above sea level, adding drainage and paving the area. The team also visited Shamrock Road where the lane flow is being reversed to have two west bound lanes and one lane heading east.

At the Red Bay roundabout, a third west bound lane is being added to take motorists directly to South Sound.

Following the visit, Premier Alden McLaughlin said the tour provided an opportunity to look at the road works being done to address some of the traffic issues as quickly as possible as well as some of the longer term work being employed to resolve the traffic congestion from the Eastern Districts.

“I think things are coming along quite well. They are currently regrading Selkirk Drive, going all the way to Abbey Way and working on the start of a third lane from the Red Bay roundabout to Hurley’s roundabout at Grand Harbour,” he stated.

Minister Hew noted that some of the road works are designed to alleviate the issues with traffic congestion in the mornings and evenings, in the pinch points around the Hurley’s roundabout and the Prospect areas.

He stated, “People will see that we have paved a few areas, we have expanded a few more lanes and we are working our hardest to minimise the amount of time commuters have to spend in traffic”.

“We have to appreciate and extend our gratitude to the Royal Cayman Islands Police Service for the work that they have been doing over the last couple of weeks in the mornings. We can all agree that it has been a tremendous help in the morning commute but that is not sustainable so we are here looking at some of the plans that we have in the short, medium and long term to ease the challenges in the mornings and in the evenings returning east,” Minister Hew said.

The Minister also stated that the long term goal is to get the East-West Arterial extension completed up to Lookout Gardens, and that the Ministry would continue discussions with the National Conservation Council to do what is necessary to get their approval so that construction on the road can proceed.

The high-profile symposium gave Minister Hew a platform to stress that the Cayman Islands is open for business and will continue to grow the portfolio of mega yachts that operate under the Cayman Red Standard.

“A huge cross-section of powerful industry voices came together at this prestigious forum to share views and debate business strategy alongside policy-makers,” Minister Hew explains.

He adds: “Everyone from yacht owners to maritime lawyers, marine equipment manufacturers and industry regulators is able to voice an opinion. This makes it a highly useful exercise for us to participate in, as we seek to maintain our position at the forefront of this important industry.” 

The Cayman Islands has the top-rated shipping registry in the world, with the most experienced staff of the flag states in the yachting industry. An efficient registration system and competitive pricing structure, coupled with highly specialised service providers, contribute to the Cayman Islands being the preferred choice for discerning ship owners.

In his speech, Minister Hew noted that the Cayman Islands is continually updating legislation and introducing innovations, which enhance safety. These also help to make the industry sustainable, by promoting improvements such as helping prevent pollution.

He emphasised how the highly-skilled technical staff at the Registry has, for more than two decades, been involved in the majority of the largest new-build yacht projects in the world. 

Under the leadership of the Maritime Authority of the Cayman Islands (MACI), which falls under the remit of the Ministry of International Trade, Investment, Aviation and Maritime Affairs (MITIAMA), the Cayman Registry team is able to offer the best possible advice to owners and find actionable solutions to new yacht designs, without compromising on quality or safety.

The Cayman Islands also recently qualified for continuance in the United States Coastguard’s Quality Shipping for the 21^st Century (QUALSHIP 21) Programme for the ninth consecutive year.

This programme identifies high-quality ships and flag states and to maintain the status, flag states have to meet the highest international requirements. The Cayman Islands is one of the very few flag states which have managed to maintain their QUALSHIP 21 status consistently since 2011. 

While the Cayman Islands earns substantial fees from the work of the Shipping Registry, the abundance of luxury yachts that are registered in the Cayman Islands and fly the Red Standard further enhance the Islands’ global image.

Cayman Compass publisher Kathleen Capetta said: “We are thrilled to be working collaboratively with the Government to bring important independent community news to a wider audience.”

“This partnership comes as we relaunch the Compass and its multi-media platforms at the heart of the community.”

Donna Bush, CIGTV News Director, said: “Our goal is to provide the best content available for viewers both locally and internationally.  Working in partnership with others is important to this. We have recently added national weather updates to our CIGTV news segments by partnering with the National Weather Service.  This collaboration with the Compass is another exciting venture enabling us to bring even more community based content to our viewers”.

CIGTV provides a valuable source of community based news across its channels and encouraging content sharing such as through this collaboration goes some way towards filling the gap left by the recent closure of a local television station. Whilst it is a positive effort to fill a media void in terms of community content, Government is not subsidising or paying for any of the content.  The arrangement is not exclusive and CIGTV continue to welcome video content from the local media and community partners.  Please contact donna.bush@gov.ky to discuss. 

The content-sharing arrangement with Compass will begin on Monday 7th October to coincide with the relaunch of the Cayman Compass. 

The Bill provides for the holding of a referendum under Section 70 of the Constitution of the Cayman Islands. Cabinet has determined that the referendum will be held on Thursday, December 19^th 2019. Whilst referendum day will be a public holiday, licensed bars and similar establishments will be permitted to remain open to minimise disruption during the holiday season.

As required by the Constitution, the Cabinet has settled the referendum question, which will be:

“Should the Cayman Islands continue to move forward with building the cruise berthing and enhanced cargo port facility?”

The response to the question will be a simple ‘Yes’ or ‘No’.

Settling the question

In respect of the question to be asked in any people-initiated referendum, Section 70 (2) (b): of the Cayman Islands Constitutional Order, 2009, provides that “the Cabinet shall settle the wording of a referendum question or questions within a reasonable time period as prescribed by law”.

No guidance is given in the Constitution on how Cabinet should go about settling the wording and there is no direct Cayman Islands precedent.  However, there are some

common sense and natural justice principles that can be drawn upon.  These suggest that Cabinet should construct a question that, as far as possible, is:

• clear and simple, easy to understand and written in plain language;
• to the point, that is directed at the core issue in contention;
• definitive and not ambiguous or open to a variety of interpretations; and
• neutral, which means the wording should not create any encouragement for voters to consider one response more favourably than another and should not mislead voters.

Cabinet has followed the above criteria in settling the question, and has also had regard to the Council of Europe’s Commission for Democracy Through Law (the Venice Commission) in its Code of Good Practice on Referendums.

In addition, Cabinet sought to ensure that the referendum question reflected the intention of the petitioners, specifically Cruise Port Referendum Cayman (CPR).  The wording of the CPR referendum petition did not readily assist in helping determine a question that met the criteria above as it is not written in plain language, nor does it set out any definitive proposition.  Rather it simply asks that “the proposed cruise berthing facility……be decided solely by referendum”.

 However, CPR’s initial referendum website (https://cprcayman9.wixsite.com/website) offers two similar rationales for the petition that people were being asked to sign.  First, it states: “The purpose of the Petition is….to bring about a people-initiated referendum in which registered voters can vote through ballot ‘Yes’ or ‘No’ on whether the country should proceed with the proposed Cruise Berthing Facility.”  (emphasis added)

Secondly, it states “The aim of this petition is…to start a people-initiated referendum…on whether the country should move forward with the proposed Cruise Berthing Facility.” (emphasis added)

These statements make clear the underpinning rationale for the CPR petition and can be relied upon to represent what it was people were signing up for when they put their names to the petition.  Taken together, therefore, they provided a starting point for the Cabinet in drafting an appropriate question, including the question requiring a clear yes or no response.

Whilst the petitioners have focused solely on cruise berthing, an enhanced cargo port has always been an intrinsic part of the Government’s plans to provide for a long-needed, modern port facility that includes cruise berthing and an enhanced cargo port.

In 2015 Premier Hon. Alden McLaughlin confirmed to the country, at a Chamber of Commerce luncheon, that “Government has considered the matter carefully and has agreed on the merits of building a cruise port and an enhanced cargo port and to allow the project to proceed to the next stage.” This public statement made it clear that there was one project that includes both cruise berthing and an enhanced cargo port. In fact references to both were included in many public statements including statements made in the Legislative Assembly. And of course both an enhanced cargo port and cruise ship berthing were included in the request for proposal during the project procurement stage.

Therefore any referendum question on moving forward with cruise berthing must include an enhanced cargo port as well.

The Attorney General was consulted in the development of the question and external legal advice was also sought. It was determined that the four principles and the approach taken in settling the question were correct and met appropriate tests.

The referendum date

The choice of the referendum date is based in large part on the various processes required by law to get to a point where the Issuing of Writs can be made to the Supervisor of Elections so as to confer on him the authority to conduct a referendum. These include:

• Cabinet to settle the referendum question
• Drafting of the Referendum Bill
• Gazettal of the Referendum Bill for 21 days
• Debate and passage of the Referendum Bill in the Legislative Assembly
• Assent and gazettal of the Referendum Law and the Issuing of Writs to the Supervisor of Elections.

In addition to the above processes, sufficient time is needed to allow the Elections Office to plan for and carry out their duties – including providing for postal and mobile voting. 

The Supervisor of Elections has confirmed that given the staff training and other preparations that the Elections Office has already undertaken, he is confident that the Elections Office will be operationally and logistically ready to meet the timeline of 19^th December for the holding of the referendum.

With the Gazettal of the Referendum Bill and the setting of the date for the referendum the Government looks forward to settling this issue and determining whether the Country supports continuing to move forward with building the cruise berthing and enhanced cargo port facility.

“The decline in cruise arrivals is disappointing but not unexpected, said Hon. Moses Kirkconnell, Minister for Tourism. “A significant number of Caymanians are employed within our cruise sector so when passenger numbers go down month after month, these are the people that feel it the most.”

The Ministry has been advising the public that arrivals would fall as islands recover from the damage sustained during the 2017 hurricane season. As more of the region resumes normal operations this is the reality but knowing it was expected is providing little comfort to those whose livelihoods depend on cruise passengers.

“The reality is that our economy is service based and we depend on the market being brought to our shores. If that market declines we don’t have many options for our people to fall back on to maintain themselves and their families”, the Minister said.

“Government has an obligation, one that it takes very seriously; to do the very best we can to provide our people with stable employment and opportunities to be successful. In the case of stayover tourism, strategies were implemented to level out seasonality and this is paying dividends through record breaking arrivals year round. Months that were historically viewed as ‘slow season’ are now bursting at the seams with visitor arrivals, which translates into increased and dependable income for businesses and workers in that sector of our service and hospitality industry.”

“The berthing facility would enable similar results to be accomplished in the cruise sector, the Minister continued. “As well as allowing the larger Oasis class ships to dock in George Town, cruise ship arrivals could be scheduled more consistently throughout the week which would assist in managing capacity and provide a steady and dependable income for cruise industry workers.”

As more of the mega-class ships replace the smaller, older vessels currently operating in the region, the Cayman Islands, as the only destination in the Caribbean and Central America without a berthing facility, is expecting to see cruise arrivals decline over time.

Royal Caribbean President and CEO Michael Bayley echoed the Minister’s sentiment in a recent interview with a local news outlet.

“Cayman is a popular destination. We have been coming to Cayman for 50 years and hopefully we will continue to come for another 50 years, but at the end of the day you have to look at the reality of it. If we can’t create the infrastructure and facilities to better receive the guests as our ships get bigger, it is not unrealistic to think that volume of guests and the number of ships will decline,” Bayley said.

The Ministry of Tourism is planning a public meeting for later this month to discuss the cruise berthing facility and details will be announced soon.

For more information related to the cruise berthing project, please visit Support our Tourism or connect via facebook.

“With the growth of communities in the Eastern District, increase in number of cars on our roads and adjustment of school start times have come challenges such as increasing traffic volumes and congestion, increasing travel times, and growing road safety issues. These are affecting the quality of life of our people and I have therefore asked the relevant stakeholders to find short and medium term solutions as we continue on track with some of our long term plans,” states Minister Hew.

As part of these efforts, the Ministry of Education Youth, Sports, Agriculture and Lands will move to have discussions with the Private Schools’ Association to explore the use of a school bus system for the over 4000 private school students who are dropped off and picked up for school on a daily basis.

In addition, Chief Officer of the Portfolio of the Civil Service, Ms. Gloria McField-Nixon states that her agency will encourage the hundreds of civil servants operating within the Government Administration Building to consider the Work Hour’s policy which allows for staggered work hours.

She emphasises, “We will remind managers of the 2012 Policy and have them encourage wider take up of the existing offerings, including by those departments not operating from the Government Administration Building, where feasible”.

Some of the immediate plans being undertaken by the National Roads Authority (NRA) to address the traffic congestion in the Eastern Districts include the reversal of lanes on Shamrock Road, on the run up to Marina Drive so there will be two westbound lanes and a turn lane instead of two eastbound lanes that currently exist.

. This will be implemented in mid-October.

Two other projects expected to start this month are the widening of Rex Crighton Boulevard and Shamrock Road. The Rex Crighton project will involve the expansion of the existing east and west bound travel lanes between the Poindexter Road Roundabout and the Chrissie Tomlinson Roundabout, where the section of the roadway will have four lanes.

Shamrock Road will be widened into six lanes with the initial focus on developing a westbound third lane between Red Bay Roundabout and Grand Harbour Roundabout.

Ongoing work to ease traffic congestions is currently taking place on the Mango Tree Connector, Olympic Way and Island Heritage Roundabout.

Some of the long terms projects which are expected to start before the end of the year include: the planned extension of the Airport Connector Road from the roundabout to the George Town landfill on Esterley Tibbetts Highway to Sparky Drive in the North Sound area, extension of Godfrey Nixon Way and the East-West Arterial from Hirst Road to Lookout Road in Bodden Town.

The NRA is currently in discussions with the National Conservation Council about the East-West Arterial route.

Minister Hew reminded attendees at the meeting that while various solutions are being considered to address the traffic problems, a holistic approach has to be taken to include carpooling, incentivisation of alternative transport, limits on importation of older vehicles, a comprehensive public transportation system and complete streets that will accommodate vehicles, cyclists and pedestrians.

“We encourage all members of the civil and public service, including those on our Sister Islands, to join with us and reduce our use of cars for just one day. Our plan this year is for the civil and public service to lead by example, and then expand Car Free Day Cayman to the private sector and the general public in 2020,” states Hon. Joey Hew, Minister of Commerce, Planning and Infrastructure.

In addition to the options of carpooling, riding or walking, the Ministry of Commerce, Planning and Infrastructure will also provide park and ride opportunities for employees who live in the Eastern Districts as well as hop on, hop off buses in George Town throughout the day. 

A number of local businesses have thrown their support behind the event by providing incentives for civil servants who participate in the event. Some of the incentives include airline tickets, bicycles and gift cards.

Several restaurants in the George Town area will also offer discounts on Friday to employees of the civil and public service. 

Some of the benefits of using fewer cars by taking alternative modes of transportation include reduced traffic congestion, improved energy conservation, less parking problems, reduced harmful emissions, savings on time and money, and generally a greener planet.

The representatives will be taking part in a series of scheduled events under the auspices of the Monaco Yacht Show (25-28 September).

Mr. McLaughlin explains “We continue to be a leading flag state in the super yacht industry and it is important for us to be part of this event and meet with owners and their representatives to ensure they have the most current information on what the Cayman Islands can offer and provide the best possible advice for their existing and future super yachts.”

Mr. McLaughlin continues “I will also be able to tell them first-hand how well we are doing both economically and politically and that we continue to be a good, stable jurisdiction in which to do business.”

The broad purpose of such trips is to attract new international business and to promote the Cayman Islands brand on the international stage.

In order to support those ambitions, a diverse number of private sector partners will lend their weight to the Cayman Islands’ presence at the Yacht Show. These include representatives from the “Big Four” accountancy firms and from the worlds of law, real estate, yacht brokerage and management, technology and precious metals and stones.

Minister Hew explains: “I look forward to the opportunity to collaborate with our counterparts in Monaco at the very highest level, as well as the chance to engage with potential investors and high net worth individuals at the prestigious Monaco Yacht Show. Such investment is vital, because it ensures we are able to create opportunities for Caymanians both now and in the long term.”

Minister Hew and the delegation will seek to encourage investment in the jurisdiction, to promote the Cayman Islands as an attractive place to invest and conduct business and to increase further the market share held by the Cayman Islands’ premium shipping registry.

Similarly, the Maritime Authority of the Cayman Islands (MACI) will utilise its platform of repute as the operator of one of the world’s best shipping registries to host a forum during the MYS. In leading discussions around the challenges and expectations for the industry’s future, MACI will utilise the forum to promote the red ensign of the Cayman Islands as a symbol for the global maritime community.

The Ministry’s Chief Officer Eric Bush underlines the importance of continued efforts to maintain and increase the significant market share for the Cayman Islands’ shipping registry.

“Monaco is a vital market for us,” Mr. Bush explains, adding: “the Cayman Islands Shipping Registry is regarded as world-class and home to many of the world’s biggest yachts. It is essential we strengthen and increase our presence in the industry to ensure we continue to remain the premium maritime flag state.”

In addition to the MACI sponsored business forum, the other events will include: a charity bike ride in aid of the Prince Albert II of Monaco Foundation (Wednesday, 25 September); a reception at the Monaco Yacht Show (MYS) hosted by the Premier (Wednesday, 25 September); and a dinner hosted by the Premier at the MYS (Thursday, 26 September).  In attendance at the events will be the Cayman delegation as well as key individuals from the Monaco community, particularly from the yachting and shipping sectors.

Minister was then invited to see first-hand the progress being made on the construction of the new Apprentice Training Facility. The building, once complete, will cover 3,200 square feet; it will be raised above the car park on columns, which will create a covered, open-air space below. The upper level will consist of an open-plan space with a folding, full-height partition, which allows for two separate teaching spaces of 550 square feet each. The facility will be accessible to all persons thanks to the construction of an elevator to reach the upper floor, as well as accessible restroom provisions.

            In addition, in support of the Ministry’s National Energy Policy, the new building will boast various energy saving features, including: energy efficient impact rated windows, 100% LED lighting, solar water heating along with other provisions to accept a solar energy collector application in the future.

            Minister Hew praised the project’s private sector partner, Cayman Structural Group, for their support with the construction, particularly with regards to the hands-on training they are providing to the current apprentices. 

The PWD Construction Apprenticeship Programme runs in conjunction with the Cayman Islands Further Education Centre who provides a large portion of the trainees enrolled (others are recruited from the general public) and is supported by private sector partners. The scheme has been labelled “world class” by a global technical, vocational, education and training (TVET) expert. 

            The programme was launched in 2016. It developed out of a need flagged by PWD to fill key technical roles locally because of a lack of required practical skills and technical knowhow to carry out work in the construction industry at the requisite standard. Realising the taking on of individual apprentices was too small an approach to meet industry demands, the Department partnered with CIFEC, before eventually opening up to students not enrolled in any institution.

The Apprentice Training Facility is scheduled to open at the PWD compound early in 2020.

The Government has welcomed the completion of the process to verify signatures on the Cruise Port Referendum petition. 

Premier Alden McLaughlin said, “I would like to repeat my thanks to Supervisor of Elections, Wesley Howell, and his excellent team for their hard work and efficiency in concluding the signature verification process so quickly and smoothly.”

The Premier added, “The drive to build a new cargo and cruise berthing facility for the Cayman Islands has been going on for at least the last six years while my Government has been in office.  This referendum process has been going on for a year.  With a preferred bidder now ready to deliver the cargo and cruise port enhancements this country needs, we need to get on and bring things to a conclusion.”

“We understand that many Caymanians have signed the petition because they had questions and concerns about the port.  We are answering those questions as we release more information now the preferred bidder has been appointed.”

“Sadly, there is also a small group of people who are simply opposed to the government’s plans at any price and who appear willing to throw out any kind of misstatement or half-truth to further their objectives.”

“At each stage in this process, those opponents have been quick to allege impropriety on the part of Government Ministers.  At each stage they have been wrong.”

“First, scurrilous allegations were made that Cayman’s cruise and cargo port improvements were being made solely to benefit the business interests of one or more Ministers.  We have repeatedly shown not only that there are no such business interests but the port is in the vital best interest of our nation not any individuals.”

“Secondly, they alleged that the Government was failing to follow proper procurement and bidding processes.  In fact we have followed a best in class procurement route.”

“Then we heard that civil servants were being intimidated from signing the referendum petition.  That was shown to be false.”

“Next the country was told that the whole thing was a stitch up and that a deal had already been agreed with China Harbour.  The preferred bidder announcement demonstrated the untruth of that assertion.”

“Political interference in the verification process was the next hue and cry of our opponents.  Yet again, they have been shown to be wrong as the verification process has been followed through efficiently and diligently by our elections staff.”

“Now we are hearing allegations that the Government will try to duck the referendum by determining that Cayman’s cruise and cargo port is not an issue of national importance or that the Government will somehow pervert the purpose of the referendum by manipulating the question.”

“As throughout this process, those allegations are completely without foundation.  Let me lay them to rest now.”

“It is central to the Government’s support for Cayman’s new port and cargo facilities that they are necessary in the national interest. There is no question of us seeking to avoid a referendum.”

“As to the referendum question, we intend that the question should be drawn up in accordance with best practice principles including that it should, as far as possible, be neutral in its phrasing.  Throughout this process, the Government has maintained the highest standards of probity and good practice.  That will not change now.”

“The business of government needs to go on and there is much we need to do in the next few weeks, not least bring forward a two year budget. However, the country needs certainty and the Government therefore intends to get this referendum process completed as quickly as possible.” 

“To that end, Cabinet will turn its attention immediately to considering a draft Bill, including a proposed formulation of the referendum question and the date on which the referendum will be held.”

We are here today to pay tribute to a man who served his country, community and family well, John Bonwell McLean Sr., OBE, JP.

The British politician and political thinker Edmund Burke stated that “a disposition to preserve, and an ability to improve, taken together, would be my standard of a statesman”.

Such a statesman was John B. McLean. Preserving things Caymanian and Improving the lot of his Caymanian people is what many Caymanians will remember of John Mclean the statesman and political dynamo. But they will also remember John Mclean the man with the easy smile and the endearing manner.

John served these Cayman Islands with distinction for almost 25 years. He was elected at the young age of 26 in 1976 by the people of his beloved East End community. Though youthful in years, he quickly learned the ways of politics and of Government. Before leaving office in 2000 he had not only made his mark as a political ‘heavyweight’ but also played an important role in the development of our Islands and his district.

In his community he was instrumental in the building of the William Allen McLaughlin Civic Center in East End proper and the Elliott Connolly Civic Centre in Gun Bay - both of which continue to serve the people in the district well, even functioning as hurricane shelters when necessary. He was also responsible for the construction of the Lillith McLaughlin health clinic, the post office, the police station, the Wreck of the Ten Sail park and more.

On the national level he was instrumental in the development of critical services such as the 911 emergency communications system and the Water Authority. Indeed, Mr. McLean worked to ensure that important ground water sources, such as the East End fresh groundwater lens, were protected.

Many of you will know that on my father’s side my roots are buried deep in the East End land. So I and countless other Caymanians appreciate the work that John did to protect our precious fresh water lens and indeed his tireless efforts to promote local farming and assist local farmers. And I also personally respect and appreciate the work he did for the people of East End.

Indeed John Mclean was completely devoted to the East End community. That devotion to not only East End, but the wider Cayman Community was recognised in 1995 when Mr. McLean was awarded the Order of the British Empire by Her Majesty the Queen for his service to his community and to our Cayman Islands.

During his tenure he served three terms as a Government minister with responsibilities for Agriculture, Lands, Natural Resources, Communications, Environment and Works and completed six consecutive terms as an elected member. Six terms is a lifetime in politics and is a testament to the affection of his people as well as to the way he capably represented them at home and abroad.

He served on the Executive Council, which is now called Cabinet, and advocated for and indeed accomplished development throughout our Islands.

During his time as the Minister for Works several main roads were built, including the Queens Highway, the High Rock in-land road, and multiple farm roads. The first phase of the Harquail Bypass was completed, helping reduce traffic congestion for drivers travelling to and from the western end of Grand Cayman.

John McLean Drive, the road that bears his name, once known as “Up on the Hill”, was built in 1977 and members of the community requested the road be renamed in Mr. McLean’s honour. That road has been important in providing East Enders with easy access to the inner land and to higher ground in emergencies.

Also in East End he was instrumental in bringing telephone service, helped get three new boat launch sites, brought in street lights and secured property for the Heritage Field and the George Dixon Park for a football field and the Donovan Rankine Football Field next to the East End Civic Centre, which was opened by the great Pele from Brazil.

We also have him to thank for his role as a member of Government for help in securing the purchases of the Cayman Turtle Farm, the Queen Elizabeth Botanic Park and Colliers Public Beach as well as the establishment of the Stacy Watler Pavilion.

Mr. McLean was an avid farmer, being recognised many times during various Agricultural shows and the importation of pedigree cattle such as Black Angus and goats such as Nubian to the Islands as Minister for Agriculture.

Our beloved Isles owe him much for his service to the Cayman Islands.

He was a true Caymanian and statesman and will be sorely missed.

May his soul rest in peace.

Among the highest recorded variances in revenue streams were domestic levies on goods and services, including bank and trust licences and tourist accommodation charges, at $20 million. According to the report, tourist accommodation charges were higher “mainly due to continued record high visitor arrivals (by air)”. Import duties reached $18 million, and levies on property, primarily stamp duties on land transfers, stood at $13 million.

            Furthermore, “adherence to fiscal policy continues to produce high cash and deposit balances held by core government,” the report emphasises. Operating cash and deposits were $522 million at the end of the second quarter, while reserves and restricted deposits were $168 million, resulting in a total cash and deposits balance of $690 million.

            The continuing positive trend has ensured that the net surplus of the EPS is on par with the actual results for the same period in 2018.

              Simultaneously, core government’s debt position continues to be favourably impacted by government’s tight fiscal management of prior borrowings since there have been no new borrowings since 2011.

The overall debt principal repayments were $13 million for the period from 1 January to 30 June 2019, bringing the debt balance down further. Of this, $10 million was repaid in the 1 April to 30 June period.

Also, 24 public entities comprising statutory authorities and government owned companies generated a total surplus of $11 million through the second quarter.

            Commenting on the latest fiscal performance report, Finance and Economic Development Minister, Hon. Roy McTaggart, JP said, “I am pleased to see the continuing positive performance of the Entire Public Sector’s finances. We will maintain prudent fiscal management and stewardship throughout the year to ensure that we generate a substantial surplus in government’s finances at year-end, so that we can continue to pay off our debts and invest in government’s priorities.” 

In regard to the announcement that Cayman27 will end its television broadcast as of Friday, 30 August, Premier Hon. Alden McLaughlin had the following to say:

“The government is very concerned about the loss of Caymanian jobs and will make available all of government's resources to assist with finding them alternative employment.

“The decision to close the station was one made by its owner on the basis that it was not commercially viable. As far as the regulatory breaches are concerned, questions in this regard should be put to the regulator, OfReg.

“The government believes that a television station that produces and broadcasts local programmes and news is a critical piece of Cayman's information infrastructure and will immediately begin exploration as to how the void created by the closure of Cayman27 can quickly be filled.”

Government continues to maintain strong fiscal momentum through the second quarter of 2019 with the Entire Public Sector (EPS) achieving a 65 percent higher surplus than budgeted.

The Unaudited Quarterly Financial Report for the six-month period ended 30 June 2019 that is gazetted today in Extraordinary Gazette #53 reveals that the surplus for the EPS stood at $201 million, against the budgeted figure of $122 million. EPS comprises Core Government as well as Statutory Authorities and Government owned Companies.

The surplus was generated primarily through higher revenue from levies, duties, fees and government charges that were recorded at $499 million, which is $51 million more than budgeted expectations.

Among the highest recorded variances in revenue streams were domestic levies on goods and services, including bank and trust licences and tourist accommodation charges, at $20 million. According to the report, tourist accommodation charges were higher “mainly due to continued record high visitor arrivals (by air)”. Import duties reached $18 million, and levies on property, primarily stamp duties on land transfers, stood at $13 million.

Furthermore, “adherence to fiscal policy continues to produce high cash and deposit balances held by core government,” the report emphasises. Operating cash and deposits were $522 million at the end of the second quarter, while reserves and restricted deposits were $168 million, resulting in a total cash and deposits balance of $690 million.

The continuing positive trend has ensured that the net surplus of the EPS is on par with the actual results for the same period in 2018.

Simultaneously, core government’s debt position continues to be favourably impacted by government’s tight fiscal management of prior borrowings since there have been no new borrowings since 2011.

The overall debt principal repayments were $13 million for the period from 1 January to 30 June 2019, bringing the debt balance down further. Of this, $10 million was repaid in the 1 April to 30 June period.

Also, 24 public entities comprising statutory authorities and government owned companies generated a total surplus of $11 million through the second quarter.

Commenting on the latest fiscal performance report, Finance and Economic Development Minister, Hon. Roy McTaggart, JP said, “I am pleased to see the continuing positive performance of the Entire Public Sector’s finances. We will maintain prudent fiscal management and stewardship throughout the year to ensure that we generate a substantial surplus in government’s finances at year-end, so that we can continue to pay off our debts and invest in government’s priorities.” 

The Ministry of Commerce, Planning and Infrastructure has announced incentives to encourage more environmentally friendly vehicle ownership across the Cayman Islands. Customs duties applied to electric and hybrid vehicles are to be greatly reduced.

The announcement was made by the Minister of Commerce, Planning and Infrastructure, Hon. Joey Hew, at the Legislative Assembly last Thursday (Thursday, 25 July 2019).  

Electric vehicles, which cost $29,999 or below, now attract zero tariffs to consumers importing such vehicles for personal use. While individuals importing hybrid vehicles, of $29,999 or below value, for personal use will now pay 10% in import tariffs.

Those importing commercial vehicles will also see the tariffs of electric and hybrid vehicles reduce (to as little as 5% and 12% respectively).

Bicycles also no longer attract any customs duties, as do electric motor cycles and electric bicycles.

A full breakdown of the updated customs duties is available at gov.ky and on the Ministry of CPI Facebook page.  

In the future, the Ministry of Commerce, Planning and Infrastructure plans to work closely with the Ministry of Finance and Economic Development as well as the Customs and Border Force Agency to conduct biennial reviews of the tariff structure. 

The reduction in tariffs mean choosing to import an electric or hybrid vehicle over a fossil fuel alternative will now offer further financial incentives in addition to reducing greenhouse gas emissions and fewer trips to the gas station.

There are approximately 160 electric vehicles already licensed to drive on Cayman’s roads. By making this change, the Ministry addresses a key strategy for the department to encourage a greater share of fuel efficient, electric and hybrid vehicles.

“The Ministry of CPI recognises that the transportation sector has vast potential for energy efficiency and energy conservation,” the Hon. Joey Hew said during a speech at the Legislative Assembly.

“We see this initiative as a kick start to assist our citizens with switching to low emissions vehicles for the wider social and environment benefits to be gained from reducing greenhouse gases and petroleum dependence”, he continued.

Feedback the Ministry received from the private sector suggested that businesses were waiting to see what action the government would take regarding the transition towards green energy. 

With the reduction in tariffs, along with the expansion of Grand Cayman’s electric vehicle charging station infrastructure, the Ministry hopes this serves to strengthen the public’s confidence in the future of electric vehicles on the island.

This announcement forms part of broader energy efficiency initiatives under way as part of the National Energy Policy. The government is also planning to transition its own fleet to more fuel efficient or electric options, where practical, in the future.

The Cayman Islands Government (CIG) has formally approved the selection of Verdant Isle Port Partners (VIPP) as the preferred bidder for the proposed cruise berthing facility and enhancement to the cargo facilities (CBF).

VIPP is a consortium of 4 companies comprising of McAlpine Ltd, Orion Marine Construction Inc. Carnival Corporation Ltd and Royal Caribbean Cruises Ltd. Together they offer a high degree of local and international technical expertise and have the relevant experience and key personnel who are familiar with working on projects of similar scope and scale as the CBF proposed for George Town.

VIPP were selected as the preferred bidder following a detailed analysis of the bid by the Ministry of Tourism, the Port Authority Cayman Islands (Port Authoriy ), PWD’s Major Projects Office and specialist consultants KPMG, Hatch, Royal Haskoning DHV, and Appleby/Pinsent Mason’s who provided technical, financial and legal services during the procurement process. The bid was assessed against evaluation criteria and a recommendation was submitted to the Central Tenders Committee which granted approval to select a preferred bidder.

The procurement process for the proposed CBF was conducted in an open and transparent manner; consistent with international best practices; the Public Management and Finance Law, and the Framework for Fiscal Responsibility. Throughout the process, the PWD’s Major Projects Office has been leading the CBF project team in collaboration with the Ministry of Tourism and Port Authority of the Cayman Islands.

The government have repeatedly advised that it was necessary to arrive at this stage in the process in order that factual information regarding the design and cost of the project could be available. Having reached this juncture the Ministry of Tourism is pleased to be able to show the CBF conceptual design and share more detailed information with the public.

Reduced Environmental Impact

The CBF will consist of two-finger piers constructed on pilings to allow the sea and marine life to move freely underneath. Pilings are commonly used all over the world in the construction of piers and bridges situated over water.

The new pier reflects Government’s mandate with respect to minimizing the environmental impact. Locating the piers in deeper water has resulted in the need for less dredging and less coral relocation than previously considered in the 2015 scheme submitted for environment impact assessment and there will be no dredging in Hog Sty Bay.

Additionally, the proposed CBF will not increase the likelihood of flooding in the areas to the North and South as a result of the new development. Furthermore wave walls have been incorporated within the footprint of the design for extreme weather conditions which will further reduce potential flooding and wave overtopping into the road and will add more protection to the central George Town area.

Development Capital Cost

Of the options provided as part of the winning bid, Cabinet has selected Option 2 which minimises impact to the environmental and delivers value for money at a cost of less than CI$200M, subject to final contract negotiations. This figure includes enhancement of the cargo port facility to accommodate the higher volumes of cargo required to meet the needs of the growing population. The current port is 40 years old and operates under conditions that are cramped, inefficient and less than ideal.

If the CBF project did not proceed the Port Authority would require capital investment to upgrade the cargo area of the port and this cost would have to be met by the public purse.

Design, Build, Finance, Maintain Financial Model

The CBF project will be carried out under a Design, Build, Finance, Maintain (DBFM) arrangement which is financed by the preferred bidder. The country will receive a two-pier berthing facility and enhanced cargo port without the Government having to provide any loans, bonds or guarantees.

The Port Authority will continue to operate and manage the facility and four cruise lines will enter into preferential berthing rights for the new piers. The Port Authority will operate the four berths and two existing anchor points to manage the number of vessels and passengers visiting the Islands.

The financial investment required to build the piers will be repaid over 25 years to the preferred bidder using a portion of the passenger fee which is charged for each passenger brought to the new CBF. The share of the existing passenger fee currently paid to the Port Authority and the Environmental Protection fund will remain unchanged.

Passenger fees are bundled into the cost of a cruise in much the same way that passenger taxes are bundled into the cost of airline tickets. A portion of the fee which currently pays for tendering services will be used instead to repay the preferred bidder for financing construction of the CBF. After 25 years when the investment has been repaid, that portion of the passenger fee will be remitted to the Port Authority, increasing the revenue that Port Authority receives per passenger.

Operational Management

The CBF and enhanced cargo port will continue to be managed by the Port Authority as is currently the case and there will be no increased upland development with the new retail units owned and managed by the Port Authority. The increase in area of the upland development for cruise is to accommodate passenger management on the facilities. This means cruise lines will not own or operate any retail or commercial space within the cruise terminal. From the inception of the project Government has maintained that George Town is our upland development to ensure that the money cruise passengers spend while onshore continues to provide maximum benefit to the local economy.

Job Creation and Security

The CBF will provide future security for the jobs and businesses that depend on the cruise industry and will create employment during construction as well as throughout the facilities lifespan.

Cruise Berthing Facility Benefits

The CBF will greatly enhance the safety of the Port Authority operations and quality of the cruise passenger experience and will help to bring new life and opportunities to the capital city. The CBF is integral to the George Town Revitalisation Project and vital to the long term future of the Cayman Islands cruise tourism industry.
The selection of the preferred bidder represents a significant step forward in the quest to provide a modern cruise berthing and enhanced cargo facility that caters to the essential needs of the country.

The evolution of the mega ship has changed the face of cruising in the Caribbean and the Cayman Islands must either prepare to embrace this reality or get left behind. After 40 years of being in the cruise tourism business Cayman is distinct within the region for not having a berthing facility. Rather than being an attribute, this presents a serious risk and will ultimately place our cruise tourism industry in jeopardy.
It is in our country’s long term best interest to provide a berthing facility that will positively impact employment and ultimately inject millions of dollars into our economy.

Summary of Key Facts

 The Preferred bidder is a consortium comprising a trusted developer and industry partners.
 The option selected by Cabinet costs less than CI$200M
 The cost includes enhancing the cargo port.
 The environmental impact is significantly reduced.
 There is no financial risk to the Country.
 There will be no upland development owned or operated by cruise lines.
 The facility will be managed and ownership by the Port Authority on behalf of the People of the Cayman Islands.
 The berthing facility will secure the cruise industry and provide jobs for Cayman families.

To stay informed on all of the latest news and information on the cruise berthing project the public is encouraged to visit the CBF website at www.SupportOurTourism.com and to check the project’s facebook page for daily updates.

This morning the Cabinet of the Cayman Islands approved the Ministry of District Administration, Tourism and Transport and the Port Authority proceeding with the cruise berthing and enhanced cargo facility project on the basis of a bid by Verdant Isle Port Partners as accepted by the Central Tenders Committee on Tuesday, 23 July 2019.

Verdant Isle Port Partners consists of:

McAlpine Cayman Ltd.

Orion Marine Construction

Carnival Corp.

Royal Caribbean Cruises Ltd.

Orion Marine Construction has purchased Meisner Marine, which previously built the Royal Watler Terminal as well as the Creek Dock in Cayman Brac.

Notwithstanding this morning’s approval, the Government will not proceed to execute a contract before the 1 October, 2019, in order to allow for the completion of the people initiated petition verification of signature process.

Details relating to the bid and the cruise berthing project generally, which could not be disclosed until the completion of the tender process and selection of a preferred bidder, will be discussed at a press conference to be held at 1 p.m. Monday, 29 July, at the GIS studio, second floor of the Government Administration Building.

Mr. Speaker support for the Cayman Islands Financial Services Industry remains one of the key priorities for this Government.

The conditions that attracted financial services providers to these shores still underpin our success today - our adherence to the framework of English Common Law, our tax neutral status and our strong economy and stable and financially robust government. 

Our Financial Services Industry remains strong and resilient.  Like many of our competitors the Cayman Islands as a jurisdiction has seen the increasing need to upgrade our regime to ensure that we are compliant with the various supra-national bodies.  Indeed the view of Government is that as a world leading financial services centre we have an obligation to ensure that our regulatory regimes are also world class. And so over the years the jurisdiction, Government and industry partners, have responded to the evolving regulatory landscape and have put in place the necessary regulatory frameworks. 

Some of these measures have been necessary as Cayman plays its part in the global fight to combat money laundering and to counter the financing of terrorism. Others have been required to enable tax authorities in other countries to access information they need in order to ensure compliance with their own taxation regimes.

I do not need to tell this House, Mr. Speaker, how many long hours we have spent in this House as numerous bills have been passed into law. Nor do I need to remind our partners in the industry how many long hours have gone into working up the detail of those bills in such a way as to meet regulatory requirements while still maintaining the space for creativity and innovation that is the hallmark of financial services in this jurisdiction.

So it is, once again, Mr. Speaker that we are here at this meeting of the House to consider yet more necessary changes to our legislative framework. Some 11 bills are now before the House, each dealing with some aspect of our anti-money laundering and counter financing of terrorism regime. 

Others will speak to the details of those bills, Mr. Speaker, but taken together they represent a robust response by this Government to the recommendations made by the Caribbean Financial Action Task Force in its March 2019 report. As such, they are an important part of our country’s efforts to ensure we remain compliant with international standards and I therefore commend them to the House.

Significantly, however, the CFATF’s recommendations do not just cover the legislative framework for regulation. For the first time, they have moved on to cover the effectiveness with which the legislation is being implemented. We certainly understand the rationale for ensuring that not only do we as a jurisdiction have the required regulatory framework, but that we also have the mechanisms and people to ensure that the framework is effective and can be proven to be so.

And so, this Government is determined to respond positively to these recommendations dealing with effectiveness as we are doing in keeping the legislation itself up to date.

Doing so requires a response from across government and partner agencies including the Royal Cayman Islands Police Service. A Ministerial Sub-Committee, which I chair, has been created to oversee the work of the agencies and we have established a Financial Crime Focus Group to ensure coordination and cooperation at the operational level between law enforcement agencies. That Group will make recommendations to enhance the quality of work related to the use of financial intelligence, and the investigation and prosecution of financial crime. 

Together we are working through the detailed action plan that we published at the end of April and which responds to all 63 of the CFATF’s recommendations. We have appointed a National Coordinator to assist with the coordination between agencies, committees and all stakeholders involved in the implementation of the action plan. 

The commitment of the Cayman Islands to this process has also been demonstrated by the funding of additional resources, over 100 new positions, for agencies agreed during the March sitting of the Finance Committee. This includes the strengthening of the dedicated Anti Money Laundering Unit at the Cayman Islands Monetary Authority and a dedicated cross border Money Laundering and Terrorist Financing Task Force within the Royal Cayman Islands Police Service (for which an interim team was put in place in April). All told we will be investing several million dollars more to further strengthen our regulatory regime. It is important to note that this will not be a one-off expenditure.

We are now monitoring the results of the actions that we have put in place and we remain committed to taking any further action that may be necessary as we ensure we rise to the challenge that the CFATF has given us. 

Inevitably when dealing with effectiveness, it will take time before we are able fully to demonstrate that the measures that we are putting in place are working. However, I expect to be able to demonstrate progress as part of the CFATF Enhanced Follow Up Process, when submissions are made on 24^th September, 2019, in relation to both technical compliance (legislative amendments) and effectiveness. This CFATF report will be presented at the November 2019 CFATF Plenary meeting to be held in Antigua.

I am sure that Members on all sides, Mr. Speaker, will recognize the importance of this work for the future of our Islands.  Make no mistake, this Government will take the action necessary to ensure that our legislation is robust and that it is effectively implemented.

I have said previously in this House and elsewhere that Cayman does not want or need to deal with those who would seek to hide money or use it for illegitimate purposes. Our efforts in improving the effectiveness of the implementation of our world-leading legislation to protect the integrity of our financial services will mean that we can demonstrate to the world that anyone attempting to use Cayman for such illegitimate purposes will be caught and dealt with to the fullest extent possible under the law.

I and the people of the Cayman Islands congratulate The Right Honourable Boris Johnson on his election as Leader of the Conservative Party and on becoming the next Prime Minister of the United Kingdom.

I had the pleasure of first meeting Mr. Johnson in October 2017 at the Conservative Party Conference in Manchester.  He has long been a friend to the Cayman Islands joining us most recently last year as we celebrated the 60^th anniversary of our Coat of Arms at a ceremony in London. 

I look forward to the Joint Ministerial Council Conference in London in November this year when we will have the opportunity to meet  with members of Mr. Johnson’s government to discuss matters of common interest between the UK and the Cayman Islands and the way forward as we embark on yet another historical change in world politics.

Mr. Johnson will take over from The Right Honourable Theresa May as Prime Minister.  We wish him well as he navigates the issue of Brexit.

We appreciate the work Ms May did to support us during her term and look forward to working with Mr. Johnson and the new government. 

The Department of Environmental Health (DEH) is coordinating the use of grab trucks to collect sargassum from South Sound, Coe Wood and New Cemetery Beach in Bodden Town; as well as from the Frank Sound Junction launch ramp.

The seaweed once collected is being taken to George Town Landfill, where it is being weighed and deposited. Work crews will continue coastline clear-ups this week.

“After careful consideration it has been decided that the majority of the sargassum collected will be kept at the landfill for disposal,” said a NiCE official.

“Some will also be sent on to the Department of Agriculture (DoA), where it will be tested and trialled for use as fertiliser.”

Eighteen work teams are currently clearing beach accesses; as well as eliminating roadside vegetation, installing road signage and repainting markings. Crews are similarly removing litter from parks and cemeteries, while a crew at the landfill are processing recyclables, tire shredding, clearing vegetation and cleaning, stripping and painting equipment.

“With the first week of the NiCE Summer Project 2019 now completed, I am pleased to announce that the clean-up and enhancement initiatives have been successfully carried out so far,” said Minister for Commerce, Planning and Infrastructure, Hon. Joey Hew.

“I will be touring to visit several of the work teams later this week, to talk to the NiCE operatives and to see first-hand some of the outstanding beautification remediation efforts they have accomplished.”

“This has been a huge effort to both coordinate and accomplish and I want to take this opportunity to thank the Public Works Department, National Roads Authority and the Department of the Environmental Health. This cross-agency approach is a model we want to perpetuate throughout Government,” he concluded.

Four hundred and eighty-six unemployed Caymanians and out-of-work spouses of Caymanians attended the National Community Enhancement (NiCE) summer project’s registration and orientation recently. This season’s two-week paid initiative is taking place Monday, 8 – Friday, 19 July.

Participants were advised about two new elements introduced into the initiative, namely the clearance of sargassum from beaches and a booth at registration hosted by Workforce Opportunities and Residency (WORC) as a NiCE partner agency.

In her welcome address, NiCE’s Project Manager, Lois Kellyman, noted that the Department of Environment (DoE) was giving a presentation on sargassum during the orientation.

Attendees learned that such clearance would take place alongside the usual NiCE roster of tidying road verges, clearing beach accesses and general beautification of the island.

During his remarks, Minister for Commerce, Planning and Infrastructure, Hon. Joey Hew said that the summer programme had been brought forward a month, to help address the urgent need to remove the seaweed.

“We are pleased to be offering the programme earlier than we did last year and I want to thank the Department of Environmental Health and WORC staff and personnel in my ministry’s agencies notably the National Roads Authority and Public Works Department for moving forward with its implementation and organisation,” he added.

“Sargassum is a naturally occurring phenomenon across the Caribbean, however the number of blooms we are currently experiencing is unprecedented and is affecting watersports enthusiasts’ and beachgoers’ enjoyment of some stretches of coastline. As the DoE considers this is likely to be a long-term issue, posing both environmental and a tourism challenges, Government has established a Sargassum Taskforce to tackle the issue.

“I am confident that NiCE can help with the clean-up effort. Sargassum removal from our coastal areas is a priority which requires a robust, multi-agency approach to keep our island’s beaches and sea beautiful for local residents, wildlife and Cayman’s tourism product,” he added.

Minister Hew said that he was certain that NiCE workers were up to the task and hoped that participants would do as they had previously by working efficiently and well.

During the orientation, attendees also heard presentations on safety, and NiCE procedures and policies from PWD Vocational Trainer Eric Green and Acting Deputy Director, Department of Vehicle Equipment Services and NiCE Works Manager Mark Bothwell.

DoE Sustainable Development Officer Nathan Dack explained what was causing the large blooms of sargassum in Cayman waters, why they pose problems for marine life, and explained that raking and removal by hand was preferable to using heavy machinery on beaches, which would also remove sand and might cause coastal erosion during hurricane season.

As turtle hatchlings use sargassum as shelter, Mr. Dack asked clean-up crews to avoid sweeping away turtle tracks as DoE use them to identify nesting sites.

  In the Q & A session, registrants learned how sargassum would be collected, what would be done with it following removal and if it was a health risk. Government workers were told that the seaweed would be gathered at sites throughout the island for possible use as fertiliser or burnt, and that it need not pose a health issue if proper safeguards were taken. Mr. Dack advised that those with respiratory problems should refrain from working with the seaweed.

In closing, Mrs. Kellyman advised newcomers and reminded returnee applicants that the project will offer the unemployed the opportunity to gain new skills and to show their ability to work diligently as part of a team.

“Your supervisors will be evaluating you and at the end of the two weeks you will be getting documentation that could be useful as a reference when job seeking,” she concluded.

Premier Hon. Alden McLaughlin is leading a delegation of the 40th Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) in St. Lucia this week.

Travelling with him are Attorney General Hon. Sam Bulgin, Minister of Finance and Economic Development Hon. Roy McTaggart, Cabinet Secretary Samuel Rose, Head of the Office of the Premier Roy Tatum, International Affairs Analyst Jamaal Anderson and Personal Assistant to the Premier Jana Pouchie-Bush.

Minister McTaggart has been invited to attend the Council for Finance and Planning prior to the CARICOM meeting

Areas of interest to the Cayman Islands being discussed include issues of sargassum in coastal waters, EU blacklisting, the potential to increase regional trade and security matters, including border control.

“While as an associate member of CARICOM not all the agenda items are applicable to the Cayman Islands there will be many areas of common interest,” said Mr. McLaughlin.  “It is important to foster fraternal relations with our neighbours within the region and to support each other as far as is practical. It is also worth noting that at the last CARICOM Heads of Government meeting, at my behest, CARICOM supported the Cayman Islands and our fellow Overseas Territories on the challenges we are facing regarding public registers of beneficial ownership.” 

An Opening Ceremony will be held on Wednesday 3 July, and will be addressed by Prime Minister Chastanet; the outgoing Chairman, Prime Minister Dr. Timothy Harris of St. Kitts and Nevis; and CARICOM Secretary-General Ambassador Irwin LaRocque.

CARICOM has 15 Member States – Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Guyana, Grenada, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, Saint Lucia, St. Vincent and the Grenadines, Suriname and Trinidad and Tobago; and five Associate Members – Anguilla, Bermuda, British Virgin Islands, Cayman Islands, and the Turks and Caicos Islands.

Good morning,

It is wonderful to see so many who have joined us today as we continue to Celebrate Cayman and begin the year-long observance of the 60th anniversary of our Constitution on this Constitution Day.

We have held a number of events over this long weekend to commemorate our first written Constitution, and we are fortunate to have several visiting dignitaries join us over the course of the past week for which we are very grateful.  

Over this Constitution weekend we have reflected on several important occasions in our history in which this Town Hall has played a key part, particularly the events that led to our receiving our first written Constitution in 1959 and, subsequent to that, the debates and decisions that led to our breaking political links with a soon to be independent Jamaica.

While Pedro St. James is revered as the birthplace of democracy in our Islands, it was within the confines of this Hall where important political, cultural, and social events have occurred.  These walls serve as witness to those historic moments some sixty years ago that helped shape modern Cayman in the late 1950s through the early 1960s. 

It was here that the Caymanian people chose to become a British Crown Colony in our own right, with our own written constitution to help guide and shape our future. And with that decision, as I have noted, we redefined our relationship with Jamaica that had existed for over 300 years. 

By the time of those events this hall was already some 35 years old, having been built by the great Caymanian ship-right and builder Captain Rayal Brazley Bodden, MBE, JP, in 1923 and officially opened on the 11^th hour of the 11^th day of the 11^th month in 1926 – Armistice Day.

Captain Rayal was born into a family of distinguished shipbuilders and was apprenticed to his father’s shipyard at age of 14. His first vessel built in 1920 was a sloop-rigged turtle fishing boat named the Bird.  He built many more ships, including Cayman’s first motorized ship, the Cimboco in 1927, as well as two minesweepers for the Royal Navy in 1945.

His training as a master shipbuilder is still evident today in four buildings here in George Town – this Town Hall, the Elmslie Memorial Church, the George Town Public Library and our downtown Post Office were built by him. His placement of roofing beams and planking in those buildings is reminiscent of an inverted ship’s hull.

While construction of the Town Hall was under way, it got the nickname of Hutchings’ Folly because it was considered much too big for such a small island as Grand Cayman.  Fortunately Hugh H. Hutchings, who Fortunately, Hughsioner to the Cayman Islands from 1919-1929, understood that such a building as this would be needed then and into the future.  History has indeed proven him right.     

This Hall was built at a price of 2,000 pounds sterling, a weighty amount back then, and was intended to be used as a court house, Assembly meeting room and as a town hall. For many decades it was the centre of community life in George Town and beyond, serving as the venue for community dances, and dramatic and musical presentations. And of course, as I have said before, it also served as the meeting place of the Legislative Assembly of Justices and Vestry, which later became the Legislative Assembly. 

In his speech at the dedication of the Town Hall as a Peace Memorial, in honour of Caymanians who had died in the first world war , Commissioner Hutchings said, and I quote:  “Let it not be said the material uses to which we put our memorial may in any way detract from its dominant purpose: as Court House, the King’s Justice, the right of a free people will be administered within its walls; as Assembly Room, it will in dignified surroundings afford a place for the deliberations of the Dependency’s Legislature and the public discussion of the affairs of the people; as a Town Hall, this comfortable room will, I am sure, in countless ways contribute to the social enjoyment, uplift and happiness of the entire community.

“No longer the restrictions and discomforts occasioned by the limitations of a small room; there is now assured a stage of generous size, a room of ample space, efficient ventilation, comfortable seating, all to be taken advantage of in efforts to entertain, to brighten, to elevate and instruct those of all ages and classes within reach of its open doors.”

And so it was here that lively discussions were had in the run up to the granting of a royal order in council that gave the Cayman Islands our first written Constitution as well as provided for universal adult suffrage that allowed women the right to not only vote but to seek and hold public office.

Sir Vassel Johnson summed up the purpose of that first constitution when he said, and I quote “A constitution is very important to any country because it is the basis on which all future development, prosperity, peace and harmony will rest”.

While each Constitution Day provides an annual opportunity to measure how much progress we have made, these Celebrations of our first written constitution affords us an opportunity to enshrine our Constitution right here in this space we are occupying today.

And so in celebration of the 60^th Anniversary of our first written Constitution, and to acknowledge the role that this revered Hall has played in the forming of that Constitution and the prosperity it has helped bring to us, I am happy to advise that we are renaming the George Town Town Hall as Constitution Hall.  And in so doing we will help to immortalise in the minds of our people, present and future, that this is more than a mere building.  This is a special place for all of us, not only to those who reside in the confines of George Town proper, but it belongs to all Caymanians across our three Islands.  

And I pray that in a few short years to come that we also again celebrate this great Constitution Hall on the anniversary of its Centenary.

Again, I thank you for joining me on this important day in the history of our beloved Islands to memorialise this Constitution Hall, and that document that enshrines our rights, freedoms and responsibilities, all influenced by our history, culture and Christian heritage – our Constitution.

Thank you.

Good morning,

I thank you for joining me today on this very, very important occasion as we celebrate both the 60th anniversary of the Cayman Islands’ first written Constitution as well as the important historical and cultural relationship we share with Jamaica and of course the United Kingdom.

Lord Ahmad, Prime Minister Holness, and Minister Vaz, on behalf of my Government and the people of the Cayman Islands I wish to wholeheartedly thank you and your delegations for joining us over this important weekend of celebration and thanksgiving.

I am also grateful to my fellow Overseas Territories leaders and members of their delegations who are in attendance and indeed have been here most of this week to attend our annual Pre-Joint Ministerial Council Meeting and the inaugural UK/OT Trade Summit.  And of course thanks also to the members of the Cayman Islands All Party Parliamentary Group who are here –Lord Northbrook, Sir Michael Fallon and Sir Graham Brady.  Sir Graham, I am pleased that you were able to have Lady Victoria join us on this visit. 

It is indeed good to be amongst so many friends.

 Prime Minister Holness, Jamaica recently lost a great leader when The Most Hon. Edward Seaga passed away. But as you know, with the passing of Mr. Seaga the Cayman Islands also lost a very good friend.  I was honoured to have been able to attend and participate in the funeral ceremony last weekend in Jamaica, along with the Speaker of the House, Hon. McKeeva Bush and Councillor David Wight.

As we celebrate our 1959 Constitution, our first constitution Prime Minister, I note that 1959 was the year that Mr. Seaga first entered politics and thus he was part of the political establishment in Jamaica at the time we received our first written Constitution.

Sadly, as each year passes we lose more of those nation builders who helped shape the future of our two countries in the late fifties and early sixties. Earlier this year we lost Charles Lindbergh Eden. His service from 1954 – 1959 as a member of the Assembly of Justices and Vestry was during a very important part of Caymanian history.  Happily Capt. Owen Farrington and Arley James Miller, who also served in the Assembly during that historic period, are still with us.  In January of this year the Cayman Islands honoured the achievements of Capt. Owen, Mr. Eden, and their entire fellow Vestrymen and Justices of the Peace who ably represented the people of the Cayman Islands during a time of transition.  I am very proud of the fact that my Grandfather William A. McLaughlin was also a member of the Assembly during those historic years and indeed was also a member of the very first Executive Council under the 1959 Constitution.

The late 1950s and early 1960s were certainly a time of great change in the UK, the broader English-speaking Caribbean and especially in Jamaica and these Islands.

In the UK Harold McMillan was returned in the General Election as Prime Minister in 1959.  In 1960 he gave what is today still considered to be an important historical speech when he addressed the whites’ only South African parliament and noted that "The wind of change is blowing through this continent, and whether we like it or not, this growth of national consciousness is a political fact. We must all accept it as a fact, and our national policies must take account of it."

These words were prophetic not only in the African context but certainly also for those British territories in the Caribbean, including the Cayman Islands and Jamaica.  The West Indies Federation that was promoted by the UK after the Second World War, was eventually formed in 1958, but dissolved by 1962 as Jamaica and Trinidad opted for independence and self-determination rather than federation.

But despite the post-war trend that saw a number of UK colonies opt for independence, the Cayman Islands was determined to not just be swept along in the wake of our larger neighbours.

It is worth noting here that it was not just the recognition by the UK of the inevitability of the drive for change in its colonies that was important; rather it was also the willingness of the UK to sponsor and facilitate the process in order to ensure that all of its former colonies were able to establish themselves, ready to face the future in the best possible way. This was in part the rationale for the UK to promote and to assist its Caribbean territories in the formation of the West Indies Federation.

Even more important, I believe, has been the willingness of the UK to maintain its help and support for all of us over the subsequent decades. Whether it has been through the Commonwealth or through what is now United Kingdom Overseas Territories Association, the UK has been steadfast in its role and the benefit that we all have received as part of the global Britain family has been truly significant. Of course as in all families, we have had our disagreements through those years, but we have always found that the values that bind us together have been stronger than the occasional challenges that have threatened to drive us apart.

Certainly in Cayman’s case our ongoing developing relationship with the UK has been absolutely central to our increasing success and prosperity over the last 60 years. The UK’s willingness to nurture our fledgling democracy; to encourage our emerging economy, certainly in those early years; and to provide support through good times and bad has been a vital ingredient in Cayman’s success story.

We have been, and we remain, grateful for our links to the UK and committed to our future partnership.

Prime Minister and Lord Ahmad, our three countries share a common history and we also share a connection to Her Majesty the Queen, who has reigned for some 67 years and was sovereign when Jamaica became independent and the Cayman Islands became a Crown Colony.

However, as I have said, the route for both Jamaica and the Cayman Islands traversed a difficult and rocky road that was the formation of the Federation.

Initially as a dependency of Jamaica, the Cayman Islands was keen to ensure that our interests were being protected. Members of the Assembly at the time, the late Ernest Panton, National Heroes T.W. Farrington and Ormond Panton led by Ducan Merren traveled to the discussions in Jamaica and made it clear that the Cayman Islands would join the Federation only if we had direct representation in the Federation.  

Unfortunately Cayman’s position was eventually rejected by members of the Standing Closer Committee of the Federation and instead it recommended that the Cayman Islands should continue as a dependency under the administration of the Governor – General of the Federation.

But the Cayman Islands remained resolute and on April 7, 1955, six Assemblymen sent a petition to the Colonial Secretary through the Governor of Jamaica.  They stated that “while…we look forward to strengthening ties both with Jamaica and with the other territories of the British Caribbean…we wish to restate, as clearly and as strongly as we can, three main aims.  First, we wish to retain the right to control entry to our islands.  Secondly, we wish to retain our rights to decide what taxes should be imposed upon us.  Thirdly, we wish to retain our right to maintain our established channels of trade and employment overseas.”

Cayman’s position remained unchanged in the run-up to the start of the launch of the Federation and the Jamaica Government led by Premier Norman Manley became content to let the British Governor of Jamaica resolve the Cayman Islands issue. Locally, however, there were divided opinions - some preferred obtaining and retaining increased local control over Caymanian interests whilst some factions favoured a break with the United Kingdom and a closer relationship with Jamaica within the framework of the Federation; an issue that would not be resolved for several more years.

And so, despite the uncertainties of who the Cayman Islands would join, it was agreed by the UK that the Cayman Islands would receive our first written constitution by a Royal Order-In-Council.  The constitution came into effect on July 4, 1959, and was the first step towards political advancement for the Cayman Islands, as the Islands were now specifically exempt from the control of the Jamaican legislature and were placed directly under the authority of the British Governor of Jamaica.

There also followed radical changes to the Legislature.  After 129 years, the Assembly of Justices and Vestrymen was replaced by two new bodies, the Legislative Assembly and the Executive Council (which has now evolved to the Cabinet today).  The members of the Legislative Assembly were also reduced from thirty five to eighteen members, which included twelve elected members, three nominated members and three official members.  ExCo consisted of two official members, two elected members and one nominated member. 

National Hero T. W. Farrington, speaking in the Assembly on July 3, 1959, the day before the new Constitution would come into effect, reflected on the coming changes and said to his colleagues:

“I must also thank and congratulate members of this Assembly for their individual contributions to all the deliberations in this House for the preservation and continuity of the best traditions which we Caymanians hold so dear.  It is obvious that some faces that are here today will of necessity be left out of the new House but for those of you who will be returned I would say – Be Watchful! Be Vigilant! Be Wise! Let us not lower the flag but press on with courage and determination that as we go forward into the future we shall always be proud to be called Caymanians!”

Those are indeed mighty and suitable words from our venerable statesman at a most momentous time in our history.

I wish to also note that when the new Legislative Assembly met for the first time in October 1959 in what we know as the George Town Town Hall, present in the audience was the Jamaican Minister of Home Affairs Hon. William Soivright who was representing the Premier of Jamaica the Right Hon. Norman Manley.  Also present was the Leader of the Opposition of Jamaica at the time, Sir Alexander Bustamante. So even at that auspicious moment in our development senior Jamaican parliamentarians graced us with their presence – which makes it even more poignant for me, Prime Minister, that you and Minister Vaz have joined us this week to commemorate and recall the events of those days.

 After the collapse of the West Indies Federation in 1962 and with Jamaica taking its final steps to independence, the Cayman Islands had to make a firm decision as to who it would follow, Jamaica or Britain.

The issue was finally debated in the Legislative Assembly and decided in 1962 when a unanimous resolution was reached that:

“It was the wish of the Cayman Islands (1). To continue their present association with Her Majesty’s Government in the United Kingdom; (2). To negotiate with her Majesty’s Government in the United Kingdom for internal self-government, taking into account the wishes of the people of the Cayman Islands as to timing.”

And with that decision Jamaica and the Cayman Islands went our separate ways politically - with Jamaica moving on to become an independent nation and Cayman choosing to remain British and becoming a British Crown Colony in its own right.  

It was the decision by the Cayman Islands to obtain our own constitution and to forge our own way as a British Crown colony that allowed our own people to begin make what were, clearly in retrospect, fundamental policy decisions and to pass the early laws on which we have built our tourism and financial services industries. The adoption of the1959 Constitution can rightly be considered the seminal event which gave rise to the modern Cayman Islands.

But Prime Minister Holness, even though our respective countries may have separated politically, the connections between us have remained strong, and indeed have grown stronger, these past sixty years.

From the beginnings of its settlement following the 1670 Treaty of Madrid, which ceded Jamaica and Cayman to Britain, our two countries and cultures have been intertwined.

History records that the earliest two settlers – Walter and Bowden – were British soldiers who were reputedly deserters from what was colloquially referred to as Cromwell’s Army in Jamaica.

After Jamaica’s independence, Caymanians continued visiting Jamaica in numbers for business, medical care, employment, education, to visit family or friends, or even to be wed.

Indeed, my forbear John Patrick McLaughlin and his betrothed traveled to Lucea, Jamaica, to get married because there were no marriage officers on Grand Cayman at the time. Fast forward a hundred and fifty years or so to my own parents, McNee and Althea who did their formal training in Jamaica to later come home to make a difference in public health; my father as a public health officer and my mother as the country’s first dispenser of medicines.

And over the decades many Jamaicans came to the Cayman Islands as doctors, teachers, builders, lawyers and more to help us build the Cayman Islands that we know today. Many have stayed on to become a permanent part of the Caymanian fabric – including our own Chief Justice Anthony Smellie, Attorney General Sam Bulgin, the late Clarence Flowers, Mr. Wellesley Howell who turned 104 years this year and is still playing his saxophone, and of course, Prime Minister, Dr. Joseph Marzouca your Honorary Jamaican Consulate who, despite the unchanged accent, is also now happily Caymanian. 

We still have Caymanians benefiting from education in Jamaica but we also have a large and growing number of Caymanians also going to the UK to university.

Over the past 60 years, the relationship between the United Kingdom and Cayman has developed and matured. As I noted on Wednesday at a joint UK/OT Trade Summit, after having become a British Crown Colony in our own right we, along with our fellow Overseas Territories, were all designated by the UK as Dependent Territories in 1981 and subsequently as Overseas Territories in 2002. The shifting nomenclature – from colonies to dependencies to finally being recognized as “overseas territories” marks the increasing maturity of our relationship with the UK.

And so, since 1959, the document that governs us has gone through several iterations, with the latest coming in 2009.  Today we are again in constitutional talks with the United Kingdom with a view to further advance the Cayman Islands position constitutionally and to enhance our ability to govern our own affairs and to continue to thrive and prosper as a modern, progressive and successful democracy.

Lord Ahmad, Cayman’s success has much to do with the hard work and dedication of those Caymanian men and women who strove to build our Islands, but we had great assistance from the UK over the years, including those Commissioners, Administrators and Governors who loved this place and worked to help make it better.  And yes we also had much help from the people from Jamaica and elsewhere who joined us in this grand experiment to make three small Islands in the Western Caribbean the gem that we are today. But what has also helped us is the confidence that investors have in our links to the UK, along with our shared British common law system.  As three small islands our choice to remain British was the right one for us then and despite the tensions from time to time, I believe it continues to be the right one now. 

In August this year Jamaica and its Diaspora will celebrate 57 years of independence and, Prime Minister, we will once again join you in your observances, wishing you happiness, prosperity, peace and continued success.

Thank you.

Welcome Lord Ahmad, fellow heads of government  and representatives, Deputy Governor, members of Cabinet, the Legislative Assembly and other distinguished guests.

I think by now everyone will know that this weekend marks the 60^th anniversary of the first written Constitution of the Cayman Islands. I am delighted that we have been able to organise the pre-JMC meeting and this summit to coincide with those celebrations. And I am even delighted that you can all be a part of this weekend’s festivities.

Over those 60 years, the relationship between the United Kingdom and Cayman, as with all of the Oversea Territories, has developed and matured. There seems to me to be a process of onward progress that takes a significant step forward every 20 years or so.

Having become a British Crown Colony in our own right in the late 1950s, we were all designated as Dependent Territories in 1981 and subsequently as Overseas Territories in 2002. Words have consequences and the shifting nomenclature – from colonies to dependencies to finally being recognized as “overseas” – matters.  In my view, it marks the increasing maturity of our relationship.

Perhaps it is inevitable, therefore, that we are now thinking about what the next stage in the development of our relationship should be.

Certainly, this event, the first international trade summit organised between the UK and the Overseas Territories, marks a significant milestone in the continued development of our relationship. 

The UK itself faces both the uncertainties and the very real opportunities that life outside the European Union will bring. The response, of which we will hear much more later, has been the development of the Global Britain Initiative.

The Secretary of State was generous enough to invite me to lead a delegation to the GREAT Festival of Innovation in Hong Kong last year and I confess that experience was a real eye-opener for me. I saw first-hand the potential for a dynamic and creative partnership between the UK and ourselves in the Territories.

The UK has shown itself to be willing to open doors for us and to offer support and expertise but it is down to us in the Territories to put ourselves in a position to exploit the opportunities that our membership of the UK family brings.

In Cayman we have responded by establishing our own new Ministry of International Trade and will we be opening an Asia Office in Hong Kong early in the New Year. Each of you will no doubt be thinking about your own response to the opportunities that the future will bring.

This Summit is designed to be a catalyst for that thinking as we develop our mutual understanding of both the current picture and of the key areas for potential development.

Today is very much about hearing from the United Kingdom what the future might look like while tomorrow we will showcase what the Territories have to offer.

So as we think about what the relationship between the United Kingdom and the Overseas Territories might become, I urge us to think in these terms. We come from a shared history, cemented by our common values and our loyalty to the Crown.  We have shown the resilience and flexibility to adapt and develop our relationship over many decades.  We share an ambition for mutual growth and for the future prosperity of our people.

In short, we are at our strongest when we act together.  The next two days will, I believe, develop our understanding of how and where we might utilize that strength for the benefit of all of our people.

Jamaica Prime Minister the Most Hon. Andrew Holness travels Friday to the Cayman Islands to attend a Cayman Cultural Celebration at Pedro St. James that evening and a weekend of celebrations of the 60^th anniversary of the first written Constitution of the Cayman Islands.

He will also attend bilateral talks with Cayman Islands Premier Hon. Alden McLaughlin and United Kingdom Minister of State Lord Ahmad of Wimbledon.

Celebrate Cayman activities recognising the 60^th anniversary of the document that governs the Cayman Islands and her people as well as the ties that bind Cayman, Jamaica and the United Kingdom begin Saturday morning at the Kimpton Seafire Resort with a breakfast featuring speeches from Cayman Islands Premier Hon. Alden McLaughlin, Lord Ahmad and Mr. Holness. The men will honour the links and history between the three countries.

In attendance will be heads of Governments from the British Overseas Territories, representatives from Jamaica and the Jamaican Diaspora in the Cayman Islands, members of the clergy, and the Constitutional Commission. The 1959 Legislative Assembly of Justices and Vestry, which enacted the first Constitution, will be represented by family members. The proceedings will be carried live on Radio Cayman 89.9FM.

Saturday afternoon activities include an All-Star Football match featuring 60 legends football players from Premier Leagues and Cayman Islands National Team greats at the Truman Bodden Sports Complex.

Yesteryear's football stars such as Premier League legends – Gianfranco Zola (Italy), Shaka Hislop (Trinidad & Tobago), Ricardo Gardener (Jamaica), Darren Moore (Jamaica), Sean Davis (England), and Pascal Chimbonda (France) along with Jamaica Reggae Boyz legends Walter Boyd, Onandi Lowe and Cayman Islands National Team greats Lee Ramoon, Gillie Seymour, Antonio Smith, Richard Hew, among many others will be part of this charity football match.

At half-time, there will entertainment and a donation collection to give football fans the opportunity to support the Hope For Today Foundation – a local non-profit, non-governmental, non-denominational coalition of volunteers dedicated to helping and supporting individuals finding their way back from substance abuse through transition from prison or treatment to community life.

On Sunday, 30 June, a church service at Elmslie Memorial will offer attendees a time to reflect on and give thanks for the journey the Cayman Islands has made over the past 60 years.

Good morning,

I bring a warm Caymanian welcome to you this morning.

For those of you who have been here before, welcome back. If this is your first visit to the Cayman Islands, I do hope it will not be your last time and I hope we will see you again and that you will have opportunities to experience our culture, attractions, culinary delights and especially our people. I have no doubt you will be back. We do hope you will.

Some of you were here with us just a few short years ago – five to be exact – when we last hosted the Pre-JMC in 2014. Our purpose today is to set the stage for the next meeting of the Joint Ministerial Council in London in November this year.

As we come together for these Pre-JMC meetings each year, the items on our agenda can vary with the changing climate both figuratively and literally. And so it is important that we in this room discuss and agree as much as we are able on a common position to take with us to London.

While the principles espoused in the 2012 White Paper on Security, Success and Sustainability remain important topics, we are now also faced with issues dealing with Climate Change, Brexit, FinTech opportunities, Health and Constitutional considerations.

Also worth noting is that when we get to London in November there will be a new Prime Minister with his own Cabinet and so potentially the players that we now deal with may very well be changed. I do hope, as I am sure the rest of you do, that we will be able to keep Lord Ahmad as Minister with responsibility for the Overseas Territories. I think we can all agree that he has done a stellar job over the past two years and that he has a shown willingness to fight the establishments when needed on behalf of the people in our territories.

What we do not know, as yet, is whether the October deadline for Brexit will have been met and so we can only watch and wait as the scenarios continue to play out and work to ensure that whatever the outcome, we in the Territories are able to benefit from opportunities presented.

As Heads of Government for Overseas Territories we once again have an opportunity to exchange views on political and constitutional issues, especially as they relate to the United Kingdom and its relationship with us.

I thank those of you who will be able to stay on in the Cayman Islands and take part in the various events we have planned for this week – the inaugural UK/OT Trade Summit and the many celebrations of the 60th anniversary of our first written Constitution. Joining us later this week will be Lord Ahmad, arriving this evening, and Jamaica Prime Minister Andrew Holness, who arrives Friday, along with three visiting British MPs: Sir Graham Brady, Sir Michael Fallon and Lord Northbrook.

Again, I welcome you to the Cayman Islands and while we do have a full agenda today, I hope that you will find time to enjoy all we have to offer.

I look forward to the usual spirited discussion and debate and pray that we all find these proceedings informative and that we come away with a strategic plan to take our message forward to the full JMC meeting.

Thank you.

The Government’s second-ever National Community Enhancement (NiCE) Summer Project takes place on Monday, 8 – Friday, 19 July 2019.

The initiative will provide up to two weeks of environmental beautification work across Grand Cayman for unemployed Caymanians and spouses of Caymanians, aged 18 years and older. As well as providing temporary paid work, the NiCE project offers a chance for persons entering the job market to learn new skills whilst allowing persons re-entering the workforce, the opportunity to gain additional experience.

Registration and orientation for next month’s project, led by the Ministry of Commerce, Planning and Infrastructure, will be at the Lions Centre from 9 a.m. - 12 noon on Tuesday, 2 July.

The project will cover repairs and maintenance, gardening, tidying up parks and cemeteries, beach clean-ups, clearing beach access, garbage collection; as well as cleaning roadside verges and general bush clearance.

“While the Government is encouraged that at 2.8% unemployment is now at its lowest in more than a decade, we are still keen to help those who are experiencing difficulties finding full-time work,” said Minister of Commerce, Planning and Infrastructure, Hon. Joey Hew.

“This Summer’s NiCE Project has been brought forward to assist in addressing the issue of sargassum on the beaches and coastline of Grand Cayman. A similar project will be conducted on the Sister Islands by the Ministry of District Administration,” he concluded.

NiCE applicants will need to bring a completed application form and supporting documentation to prove immigration status on registration day.

Rigorous vetting will take place to ensure that only those who are eligible are accepted onto the programme. Those accepted onto the programme will be required to attend work daily from 7 a.m. to 3 p.m. Monday through Friday.

Contracted workers will be paid $10 per hour; foremen will receive $12 per hour.

Application forms can be picked up at all District Libraries in Grand Cayman, as well as from District MLA Offices, the Needs Assessment Unit, Workforce Opportunities Residency Cayman (WORC) formerly known as the National Workforce Development Agency and from the Government Administration Building’s reception.

Government agencies  working together to organise  this summer’s project are the Public Works Department (PWD), the National Roads Authority (NRA), the Department of Environmental Health (DEH) and (WORC).

The Government intends to undertake another NICE project in November 2019 to provide temporary seasonal employment in the run up to the holiday season.

The Cayman Islands will host Overseas Territories Heads of Government for a pre-Joint Ministerial Council meeting this week.

The meeting will be chaired by Premier Hon. Alden McLaughlin and is an opportunity for all Overseas Territories Heads of Government to exchange views on political and constitutional issues, especially as they relate to the United Kingdom and its relationship with OTs, and get an update on the work carried out by the United Kingdom Overseas Territories Association over the past year.

Heads of Government or their delegates from Anguilla, Bermuda, British Virgin Islands, the Falkland Islands, Gibraltar, Montserrat, St. Helena, Tristan da Cunha, and Turks and Caicos are scheduled to attend.

“Once again we are privileged to host the Pre-Joint Ministerial Council here in the Cayman Islands,” said Mr. McLaughlin. “Each Overseas Territory is different but these meetings afford us an opportunity to discuss the various ways in which we can work together. Through this meeting we will agree on an agenda and strengthen our collective position for the full JMC meeting later this year in London.”

Specifically, those in attendance will discuss the Communique process, progress reports and general feedback on the effectiveness of the last JMC, which was held in December 2018.In the first session of the Pre-JMC attendees will discuss topics including a Joint Caribbean OT-wide oil spill clean-up, Trade, Banking in Small Jurisdictions and an Oceans Policy Update.

The second and third sessions will involve discussions led by the Cayman Islands about the recommendation of the Foreign Affairs Committee and the response from Her Majesty’s Government and an update on the United Kingdom Government.

Sessions four and five will feature discussions on Frozen Pensions, Brexit, FinTech, Health and active engagement with the Foreign and Commonwealth Office.

The Pre-JMC will be held at the Kimpton Seafire Resort and will be followed by an inaugural UK/OT International Trade Summit, also at the Kimpton.

The Trade Summit is jointly hosted by the Cayman Islands and UK governments and is the first of its kind.

The Trade Summit coincides with the Celebrate Cayman 60^th anniversary of the first written Cayman Islands Constitution, which will be celebrated over the weekend in the lead up to Constitution Day on Monday, 1 July, 2019.

During the week of events several prominent leaders will be in Cayman to participate including Lord Ahmad of Wimbledon, Secretary of State for the Overseas Territories, Prime Minister of Jamaica the Most Honourable Andrew Holness and members of the All Party Parliamentary Group for the Cayman Islands, Sir Graham Brady MP, Sir Michael Fallon KCB, MP and Lord Northbrook.

Mr. Chris Kirkconnell, President of the Cayman Islands Chamber of Commerce, Members of Council, Ladies and Gentlemen, Good Afternoon, it is my pleasure to welcome you to the Cayman Islands Economic Forum 2019.

I am delighted to join you today to update you on the current state of our economy, Government’s finances and future development plans.

I believe that we can all agree this afternoon that the Cayman Islands is currently enjoying an exceptionally robust period of economic activity with solid, sustained growth across all sectors; low and falling unemployment; low to moderate inflation; along with strong and stable Government finances which enable us to invest in infrastructure and improving public services while generating operational surpluses and decreasing public sector debt. 

As a Government and as a Country we have much to be proud of.  However, Cayman’s prosperity is hard fought and hard won and this reality is not to be taken for granted. We need to maintain our focus, support our dynamic business community and take decisions the country needs, if we are to continue to prosper in the future.

We have taken deliberate steps to create and maintain an environment which encourages investment and innovation while also ensuring a robust regulatory environment that meets or exceeds globally accepted standards. Our economic success is also a reflection of how well our citizens, residents and business community engage with each other and participate in the Cayman economy. 

Let me just focus on the key relationship between government and business. This Government has set out to reduce the financial and administrative burdens, particularly on small business, in order to make it easier to start up and then grow businesses in Cayman. It was good to see that our efforts are being recognised with the publication last week of a new Global Complexity Index which had Cayman in last place, recognising this jurisdiction as the easiest place in the world in which to do business. Finally, a league table where we can be happy to be in last place!

Gross Domestic Product (GDP)

Preliminary indicators of Economic Growth as measured by Gross Domestic Product (GDP) show that Cayman’s GDP grew in real terms by 3.4 per cent in 2018, a further improvement on the already impressive economic performance the previous year which saw growth of 3.0 per cent.

Over the last five years the economy has recorded an average growth rate of 3.0 per cent per year in real terms. This is an impressive track record by any standards. By way of comparison, the GDP growth of 3.4 per cent in 2018 was stronger than the estimated growth of 2.9 per cent for the US and the 2.2 per cent average growth for the world’s most advanced economies. So far in 2019, all indications are that we are on track to record continued expansion of the Cayman economy.

The foundations that we have put in place will continue to provide a platform for growth in the medium term. Solid GDP growth is forecast to continue over the next three years. Included in the 12^th April 2019 presentation of the Government’s Strategic Policy Statement, GDP is expected to grow by 2.8 per cent in 2019; 2.2 per cent in 2020; 2.1 per cent in 2021 and 2.0 per cent in 2022. This reduction in outlook for economic growth in the period from 2019 to 2022 partly reflects the potential impact of the lowered growth projections of the International Monetary Fund for the USA and advanced economies in general for these years. 

With Cayman still projected to achieve growth of 2 to 3 per cent against a background of an anticipated global economic slowdown, it demonstrates the strength and vitality of the Cayman economy and of Caymanian businesses like those represented here today.

Growth by Industry

Growth in 2018 was broad-based with all major industries recording positive expansion.

The hotel and restaurant sector recorded the strongest increase, with its gross value added increasing by an estimated 10.6 per cent, following an increase of 4.3 per cent in 2017. The strong performance of the sector was driven by improvements in local capacity and additional air passenger routes coming on stream. This reflects the success of the partnership between industry and government and the strategy that has been pursued under the last two Administrations. I am sure there will be a lot more discussion of this in the panel session later this afternoon.

The construction sector continued to be a major contributor to growth in 2018 with its estimated value added increasing in real terms by 8.1 per cent. Growth in the sector reflected the infrastructural capacity of the Islands keeping pace with the demand for residential, commercial and public facilities ‒ arising from a higher population base which was estimated at over 65,000 at the end of 2018.

The financial and insurance services sector, consisting mainly of domestic banking and insurance services remains dominant in the economy. This industry directly contributes approximately 31 per cent of GDP and it continues to grow at a steady rate, estimated 1.8 per cent in real terms in 2018.

The business services sector comprising mainly of legal and accounting services grew by 4.6 per cent in 2018. This industry is Cayman’s second largest sector and directly contributes approximately 13 per cent to total GDP. The industry’s performance in 2018 is associated with sharp increases in new company and partnership registrations which rose by 25.1 per cent and 29.3 per cent, respectively. In addition, the number of listings on the Cayman Islands Stock Exchange surged by 37.2 per cent.

The strength of business activity in Cayman continues to be evident from this data. Despite the blows aimed at us, international business confidence remains strong and the Government remains absolutely committed to supporting our financial services industry.

Inflation

After two consecutive years of declining consumer prices in 2015 and 2016 the CPI increased in 2017.  This increase continued in 2018, peaking at 4.8% in the 2^nd quarter, and averaged 3.3 per cent over the year. Rising fuel prices in the international market coupled with higher demand from the increased local population were the key drivers of inflation during the year

The preliminary Consumer Price Index Report for the first quarter of 2019 reveals that consumer prices are up by 4.5 per cent compared to the same period in 2018. This increase is broad-based with increases being noted across most major categories, most notably, the Housing and Utilities index which is up by 11.1 per cent; Communication increased by 7.7 per cent; and Recreation and Culture up by 4.1 per cent.

While rising consumer prices are of concern because of the very real impact such increases have on individuals and businesses, it does indicate high levels of activity within our economy. The Government will continue to closely monitor the CPI and implement mitigation options where possible. 

In the end though, inflation is a product of market forces and we need to support the market to readjust rather than seeking direct government interference to counteract inflationary pressures. 

As Milton Friedman said, “inflation is caused by too much money chasing after too few goods.” Our economic strength and our growing population will continue to put money into our economy. That is something we should celebrate not try to dampen. 

Therefore, the answer lies in how we can ensure that the supply of goods increases to meet the growing demand. In my view, that is why we need to give much greater attention to the absolutely vital cargo element of the new port project. I am sure the cruise berthing aspect will be something  to debate during the tourism panel session but whatever your views on cruise tourism, I hope as businesses you will be able to see why expanded cargo port facilities are essential if our economy is to continue to grow. 

Employment

Strong growth in our economy continues to support increases in the demand for labour.

Significant increases in employment in 2018 meant the overall unemployment rate decreased to 2.8 per cent from 4.9 per cent at the end of 2017. The decline emanated from reductions in unemployment among Caymanians and Non-Caymanians. Significantly, however, the highest reduction in unemployment was recorded among Caymanians where the unemployment rate fell from 7.3 per cent in 2017 to 4.6 per cent in 2018.

This puts the Government well on track to delivering the commitment we made to achieving full Caymanian employment – an economy where every Caymanian willing and able to work, can do so. That achievement, though, stretches back through to the measures put in place by the last Administration. As a result, some 3,300 more Caymanians are employed now compared with the position when we took office in 2013.

The continued positive economic prospects for the Cayman economy mean that the robust employment market in Cayman will continue over the medium term. The new department we have established, Workforce Opportunities and Residency Cayman (WORC), will work with business to ensure that we match growth sectors with suitably qualified Caymanians and also that we respond more positively and quickly to those businesses that need to bring in workers where no suitably qualified Caymanians are available. 

Strong growth means both jobs for Caymanians and a continued need for work permits. It is not either/or. The task we have set for WORC is to ensure an appropriate balance is achieved that is good for Caymanians, fair to foreign workers and responsive to changing business needs.

Education

This Government also understands it is absolutely necessary that we ensure Caymanians coming into the workforce have the skills to compete in an increasingly global labour market.

For that reason, we continue to prioritise investment in education. Perhaps understandably, it is the investment in new school facilities that grab the headlines, most notably the commitment we have made to complete the new John Gray High School. 

However, whilst suitable classroom spaces are important we understand that it is the teaching that goes on in classrooms – both new and old – that makes the biggest difference in raising standards of attainment. Accordingly, we have delivered a significant increase in teachers’ pay to help us attract and retain the best teachers and the next step will be to begin the transition to a new, more up-to-date and challenging curriculum. 

Beyond that, the Government also plans to introduce a new governance arrangement for Cayman’s public schools. I hope that when the call comes for volunteers to serve on the new governing bodies that will take responsibility for raising the performance of schools, of teachers and of pupils, we will see many of you from the business community answering that call. Your skills and your commitment will be crucial in making these future arrangements work.

Infrastructure

This Government, like the last, has been willing to invest in the vital infrastructure our country needs as it continues to grow. These investments themselves create jobs, support future growth and deliver improvements in the quality of life for all who live here.

Major approved public sector infrastructure projects include:

• the on-going expansion of the Owen Roberts International Airport will commence later this year and include resurfacing the runway and other airside facilities;

• the Long-Term Residential Mental Health Facility that will enable us to care for some of the most vulnerable in our community here in Cayman rather than sending them overseas for treatment;

• the new Solid Waste Management infrastructure that will end our unsustainable reliance on landfill, boost recycling and create a new sustainable energy resource;

• procurement of the George Town Cruise Berthing facility and cargo terminal;

• the George Town revitalisation project that will bring new life to the heart of our capital; and

• ongoing road improvements that I will speak more about shortly.

Notwithstanding the public sector projects occurring, growth over the medium-term will continue to be driven by the private sector with recently completed and forthcoming projects that will increase the accommodation capacity for tourist arrivals and boost other commercial activities.

Significant new tourism accommodation projects such as: the Grand Hyatt Hotel at the old Pageant Beach; the Mandarin Oriental Hotel at Beach Bay in Bodden Town; and the Curio Collection Hotel by Hilton on North Church Street in George Town, are expected to commence construction within the next year providing a further boost to our construction sector while building capacity to facilitate expansion of our tourism sector. In addition, there are several luxury condominium projects that are currently under construction which are also providing a boost to these two important sectors. 

Other significant private sector-led real-estate development projects that are expected to contribute to growth over the medium term include the continued development of Camana Bay, including the completion of a new Foster’s Food Fair supermarket, expansion of the Cayman International School doubling its capacity, and the OLEA residential development and there are at least three substantial commercial and residential developments in the Grand Harbour area.

Fiscal Strategy

The Government remains committed to the fiscal strategy we established at the start of our first term in office that is centred on the following key principles:

• compliance with the Principles of Responsible Financial Management;

• no new fees or taxes levied on the public; and

• no new borrowings.

It is this sound, prudent fiscal strategy which has resulted in the significantly improved state of public finances that I mentioned earlier and places the Government in the best possible position to respond to any potential economic downturn.

Government has not borrowed a single dollar since 2012 and where possible, loan balances have been and continue to be repaid ahead of contractual repayment dates. This, I believe, is unprecedented by any Government in modern times. In November of this year, we have a Bond of US$312 million issued in 2009 that matures. While the Bond will be repaid when it matures, it is likely that we will need to refinance a portion of it in order to maintain compliance with the Principles of Responsible Financial Management.

While the amount to be refinanced will be determined later this year as we get closer to the maturity date, I can tell you now that the overall result will be a significant net reduction in public sector debt. Indeed, by 31^st December 2019, I expect that, with respect to debt obligations other than the Bond Issue, we will have repaid CI$183.1 million of debt since 31^st May 2013 – when the previous Progressives led Government first came into office.

Our commitment to reducing debt levels means that the significant capital investment programme is being funded entirely by surplus cash generated from operating activities.

Our financial strategy is right for our country now; appropriate for Cayman’s future needs; and robust in the face of potential future economic shocks. 

The best evidence that I can offer you to support that view is provided by none other than Moody’s Investor Services, who in March 2019, reaffirmed the Cayman Islands’ Aa3 sovereign debt rating with a stable outlook.

Growing revenues through economic growth, controlling operating and financing expenses, containing capital investments and generating substantial cash flows from operating surpluses has enabled us to build and maintain significant cash reserves – a key component of ensuring compliance with the Principles of Responsible Financial Management and the Framework for Fiscal Responsibility which are set out in the Public Management and Finance Law.

I am probably not giving away state secrets when I tell you that as politicians we often come under pressure to use those reserves to fund various public sector investments. However, as I have outlined, the maintenance of sufficient cash reserves is a crucial part of our strategy with an eye to the future. 

We have all experienced the impact of a natural disaster and of a global economic slump and, robust reserves will give us scope to act when the inevitable future shocks happen. I must therefore pay tribute to my colleagues in the Government Caucus for their willingness to stick with our fiscal strategy in the face of inevitable demands to increase public spending.

These prudent financial measures have resulted in exceptionally positive draft financial results for the 2018 financial year – which ended on 31^st December 2018. 

Operating Position

For the 2018 financial year, Central Government achieved record operating revenues of $838.1 million, being $107.4 million or 15 per cent more than budget.

I must stress again that this revenue level was achieved without the Government introducing any new revenue measures, and with various fee reduction initiatives in place that benefit households and business. 

Operating and financing expenditures for 2018 were $669.3 million being $25.2 million or 3.9% more than budget, resulting in an operating surplus of $168.8 million, being $82.2 million or 95% more than budget.

Bank Balances

Central Government’s bank balances increased to $559.4 million at 31^st December 2018 compared to $462.1 million at the end of 2017, an increase of 21%.

Debt Balances

Our debt management strategy has resulted in the reduction of debt to $420.0 million at 31^st December 2018, compared to CI$577.4 million, at 31^st May 2013 – when the previous Progressives led Administration first assumed office.

2019 1^st Quarter Financial Performance

Just two weeks ago in the Legislative Assembly, I presented the Government’s unaudited financial results for the 1^st quarter of the 2019 Financial Year. These results reaffirm the validity of our fiscal strategy, which continues to yield the desired financial results.  In summary, at 31^st March 2019:

• Core Government earned Total Operating Revenue of $373.7 million and incurred Total Operating Expenditure of $158.3 million resulting in an Operating Surplus for Core Government of $215.4 million;

• Core Government Bank Balances were at a record high of CI$747.1 million; and

• Debt Balances stood at CI$417.4 million.

Compliance with Principles of Responsible Financial Management

The Government’s prudent fiscal policies enabled us to maintain full compliance with the Principles of Responsible Financial Management during the 2018 financial year:

1. The Government achieved an operating surplus of $168.8 million;

2. The Government’s Net Worth was a positive $1.4 billion;

3. Debt servicing cost ‒ which includes both interest and principal payments – was 8.4 per cent of Core Government’s Revenues;

4. Net Debt was negative6 per cent of Core Government’s Operating Revenues – this ratio compares debt to bank balances and the negative 3.6 per cent means that at 31^st December 2018, the Government’s bank balances exceeded its debt for the first time in several decades; and

5. The Government had sufficient Cash Reserves to cover 256.1 days of operating expenditures at 31^st December 2018 ‒ which is significantly greater than the minimum 90-day legal threshold.

As I set out in the House in April, we will remain in compliance throughout the next three year forecast budget horizon, demonstrating our commitment to the long term position for the country rather than any short term electoral advantage that might be gained by going on a spending spree.

Revenue Management Systems

The Government’s operating revenues have been steadily increasing over the years. The importance that we place on having strong management systems to ensure that revenue is comprehensively collected and cohesively managed in an efficient and effective manner, cannot be over emphasized.

By successfully managing our existing revenue streams the Government can avoid the need to implement new revenue measures. Recent improvements include:

1. the development and implementation of risk management, internal controls and performance reporting governance frameworks;

2. the development of policies and procedures surrounding the way in which Government processes and approves revenue waiver applications; and

3. reviewing legislation to ensure that the Government is collecting all of the revenue that is due. You may recall that most recently, a review of the Stamp Duty Law resulted in amendments being made to close a loophole that had developed over the past few years whereby persons buying condominiums/apartments/homes pre-construction from developers were paying stamp duty on the land only and not on the value of the development when completed, as is intended by the Law.

Housing

Of course you will be aware that the stamp duty changes was also about increasing the duty thresholds for first time Caymanian home-buyers – providing no to low stamp duty on the purchase of property. This change helps put home ownership within the reach of many more young Caymanians and their families.

That in turn is but one plank of the Government’s overall strategy to improve access to housing for Caymanians. Another has been to work in support of the National Housing Development Trust as it constructs affordable homes for hard-working Caymanians. Thirty such homes have been or are being built and the Trust is continuing to expand its activities.

In addition, recently, the Finance Committee of the Legislative Assembly agreed to an additional allocation of $1.62 million to fund repairs that will bring back to a habitable condition, the homes of the elderly, disabled or those with young children whose properties are damaged often for reasons outside their control.

Future Development Plans

The Government is committed to working with the Private Sector to ensure the long term sustainability of flourishing economy whilst also preserving the unique qualities that makes the Cayman Islands such a wonderful place to live, work, visit and do business. 

In his Strategic Policy Statement on the 2020 to 2021 Budget, the Premier outlined how the Government intends to address the growth of the Islands in a planned and sustainable manner that will ensure the best use of available land while preserving our unique environmental heritage.

The “Plan Cayman” development framework, which has now completed its first round of public consultation, will focus on one major land area at a time thereby covering the entire Island over a five year period and then restarting at the beginning. This rolling approach makes for a workable continuous planning review process.

A Plan is now being developed for the Seven Mile Beach Corridor and will include looking at the merits of the development of taller buildings and “mixed use” developments that could ease both commercial and residential demands. This will dovetail with the work on the George Town Revitalisation project that is now being driven forward by the dedicated Town Manager. 

Both of these areas of work will be delivered in close consultation with both residents and local businesses and I hope you will continue to be engaged in that work as many of you were in the first round of Plan Cayman consultation.

The area-based approach is being complemented by work to tackle some of the key long term issues that will impact communities right across our Islands.  The most pressing of those is the on-going need for infrastructure improvements and the most pressing issue within that is the need to tackle congestion on our roads. 

Much to the relief I am sure of those of you who live east of Grand Harbour, the Premier announced in April that the Government is responding to the worsening traffic congestion in those areas and intends to reprioritize road improvements over the next two years in order to address the traffic issues. Road improvements include extending the east-west arterial road to Northward then on to Bodden Town. We are also initiating projects around Grand Harbour and westward into George Town to ensure traffic can move more smoothly.  Work will be underway before the end of this year.

Just building more roads is not a long term solution given the projected population increases for Cayman. Therefore, the “Plan Cayman” project will also look at alternative transport solutions such as safer cycling and walking routes and a radical new approach to public transport. 

The Government will be commissioning a specialist mass transportation study that will analyse the options available for us to achieve the necessary change in public transport that the country needs. The study will be completed within a year so that we will be able to consult widely and draw up detailed plans for inclusion in the next Strategic Policy Statement.

The creation of the National Energy Policy by the last Administration set ambitious but achievable goals to move Cayman to a more sustainable pattern of energy generation and consumption. The Government is currently implementing several important actions including the greater use of electric vehicles and the increased use of renewables for government buildings. There are also plans to encourage the public to purchase electric and hybrid vehicles.

Registers of Beneficial Ownership

By way of an update, the UK Government recently issued its response to the Foreign Affairs Committee Report entitled “Global Britain and the British Overseas Territories” that made sweeping recommendations on registers of beneficial ownership, same-sex marriages and UK citizens’ right to vote and hold office in British Overseas Territories.

We are pleased with the UK Government’s recent response that is committed to developing a positive and constructive relationship with its Overseas Territories and that is has no intention of interfering with locally-determined franchise and representational arrangements. With regards to public registers of beneficial ownership, the UK Government has committed to following a consultative process and not accelerating the current timetable to implement public registers in advance of the end of 2023.

The Premier has made it abundantly clear that Cayman will continue to resist any attempts by the UK Government to impose public registers in the absence of a global standard. This is not because we want to see any illegal money funnelling through Cayman’s financial institutions. We do not need or want that. Rather, it is about keeping a level playing field in the global market. In short, if and when it becomes the global standard, we will comply.

Conclusion

The Cayman Islands is continuing to benefit from a strong resilient economy that has weathered many challenges. Our future success depends on our ability to adapt and innovate and, as government and business leaders, we all have a responsibility to do everything that we can to ensure the continued success of these Islands.

The Government is committed to exercising prudent and responsible financial management and improving both the physical and institutional infrastructure capacity necessary to facilitate economic development in a sustainable and appropriate manner that enhances the quality of life for all residen

The Government has also shown its willingness and ability to move forward with necessary infrastructure projects, including our expanding road infrastructure, a modern landfill project, an expanded cargo dock and cruise berthing facility, to the long needed improvements at the airport. These benefit all who live here as well as supporting the growth of business. 

It is the Private Sector that is the engine of future economic growth that is critical to maintaining our long term success. Over the past six years, I believe government and business have come more closely together to support growth. There is, though, more to do and I look forward to working with you, President Kirkconnell, the Chamber Council and the wider business community, as we work in partnership to achieve our shared ambitions for Cayman.

Thank you and enjoy the rest of this Forum and your afternoon.

The Sunrise Cottage in East End, the oldest of the Department of Children and Family Services’ (DCFS) residential facilities for older persons, closed on Wednesday, 29 May 2019. Having been in operation from the 80s, the decision for this closure was made in the best interest of the residents and staff and will allow for future options to be considered.

The six residents were relocated to the Golden Age Home, which is a more suitable facility and the Ministry of Community Affairs’ Chief Officer, Teresa Echenique, says that they are comfortably settled in at their new location, which is also a residential facility operated by DCFS.

“The benefit of this location is that it is hurricane certified, which means they don’t have to be moved to a shelter if a storm is approaching,” explains Ms Echenique.

“They also have access to a large and airy daycare room with the opportunity to interact and take part in group activities daily. The move included staff they are very familiar with, which has greatly helped the transition,” she concludes.

Factoring in the age, size and overall structural restraints of the existing Sunrise Cottage facility, both the Premier and Minister for Community Affairs, Hon. Alden McLaughlin; and the Leader of the Opposition, Hon. Arden McLean agree that a purpose-built facility will best meet the needs of our older persons in the Eastern districts. As a result, options are being explored to accommodate a future home that will not only provide residential services for older persons but will offer a day programme and respite care when necessary.

Graduates from the Public Works Department’s Construction Apprenticeship Programme were honoured in a passing out ceremony held at the Department of Agriculture, next to the Post-Harvest Building, which the graduates had themselves helped to build.

Seven students received the City and Guilds of London Level 2 IVQ Technician Certification in Construction, while several other trainees celebrated attaining the Level 1 award. The qualifications are internationally recognised.

The PWD Construction Apprenticeship Programme runs in conjunction with the Cayman Islands Further Education Centre who provides a large portion of the trainees enrolled (others are recruited from the general public) and is supported by private sector partners. The scheme has been labelled “world class” by a global technical, vocational, education and training (TVET) expert.

In spite of the rain, a packed audience turned out to recognise and celebrate the students’ achievements. High-profile guests at the ceremony included Deputy Governor, Hon. Franz Manderson, MBE; Minister for Commerce Planning and Infrastructure, Hon. Joey Hew; Minister for Education, Youth, Sports, Agriculture and Lands, Hon. Juliana O’Connor-Connolly, JP; Acting Minister, Hon. Barbara Conolly; Acting Chief Officer for the Ministry of CPI, Leyda Nicholson-Makasare; Director of Public Works, Max Jones and Acting Senior Manager, Organisational Development and Operational Support for PWD, Levi Allen.

The audience was also made up of family and friends of the graduates along with mentors from the Public Works Department.

Deputy Governor, Hon. Franz Manderson, MBE revealed he had learned, early in his career, the skills needed to fix a cabinet. The audience laughed when he admitted they consistently came in useful, no matter where his career had since led.

Public Works Director Max Jones looked to the future of the programme in his address. He thanked Minister Hew for advocating on behalf of the training scheme, in order that Government’s full support and financial backing could be secured, to develop the course further. Additional funding will double the programme’s capacity, covering both operational costs and those required to expand the facility to include a dedicated training building, which will be able to deliver up to 50 trainees per year.

Hon. Joey Hew said Government was doing everything possible “to ensure that we promote sustainable and responsible development for the future.”

He added he was confident “our graduates will take their rightful place in the future of this important industry,” which he stressed was in “safe, Caymanian hands.”

The programme was launched in 2016. It developed out of a need flagged by PWD to fill key technical roles locally because of a lack of required practical skills and technical knowhow to carry out work in the construction industry at the requisite standard. Realising the taking on of individual apprentices was too small an approach to meet industry demands, the Department partnered with CIFEC, before eventually opening up to students not enrolled in any institution.CIFEC Director Delores Thompson stressed it had been important to listen to the community when they were informed students needed more skills as they entered the world of work. She also emphasised the importance of the theory and academic components of the course.      

The Apprentice of the Year went to 17 year old graduating student Zeb Bush. He said he was proud of their work constructing the Post-Harvest Building as it meant they had “done something for the country.”

Fellow graduate Chris Fennell revealed he had joined the programme because he “saw the potential. I have good faith it will put me in a good place because I have always loved the field of construction.”

The students graduating with the Level 2 award were: Rico Bodden, Danai Pusey, D’Andre Bodden, Naethiun Chambers, Jaydun Ebanks, Christopher Fennell and Zeb Bush.

The graduation ceremony took place on Wednesday, 29 May 2019.

A National Roads Authority (NRA) pilot scheme will shortly get underway, whereby lighted pedestrian crossings will be installed along the CNB roundabout arteries, through the newly-built extension, to the new roundabout at the Intersection of Crewe Road and Printers Way (near Mango Tree Restaurant).

The purpose of the scheme is to find a solution to the potential problems posed by pedestrians who choose to cross the roundabout at locations, and in ways, which may prove both disruptive and dangerous to all road users.    

The CNB roundabout has been chosen for this pilot scheme because it is one of the few major roundabouts where the approach speeds are at 30 mph and below.

This makes it a safer location for the trial period, as lower speeds carry a reduced risk of road accidents. The programme aims to make it safer and less disruptive for pedestrians to cross the roundabout, thereby improving the experience for all road users.

This pilot system is identical in operation to the lighted crossing already in place on Elgin Avenue, linking the Government Administration Building to Workforce Opportunities and Residency Cayman (WORC).

Pedestrians should push the button, wait for the lights and check approaching vehicles have slowed to a stop, before stepping out on to the crossing. Motorists must come to a stop by law when a pedestrian is present at the crossing.

The crossings are staggered to take into account those drivers who may be speeding up to leave the roundabout, as they will require a greater breaking distance in order to come to a safe stop at the pedestrian crossing.     

The Minister for Commerce, Planning and Infrastructure Hon. Joey Hew explained that “this project demonstrates NRA’s commitment to improving road safety, access and user experience for all persons, whether they are travelling on foot, by bicycle, on public transport or by car.”

He added: “the Ministry of CPI supports this pilot initiative, as we seek to make improvements for the benefit of all road users in the Cayman Islands.”

In addition, these works will also mark the opening of the Elgin Avenue/Mango Tree extension and new roundabout. There will be major changes to traffic flow as a result of the new road layout. All road users should be aware of new pavement markings and signage, as well as being alert to pedestrians using the lighted crossings. Access to Printers Way via the right-hand turn lane from Thomas Russell Avenue will soon no longer be possible. This access way will be permanently closed.             

The NRA will also shortly be releasing two Public Service Announcements to illustrate how to use the pedestrian crossings correctly.

Mr. Speaker, the deadline for the submission of the bids for the Cruise Berthing Project was 12 noon EST on Friday, 31 May, 2019. This is a historic milestone to have been reached in the procurement process of the Cruise Berthing Facility Project.  

 The evaluation groups have now been assigned their tasks to review, evaluate and score the bids received. This evaluation will be comprehensive and will involve the Major Projects Office, Port Authority of the Cayman Islands, the Ministry, and financial and technical consultants. 

 The next steps will include the preparation of an Evaluation Summary and Tender Assessment Report, which will be submitted to the Public Procurement Committee/Central Tenders Committee. 

 Once that Committee has considered and provided their recommendation, a presentation and paper will be sent to Cabinet.

It has been a very long haul over many years, over three administrations and millions of dollars spent on expert reports, advice and time to get to this point, but it is good for the Cayman Islands that we are here. At every point along the way we have advised the public where we are. I and the Hon. Deputy Premier have repeatedly reminded the public that Government needed to get to this final stage in the process in order to have final designs in hand, and having reached this point I look forward to publically unveiling the plans, including costs, as soon as the successful bidder has been identified.

Mr. Speaker, in November last year I told the members of this Honourable House and the public that Government had purchased Scranton Central Park to ensure that those who live in that community continue to enjoy that public space.

Today, Mr. Speaker, I am happy to announce that yesterday Government signed a five-year peppercorn Licence to the Central Scranton Community Committee to occupy, manage and carry out improvements to the original park site plus land situated at Block 14CJ Parcels 22, 121 and part of 182, which is 1.4 acres  off Myles Lane in George Town.

I’m happy to report that the Committee has a variety of ideas and proposals to develop and improve park facilities for the local community and the general public. To help it achieve its goals, Mr. Speaker, the Committee intends to secure volunteer donations of materials and labour. I have every confidence they will be successful.

In the words of cultural anthropologist Margaret Mead: “Never doubt that a small group of thoughtful committed citizens can change the world; indeed, it’s the only thing that ever has.”

I appreciate the passion of the members of the Central Scranton Community Committee and I thank them for the diligence in working with Government to develop a solution that is a win for all involved.

Mr. Speaker, for well over a decade the former Minister for Lands and former Leader of Government Business Hon. D. Kurt Tibbetts and I attempted to purchase on behalf of Government the original Scranton Park property, which was privately owned by individuals who graciously let community members use the land for free as a gathering spot. Over the years it had been used for many things – community gatherings to celebrate mothers and fathers on their special days, birthday parties, basketball games and more.

When finally the land did come on the market, my Government jumped at the chance to buy it to preserve this oasis in George Town Central.

Now, with the purchase of the land and the signing of the peppercorn licence with the Scranton Central Committee, residents in the community and the public at large can rest assured that an enlarged Scranton Park will continue to be this haven in the midst of bustling George Town.

Mr. Speaker, my Government continues to place a premium on ensuring that open spaces are available to the public, including access to neighborhood parks and play areas, and working with the residents in those communities to ensure those areas are kept tidy, accessible and safe.

So far this Government has proven its commitment to public spaces for our people by purchasing land and enhancing Smith Barcadere, putting in place the South Sound Board Walk and purchasing property in the Prospect area for a public park for the Red Bay and Prospect communities.

Mr. Speaker, Government continues to scope out lands and beach areas to procure for the enjoyment of our people across all three of our beloved Islands. By doing so we are making our communities stronger.

Before I close, Mr. Speaker, I would like to thank the members of the committee for their hard work. They include Mr. Dale Ramoon, Ms Lucille Seymour, Mr. Anthony Ramoon, Ms Cheryl Myles, Ms Christine Burke-Richardson and Ms Donna Wilson.

Thank you Mr. Speaker.

Today we celebrate two years since this Government of Unity was officially sworn in and we've accomplished much in this short time.

• Our economy has grown steadily.  GDP growth at 3.6% in the third quarter of last year..  Caymanian unemployment has plummeted and is the lowest it's been since 2006. 

• Created a new integrated department dealing with labour and immigration issues Workforce Opportunities and Residence Cayman (WORC) 

• Provided funding for 75 new Police Officers.  Community Beat Officers now in every district, improving visibility and response times; reassuring communities and deterring crime. 

• On 1st February our former customs and immigration departments were merged and the Customs Border Control (CBC) unit was formed.  We're already seeing results ribution that CBC is making, keeping our borders more secure and our communities safer. 

• Created a new Coast Guard, whose main focus is on criminal interdiction in our waters, stopping the illegal importation of firearms, drugs, and illegal immigration as well as search and rescue and marine enforcement. 

• Since January this year, seafarers, veterans, those in need of social assistance and long servicing civil service pensioners have a guaranteed minimum income of $750 per month - an increase of 36%. 

• Last July civil servants received cost of living increases which brought their salaries back in line with inflation.

• 16 new affordable homes completed in Bodden Town and in January we broke ground in East End for another 6 homes. 

• First time buyers don't pay duty on land valued up to $150,00 or on homes up to $400,000, helping more Caymanians get their foot on the housing ladder.  

• We've reduced Government debt tremendously and maintained the reduced fees for small businesses. 

• Our Financial Services industry, despite the last recession and the endless compliance initiatives remains the international financial services centre of choice.  

• Tourism is thriving, last year we had the highest number of visitors in our history. 

• We had a very successful Royal Visit in April and HRH Prince Charles officially opened the newly renovated and expanded Owen Roberts International Airport as well as the new 25 metre swimming pool in Cayman Brac. 

• We've completed the new South Sound Boardwalk, which protects one of the best natural views on Grand Cayman and will be enjoyed for generations of Caymanians, Residents and Visitors.  We've procured a further 634 acres of protected land, increasing the total amount of protected land to 4,111 acres - about 6.3% of Cayman's total land mass. 

• The new John Gray High School campus project is underway again with a target of completion in time for the 2021/22 academic year.  Capital investments this year include 3 new classrooms at Red Bay and construction of a hall at Bodden Town, improved the outdoor sporting facilities at a number of public schools and constructed new artificial turf football fields at Red Bay, Bodden Town and Prospect Primary Schools.

• Public Works Department City & Guilds apprenticeship programme is a great success and we've committed more funding for a brand new facility and expansion of the programme to serve at least 50 students next year.

• E-Government services continue to launch, giving the public the ability to do business with Government when they want, where they want, at their convenience.

There is much more this Government still needs to do and you can be assured over the next two years we will give everything we have to get it done.

Each year as I prepare to work on this annual Hurricane message to you I do so with a certain amount of trepidation because as I put pen to paper, none of us knows what this hurricane season is going to bring.

Too, I am reminded of that 16^th Century English phrase – “Speak of the Devil and he doth appear”.

I certainly don’t want to tempt fate!

In the past few weeks we have anxiously watched our friends in the southern United States suffer through flooding from torrential rains and damage done by horrific tornadoes. Our neighbours remain in our thoughts and prayers. And while hurricanes can be even more damaging than tornadoes, they are predictable unlike tornadoes that can pop up quickly.

We are blessed because we have a National Weather Service that is linked regionally and can stay on top of all weather issues and inform us in advance when bad weather is headed our way, giving us time to make preparations.

The early predictions from our friends in the United States are already out. We are told that the 2019 Atlantic Hurricane Season is going to be less active than 2018 with 14 named storms, seven hurricanes and three major hurricanes.

But don’t let that prediction put you off your guard. We know that just one bad storm can wreak havoc. We learned that lesson in 2004’s Hurricane Ivan, 2008’s Hurricane Paloma and watched in 2017 as our sister British Overseas Territories and other islands in the Caribbean suffered from hurricanes Irma and Maria.

My plea to each of you is to be prepared for the worst and pray for the best this hurricane season, which will stretch from 1 June to the end of November.

Earlier this month 17 of our Emergency Support Teams held a hurricane exercise to assess the country’s hurricane plans, policies and procedures to give us a realistic depiction of a hurricane as it approaches, impacts us and then leaves us behind to clean up. I commend them for their diligence and service to our country,

What we have learned from past experiences is that no two hurricanes are alike and many are unpredictable. For instance Hurricane Ivan wasn’t even supposed to hit Grand Cayman; it was headed initially for Cayman Brac, until it wobbled.

Fortunately we have learned lessons from the storms that either struck us or our neighbours. The main message, though, is be prepared.

If we do find ourselves facing another storm this year, I beg you to please pay attention to Government announcements and bulletins. All of our media outlets – Radio Cayman FM89.9, the Breeze FM105.3, Cayman Islands Government TV, Cayman Islands Government Information Services and http://www.caymanprepared.ky– will carry information to tell you what to expect and what to do. Hazard Management Cayman Islands also works with private media houses that have been diligent each time we have faced a storm to get out the important, necessary information.

So, if you don’t have a hurricane plan in place for your family or business, make one and then join me in my prayer that God will once again spare our beloved Islands during this 2019 Hurricane Season.  

Premier Hon. Alden McLaughlin said he was deeply saddened to have learned of the passing today of former Jamaican Prime Minister Edward Seaga.

Premier Hon. Alden McLaughlin said “He will be remembered as a great and respected Caribbean Leader and as one of Jamaica’s outstanding politicians.  He was the only remaining member of the team who drafted the Constitution when Jamaica gained independence from the UK in 1962 and one of the longest serving Members of the Parliament, not just in Jamaica but in the Caribbean, holding his seat in West Kingston for over 43 years.  That is no mean feat in politics.”

“His love of culture and particularly Jamaican folk music endeared him to many and as a major record producer he played a role in introducing ska to the world”.  I knew him personally and have fond memories of our conversations on occasions when he visited Grand Cayman.” continued Premier Hon. Alden McLaughlin “my sincere condolences go to his family and friends.”

Edward Seaga, 89, died on his birthday in Miami.  Although he lost the general election in 1989 he remained the Opposition leader for many years afterwards and built national institutions such the annual festival celebrations and the Jamaica Cultural Development Commission.

Premier Hon. Alden McLaughlin announced today that the Cayman Islands Government has received a formal financial commitment from MSC Cruises to provide funding toward the costs of constructing the cruise berthing facility.

MSC Cruises is the fourth cruise line company to financially commit to the cruise berthing project, along with Royal Caribbean, Carnival and Disney.

Mr. McLaughlin affirmed that having four cruise lines signed on to the cruise berthing project provides tremendous benefit to the Cayman Islands.

“These agreements, coupled with the finance to be provided by whichever entity is eventually selected as the preferred bidder on the project, ensure that no public funding will be required to build the cruise berths and enhanced cargo facility,” he said.

“As well as strengthening the project’s financing structure, having cruise companies financially vested in the project provides assurance that the Country’s finances will not be exposed to risk and is a positive indication of their commitment to our Islands for decades to come. It is a win-win situation for the country, the preferred bidder and the cruise lines,” he said

Minister for Tourism Hon. Moses Kirkconnell said he is very pleased that MSC Cruises has signed on to support the development of the Cayman Islands cruise berthing facility.

“This agreement represents the accomplishment of another key milestone in the lifecycle of this project. MSC operates more than 1,000 routes globally and is one of the fastest growing cruise companies in the world. Their commitment to the Cayman Islands will help to sustain and grow our cruise tourism industry into the future,” said Mr. Kirkconnell.

The Cruise Berthing Facility Project is now in its sixth year and has undergone a rigorous procurement process to identify a preferred bidder to construct the berthing facility within a design, build, finance and maintain framework. The Port Authority of the Cayman Islands will continue to own, operate and manage the facility as it does today.

To stay informed on all of the latest news and information on the cruise berthing project the public is encouraged to visit the cruise berthing facility website at http://www.SupportOurTourism.com and to check the project’s facebook page for daily updates.

The United Kingdom Government has published its response to the Foreign Affairs Committee’s report, “Global Britain and the British Overseas Territories”.

Premier Hon. Alden McLaughlin had heavily criticized the Committee’s report when it was published in February.  The Committee’s recommendations on registers of beneficial ownership, same-sex marriage and giving all resident UK citizens the right to vote and hold office were described by the Premier as a “shameless and shameful attempt to reproduce neo-colonialism.”

The Premier has welcomed the official UK Government response as “a clear-headed restatement of the fundamental principle of self-government that underpins the relationship between Cayman and the UK.”

On the issue of registers of beneficial ownership, the UK Government response reaffirms the existing understanding of the consultative process to be followed and resists any acceleration of the timetable in advance of the end of 2023.

On same-sex marriage, the UK Government notes the on-going legal action in Cayman but makes clear that the issue “should be one for the territories to decide and legislate on”.  The response confirms that “we have no plans to introduce an Order-in-Council on this issue.”

On the critical issue of voting rights, again the response recognises “the fact that immigration decisions are primarily a matter for OT governments” and makes clear that there is no intention to interfere with locally-determined franchise and representational arrangements.

“I said when the Committee’s report was released that these were only recommendations and that we needed to wait for the UK Government’s official response,” Mr. McLaughlin said. “I am very pleased that the UK has clearly listened to the representations that I and other OT leaders have made. 

“In the 21^st Century, there can be no justification for people 5,000 miles away, most of whom have never even visited these Islands, thinking they know better than we do how we should run our own affairs,’ he said. “The UK Government’s response thoroughly rejects that idea and I am sure it will be welcomed across the Overseas Territories.

“While we in the Cayman Islands and others in the OTs will continue to resist the UK’s attempts to impose public registers upon us in the absence of a global standard, it is positive that the UK Government has pushed back on any suggestion that the current timetable should be accelerated,” he said. “I would like to thank the Governor for the assistance he has provided in representing the views of Cayman back to the UK Government and to ensure that those making the decisions were aware of the grave concern we felt about the Committee’s recommendations.”

“The UK Government’s response underlines their commitment to developing a positive and constructive relationship with the OT’s,” Mr. McLaughlin said. “That commitment has been seen too in the recent talks over the potential Constitutional changes that we would like to put in place in order to clarify our relationship. Those negotiations are nearing a conclusion and I hope to be able to report back to the House and to the country shortly on what has been agreed.”

The National Conservation Law Review Committee, led by chair the Premier, Hon. Alden McLaughlin, met for the first time last week at the Government Administration Building.

At the start of the meeting, the Department of the Environment provided a presentation on the law and answered questions from committee members.

Members discussed the need for a review of the law and agreed that the Terms of Reference (ToR) should be sufficiently broad to allow for wide ranging discussion as the committee does its work. The ToR will be settled at the next meeting.

Premier McLaughlin noted that while Government has its own concerns with certain aspects of the law, the expectation is that the committee would discuss these alongside any public concerns. 

Accordingly, as part of the review process the committee will invite feedback from the public on any concerns or suggestions that they have on improving the law or the processes guided by it.

In addition its deliberations will consider the impact of international conventions to which the Cayman Islands is a party, as well as regional and international best practice, among other things.

Decisions by the committee will guide the development of drafting instructions for revisions to the law that would help address these concerns.  The committee will meet every two weeks and must submit a report of its findings to Cabinet within a month of the review process ending.

The committee comprises a number of individuals with expertise across a range of sectors, such as environment, tourism, legal and development.

Members include:

The Unaudited Quarterly Financial Report for the three month period ended 31 March 2019 was released today by publication in the Cayman Islands Extraordinary Gazette No. 32 of 2019 and can be viewed at http://www.gov.ky/portal/pls/portal/docs/1/12796486.PDF.

The surplus of $216.8 million is for core Government and its statutory authorities and public companies. The improvement in surplus translates as $44.4 million more than the $172.4 million surplus anticipated in the 2019 budget for the first quarter.

The increased surplus and enhanced bank balances were a direct result of improved revenues - $373.7 million compared to a previously expected figure of $343 million. 

This was complemented by lower than budgeted expenditures in civil service personnel costs ($76.7 million compared to $80.2 million budgeted), purchase of supplies and consumable goods and services ($19.9 million as opposed to a budgeted figure of $28.7 million) as well as better than anticipated performance on investment revenues.

Commenting on the Q1 report, Minister for Finance and Economic Development, Hon. Roy McTaggart said: “I am delighted and the Government is pleased that the 2019 first quarter’s actual results exceed budget expectations for this timeframe. All things being equal, it bodes well for the remainder of the year.

“As always, we are grateful to the civil service for their contributions and their work to save Government money. We also believe that strong public finances set the tone for the wider economy and of course for the continuing success of our economy.

“At the same time, we will continue fiscal vigilance and monitoring throughout the remainder of the Government’s 2019 financial year, to maintain improvements on budget expectations.”

Following the release last week of the 2018 Crime and Traffic Statistics, I would like to thank the Commissioner of Police, Derek Byrne and all officers and staff of the Royal Cayman Islands Police Service (RCIPS) for their hard work to keep the Cayman Islands a safe place to live, to visit and to do business.

When we took office, our Unity Government prioritised action to make communities safer and we gave a clear commitment to work with the RCIPS to tackle crime. 

In our first two year budget, we delivered on that commitment as we allocated additional funding to the RCIPS to provide for 75 new police officers over three years with added civilian support staff. 

The Commissioner of Police agreed with us that we needed to improve Community Policing and I’m very happy today that Community Beat Officers are operating in every district across Grand Cayman.  The success of that approach is demonstrated in the statistics released last week.

Building relationships and trust within those communities as well as the introduction of many new Neighbourhood Watch Schemes is helping to stop nuisance crime and providing intelligence about serious crime. 

I am delighted that property crime and burglary dropped significantly in 2018 and were the lowest for 18 years.  Whilst the RCIPS targeted and imprisoned serial offenders, support from Neighbourhood Watch Schemes has also added to this reduction.  Neighbours know when something looks wrong and when someone looks out of place in a community and these groups are raising the alarm with their Community Police.

The Commissioner has said, and I agree, that we need to keep up the pressure to maintain this improvement.  Thanks to further additional funding from Government, the RCIPS is in the process of expanding its Community Policing Department with the addition of Community Safety Officers, which are civilian posts.  These officers will know the people in the communities they serve, but more importantly local people will know and trust him or her.  My Government welcomes this enhancement of community policing efforts. 

Similarly we must redouble our efforts to clamp down on gun crime.  Improvements shown in last year’s statistics are attributed to marine interdictions, firearm recovery operations and the firearms amnesty.  I expect to see this trend continue once the new Cayman Islands Coast Guard is up and running.  We have combined the law enforcement units of Immigration and Customs into a single cohesive Cayman Islands Customs and Border Control Agency.  They along with the new Coast Guard have the responsibility for protecting our borders, whether by air or sea, making it difficult for drugs, guns or illegal persons to enter our country.

His Excellency, the Governor Martyn Roper has been very helpful since taking up his new role.  He supported the purchase of the new H145 helicopter, which was part funded by the United Kingdom Government.  This expands our aerial law enforcement operations as well as supports our neighbouring Overseas Territories in their time of need.

Whilst I’m very pleased with the 2018 Crime and Traffic Statistics, we cannot become complacent.

We believe improved policing is about dealing with crime now. The long term answer lies in stopping our people turning to crime in the first place.

The Community Police are working closely with the schools, attending careers days, PTA meetings and generally building relationships and trust with young people.

I believe the most significant contribution to long term crime reduction, besides a good education, will come from the early identification of young people at risk of offending behaviour, and implementing programmes to help them make better life choices – choices that will benefit them, their families and their communities.  The anti- gang strategy that the NSC has commissioned will be an important part of our efforts to support young people as well as targeting gang activity directly.

Community safety is not just a policing issue.  The whole of government has a role to play and communities themselves contribute to their own safety.  The 2018 crime statistics show that by working together we have helped to make Cayman safer.  We must all do our part to maintain that improvement over the years to come.

Like many people in this country, I was troubled to learn of the recent resignation of MLA Ezzard Miller as the Leader of the Opposition. 

In any democracy, the Leader of the Opposition is a serious role.  In the Cayman Islands, not only is the Leader of the Opposition an important constitutional office,  required under Section 68 of the Constitution, but the Leader of the Opposition plays several key roles, including serving as a member of the National Security Council and as Chair of the Public Accounts Committee.  And of course the Leader of the Opposition serves a significant role in leading and speaking for Opposition members inside and outside of the Legislative Assembly.

British Prime Minister Benjamin Disraeli wrote, “No government can be long secure without a formidable opposition.”

For that reason, it is not so much the resignation of Mr. Miller that concerns me, but more the political infighting and personal ambition riddling the current opposition group. This, I believe, does not serve well the long term interests of our country.

To better explain, let me review what has transpired.

In giving notice of his resignation Mr. Miller commented that:

“Effectively performing this role demands dedication on the part of a committed team.  It has become increasingly clear that the level of cohesion, industry and commitment necessary for any opposition to serve in the best interest of all the people of these Islands is not possible given the current slate of independent members who made up the group.”

Mr. Miller’s resignation follows a letter to him in April from other members of his Opposition team who advised that they were content for him to remain as opposition leader but asked that “where the general public is concerned, we are requesting that you do not speak on our behalf….  We believe that this request is necessary to maintain our independence and the political platform we are all elected on.”

In the media reports Mr. Miller outlined his challenge coping with a “steep learning curve navigating among some very strong personalities” and he went on to speak of leadership struggles on the Opposition Benches.  And of course shortly following these comments MLA Alva Suckoo resigned as Deputy Leader of the Opposition. 

In effect the country is witnessing first hand why it is not practical for a group of Independent candidates to get elected and then seek to come together in the country’s interest. They are too busy pursuing their own individual agendas to even try to develop a shared view. By their own admission, the preference of the opposition members is to “maintain our independence and the political platform we are all elected on’. 

Previously, these members have tried to paint themselves as a government in waiting. But if they cannot maintain any coherence in opposition, what chance is there that they could form an effective government? Disunity, disorganization and dark deeds fuelled by personal, political ambition are not what this country needs to take us forward.

So as Premier I do hope that the country as well as the members of the opposition learn from the lessons that the opposition members themselves are providing – it takes a committed team to govern – one that, to borrow somewhat from Mr. Miller, has the level of cohesion, industry and commitment necessary to serve in the best interest of all the people of these Islands. 

Certainly this is the way that I and the team that I lead have operated in our Caucus, in Cabinet and in the Legislative Assembly. We promised to come together as a government of national unity and we have governed with our collective responsibility to do the right thing for the country as our guiding principle. Because of this we have been able to provide a stable and progressive government, and despite some challenges, the country as a whole is doing remarkably well.  I am certainly proud of the team that I lead. Despite comprising various political factions, we have striven to find more in common than we had differences. We are stronger because of this approach and the country is the better for it.

I wish Mr. Miller well and thank him for his leadership in the Opposition in working with me over the past two years, particularly with regards to on-going constitutional reform. 

I along with the rest of the country anxiously await the decision of the Opposition as to who will become their new leader, and to know soonest who will comprise the membership of the official Opposition in the Legislative Assembly.

Premier Hon. Alden McLaughlin and Eric Bush, Chief Officer of the Ministry of International Trade, Investment, Aviation and Maritime Affairs, on Sunday participated in the annual Princess Charlene of Monaco Foundation annual charity bicycle ride. 

Joining the Cayman team were Orrett Connor, host of Radio Cayman's For the Record talk show, and Inspector Andre Tahal of the Royal Cayman Islands Police Service, who travelled to Monaco at their own expense to participate in the 87-mile charity ride from St. Tropez in France to Monaco.

The course, which winds through towns and mountains, took some seven hours to complete. Contending with narrow winding roads, traffic and pedestrians and not knowing the route made the trek challenging. It was made even more difficult by weather conditions, with temperatures around 60 degrees Fahrenheit and 23 mile-an-hour winds. The Premier was happy to have fellow Caymanian cyclists with him for mutual support and camaraderie over the course of the ride. The Cayman Islands was ably represented in the charity ride with all four successfully completing the course.

In addition to the four Caymanians, more than 100 riders participated, including several professional bicyclists, former athletes and business people; most of whom participate every year.

Prince Albert of Monaco invited the Premier to participate in the event when they met last year. The Prince, unfortunately, was unable to ride as he recently underwent surgery. The Prince did, however, attend the finish at Monaco's Hercules, where all the riders arrived. The Cayman delegation completed the challenging ride in good form. This was the first time that a team from the Caribbean participated in the charity ride

At the finish, Prince Albert and Premier McLaughlin had a moment for a chat where the Prince was introduced to the Cayman delegation. Later that evening at the awards reception the organisers, as well as the Prince, acknowledged the participation by the Premier and the Caymanian team. The highlight of the evening for the Cayman delegation was when Orrett Connor was awarded the ‘silver pedal’ for being the oldest cyclist to enter and finish the course. 

Premier McLaughlin noted that the ride was difficult but rewarding. Not only did a cycling platform allow for building new relationships with high net worth individuals and business people across a diverse range of backgrounds in a key market segment for the Cayman Islands; it also gave both him and Chief Officer Bush an opportunity to firm up relationships with individuals they met last year – Prince Albert amongst them.  

On Monday night the Premier and the Cayman delegation were joined by Mr. Joel Walton, CEO of the Maritime Authority of the Cayman Islands (MACI) to host a reception for yacht managers and yacht designers.

MACI operates one of the best regulated shipping registries in the world, accounting for about 50 per cent of the super yacht registration market, which are yachts of 30m (90 ft.) and larger. Within the ultra-large segment of the super yacht industry, which are yachts with a length of 80m (262 ft.) and larger, the Cayman Islands has over 80 per cent of the market share; making Cayman, by far, the dominating flag state.

“Whilst the Cayman Islands is a dominant player in this market segment there are many competitors looking for every opportunity to take our place,” said the Premier, who is Minister responsible for International Trade, Investment, Aviation and Maritime Affairs. “In a market where relationships are key, it is important to not only show a presence but to do so consistently and whenever possible at the highest levels of Government. The new Ministry intends to not only strengthen our relationships and market share in this competitive market but to increase it.” 

Premier Hon. Alden McLaughlin met separately on Wednesday with Ben Wallace, Minister of State for the Home Office and Ben Merrick, Director of the Overseas Territories Department of the Foreign and Commonwealth Office. Accompanying Premier McLaughlin was Chief Officer Eric Bush of the Ministry of International Trade, Investment, Aviation and Maritime Affairs, and Roy Tatum, Head of the Office of the Premier.

The meetings focused on the on-going talks on constitutional reform for the Cayman Islands as well as other issues. With the Brexit date pushed back to October, the United Kingdom and the Cayman Islands governments are both keen to conclude the constitutional reform discussions, and to have the proposed changes debated in the Cayman Islands Legislative Assembly later this year. The UK Government’s upcoming response to the recently published Foreign Affairs Committee report on the relationship with the Overseas Territories was also discussed; as were matters to do with the European Union blacklisting process and public registers of beneficial ownership.

The day of meetings also included talks with Sir Jeffery Jowell, QC, who is advising the Cayman Islands Government on a range of issues, including constitutional reform and the appeal of the Chief Justice’s judgment that legalised same-sex marriages in the Cayman Islands. 

Later Wednesday, as part of the Cayman Government’s on-going UK political engagement programme, the Premier sponsored a Cayman Islands All Party Parliamentary Group (CI-APPG) dinner, with cross party attendance, at the House of Lords. The host of the dinner was Lord Northbrook, a member of the CI-APPG, and a long-time supporter of the Cayman Islands.

The Premier updated attendees on Cayman’s economy and how well the country is doing. But he also spoke frankly on matters of concern regarding what many in the Overseas Territories view as a worrying trend by some UK parliamentarians to intervene in the affairs of the territories in matters that are the devolved responsibility of the elected governments of the territories.

Mr. McLaughlin referred to the purported imposition of public registers of beneficial ownership by the UK Parliament as well as the approach taken by the Foreign Affairs Committee in its recent report on the Territories, which he described as “alarming”.  He said that this type of unwarranted intervention, should it continue, will only serve to drive a wedge between the people of the territories and the United Kingdom and in the end will serve neither the interests of the UK nor the territories well.

Lord Northbrook said he was pleased to host the dinner on behalf of the Premier.

“I would like to give my particular praise to the Premier for his work since he became the Premier and the great strides in helping the UK to understand more about the Cayman Islands and what they do,” he said.

“The event was a great success. I was able to engage with a number of important figures in Parliament and The House of Lords to further our education campaign about the Cayman Islands within Westminster,” Mr. McLaughlin said. “Continued high level engagement with MPs and Peers is essential for the Cayman Islands to maintain a presence and understanding within the Houses of Commons and Lords. My message also included a note of warning of the consequences of a UK Parliament; 4,500 miles from the Cayman Islands interfering in local matters that are not only devolved, but in circumstances where they have no real understanding of local people and local affairs.” 

The Premier, along with Messrs. Eric Bush and Roy Tatum travelled on Thursday to Monaco for meetings and engagements with key yacht brokers and industry leaders. The Maritime Authority of the Cayman Islands is hosting those meetings to advance the work of the new Ministry of International Trade, Investment, Aviation and Maritime Affairs.

On Sunday the Premier will participate in an annual charity bicycle ride of more than 87 miles to benefit the Princess Charlene of Monaco Foundation. The Cayman Islands Government has partly sponsored the riding kit for the event and riding jerseys prominently display the Cayman Islands Coat of Arms.

The Premier Hon. Alden McLaughlin will travel to London next week along with Roy Tatum, Head of the Office of the Premier. 

The Premier will continue talks with the United Kingdom Government on issues affecting the Cayman Islands including meeting with Ben Wallace, Minister of State from the Home Office and Ben Merrick, Director of the Overseas Territories Department of the FCO.  Matters on the agenda include the ongoing constitutional reform discussions started last year, the UK Government’s response to the recent Foreign Affairs Committee report on the Overseas Territories as well as public registers of beneficial ownership. 

The position of the Cayman Islands Government is that the Islands have always complied with global standards of financial regulation and should public registers become a global standard then the Cayman Islands will be on board.  In the interim, we are of the view that our current system for handling beneficial ownership, whilst not public, allows timely and ready access to UK and international law enforcement and tax agencies. 

Whilst in London, the Premier will also host a dinner with cross party Parliamentarians as part of the Governments ongoing political engagement programme for the Cayman Islands.

“Continued engagement with MPs and Peers is essential for the Cayman Islands to build and maintain relationships and for them to hear directly what’s happening in our islands.”  Premier McLaughlin commented.

The Premier will then travel on to Monaco with Eric Bush, Chief Officer of the Ministry of International Trade, Investment, Aviation and Maritime Affairs (MITIAMA) and Joel Walton, CEO of the Maritime Authority of the Cayman Islands (MACI) as well as Roy Tatum, Head of the Office of the Premier for a series of meetings with key stakeholders in the Maritime and Super Yacht sector.  This is part of Cayman’s ongoing efforts to maintain the significant market share for our shipping registry.    

Premier Hon. Alden McLaughlin said “the Cayman Islands Shipping Registry is known globally as a premium maritime flag state and is home to most of the biggest yachts in the world.  Indeed, the Registry has been rated as one of the best in the world in the International Chamber of Shipping (ICS) Flag State Performance Table for 2018/19 for the 8th year running. The meetings in Monaco are a continuation of efforts started by me last year and as part of our new focus on not only maintaining but growing the Cayman Islands Shipping Register under the newly created Ministry of International Trade, Investment, Aviation and Maritime Affairs.”

MACI has had a presence in Monaco for over two decades, where the majority of super yachts docked in Monaco harbour are flying the red ensign of the Cayman Islands. “Monaco, with its wealth of financial services and international high net worth individuals, is a natural fit for the Cayman Islands and its shipping Registry,” explains Mr. Joel Walton, CEO of Cayman Maritime “it’s an extremely important market for us.”

While in Monaco the Premier is expected to meet with the first Minister and will also participate in the 8th annual St Tropez to Monaco Charity Bike ride.

This is a great opportunity to continue promoting the Cayman Islands as the Premier will be riding with Prince Albert of Monaco as well as other high-profile riders.

Eric Bush, Chief Officer of the MITIAMA said “Meetings and participation in events such as this help build a partnership between the Cayman Islands and Monaco.  They also provide an opportunity for us not only to support causes with a synergy to the Cayman Islands but explore opportunities for further cooperation and collaboration.”

Mr. Speaker, the Honourable Minister of Finance and Economic Development earlier today laid on the table of this Honourable House, and spoke to, this Government’s 2020/2022 Strategic Policy Statement.

Mr. Speaker, with your permission, I will read from that statement the summary of economic and fiscal forecasts:

The 2020 Strategic Policy Statement (“SPS”) provides medium term economic and financial forecasts for the Government for the next three financial years covering the period 1 January 2020 to 31 December 2022 along with the Government’s Broad Strategic Outcomes which will guide the development and implementation of Government Policy during this period.

In addition, the SPS sets the parameters for the preparation of the detailed 2020 and 2021 Budgets and provides the operating expenditure and capital investment targets to be achieved by each Ministry, Portfolio and Office over the next three financial years. 

Mr. Speaker, overall economic growth in the Cayman Islands is forecasted to increase at a steady rate over the medium term.  Economic growth as measured by changes in the Gross Domestic Product is forecasted to grow by 2.8% in 2019, 2.2% in 2020, 2.1% in 2021 and 2.0% in 2022.

The Consumer Price Index which measures the change in retail prices is also expected to increase by 2.7% in 2019 followed by increases of 2.2% per year in 2020, 2021 and 2022.  These forecasted changes are primarily driven by forecasts in the United States a principal market from which the Cayman Islands imports its consumer products.

Mr. Speaker, the Government remains committed to a fiscal strategy that is centred on the following key principles, compliance with the principles of responsible financial management, in particular achieving substantial surpluses each year, no new fees or taxes levied on the public and no new borrowing.

The 2020 SPS builds on the central guiding fiscal policy objective for the management of the Government’s finances over the forecast period.

Growth in revenue is driven primarily by increased demand for goods and services as all sectors in the local economy are projected to expand during the forecast period. The Government also anticipates transferring a total of $74.3 million to General Revenues from various trust accounts whose holding period is scheduled to mature during the SPS period.

The total operating expenditure targets for the Core Government for each of the next three financial years have been set at $734.2 million for 2020; $741.7 million for 2021 and $746.8 million for 2022.

This expenditure will be used over the next three years to fund the following key priorities:

• Ministry of Human Resources, Immigration & Community Affairs - Improving safety and security through enhanced community policing; improving security of our borders; delivering better management of labour markets; implementation of the immediate priorities in the Older Persons’ Policy; and social assistance programme reform.
• New Ministry of International Trade, Investments, Aviation and Maritime Affairs – Establishing a new ministry to foster international relations and promote foreign investment in these Islands.
• Ministry of District Administration, Tourism and Transport – Enhancing tourism marketing to high value source markets; continuing service by Cayman Airways to strategic tourism markets; and the continued implementation of the National Tourism Plan.
• Ministry of Finance and Economic Development – Increasing funding to the Cayman Islands National Insurance Company for the continued provision of health insurance services to its clients.
• Ministry of Financial Services and Home Affairs – Enhancing the Financial Services policy functions of the Ministry and the regulatory services provided by the Cayman Islands Monetary Authority in response to recent international regulatory changes; and building capacity in the Cayman Islands Fire Services and the Prison Service.
• Ministry of Commerce, Planning and Infrastructure – Continuing to develop and implement Information Technology services including improved cyber-security and E-Government initiatives; and the continuation of the George Town revitalisation project.
• Ministry of Education, Youth, Sports, Agriculture and Lands – Continuing enhancement of teaching and learning in schools with a focus on increasing the use of online and computerised testing; strengthening core curriculum across primary and secondary schools; funding for scholarships for advanced, specialised tertiary education – such as Medical and Special Education Needs; and supporting and promoting growth in the agriculture sector.
• Ministry of Health, Environment, Culture and Housing – Implementing the new Integrated Solid Waste Management System and the commencement of operations of the new Long Term Residential Mental Health Facility.

The total capital expenditure target for the Core Government over the next three financial years has been set at $383.4 million to address critical investment in areas such as education facilities, road infrastructure, solid waste management, improvements to public safety facilities and continued support of Statutory Authorities and Government owned Companies (SAGCs). The Government is forecasted to maintain year-end cash balances averaging $282.2 million over the SPS period and full-compliance with the Principles of Responsible Financial Management. The Government does not intend to incur any new borrowings and plans to fund all of its operating expenditure and capital investments from cash generated from its operations.

I confess, Mr. Speaker, that as I rise today I find myself somewhat reflective, for this will be the last time that I am called upon as the Premier of these Cayman Islands to move the motion for adoption of the Government’s Strategic Policy Statement.

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Mr. Speaker,

Yesterday April 2, 2019, the Cabinet of the Cayman Islands instructed the Hon. Attorney General to pursue an appeal against the judgment of the Hon. Chief Justice, Anthony Smellie, Q.C., handed down on 29th March in Civil Cause No. 111 of 2018 and Civil Cause 118 of 2018, otherwise known as the Same-Sex Partnership case. The Hon. Attorney General was also instructed to seek a stay of execution of the judgment pending the outcome of the appeal.

Mr. Speaker, as you have indicated you, like me and indeed all of us in this House, received many telephone calls, Whatsapp and text messages in the days following the handing down of the Chief Justice’s judgment.  Mr. Speaker there were those who sent messages stating that they feel the outcome was right. There were many more that sent messages stating that they feel wronged by the decision and made clear in no uncertain terms their view that marriage should remain the exclusive domain of heterosexual couples. And there were also those who, regardless of how they feel about the concept of same-sex marriage, expressed shock and disbelief that the Court could have made such a fundamental public policy change in a matter as important as the institution of marriage without reference to this Legislative Assembly. 

Mr. Speaker we were also peppered and still are being peppered with requests from the press asking for a statement.  However, as the Hon. Attorney General stated after the judgment was handed down – the ruling required careful consideration by Government. And so the Government has taken the time to consider in its Caucus and the Cabinet to take legal advice and to discuss this most important matter and its implications.  

I want to add here that I and my entire government have great respect for the Hon. Chief Justice and indeed the independence of the judiciary. But even the best judges get it wrong from time to time. Hard cases make bad law. None of us who are human are infallible.

  Mr. Speaker, the Government believes that in his determination to right what he has described as injustice and indignities suffered by the petitioners in the same-sex partnership case, the Hon. Chief Justice may have exceeded the scope of the powers conferred on the Court by the Constitution and in doing so, some have argued, assumed the role of this Legislative Assembly in deciding on what should be public policy and then legislating for it. Mr. Speaker, the Government is cognizant of the provisions of Section 5 (1) of the Constitution and the mandatory requirement imposed by that section that all existing laws “shall be read and construed with such modifications, adaptations, qualifications and exceptions as may be necessary to bring them into conformity with the Constitution.” But we believe that introducing the entirely new concept of same-sex marriage into the existing Marriage Law goes way beyond any reasonable interpretation of modification or adaptation.  This, we believe, might be inconsistent with the separation of powers by trespassing on the constitutional remit of this Legislative Assembly.

Mr. Speaker, I spent much of the first eight years of my political career on both sides of this House engaged in the efforts to get us a modernised constitution. The previous Constitution Order was made in 1972 and we had outgrown its provisions and a new constitution was desperately needed to catch up with our growth and development as a country.

As early as 2001 the United Kingdom Government made it clear to us that no Constitution would be agreed that did not contain a Bill of Rights. On the other hand, many stalwarts in this community and especially religious leaders were concerned about the implications for the traditional institution of marriage of a Bill of Rights and in particular, what is now Section 16 of the Bill of Rights of our current constitution, which prohibits discrimination on a number of grounds, including sexual orientation. It was plain to the government at the time that we would never get the new constitution approved by referendum unless we were able to satisfactorily address these concerns. So Mr. Speaker we invited representatives of the Cayman Ministers Association and the Seventh Day Adventist Conference to not just discuss the proposed new constitution with us, but to actually be part of the negotiating team, not just here in Cayman but at the final round of negotiations at Lancaster House in London.

Mr. Speaker, the genesis of Section 14 of the Bill of Rights of the constitution, which was described by Sir Jeffrey Jowell – who led the Government’s team in the case - as the “rock” of the Government’s case, was the concern by the religious community in Cayman to ensure that the institution of marriage, which Christians believe to be God ordained, remained available exclusively to persons of the opposite sex. Thus section 14 (1) provides: “Government shall respect the right of every unmarried man and woman of marriageable age freely to marry a person of the opposite sex and found a family.”

These words are deliberate and were intended to provide the necessary assurances to the Caymanian community, but in particular the Christian community, that the institution of marriage would retain its traditional definition as the union between one man and one woman.

  To ensure that there was no question about this, in tandem, this Legislative Assembly amended the Marriage Law in 2008 to define marriage as “the union of a man and a woman as husband and wife”.

I have no doubt, given my intimate and lengthy involvement with these issues during the constitutional discussions, negotiations and amendments that without the assurances of Section 14 of the Bill of Rights regarding marriage and the amendment to the Marriage Law in 2008 that the 2009 Constitution that we now operate under would not have been approved by referendum.

We also know that the constitutional discussions and drafting did not contemplate that sections 9, 10, or 16 of the Bill of Rights that deal with private and family life, conscience, religion and non-discrimination, would apply to marriage - hence the reason why marriage is in its own separate place, in section (14), in the Bill of Rights.

As the Government submitted to the Hon. Chief Justice during the hearing of the case, Section 14 is the constitutional provision that specifically provides for the right to marry; what the lawyers all the “lex specialis”- that is, the part of the law that governs the specific subject matter of the institution of marriage. 

Mr. Speaker, the current constitution is a comprehensive negotiated document, the result of eight years of extensive consultation across the various demographics of the Cayman community; often bitter political differences and very difficult negotiations with the Foreign and Commonwealth Office. It was then approved by the democratic process of a referendum. It is not something that was dreamed up by the Cayman Government. The document strove to represent the strong feelings of the Caymanian community, in particular as regards the institution of marriage.

Given the highly controversial and landmark ruling by the Hon. Chief Justice on March 29th, if left unchallenged, the implications for the Cayman Islands Constitution are significant and potentially far-reaching and go well beyond the rights of same sex couples.

While a challenge to the ruling is certainly not a decision to be taken lightly given the important human rights concerns raised in the case, the ruling of the Hon. Chief Justice has brought about significant ambiguity surrounding the Constitution and Bill of Rights and the interpretation of and ability of the Court to amend other laws should similar applications be made.

Based on the Executive Summary of the Court’s judgment there are three main points of concern which we have identified and the Government, as well as many in this Honourable House, have concerns at this initial stage. There may be other grounds that raise concerns as we further analyze this judgement.

Firstly, the implications of the Court’s decision for other types of marriages (for example, polygamous marriage), and whether Government would now be bound to give effect to or recognise such marriages if an application for a marriage licence is made for a man to marry multiple wives.

 The second concern relates to the extent of the powers of the Court under section 5 (1) of the Constitution to modify legislation on matters such as the right to marry, bringing into question the appropriate separation of powers under the Constitution and whether by exercising these powers under section 5 (1), the Court has exceeded its mandate under the principle of separation of powers.  

A third concern is whether, given the language in section 14 (1) of the Constitution, it was open to the Court to find that the right to marry and found a family, could be located in other rights within the Bill of Rights, namely, sections 9 and 10 of that document.

After very careful consideration of the three main points previously mentioned, the Government is of the view that the issues are of fundamental constitutional importance and therefore it is in the public interest to have them considered and determined by an appellate court.  For clarity, I will add that the appeal will not be pursued in the name of the Governor, but as is usually the case in actions by or against the Government, in the name of the Attorney General, and the actual office that made the decision.

Mr. Speaker, let me say here that in appealing the Government is cognizant that there is no guarantee or certainty as to how the Court of Appeal will rule. However, we believe it is critical that the country has the benefit of clarification on these very important constitutional issues.   

I wish to note that I am painfully aware that the issue of same sex marriage is an emotive one in our Islands.  I am also very conscious that this is an issue with real people who have real lives and there are emotions and feelings involved and that this is not merely some text book case. I and the Government have no intention of causing any harm or hurt to the petitioners but we must ensure that in seeking what they deem protections and rights under the law that a door is not opened that may impinge on other protections and rights.

As Premier I will state what I have said many times before  – I have no doubt that the feelings of the majority of Caymanians are that marriage should retain its traditional and religious definition and meaning, the union of one man and one woman. I recognise that many of the younger generation of Caymanians have differing views on this issue and it is quite likely that in years to come the majority view of Caymanians may change. But such a majority is not evident to any of us here today.

However, I equally want to make it clear that no matter what my own religious beliefs, or indeed the beliefs of the other members of my Government or of this Parliament, as your Premier I also have an obligation under the law and the Constitution, and indeed given my religious upbringing under the teachings of Christ, to ensure that all people, but especially any minority group, regardless of differences, are treated fairly and with respect. 

I implore those of us in this House and outside of it to discuss their views freely, but respectfully. At all times we should keep in mind that those in our community who are in same sex relationships, or have family members who they love in such relationships, are like us - made of flesh and blood with feelings and emotions and are not merely stone objects.

Thank you Mr. Speaker.

Good evening your Royal Highnesses.

It has been a long while, Sir, since we welcomed you to our shores. We are certainly glad to have you back and accompanied by the Duchess of Cornwall.

I was a young lad when you arrived aboard HMS Minerva in July 1973 in your official capacity as a Royal Leftenant, but I do remember the enthusiasm and excitement of your visit to Grand Cayman. Many of the older people have told me they also remember your visit very fondly.

Since your arrival, Sir on what has been a whirlwind trip, I am sure you will have seen that things have changed a lot in Grand Cayman. The old Holiday Inn where you spent your last day when you were here previously no longer exists, but the Tortuga Club where you lunched in 1973 in East End is still there, albeit now an expanded modern resort.

Despite the changes, the great Caymanian spirit and hospitality still exists and have allowed us to build an economy that encourages development and brings jobs to our people. We take pride in the country we have built and continue to build. While we have embraced modernity we remain very proud of our rich heritage.

We have chosen to host this reception here at Pedro St. James, which we often refer to as the birthplace of democracy in our Islands. It was here that our first representatives and magistrates met in 1831 and drafted our very first laws.

Sir, when you were here 45 years ago the Cayman Islands was home to little more than 10,000 people. Today we are now the largest British Overseas Territory with over 65,000 people representing over 130 nationalities living and working amongst us in harmony.

Yesterday you saw the improvements we have made to the Owen Roberts International Airport and I am pleased beyond measure that you, Sir, were able to officially open that important port. This will provide our air travelers with a much enhanced experience when entering and leaving Grand Cayman.

I thank you Sir for also officially opening our new 25-metre swimming pool in Cayman Brac. The new pool on the Brac will give youngsters on the Sister Islands the advantages of training to become future Olympians and ambassadors of the Cayman Islands through the sport of swimming.

Ma’am, we are also very appreciative of your time today to participate in several events in George Town and where you met many of our people.

We are honoured that Prince Edward is the patron of the Central Caribbean Marine Institute on Little Cayman and I hope, Sir, you found the ground breaking work on reef restoration fascinating. Here in the Cayman Islands we work hard to protect our environment and have successfully saved our endemic Blue Iguana from extinction, which you witnessed first-hand at the Queen Elizabeth II Botanic Park this afternoon.

Our efforts continue, from controlling invasive species in our waters and on our lands to purchasing properties for protected areas and setting aside money to buy lands including beaches and expanding marine parks.

Your Highnesses, your visit coincides with our celebration of 60 years of our Coat of Arms, which Her Majesty The Queen graciously granted to the Cayman Islands in 1958. In a few months we will celebrate the 60^th anniversary of our first written Constitution. That document allowed us to become a Crown Colony in our own right, choosing to stay with Britain rather than to take the road of independence. Both the Coat of Arms and our Constitution tie us to the United Kingdom. We are British and we are proud of it.

As is our long-held tradition, we wish to share with you a small token of our appreciation of your visit. We will present you Sir with a glass sculpture it titled Blue Meridian 79.9 degrees West, Point O’ Sand and was created by Caymanian artist Davin Ebanks who was inspired by the brilliant blues of Cayman’s water.

I also am pleased to present to you a memento of your previous visit I hope you will enjoy.

I do hope you have enjoyed your very short visit with the real jewels of the Cayman Islands – our people - and I wish you safe travels as you return to the United Kingdom later this evening.

We respectfully request that you convey to Her Majesty the Queen assurances of our enduring affection.

Thank you.

Thank you for joining us today for the grand re-opening of the modernized and expanded Owen Roberts International Airport.

Your Royal Highness, thank you for your graciousness in accepting the invitation to not only visit our beautiful Cayman Islands but also for officially opening our airport here on Grand Cayman.

The changes we have made to our airport are to carry us through for the next few decades as tourism numbers continue to soar with visitors looking for all the magic that these three jewels in the Caribbean Sea – our beloved Cayman Islands – have to offer. 

The Owen Roberts International Airport is the main gateway to the Cayman Islands and all that you will experience here on Grand Cayman and Cayman Brac, from our excellent cuisine to our wonderful people.

It is my sincere hope that you enjoy your time here and return home with fond memories of these special Islands and our people.

Your visit certainly means a lot to us, and has brought back fond memories, for many, of your earlier visit here as well as the two visits by Her Majesty the Queen. 

Undoubtedly your visit here on this occasion will again leave wonderful memories for those that you meet as you travel about our three Islands.

Thank you once again, Sir, for unveiling the plaque to officially open our modernized Owen Roberts International Airport. Your presence here affirms the strong relationship between the United Kingdom and The Cayman Islands.

On behalf of our people welcome and please enjoy your visit.

Good morning.

My thanks to our hosts, Royal Fidelity, for this invitation to speak at what has become an important annual conference in the Cayman business calendar.

I too wish to pay tribute to Anwer Sunderji, former Chairman and CEO of Fidelity. For many years he was the driving force of this conference and those who have been here before will understand how much he brought to this event and how we all looked forward to his political and economic insights and his wry humour, as he addressed the conference each year. 

Governor.. I thank you for your kind words and as you will hear shortly from my presentation – I very much agree that our economy is in great shape.   But let’s also get the viewpoint of leading regional economist, Marla Dukharan, when she presented her annual January online video economic report on the state of Caribbean economies in 2019.

SHOW VIDEO

  I thank Ms. Dukharan for continuing to acknowledge the hard work done by this Government to create not only a strong fiscal climate but also one that is conducive to growth and investment and that brings benefits to Caymanians. Ms. Dukharan also mentioned some challenges for us and I will speak to these later.  I will also later on provide a few statistics updated from those shown in the video.

As we gather to think about the global future economic outlook, perhaps it is appropriate that you hear this morning from a politician.  After all, it was a politician I greatly admire, Winston Churchill, Britain’s great war time Prime Minister who said, “Politics is the ability to foretell what is going to happen tomorrow, next week, next month and next year………And then to have the ability afterwards to explain why it didn't happen.”

He may have made these remarks tongue in cheek, but Churchill certainly understood that in his time, with changing world forces, it was becoming more and more difficult to know with any degree of assurance what the future might bring.  The same holds even more true today.   

This conference’s organisers have captured that sentiment well by titling today’s conference - Dynamic New World: Braving the Turmoil.

I am not planning to dust off a crystal ball and look into the future with you today.  That is always a dangerous idea at an economic conference.  After all – economists have correctly forecast at least nine of the last five recessions!

But neither am I planning to play it safe – instead I will provide my thoughts on not only what we in the Cayman Islands need to keep doing to avoid the turmoil; but also, the things that we could consider doing to prepare ourselves for an increasingly dynamic world.

I will start with this observation: in times of dynamic and profound change we should expect that there will be turmoil. 

Great change and turmoil are but different sides of the same coin.  Whether the change is political, economic, or technological – where there is great change we can expect turmoil; turmoil defined not just as total disorder - but also as upheaval, agitation, disruption or uncertainty.

The economic growth that the world has seen over the past 100 years has lifted millions out of poverty globally, but it has also made the very rich even richer – and highlighted a widening income disparity.   This has caused agitation and uncertainty in many countries – consider the ‘gilets jaunes’ protestors in France.  A new fuel tax has seemingly been the proverbial ‘last straw that broke the camel’s back’ and created an organic movement without a leader or a focus on any one particular cause, but a movement that has certainly created economic, social and political upheaval across France.

We have experienced great change in our Islands over the past 50 years, with the pace of change increasing at an ever faster rate.  And this has inevitably brought with it some agitation and uncertainty as Caymanians have experienced tremendous economic growth but also significant and sustained levels of immigration and development that have not just brought ‘new faces’ to Cayman but are also changing the very face of our Islands.

It is testament to the nature of our people that despite these immense changes, Cayman remains one of the most peaceful places on earth, largely free from the racial, ethnic, and social tensions that plague much of the world.

Consider just for a moment the political turmoil that is also impacting much larger countries and compare it to what we see in our small Islands.

In the world’s largest economy, we’ve seen political squabbling,  principally over a border wall and immigration, shut down the very business of government for well over a month, causing real problems to both those who receive public services and the civil servants who provide them.  In the result, some 800,000 public servants were left furloughed or required to work without pay.    

In contrast, Cayman continues to value the huge contribution that civil servants make in our society.  While we expect ever higher levels of efficiency and performance, we recognize and reward their service.  And whilst we have some tensions around increasing immigration we also understand the need to welcome people here to help us drive our economy and build a nation.  And because of that our population has grown by over 700% in my lifetime – with over 130 nationalities living amongst us in relative harmony.  We are a veritable little United Nations.

 In the UK, Brexit is revealing what has long been disguised – fundamental fault lines that run right through the core of the political establishment.  Again, it is not simply within the political sphere that the impact is felt, the British people feel it as well.  One of Britain’s most influential think tanks, the Institute for Government, in its annual report on the performance of the UK government concluded that all the time and effort that has gone into the political wrangling over Brexit has, “squeezed government’s capacity to manage public services and major projects, and to bring about improvement in them.”

In Cayman, by comparison, political differences have been put aside in the creation of a unity government that I have the privilege to lead – a coalition of the two main political parties and a number of independents.  The result has been a strong government that generates good decisions and is able to focus its attention on improving public services and delivering major projects. 

In Venezuela we see a once proud country, with some of the largest oil reserves in the world, become crippled under the weight of economic and political mismanagement.  Its people face a humanitarian crisis - suffering from a shortage in food supplies and medicines, and skyrocketing inflation making their currency useless as a store of value.  The impact is also being felt by its neighbors, including those in the Caribbean, as many thousands of Venezuelans leave the country in desperation.    

In Cayman we have had successive Governments that for 60 years have generally managed our economy and finances well and, despite the many changes here, there is political and social stability. We are no Utopia – as I mentioned at last year’s conference, we face our own challenges. But by and large we have done exceedingly well for a small nation with little in the way of natural resources.

 I mention these things to illustrate the fact that in the present day context the political and social stability we are enjoying in Cayman is more the exception than the norm.  

There are two important lessons in this.

The first is that stability cannot be taken for granted. We as politicians, particularly those within the unity government, need to continue to work tirelessly to maintain stability for the good of our country and our people. 

The second is that political instability, should we ever allow it to creep in, has real world consequences that none of us want to see in our Islands.  And so, we must be vigilant. And by we, I mean Government as well as private citizens, and business. 

We must not only appreciate the jewel that we have created here but we must jealously guard and protect it. 

Cayman’s political stability is bearing fruit.  You can see that in our headline economic indicators.

Annualised real terms GDP growth for the whole of 2018 is expected to close at 3.4%.  – This is on par with our largest trading partner, the USA.   So we have closed out the old year and started the new with continuing strong economic performance.

We have a strong economy that continues to generate jobs and opportunities for Caymanians.  The fall 2018 Labour Force Survey will be completed and released soon, but preliminary results indicate that overall unemployment, taking into consideration everyone legally resident here, has dropped from 4.9% in Fall 2017 to 2.9% in Fall 2018. As significant as that number may be, to me as Premier the more important number is that of Caymanian unemployment – which has dropped from 7.3% in Fall 2017 to 4.6% in Fall 2018.

This is the lowest level of Caymanian unemployment in more than a decade and is far lower than the peak Caymanian unemployment level of 10.5% that we saw in 2012.   

Political stability then has assisted in creating strong economic performance.  That in turn is sustaining confidence among businesses and investors about our future and their confidence is the foundation for maintaining growth and creating further opportunities for Caymanians.

Perhaps the most tangible and visible expression of confidence in the long term prospects of our economy is the growth that is going on in our development and construction sector.  This was one of the key factors driving the high level of overall GDP growth in our economy that I mentioned earlier.  Annualised growth in the construction sector reached 8.9% for the first half of 2018.  This growth in development is also driving an increase in imports with more than one billion dollars’ worth of goods having been imported into the Cayman Islands last year.

In large part so far I have been focusing on what we are doing, and must keep doing, to secure and underpin our success. 

This conference though is about looking to the future and in keeping with the theme I will consider what else we can do to prepare ourselves for the new dynamic world we face. In considering the future we should not just look at the most careful and predictable of scenarios, but at what exciting possibilities may be available to us if we are only more ambitious and innovative in our approach.

If we are to maintain, and indeed improve, our place in the world far into the future then we will need to be bold and to think big.  In my view, it only makes sense to think about bigger and bolder steps if we are confident in the foundations that are needed to support them.  If the economic fundamentals are sound then risk is more manageable and the confidence will be there to fund the investments that will be required.

Equally, it also only makes sense to think of such steps if they will bring real and tangible benefits to the Caymanian people. Ours is a proud history of willingness to innovate and to support inward investment but it has always been done on the basis that there is a meaningful return for our people.  You don’t grow an economy for the sake of business – you do it to provide opportunities for your people.

In terms of Cayman’s future prospects for growth and development, the fundamentals remain solid.  The factors that have fueled the success of Cayman’s economy continue to do so, despite challenges. 

For Financial Services, the bedrock foundation of our status as a UK overseas territory and our legal system based on English common law combined with the choice we have made to remain a tax-neutral jurisdiction with no direct taxation remains a fundamentally attractive proposition for businesses and investors alike.  The ability of the industry to innovate and the willingness of government to combine a business-friendly environment with appropriate but proportionate regulation will continue to maintain our competitive advantage so long as there is a level playing field.

Despite the challenges that our financial services industry is facing I am of the view that we can withstand these and continue to grow from strength to strength.   Ms Dukharan noted one such challenge in her video when she referred to initiatives by the European Union and their concern, justified or not, with countries that have ‘no tax or low tax regimes’. 

For those of you unaware, the Cayman Islands, along with over 20 other countries, are currently undergoing yet another review, at the end of which the EU will either give us their good housekeeping badge of approval or ‘black list’ us as having a harmful tax regime.      The concern presumably is that low or no tax regimes are harmful whilst, presumably, high tax regimes are not. 

This is never, though, simply a technical exercise.  In the end, the EU makes political judgments.  My government has therefore played its part in trying to influence those judgments by engaging with the EU.  This engagement continues and we, along with the 20 other jurisdictions undergoing the EU review process, await the decision of the EU Economic and Financial Affairs Council (Ecofin) meeting on March 12^th.  

I repeat here what I have said elsewhere - I remain confident that if the EU review process is fair, and not overtly political, we will not end up on any blacklist.  But we know that this is but one challenge – there are more to come.  

          I remain confident, however, that we can manage that future uncertainty and that by working together, government and the industry, we can keep pace with changing global standards while preserving the special characteristics of this jurisdiction that make it an attractive place to do business in the first place.

At the same time, our tourism industry continues to flourish with record numbers of tourists arriving at our newly renovated airport and at our seaport.  This growth will continue because we will continue to develop our world class tourism product. 

This Government has already been bold in not only modernising and tripling the size of our international airport but also in thinking of the future and committing to building the much-needed cruise piers that will serve us today but also protect our key cruise tourism business into the future.

The immediate economic prospects for Cayman are indeed therefore strong.  While there are uncertainties and threats, I believe that both our financial services industry and tourism have a positive outlook and we can continue to deliver sustainable levels of growth.

However, we do need to think longer term about what will drive future growth in the Cayman economy.  The more diverse the Cayman economy, the more resilient it becomes. Diversifying our economic base also creates new kinds of opportunities for our people, both as entrepreneurs and in the labour market.  And so we have attracted and continue to attract new types of technology and knowledge based businesses. 

Cayman Enterprise City, our well-established special economic zone, continues to attract new kinds of businesses to our Islands, notably internet and technology businesses, including FinTech and BioTech.

Newcomer Tech Cayman brings together Caymanian business acumen with established US technology entrepreneurship and is gearing up to create new forms of digital and knowledge-based business here.

Health City Cayman Islands utilises some of the most modern technology available anywhere. It is the first hospital in the English-speaking Caribbean to use robotic navigation for joint replacements; the first to install artificial hearts; and much more. This is a key part of our medical tourism platform.

And we continue to look to diversify financial services, more recently by attracting more reinsurance companies into Cayman – taking advantage of disruption in other jurisdictions to create new opportunities for us.  

But growth too brings its own set of challenges that we must manage. If we are to continue to grow, it is my view that we need to make really creative use of the scarce space we have.  And despite the huge strides we have made in recent years we must improve our future infrastructure, particularly our road network.  The Government is currently consulting on a draft national planning framework that begins to look at some of the crucial land use choices that will face us in the years ahead.  I support that consultation process and I hope everyone will want to take part in the debate.

However, the planning framework considers a relatively short time horizon and inevitably therefore this causes participants to  focus on marginal or incremental change.

This has traditionally been the Caymanian way.  We have taken a pragmatic approach and looked to make relatively small changes over time as circumstances have changed.   

Over a period of decades, we have gradually allowed taller buildings as the demand for property for development increased.  This demand continues and indeed strengthens and with the growth we are now experiencing there is already pressure to go beyond the current maximum of 10 stories above ground level.

I pose this as a series of questions that we as a nation should now consider, do we want to continue with the approach of incremental change?  Or is now the time for us to think bigger and act more boldly when it comes to our land use and building heights?  If so, how high and where do we want future development to be allowed?

Last week, speaking to the Chamber of Commerce I discussed the work Government is doing in partnership with business and the wider community to revitalize our capital, George Town.  I encouraged all involved to think creatively about how we might best use the space in George Town and the uses to which it might be put.  While I personally favour mixed-use development across the redevelopment area, this is a genuinely inclusive process and the Government is willing to listen positively to the ideas people will bring forward. 

The Government has already removed many of the constraints that have prevented innovative planning approaches in George Town in the past.  We would be willing to look further and remove other obstacles such as restrictions on building heights in order to see the kind of positive redevelopment we want in our Capital.

The other obvious example of the potential for taller buildings is along the Seven Mile Beach corridor.  All the messages about the strength of the tourism market and the luxury housing market suggest that there may be no obvious limit to building height in terms of what the market will bear.  The question becomes then, what is our community willing to see happen?

The answer to that crucially will depend upon the benefits that any such development brings.  I said earlier that if we are to take bold steps then there must be clear and tangible benefits for Caymanians.  If development is seen to be just about luxury hotels and accommodation for rich foreigners then our community will rightly reject it.  If on the other hand, it is not just seen to be, but actually is about, the delivery of improvements in infrastructure and in the economic and employment opportunities and the social conditions of Caymanians then I believe this is a debate we should be willing to engage in.

By way of a kick start to that debate, I can say today that representatives from Dart Enterprises have recently spoken to Government regarding plans for a landmark development within Camana Bay  that includes an iconic tower that would greatly exceed the current development height limits - creating a new skyline that would be recognizable the world over. With this development they will  commit to investing in excess of an additional $1 ½  billion into the Cayman Islands economy, not just in the development itself but in critical infrastructure improvements and supporting workforce development. 

We know that future development along Seven Mile Beach is inevitable.  In fact the new wave of redevelopment started some years ago and is now accelerating with the demolition of condominium complexes built in the 70’s and 80’s and the construction of new 10 story luxury residences in their stead. The question is whether we wish to continue to limit the type of development in the seven mile beach corridor in line with the status quo, gradually ratcheting up building heights and redeveloping existing sites to take advantage of changing regulations.  If so, the result will be more of the same in terms of what Seven Mile Beach is slowly becoming – just a higher wall of glass and concrete than we have at present and which continues to take over the whole beach.

Perhaps we can be content with this and the economic activity this incremental and ad hoc approach will create over the next ten or so years.  But what about the next decade and the ones after that? This approach is unlikely to ensure that as a country we maximize the full economic benefits of the Seven Mile Beach Corridor.

The alternative is to be bold and look at something different.  A more proactive approach that considers taller buildings and that conserves ever scarcer beach land on the important Seven Mile Beach strip.  Taller buildings but in particular hotel developments that generate much more income and economic activity for our islands than other types of development do. Taller buildings that will require developers to give back more of the beach and to have farther setbacks - creating a large open space between the building and the beach.

I believe we must at least take a long, hard look at the potential for the kind of tower Dart is proposing.

The development would necessarily be mixed-use with hotel, residential, retail and entertainment spaces. 

The potential economic benefits are considerable.  More and different construction jobs during the build phase.  New business and job opportunities for Caymanians to follow as new tourism and entertainment markets are developed to meet the needs of a different kind of tourist and a different kind of resident.

But we must also consider that such a large scale development project would create hundreds of jobs and economic opportunities and thus would also help to serve as a much needed buffer over the next few years when the inevitable next recession occurs. 

As part of considering this or any similar proposal, any developer will also need to bring forward a significant programme of infrastructure investment.  This would necessarily include road improvements but also potentially social infrastructure – improvements to Cayman’s schools or investment in affordable housing for local people for example. And so, as a Caymanian, I am excited about the idea.  As Premier, I am determined that we engage positively with Dart and with any other developers who might want to bring forward such ideas to see what might be possible.

There is an awfully long way to go before such ideas might come to fruition but now is the time for a national debate. The Plan Cayman process gives us a timely and appropriate vehicle to have that national debate.  The next phase of consultation in that process will be on an area plan for the Seven Mile Beach Corridor and the potential for a landmark development can be addressed as part of that consultation.   I will leave it to Dart to outline their ideas in more detail and, as I have said, I would welcome others coming forward with other proposals. 

I wish to make it clear that there has been no commitment from the Government to Dart or anyone else at this stage but we do believe we must be willing at least to consider the proposal.

The renowned architect Adrian Smith noted in an article on tall buildings that the landmarks they create often over time become a symbol of national pride and identity. Such developments create new types of jobs and economic benefit as well as serving as an iconic tourist attraction in their own right.

Think for a minute the impact that the Burj Khalifa, which was designed by Adrian Smith, has made for Dubai.  Or indeed the impact of the Eiffel Tower on Paris and indeed France as a whole.

Hang on!  Before people start taking to social media to decry this idea, hear me out.

Many people here will know that Gustave Eiffel was commissioned to design his iconic tower for the 1889 World’s Fair in Paris.  What you may not know is that the proposed tower was immediately controversial.  Indeed 300 members of the Paris artistic and cultural elite signed a petition to the Fair’s organizing Committee asking for the project to be abandoned. 

Yes – petitions against progress were a thing even then.

But I digress.  Describing themselves as “passionate devotees of the hitherto untouched beauty of Paris”, they protested with all their strength and indignation against what they described as “this useless and monstrous Eiffel Tower” that they claimed would be antithetical to the traditions of the city and would overshadow existing cultural sites. 

I can just imagine those in Cayman who will make very similar – if not pretty much identical – objections to any proposals for a major development here.  Yet now, the Eiffel Tower is not just part of the Paris skyline; it is the very symbol of the city itself. 

Could we in Cayman imagine a similarly iconic structure here that would come not to threaten our cultural heritage but to reimagine it and to symbolize the bold future we want for our Islands and our people?

I have no doubt that this last section of my speech this morning will be highly controversial and will ignite considerable debate.  If so, good!  That is my intention because this is a debate that the country needs to have.  There is much that is within our grasp if only we are bold and the decisions we make will have profound impact on the long term economic outlook of these Islands.

It comes down to a matter of choice about the future we want for ourselves and these Islands.  Brutus, in Shakespeare’s Julius Caesar, put it this way:

There is a tide in the affairs of men

Which, taken at the flood, leads on to fortune;

Omitted, all the voyage of their life

Is bound in shallows and in miseries.

On such a full sea are we now afloat,

And we must take the current when it serves,

Or lose our ventures.

I thank President Chris Kirkconnell and the Chamber for this opportunity to address you.

Last year I highlighted the improving relationship between government and business and the importance of continuing to develop that relationship.

That spirit of partnership has continued to grow and there are many examples of how our joint leadership has served to advance the interests of these Islands. I will highlight those as I talk about them, but I thank Past President Paul Byles, the Chamber Council, member businesses, and Wil and his team for their important contributions.

The coming year will be very good for our Islands. The Royal Visit of Prince Charles and the Duchess of Cornwall in March will certainly be a highlight in a year that I expect will have many such, but none more important. And so Government intends to make 28 March, 2018, a public holiday in honour of this royal visit.

If you were present last year you may recall that I began with a video in which leading regional economist Marla Dukharan described Cayman as “the best run economy in the whole Caribbean”. The performance of Cayman’s economy over the last year consolidates our position at the top of Ms Dukharan’s league table.  

Government continues to run excellent surpluses with preliminary 2018 results indicating revenues of $832.3 Million with a surplus of $178 Million; some $91.4 Million more than budgeted. We continue to pay down debt and to operate from cash.

GDP growth was 3.7% in the first six months of 2018 and the official forecast for 2018 year end is 3.4%.

The economy continues to perform strongly and, as we anticipated, our economic success continues to generate jobs and opportunities for Caymanians.

The 2018 Spring Labour Force Survey showed an overall increase in employment with Caymanians in work increasing by 3.4% while employment among non-Caymanians declined by 4.1%. Correspondingly, unemployment decreased to 3.4% from 4.1% in the same period of 2017. Unemployment was lower across all status groups but the highest reduction was among Caymanians, which fell from 7.3% in the first half of 2017 to 5.3% in the same period in 2018. 

When the fall 2018 Labour Force Survey is completed and released it will show yet further improvement. Preliminary results indicate that in fall 2018, when compared with fall 2017, total unemployment would have dropped to 2.9% from 4.9% and Caymanian unemployment has dropped to 4.6% from 7.3% in 2017. This is the lowest level of Caymanian unemployment in more than a decade.

Last year I appealed to businesses to redouble efforts to employ suitably qualified and experienced Caymanians. These figures represent a significant achievement and I am grateful to all contributing employers. 

I am far from complacent and acknowledge there is more we must do to strengthen the position of Caymanians in the job market. I will talk about the action we are taking in that regard shortly. For now, though, I will simply reflect that the figures I just gave represent a significant step towards fulfillment of this Government’s key pledge to achieve full Caymanian employment – a strong economy where every Caymanian who is willing and able to work can find a suitable job.

The other key macro-economic indicator, inflation, is one we are watching closely. The latest data for the consumer price index give an annualized inflation figure of 3.5% for the third quarter of last year.  While high by recent standards, the figure has dropped back from a peak of 4.8% in the previous quarter.

Economists among you may point out that such is the nature of price variations over time and that these recent figures come on the back of a period of deflation – falling prices – in the Cayman Islands. And so, taking a longer term view, prices in the Cayman economy in September 2018 were actually only 2.5% higher overall than they had been in September 2014. That represents a significant five year period of overall low inflation.

However, we recognise that the current level of inflation can represent a squeeze on living standards, but the tools available to government to reduce inflation are limited. As an example, one of the most significant recent price increases was a jump in electricity prices - but remember, this Government has maintained the significant fuel duty reductions brought in by my last Administration that are still helping keep utility costs down. We also continued reductions on various import duties to licensed retailers to help lower prices. And we increased the duty free allowance at the airport from $350 to $500 per person for goods purchased abroad.

We will do what we can to maintain living standards, especially for the vulnerable. Last month saw the second of our promised increases in the minimum income we guarantee to those in receipt of social assistance, retired seamen and veterans, and retired long-serving civil servants. These individuals saw their monthly receipts from Government rising to $750. That increase of at least 36% since this government took office under two years ago is directly benefitting hundreds of Caymanians and, I should add, delivering on another of the key pledges we made to the country.

Lest we forget though, the best way to ensure a good standard of living is to ensure we deliver economic growth so our people can access well-paid jobs. Indeed the best social programme is a good job.

The picture of success I am able to paint this afternoon owes much to the continued strong performance of Cayman’s two pillar industries – Financial Services and Tourism.

Cayman’s Financial Services Industry continues to thrive even as it constantly adapts to changing global circumstances. The ability of the industry to innovate and the willingness of government to combine a business-friendly environment with appropriate but proportionate regulation will continue to maintain our competitive environment.

But we must recognise that there are major global players determined to undermine Cayman’s success. Our position is straightforward. Where there are reasonable demands to raise global regulatory standards we will comply, so long as there is a level playing field. Our willingness to do so is evident in the economic substance legislation passed by the Legislative Assembly immediately before Christmas.

This is one of those areas where I must thank the representatives of more than 15 financial services and commerce associations that supported the Minister for Financial Services, her team and the Government to tailor that legislation to meet the requirements of those who set global regulation standards as well as our own local business community. 

 I remain confident that if the EU listing process is fair, we will not end up on any blacklist. But we take nothing for granted and continue our engagement with the EU Commission and member states.

Looking ahead, the future of Cayman’s Financial Services Industry will face more challenges; not just from the EU and OECD, but also from the FATF. I am confident that we can manage those challenges and, working together, government and the industry can keep pace with changing global standards while preserving the special characteristics of this jurisdiction that make it an attractive place to do business.

Given the challenges our Financial Services Industry is constantly facing, it is even more critical that we  do all we can to secure the future of our other key economic pillar, tourism, and seek to accelerate economic diversification to reduce our reliance on both those industries.

For that reason, the current controversy over the cruise dock is not something that can be seen in isolation.

Cayman’s tourism sector is flourishing. Last year we received nearly 2.4 million visitors; the highest number in our history. The number of stay-over visitors broke previous records and cruise visitor numbers would have also seen a record year but for bad weather in December that prevented 12 ships from stopping here. 

This success is the result of a lot of hard work. The Minister for Tourism and his team have a marketing approach that is the envy of the region. In the end, though, it is the quality of the offer that drives our success. Yes, we have many natural advantages but it is the continual improvement in the standards of our hotels, restaurants and associated businesses along with our  infrastructure as well as our people that keeps bringing visitors to our shores.

Some of our critics point to our success and ask why we need to change. Surely, if Cayman continues to attract visitors, why do we need a new port?

Even our fiercest critics accept that the cruise industry is changing. They accept the trend towards bigger ships but seem to believe the changes can leave Cayman unaffected. They argue that these bigger ships will only gradually come into service and that they can continue to tender their passengers ashore in Grand Cayman.

I liken this approach to that of the Kodak company, which enjoyed decades of growth and became a cultural point of reference the world over. It’s “Kodak moment” tagline became part of everyday speech. I am sure there were those sitting at the company headquarters during the 1990s saying, ‘we are continuing to grow, why do we need to change’?

Kodak did not fail because it did not see digital photography coming; indeed Kodak invented the world’s first digital camera in 1975. 

Rather it failed to understand the profound impact that change would have on its business – not overnight, but over time. 

After a period of decline that lasted some 20 years, Kodak filed for bankruptcy protection in 2012. The company survives but is unrecognisable from the 20^th Century giant it had been.

I fear that will be the outcome for our cruise industry if we refuse to pay attention to the way the market is developing. We will go into a gradual but sure decline and our cruise sector will eventually be diminished.

This government will not allow that to happen.

It was at a Chamber Luncheon in 2015 that I announced that after careful consideration, Government had agreed on the merits of building a cruise port and enhanced cargo port.  We not only remain committed to the cruise dock and cargo port project, but are even surer of the merits today. 

The new cruise dock is vital to safeguard the future of Cayman’s tourism industry; whilst the new cargo facilities will receive larger cargo ships and help support the Islands’ growing population and, by allowing greater economies of scale, help to mitigate some of the cost pressures impacting our cost of living.

Whilst we are committed to delivering the port project, cruise and cargo, and to securing the growth and jobs they will bring, we are not doing so recklessly and without regard to the costs. I have previously made two promises to the country, which I will repeat here. 

First, we will structure the financing of the port in such a way as to not expose the country’s finances to disproportionate risk.

Secondly, we will minimise or mitigate the environmental impact of the project. 

We have already delivered on the first of those promises. We announced last December that we have concluded agreements with Carnival and Royal Caribbean, the two largest cruise companies, on their financial commitment towards the costs of constructing the new dock. 

I am happy to announce today that Disney has also given its commitment towards the financing of the port project. These agreements, coupled with the finance to be provided by the preferred bidder on the project, effectively ensure that no public money will be required to build the new cruise berths and enhanced cargo facility.  When I addressed you in 2015 I stated that the cruise companies must have skin in the game to ensure that we receive the necessary volume of cruise passengers over the period required for the financing to be repaid. That promise is being kept and I want to again assure the Leader of the Opposition that no current fees paid by the cruise companies to Government will be used to repay the financing package.

Having delivered on that first promise, we will now ensure that the second promise is kept as well. I have said before that I respect the views of those who argue that no economic benefit can outweigh environmental concerns. But whilst I respect their viewpoint, this is not a position that a responsible government can take. In my view this comes down to a question of judgement – do the benefits outweigh the costs? In my judgement and that of my Government, $245 million of net economic benefit, hundreds of construction jobs and then decades of increasing employment and business opportunities for Caymanians in the Tourism Industry definitely outweigh the inevitable environmental costs in a part of Grand Cayman’s only working harbour. What we can and will do is ensure that the final design of the new piers will avoid as much environmental impact as possible. Where we cannot avoid it, we will aim to mitigate the effects.  

The project is now in its sixth year and we continue to move forward carefully and deliberately. The procurement process is winding down and a preferred bidder will be chosen by the summer. Once this is done we will be in a position to speak more to the final designs and projected costs. 

So we will continue to support tourism as well as our Financial Services Industry, despite the challenges. But we will also continue to support increased diversification of our economy.  

I was delighted, therefore, to attend the ground-breaking ceremony on the first phase of the new campus development at Cayman Enterprise City late last year, as well as welcome the launch of the new Tech Cayman initiative. Both add further strength to this country’s offer to attract knowledge-based industries and other entrepreneurs and both have the support of Government.

I would add that Health City Cayman Islands continues to prove its increasing social and economic value, especially for health tourism. Recently in New York I addressed a Reinsurance Roundtable event where reinsurance businesses spoke in glowing terms of the value of locating in the Cayman Islands. These are market segments that are both ripe for growth and Government will do what we can to attract and support reinsurance and health tourism companies. The brilliantly organised and hugely successful Kaboo music festival is also a good indication of the potential value of large scale festivals and conferences to these Islands.

Our development sector continues to help power the Cayman economic engine and the addition of new hotels to our tourism product will help stimulate, as well as support, more growth for years to come.

There is no other way to put it; Cayman is doing very well.  However, our future success is not guaranteed and in an increasingly competitive global economy this jurisdiction needs to be ready to compete in good times or in bad.

That competition is not just about attracting business to Cayman.  It is also about making sure that entrepreneurial Caymanians are able to take the opportunities that the future growth of our economy will bring.

The Minister for Commerce has been pursuing a two-pronged strategy to support small business development. In the first strategy, Trade and Business license requirements have been streamlined and the whole renewal process has been moved online. Indeed we are making good progress across a range of e-government services.

The second strategy is about improving the support available to small and micro businesses. Just last week the Minister and the Cayman Islands Small Business Association signed a memorandum of understanding aimed at delivering services including workshops, mentoring sessions, grants and individual assistance to small business. The partnership between public and private sectors will be further enhanced through the establishment of a small business centre. 

This Government has also maintained the greatly reduced fees for small businesses put in place by the last Administration, and in 2018, some 4,800 micro or small businesses benefitted from these reduced fees.

For Caymanians not inclined to open a business, a high quality education is a crucial gateway to future employment and so I am grateful to those in this room and beyond who support the work being spear-headed by the Education Minister. Amongst other measures, the Minister and the Chairman of the Education Council Mr. Dan Scott recently returned from a fact finding tour in the UK looking at how we can learn from their experience, including through an upgraded and modernised curriculum as a key tool in helping to raise standards in Cayman’s public schools.

Also critical is our ongoing investment in enhancing our school infrastructure – both at primary and secondary levels.  And we continue to encourage, and support as best we can, private schools to enhance their facilities as well. Of course as important as a curriculum and school buildings are, attracting and keeping good teachers is especially key – and so we have ensured that the remuneration of our teachers is being increased.

I have spoken before about the various vocational studies initiatives – including the very successful City & Guilds vocational studies programme run by PWD. This has grown over the past few years and today provides a variety of training courses to some 17 Caymanian apprentices. Our plans are to expand this to serve at least 50 students next year with training provided in a number of fields including air-conditioning, plumbing, electrical and carpentry.

The improvements in education will help future generations but we also need to further improve the position of Caymanians in the job market now. As I indicated earlier, unemployment among Caymanians has fallen significantly, but now is the time to put in place improvements that will maintain that position as we go forward.

That task will be spearheaded by the new Workforce Opportunities and Residency Cayman – or WORC – Department. WORC officially went live this month and implementation of the changes will follow in the next few months. The first of those will be the online jobs clearing house – due to go live around Easter - through which all jobs will be advertised allowing Caymanians full access to the opportunities available.

Improvements that the government has promised in the work permit regime are also progressing. I wish to acknowledge the Chamber’s assistance in helping develop a new simplified and modern work permit system. We have more to do to road test the proposed changes and we have undertaken to work with business as we do so.

As a country, we need to embrace the opportunities of growth but it is time that we do so in a planned and measured way.  For that reason, we are consulting the public on a new National Planning Framework for the Cayman Islands. This encompasses several things to which the Government is already committed.  For example, it recognises the work we have been doing to modernise this country’s infrastructure. The framework incorporates the much needed revitalisation of George Town and also reflects the ambitions in our National Energy Policy.

It also seeks the views of the public on new ideas and approaches to how we develop and ensure our future is sustainable. I hope the Framework will ignite a national debate about our future.  To that end, I would like to thank the Chamber for hosting an event on the framework last December. We have extended the consultation deadline until the end of this month to give everyone as much chance as possible to contribute their ideas and I would encourage everyone in the business community to take part. 

We are of course continuing to invest in the infrastructure this country needs for its future. 

We are picking up the pace on George Town revitalisation and I would like to say how welcome it is to see the appointment of Mr. Colin Lumsden as the Town Manager to take that work forward. 

Having put in place some of the necessary infrastructure improvements, the time has now come to reimagine what our Capital might be like in the future. The Government wants the exercise of planning and delivering that future to be a fully inclusive process. For that reason, we will put in place a steering committee of stakeholders to guide the project. I hope the Chamber will accept our invitation to be represented on the committee.

We want the committee to involve the wider community and so we are planning a town hall charrette to engage everyone in the future design of our Capital and its town centre.

To those who will be involved as the work progresses, I want to encourage you to be bold. This is an opportunity to think more radically about what might be possible in terms of how we utilise the space and the activities we want to see in the Capital. The Government has previously removed some of the restrictions that prevented sensible development. So I want the committee to explore the freedom we will give them to develop exciting plans for innovative mixed-use development in George Town, including considering sensible building heights as necessary to encourage investors to redevelop and breathe new life into our Capital.

We also continue to invest in much-needed road infrastructure. This year we will progress the second phase of the Linford Pierson expansion project that will give four lanes between the Agnes Way roundabout and the Bobby Thompson/Smith Road traffic lights.

Nearing completion is the connector road and new roundabout joining Printers Way to Crewe Road in the proximity of the Mango Tree restaurant and bar.

In the next few months, the Olympic Way-Walkers Road connector will be constructed to help reduce congestion on Walkers Road and more effectively segregate school traffic. 

Later this year, work is due to start on the extension of Godfrey Nixon Way from the Blue Marlin restaurant on Eastern Avenue to the Fish Shack on North Church Street creating an important link for cruise and port traffic.

Looking a bit further ahead, design work is under way for the expansion of Shamrock Road and Hurley Merren Boulevard from 4 to 6 lanes.  This will ease congestion that motorists moving east encounter. This work will commence later this year.

We are also looking at how best to move forward later this year with the much needed continuation of the East West Arterial Road through to Frank Sound, with phase one connecting Hirst Road to Northward.

Meanwhile, work will be completed at the airport and it will be opened at the end of next month by HRH the Prince of Wales. This will be a proud moment for all who call this place home.   

Much has been said about the delay and added costs of the airport expansion. I will say this: When the airport expansion was designed some years back we considered what we thought was affordable at the time.  As our finances improved we looked again at what was needed to make a very good new airport experience even better – and so broadly half of the additional spend was the result of positive decisions to improve the quality of the redeveloped airport for the benefit of travellers. I and my Government are satisfied that decisions taken in this regard were sensible and affordable and I am satisfied that the public will also agree once the expansion is complete and the airport is fully operational.

As we think about the future of our Islands, we must also consider Cayman’s place in a changing world. To that end, I announced last year this Government’s intention to create a new Ministry of International Trade, Investment, Aviation and Maritime Affairs. 

The new Ministry has now been established, with me as Minister, and will focus on advancing the economic and political interests of the country, the Caymanian people and the business community and will make it easier for potential overseas investors to do business in the Cayman Islands. This includes business that may flow to Cayman as we seek opportunities to participate in the UK’s Global Britain Initiative post-Brexit.

It will take direct responsibility for the Cayman Islands Government Office in London and a limited range of existing government departments and entities, including the Shipping and Aviation registers. Over time the Ministry will develop a select network of international offices to better achieve its stated purpose. Plans are already under way for the establishment of an Asia Office in Hong Kong. I must thank those business leaders, led by past President Byles, who gave their time to the development of that business case. An office in Washington is also being considered for 2020 as is one in Brussels if it is thought useful after the UK leaves the European Union.

In setting up both a new Ministry and an Asia Office, the case for change is underpinned by the view that international issues will become increasingly important to the wellbeing of these Islands. The Government accepts that there are costs and indeed potential risks in this approach. However, having done the business case, we believe the benefits are significant enough to justify the investment we are making. This same analysis will be done prior to any new international offices being established.

I have concentrated today on the Government’s economic record and our view of the future of our economy. Before I sit down; however, there a few other matters I thought would be helpful for Chamber members to hear about.

Firstly, whilst I am confident that our economy will remain very strong over the next 12 to 18 months; the picture is less clear after that.  Indications are that growth in major economies will slow over the next year. I believe that the momentum we now have, coupled with sound finances, place us in a good position to manage any such slowdown but the Minister for Finance and the entire Government are paying close attention and bearing this in mind as we start planning for the next budget cycle.

The latest constitution talks were held in London in December. Our requests have been generally well received and I am encouraged by the willingness of the UK to respond positively to what I believe to be a sensible and pragmatic set of proposals. Clearly, we will not get everything we want, but the negotiations are proceeding well and I hope they will be brought to a positive conclusion in the coming months; hopefully in time for our Constitutional celebrations that kick off in July, another key event in this year’s calendar to Celebrate Cayman.

I also wish to acknowledge the Governor, Mr. Martyn Roper, for working in such a spirit of partnership since his arrival – including assisting with and supporting the new Ministry.

The Governor and I are also working together to ensure the country’s safety and security and we share an ambition to reduce crime and criminality and improve the security of our borders.

This month saw the launch of the Cayman Islands Customs and Border Control Service but already the new intelligence-led approach of the service is bearing fruit. One good example is that at the same time that we launched the green customs channel at the airport and higher personal import duty limits, both customs revenues and successful interdictions by border control officers are up.

Further innovations will follow during this year. Just a couple of weeks ago the Border Control Service began a procurement process to introduce new immigration and passport control kiosks, very much like the ones you will have used at various international airports. We expect a pilot utilizing four such kiosks to be in place before the end of 2019.  Also this year, we will introduce a fully online visa application process.

Another important step is the creation of the new Coast Guard Service.  As well as being part of that border security network, the Coast Guard has other vital functions related to safety at sea, including maritime search and rescue. The next significant development for the service will see the opening in the coming weeks of the new operations and rescue coordination centre, which will play a key role in ensuring Cayman can coordinate search and rescue and other activities on a 24/7, 365 day basis.

The approach the Government is taking can also be seen at the community level, including the drive to reinvigorate neighbourhood policing. Alongside things like the creation of new neighbourhood watch schemes – something the Government has been very keen to see – this more accessible, visible and responsive policing is having a direct and positive impact on the lives of Caymanians, visitors and businesses. 

Delivering that kind of direct impact on the lives of Caymanians is central to what this Government has set out to do and it is not just in the area of crime reduction that our success is being felt. 

We have responded to concerns that Caymanians are being priced out of the housing market by pushing forward the National Housing Development Trust’s affordable housing programme. Last month, ground was broken on a scheme in East End that followed the successful completion of 16 new homes in Bodden Town last year.

As the six East End homes are finished, work will begin on eight more homes in West Bay. The Trust is also buying 10 acres on which to build in North Side and recently bought a 24-acre plot of land in George Town. I thank the Trust and the Minister for Housing for their tireless efforts.

The government has also significantly increased the stamp duty thresholds for first time Caymanian home buyers, allowing greater numbers of Caymanians to purchase first time properties without having to pay stamp duty, or to pay it at discounted rates. This represents a welcome leg up on to the property ladder for many young Caymanians and their families.

Elsewhere the Government has continued its work to create a healthier environment and to preserve more public land, particularly beaches for the enjoyment of our people and visitors. We have procured 634 acres of protected land, increasing the total amount to 4,111 acres – about 6.3% of Cayman’s total land mass. This year we will continue the policy of acquiring land for public use, including beach land and land for parks. The East End housing scheme will also create a new recreation park in the district. 

We have purchased the property used by the Scranton community for many years as a park. This purchase safeguards public access to that important community space in perpetuity. Government is working directly with the Central Scranton community on plans to improve the property.

Land has also been acquired to create a park that will serve the Red Bay and Prospect constituencies. Those communities will also help guide the public use of the park.

Work will commence this year on Smith Barcadere once planning and design are completed. And the South Sound Boardwalk has been completed and provides a safe walking zone as well as preserves beautiful vistas of the sea for the enjoyment of all.

Work continues on the Integrated Solid Waste Management project and after more than five years of work and negotiations we are nearing agreement with the preferred bidder, DECCO. The project addresses the solid waste management needs for these Islands for the next 25 years. This is a design, build, finance and operate Public Private Partnership that will not require any capital investment by the Government. This is a key deliverable and we are very pleased to have made it to this juncture.

Much is being achieved by this Government and it is all being done in a fiscally responsible way.  We continue to operate with surpluses even higher than those that we budgeted to achieve. Our capital investments are being paid for from cash without increased borrowing and we continue to repay government debt. 

This Government’s track record of delivery and sound stewardship of the finances is the result of the hard work done by my Ministers and Councillors, as well as the Civil Service.  I thank them for the support they give me and for the work they do every day for the people we serve.

Ours is indeed a Unity Government – one where we may take different views but where we are all willing to work together towards our shared ambitions for these Cayman Islands.

We have achieved much together but our ambitions are not yet fulfilled. We have a lot left to achieve and just over two years in which to do it. With the same determination and pragmatism demonstrated in our first two years, I have no doubt we will achieve what we set out to do.

The best - the best - is yet to come.

Good morning.

Thank you Chris for so ably establishing Protocol.  

We find ourselves at an auspicious time in the history of the Cayman Islands. We are winding down a yearlong celebration of the 60^th anniversary of the Cayman Islands Coat of Arms and winding up the commemoration of the 60^th anniversary of our first written Constitution.    

You may wonder what this has to do with today’s conference.  So before you conclude that I have picked up the wrong speech this morning, perhaps I should explain.

Over the course of the next two days I am sure the words disruption and innovation will be mentioned many times – and when it comes to international business and financial services, disruption and innovation are two words that definitely apply when speaking of these Islands. 

The 1950s and 1960s were certainly a time of disruption and innovation.  Whether in music, social change or politics – it was an exciting time across the globe.  These years saw the birth of an important symbol of national identity, our Coat of Arms in 1958, coupled with our first Constitution in 1959.  This was swiftly followed with legislation like the Companies Law and the Banks and trust companies Law that provided the foundation for what has come to be called the Financial Services Industry.

 In 1958 women won the right to vote after lobbying for ten long years and in 1962 these Islands, bucking the trend at the time, decided to remain a British Crown Colony rather than seek independence as Jamaica and others did.  These important events helped shape the direction of our three Islands over the past 60 years.

At the point our Constitution came into force, the Cayman Islands population stood at 8,500 souls.  Our economy was based on seafaring, on international trade, notably thatch rope and turtle, and on small-scale agriculture.

In the six decades since we have become not only a tourism Mecca, but importantly a premier international financial centre – and in the process helped transform the way that legitimate global business is done.

Disruption and innovation were a part of who we were in those early days and continue to be key to our success. Today we are a sophisticated jurisdiction, both in terms of infrastructure and business. Yet you can still find areas of laid back charm with a Caribbean feel as you move away from the commercial and tourism centres. Forgive me for saying unashamedly there is no place on earth quite like the Cayman Islands.

In sixty years Cayman’s GDP has grown to over four billion US dollars. The Islands’ population has grown to over 64,000 as citizens from over 130 nations have been drawn to be part of our economic miracle. Taken together, those two data points put Cayman in the world’s top 10 of nations ranked by per capita income.

 Our economic miracle may have had divine assistance, but it certainly does also have distinctly man-made origins. It has been achieved through far-sighted decision-making, entrepreneurial spirit and government’s willingness to innovate in support of business and economic activity. 

That success has been most keenly felt in Cayman’s Financial Services Industry, which accounts for about 56% of our GDP. For example, the number of registered funds in Cayman was up by 4.1% to over 11,000 last year while 33 new insurance licenses were issued bringing the number of licensed insurance companies to 730.  Across our economy, in the first half of last year, new company and partnership registrations rose by about 11,500, or 39%, and listings on the stock exchange increased  by 401 new listing, or 38%. Total listings on the stock exchange at the end of June 2018 was1464, whilst total incorporated companies at the end of September 2018 stood at over 106,000.

We saw another record year in tourist arrivals with about 2.4 million visitors in 2018, combining cruise and stayover, up 11% over 2017. And the development sector continues to do well with some 722 projects approved in 2018 at a value of US$500 million.

This economic success brings benefits to international businesses based here as well as to Caymanians.  GDP growth in the first half of 2018 reached 3.7%.  Unemployment, when the next set of economic statistics is released, will have fallen below the last reported figure of 3.4%.  Government is delivering significant budget surpluses which are being used for public service improvements, infrastructure investment and to pay down debt.  And all of this without any reliance on direct taxation.

The picture I am able to paint is one of a vibrant and successful economy; a private sector that continues to flourish; and a responsible and responsive government. And an economy that has shown the capacity to survive disruption and to innovate and grow.

That is the picture today; but what lies ahead?

The International Monetary Fund’s latest global economic outlook has downgraded its growth forecast from 3.7% to 3.5% for 2019 and points to a range of threats and uncertainties – from tariffs and trade barriers, to Brexit.  

Here at home our key financial services sector is facing specific challenges. Last month I led a delegation to Europe for discussions with key officials in the European Union and with individual member states. In more than a dozen meetings held in Brussels, Paris and Berlin, we sought to defend Cayman and to raise the level of understanding of this jurisdiction and our Financial Services Industry, and to restate our clear proven commitment to working within the same internationally accepted regulatory frameworks as everyone else.

We demonstrated that commitment by explaining to officials the recent legislation that Cayman has passed in relation to the EU and OECD requirement that relevant entities doing business in the jurisdiction must have ‘economic substance’ in the jurisdiction. 

    We, along with over 20 other countries, are currently undergoing another review, at the end of which the EU will either give us their good housekeeping badge of approval or ‘black list’ us as having a harmful tax regime.  If the process is fair we ought not be on any EU black list.

The approach we have taken to this legislation results from working closely with the financial services sector as well as with the OECD and the European Commission. I would like publicly to thank colleagues in Cayman Finance and individual businesses for their help and support.

 We continue to cooperate with global authorities to ensure that our frameworks meet with appropriate standards.

Sadly, it has become increasingly clear that for some countries the issues are less to do with effective international regulation than with their own domestic politics and economies.

By example, despite the ongoing EU compliance process, last month the Netherlands government placed the Cayman Islands and 20 other jurisdictions on a ‘blacklist’ of its own devising. The reason? Nothing to do with global standards – simply put, the Netherlands takes the view that corporate tax rates in Cayman are too low. 

Well, I suppose at zero, it was unlikely anyone would think our tax rates too high!

The serious point is that the Netherlands, and there are others, cannot understand how a country as small as we are can be such a success and have no direct taxation, relying instead on indirect taxes and fees to provide revenue to government. 

Imagine, if you might, a small, low-lying land of enterprising traditionally seafaring people, making their way in the world to become a centre for international trade. They are confronted by an over-bearing European power intent on pushing back against their freedoms and determined to impose high levels of taxation upon them.

I am not describing Cayman in the 21^st Century.  Rather that is the story of the Netherlands in the 16^th Century as the people there revolted against their Spanish rulers. Given that the ensuing war lasted some 80 years and was crucial in shaping their nation, it is a wonder to me that the Dutch appear to have forgotten the lessons of their own history.

Let me be absolutely crystal clear. Cayman will comply with international standards and will maintain transparency and exchange information to allow local tax and law enforcement agencies in other jurisdictions to do their jobs effectively. But we will not be bullied by those who are jealous of our success, resentful of our taxation policies and unable to compete with us on a level playing field.

In all apparent adversity there are opportunities. Over the last sixty years, Cayman has been innovative and flexible, capable not just of responding to the winds of geopolitical change but of leading the way in creating and sustaining new business opportunities.

It is in that spirit that we look to the future. We will continue to support Tourism as well as our Financial Services Industry, particularly the sectors in which our jurisdiction is pre-eminent - such as hedge funds and captive insurance. Alongside that we stand ready to support the development of new markets such as reinsurance or fintech.

The technology space is crucial to the futures of us all and it is no surprise why the organisers have chosen to focus on that during the conference. Technology itself is, of course, neutral but its future use will be both a disrupter and an enabler in economic and social terms.

As a political leader, I welcome the breadth and immediacy of contact that technology brings but confess to considerable frustration at the repeated attempts to hijack my social media accounts or to set up fake online scams in my name. 

As a Government we are investing in a comprehensive e-government programme that draws on the experiences of the Estonian Government’s world-leading programme. E-government is making public services more accessible, customer-centric and cheaper to deliver.

We have a shared interest in how technological change will shape the future of financial markets. In particular, we need to come to terms with how regulatory frameworks need to be created in response to the new products that technology enables. The vexed questions of the regulatory frameworks that need to apply to crypto-currencies are but one example.

What we do know is that these technologies will have a huge impact and here in the Cayman Islands we are preparing for the new digital financial services revolution.

The online magazine, International Investment, reported that Cayman-registered blockchain companies are amongst the fastest growing anywhere – with upwards of about US$5.5bn raised from initial coin offerings. You see the same formulae that make Cayman attractive for traditional financial services businesses also attract those in the Fintech sphere. And as we did with financial services, we intend to play a key role in helping develop the required regulatory framework needed for this growing sector – internally via a Cayman Islands Monetary Authority working group now looking at this and also via our memberships in organisations such as the Caribbean Financial Action Task Force.

We in Cayman are determined to develop and exploit new markets.  We are establishing a new Ministry with responsibility for international trade and investment, and this year we will establish an Asia Office based in Hong Kong with a similar role to our existing London Office.  And we anticipate opening an office in Washington DC towards the end of 2020.  We believe these steps will help us to advance our international reputation while making us easier to do business with and attract more inward investment.

Cayman is a successful and attractive jurisdiction.  I am confident in the future of our economy and in the role that financial services will continue to play. The Government I lead will continue to speak for the industry internationally. We will continue to ensure effective but proportionate regulation. And we will continue to support innovation and diversity and work with the industry to keep government actions aligned with developments in the sector.

Cayman is looking to the future in a realistic way that recognizes challenges but also sees huge potential and opportunities - opportunities for business; opportunities for investors; and, yes, opportunities for Caymanians.

Whether you are invested in Cayman or visiting this conference to find out more, you can see the evidence of our past and current success and you can be assured that this Government is doing all it can to create and sustain Cayman’s future. I hope that you will want to be part of that future with us.

Thank you.

###

I extend a warm Caymanian welcome to everyone and thank each of you for joining me today on this National Heroes Day where we are “Celebrating the Creation of our Coat of Arms”.

I must admit, my heart was filled with pride as I watched those precious children walking past while waving flags and hearing our National Anthem, God Save the Queen. These are meaningful symbols of who we are as Caymanians, as is our Coat of Arms.

It was the conferral of our Coat of Arms that began our incredible journey as three small islands in the Northwest Caribbean Sea that have emerged from relative obscurity onto the world’s stage.

Last year we observed the 60^th anniversary of our Coat of Arms and heralded the return to these islands  of a very special part of our history, the Royal Warrant, which was conferred by her Majesty the Queen on 14 May, 1958, but had been lost in the fire that had destroyed the former government administration building in the 1070’s.,

When we examine the storyline that bridges the gap between Cayman’s earliest settlement and our rapid ascension to becoming a world class leader in financial services and tourism, the conferral of the Coat of Arms arguably represents the seminal event that provided the catalyst that put the Cayman Islands on the path to modernity.

It is indeed my distinct honour to share the story of how our Coat of Arms came into existence and pay homage to the many individuals who contributed to its development. 

The Coat of Arms is our first internationally recognised symbol of identity. Its rich imagery tells the story of who we are, our history, our culture, our earliest industries, our constitutional relationship and our faith. 

Up until 1958, life in the Cayman Islands was summarised by the legendary phrase, “the Islands time forgot”. There were many who saw little by way of a future here and chose to migrate, whether to Central America, Isle of Pines in Cuba, the United States or Jamaica.   

But many others remained, determined to stay and tarry on while bravely facing the most difficult of circumstances. You see, these hardships forged generations of Caymanians, steeling their spirits and uniting their hearts in a commitment to succeed while producing legendary iron men and women.

It is important to note that at this time we were constitutionally a dependency of Jamaica, which was itself a British Colony.

Whilst domestic affairs were managed locally and trade routes existed with other countries, the administration of the country was overseen by a Commissioner or Administrator who himself reported to the Governor of Jamaica.

Then in the late 1950s a man of vision arrived: Commissioner Major Alan Hilliard Donald.

Commissioner Donald is recognised for his central role in the development of the Cayman Islands first national symbol – the Coat of Arms.

Commissioner Donald would have seen first-hand the independence and ingenuity of the Caymanian people despite their constitutional link to Jamaica and recognised that Caymanian people clearly distinguished themselves from their neighbours to the Southeast. Commissioner Donald put forward a proposal to adopt a Coat of Arms for the Cayman Islands, which was approved by resolution of the Legislative Assembly of Justices and Vestry on 3 April, 1957.

In what could have been one of Cayman’s earliest examples of a public consultation exercise, on 11 April, 1957, Government notice 33/57 was issued requesting all interested persons to submit design ideas and illustrations for the Coat of Arms. A deadline of 1 May, 1957, was set.

One design was submitted by an American residing in Cayman named James “Jimmy” Ford, of the Yacht Club/Port of Call (now the Wharf). This submission assisted in the final design for the Coat of Arms. It is also believed that Commissioner Donald chose the motto “He Hath Founded it Upon the Seas” from Psalm 24 as it reflected the Christian faith of the Caymanian people.

On 5 February, 1958, a resolution was moved in the Legislative Assembly by the Commissioner to approve the selected design of the Coat of Arms and to send to Her Majesty’s Government for approval. 

It gives me great honour to recognise Mr. Linberg Eden and Capt. Owen Farrington, the two living Vestrymen who would have been serving at the time the resolution was moved in the Legislative Assembly.

There were three key features the people of the Cayman Islands placed great value on and wanted represented in the final design. Those were:

• The representation of the British connection
• The representation of the sea as the home of Caymanians
• Something to symbolise the three Islands

Additionally, it was noted that for sentimental reasons Caymanians desired to retain the thatch rope as part of the final design.

The chosen design for the Coat of Arms for the Cayman Islands features a shield, crest and motto and incorporates important historical and indigenous features of the country.

The shield features blue and white wavy lines representing the sea. Three stars of green, lined with gold, lay atop the lines, depicting our three Islands.

The top the shield features the British lion, symbolising the Cayman Islands’ connection to the United Kingdom.

Above the crest are the arms elements of the Coat of Arms. The green sea turtle is a prominent feature, representing the Islands’ original name “Las Tortugas”, given by Columbus, as well as the turtle fishing industry.

The turtle sits on top of intertwined bands of blue and white silk, representing Cayman’s thatch rope making tradition.

Above the turtle is a pineapple, which represents the connection the Islands have had with Jamaica.

At the base of the shield is the motto “He Hath Founded It Upon the Seas”. 

On 14 May, 1958, Her Majesty Queen Elizabeth II assigned the Armorial Ensigns to the Cayman Islands, bringing to life the first key symbol of national identity for Caymanians.

The granting of the Coat of Arms began the process of formally distinguishing the Cayman Islands from Jamaica and Cayman found itself at a crossroads with many choices to make. Once again our community and its leaders rose to the occasion, putting into motion a number of watershed moments in our history.

The legislation that was adopted, the choice to remain part of the United Kingdom when Jamaica chose independence, the receipt of our first constitution order, the granting of the right of women to vote and stand for election and the introduction of our own currency were just a few of the milestones fundamental to the development of the Cayman Islands that we know and love today; all built on the foundation of the Coat of Arms.

To commemorate the 60^th anniversary of our Coat of Arms, Cabinet commissioned the Celebrate Cayman team to plan and bring to life the cultural celebrations over two-years, beginning in 2018.

Members of the Celebrate Cayman team are Executive Chairman Alfonso Wright, Deputy Executive Chairman Marzeta Bodden, Project Coordinator Kara Coe and Events Manager Kristy Watler.  I thank them for their passion and commitment to preserving and promoting our heritage.

Distinguished guests, ladies and gentlemen, this is just one of the many events giving us another opportunity to Celebrate Cayman. Throughout the remainder of this year and until July 2020, Celebrate Cayman will host many other events and educational campaigns focused on teaching the public about the Cayman Islands’ important historical achievements. 

Before I close, I want to let you all know that at Heroes Day 2020 we will honour those who involved in shaping our first written Constitution in 1959. Our Pioneers in Maritime Heritage will be recognized at Heroes Day 2021.

Thank you and God bless you, and may God continue to bless and prosper the Cayman Islands. Please enjoy the day.

Premier Hon. Alden McLaughlin said he is pleased that the Foreign and Commonwealth Office (FCO) has confirmed that Martyn Roper’s post as Governor of the Cayman Islands has been made substantive and he is to serve a four year term.

“HE Martyn Roper has been working closely with me and the Government since his arrival and has been very helpful already in several areas,” said Mr. McLaughlin. “Just this week he travelled to New York to support the Cayman Islands Government and Cayman Finance delegations at the Cayman Finance New York Breakfast Briefing and a Reinsurance Roundtable discussion. This was a first, as far as I am aware, for a Governor to actively support and endorse our Financial Services Industry on an international stage and to publicly note the United Kingdom’s support of our Financial Services Industry.

“He has also been very helpful in our conversations with the UK Government on constitutional discussions and of course his support for the purchase of a new helicopter to expand our aerial law enforcement operations was welcomed and we look forward to the new helicopter arriving later this year,” said Mr. McLaughlin. 

“As I said when the Governor arrived, he has come at a particular juncture in these Islands when we are again facing some significant international challenges. I know he has some considerable experience in dealing with agencies such as the OECD and I look forward to working with him on these issues over the coming months as we seek to address the serious challenges regarding the EU’s listing process,” he said.

On behalf of my Government and the Cayman Islands I offer him congratulations on his formal appointment.

NEW YORK, New York – The Cayman Islands delegation was well received at the 6^th Annual Cayman Finance New York Breakfast Briefing held Tuesday morning at the Harvard Club of New York City.

After welcome remarks from Cayman Islands Governor Martyn Roper, he noted the professionalism of Cayman’s Financial Service sector and confirmed that the sector had the support of the United Kingdom.

Premier Hon. Alden McLaughlin told the more than 150 attendees that the Cayman Islands remains bullish about the prospects of financial services business in our jurisdiction and that the country and Government are gearing up for opportunities to successfully meet the challenges and uncertainties of the future.

In her address Minister Rivers spoke of the good work that Cayman has done in the fight against tax evasion, money laundering and countering terrorist financing and that this work was recognised by the likes of the OECD. She also spoke about Cayman’s efforts to comply with the most recent ‘economic substance’ requirements of the EU as well as the OECD.

The Premier, Minister of Financial Services and Home Affairs Hon. Tara Rivers, Attorney General Hon. Sam Bulgin and the Cayman delegation travelled to New York over the weekend following meetings in London, Brussels, Berlin and Paris where they attended 13 meetings with representatives from the European Union and various EU member states including Germany and France.

“We wanted to ensure that the EU Commission and member states understand that Cayman is meeting the commitments we made and to provide opportunities for them to raise any concerns,” Mr. McLaughlin told the New York breakfast crowd. “Conversations were professional and frank and mostly positive.”

Mr. McLaughlin also told the audience of the new Ministry of International Trade, Investment, Aviation and Maritime Affairs, which has been set up to better coordinate Cayman’s work in promoting the Cayman Islands overseas. He also told them about the United Kingdom’s assistance to establish Cayman’s own Asia Office based in Hong Kong.

The New York Breakfast Briefing is hosted each year by Cayman Finance to provide member firms and associates an opportunity to learn more about the latest development in the Cayman Islands Financial Services Industry. This is the first year that the Premier has been invited to give welcome remarks at the event.

During her address, Ms Rivers said, “As you can see, the Cayman Islands has included the “A Team” in today’s programme to underscore our commitment to the financial services industry; an industry that accounts for roughly 56 per cent of our GDP,” Ms River said. “It is our pleasure to not only sponsor this event annually, but to also participate in providing the key policy update covering the work of the past year and providing insight into the plans for the year ahead.

“Cayman will continue being a place for sound business, long into the future, because we will continue to meet internationally adopted standards,” she said. “Over the many decades we have demonstrated that we have the expertise and the resiliency needed in order to successfully navigate change, for the benefit of our clients and our country as a whole. As our history has shown us, the future of the Cayman Islands is bright.”

Following the breakfast briefing, the Premier and the Cayman delegation met with executives from Bank of New York Mellon at its headquarters.

“This meeting was salient for us because BNYMellon is an extremely important corresponding bank to the Cayman Islands,” said Mr. McLaughlin. “While the bank normally engages with regulators and the actual banks they do business with, this gave Government an opportunity to engage directly with them and have conversations about matters they wished to address.”

Additional meetings are scheduled on Wednesday with Citibank and Wells Fargo, two more key correspondent banks.  A correspondent bank is one that provides services on behalf of another financial institution to facilitate wire transfers, conduct business transactions, accept deposits, and gather documents.

On Tuesday evening the Cayman delegation attended the Cayman Finance New York Reinsurance Roundtable, again at the Harvard Club where the Governor, Premier, and Ms Rivers spoke about the attractiveness of Cayman as a domicile for Reinsurance business. Minister Rivers told those present that the Cayman Islands were working to attract large scale reinsurance operations. Ms Rivers noted that as a result “there are now at least 10 sizeable reinsurance operations in Cayman, including four Class D Licenses”

Premier Mclaughlin commented to those present, “My message to you today, as Cayman Islands Premier, is to say that my presence here, along with the Governor, the  Minister of Financial Services  and the Attorney General, fully demonstrate the Cayman Islands Government’s full support for the continued development and growth of the reinsurance industry in our jurisdiction.

The main event of the evening was the panel discussion that included professionals in the Reinsurance Market who told those present of the many benefits to their companies in being domiciled in the Cayman Islands, including the way the jurisdiction worked with them to not only set up business but to be successful. 

Good morning,

I will lie and say that it is great to be in New York City this time of year… but I will also go on to be truthful and say that the cold weather notwithstanding it is indeed good to be with you at this Cayman Finance New York Breakfast Seminar as we embark on another New Year filled with exciting possibilities.  

 Whilst 2019 certainly offers opportunities it has begun with challenges, much of which are political in nature. Here in the USA the Government shutdown comes to mind while in the UK Brexit is looming with no agreed plan.  In the Cayman Islands a key issue for us is the European Union Listing process and the focus on financial services jurisdictions demonstrating that there is substantial economic substance behind the business done there. We are up to the challenge. Many of you who have done business through the Cayman Islands for many years know that we have grown from strength to strength despite the challenges posed by moving goal posts and evolving standards. 

The great statesman and UK Prime Minister, Winston Churchill, is reported to have said that “a pessimist sees the difficulty in every opportunity whilst an optimist sees the opportunity in every difficulty”.  Seizing the opportunity inherent in difficulties has seen the Cayman Islands transform itself over the course of the past 50 years into a premier international financial centre, and in the process helped transform the way that legitimate business is done globally.

We have shown that we are ready and willing to not only fight to keep the thriving business and economy that we enjoy now, but to also adapt to new emerging trends, keenly conscious that many of these trends are driven by geopolitical considerations.

Some Governments, particularly in Europe, have a difficult time understanding how a country like mine can be so successful without a regime of direct taxation.  They see a country with very low unemployment, good budget surpluses, low public debt, modern infrastructure, a Moody’s Investment Credit Rating of Aa3 and a steadily growing economy. They see all this and no direct tax and conclude that something must be wrong - for the concept of no direct taxation is antithetical to their belief system.

They mulishly ignore the reality that our financial services business regime is attractive to companies because of our proximity to the United States, our tax neutrality, a broad cadre of financial services expertise, and because of our adherence to international standards with respect to global transparency and the fight against money-laundering and cross border financial crime.

While businesses domiciled in the Cayman Islands do not pay direct taxes to our jurisdiction, our laws and regulations ensure that the taxes owed to those home jurisdictions are paid. As the international standards continue to evolve, we are committed to adhering to them, providing they represent a truly a global standard.

And so just last month my Government, in consultation with the financial services industry, spearheaded new economic substance rules and legislation in our efforts to meet the requirements of the European Union and the OECD.  And we spent the last week in London, Brussels, Berlin and Paris where we had 13 meetings with representatives of the EU, including the Commission and the Code of Conduct Group, and with representatives of various EU member states, including Germany and France.  

We wanted to ensure that the EU Commission and member states understand that Cayman is meeting the commitments we made and to provide opportunities for them to raise any remaining concerns. Conversations were professional and frank, and mostly positive.

While the European Union has not yet determined what jurisdictions will be placed on a final list of non-compliant tax jurisdictions, we remain positive that, given all that we have done, if the process is fair the Cayman Islands will not be on any such list.

While we are doing all that we can to comply with global regulation and to remain the jurisdiction of choice for financial services, we also certainly see opportunities for us in the UK’s Global Britain initiative. 

We are therefore establishing a new Ministry of International Trade and Investment to better coordinate our work in promoting the Cayman Islands overseas, and with the assistance of the United Kingdom we have begun the process to establish our own Asia Office, based in Hong Kong.

We are positioning our Islands to take the best advantage of whatever new relationship eventually emerges between the UK and the EU.

So, in short, my message is that despite challenges the Cayman Islands remains bullish about the prospects of financial services business in the jurisdiction and are gearing up for opportunities that the uncertainties of the future will present.

If you are already doing business with us in the Cayman Islands, I thank you for your support and confidence in us. If you aren’t already operating from our shores, I invite you to come to Cayman and explore the awesome possibilities that await you.

Thank you for your kind attention this morning and again, I am pleased to be here with you in this fabulous city.

BRUSSELS, Belgium – Premier Hon Alden McLaughlin, Minister of Financial Services Hon. Tara Rivers, Attorney General Hon. Samuel Bulgin and the Cayman delegation are winding down meetings in Europe and will travel to New York over the weekend to speak at the Cayman Finance Breakfast Seminar where Mr. McLaughlin, and the delegation will continue to promote the Cayman Islands as a reliable and stable jurisdiction in which to do business.

As of Thursday, Premier McLaughlin, Minister Rivers and the delegation have had 10 meetings in Brussels, two in France and one meeting is scheduled tomorrow in Germany. On Monday, 14 January, the delegation met with Mr. David Boublil, Mr. Gints Freimanis and Ms. Emer Traynor. Mr. Boublil is a member of the Cabinet of Pierre Moscovici, the Commissioner for Economic and Financial Affairs, Taxation and Customs. Mr. Freimanis is a member of the Cabinet of Valdis Dombrovskis, whose responsibilities include Financial Services and Capital Markets. Ms. Traynor is Deputy Head of Unit at the Director General of Taxation and Customs Union (DG Taxud).

Also Monday the delegation met with representatives of the European Union Code of Conduct Group (COCG). The COCG is charged with assessing jurisdictions to determine whether they potentially have tax regimes that are harmful to EU Member States. Ms Fabizia Lapecorella, the Chair of the Code of Conduct Group participated via telephone as she was in Rome. 

Other members of the Code of Conduct Group meeting with the Cayman Delegation were Mr. Andreas Strub, Mr. Aloys Rigaut, and Ms Emer Traynor, representing DG Taxud. The discussions focused on the commitments made by the Cayman Islands and our intention of continuing to meet all international global standards. Ms Lapecorella noted that she was aware of the excellent cooperation and engagement by the Cayman Islands.

In both meetings with the EU representatives the Premier and Minister Rivers, along with Mr. Bulgin,  outlined the  leading position of the Cayman Islands, over many years, in adhering to international standards regarding regulatory and tax cooperation as well as anti-money laundering and prevention of terrorist financing. More recently the Cayman Islands, along with many other financial centers, passed legislation to adopt and implement the new international standards on economic substance.

The EU representatives thanked the Premier and delegation for meeting with them and commented that the “good work and positive engagement” with the EU was appreciated. They noted that the legislation passed by the Cayman Islands and other jurisdictions in December 2018 is still being assessed by the Commission. However, they committed to advise the Cayman Islands technical team of the outcome once the assessment is completed.

Over the rest of the week in Brussels the delegation met with the Hungarian Permanent Representative as well as with the permanent representatives of Belgium, Cyprus, Luxemburg, Austria, Romania, Spain and the Netherlands. 

In France meetings were held with Mr. Gael Perraud, Deputy Director of International Taxation and European Affairs, as well as with senior representatives of Secretariat General on European Affairs. The Secretariat is a department of the Prime Minister and deals with several matters including taxation and the OECD.

In all of these meetings the delegation reiterated the positive engagement by the Cayman Islands and the measures taken to address the concerns of the EU. The Premier also sought to understand whether there were issues that need clarifying or further discussion.  In the meeting with the Netherlands the Premier and Minister raised concerns regarding the blacklist that was recently issued by the Netherlands Government, in particular the lack of engagement prior to the list being published and the rationale for including the Cayman Islands on the list.

On Friday the delegation travels to Germany for the final meeting in Europe after which they travel to New York.

Premier McLaughlin commented that “Whilst the EU delegation were not at this stage able to provide any insight on whether the Cayman Islands had passed muster and would avoid being blacklisted, they did not mention anything glaring that has so far concerned them.

“However, we are taking no chances. The  extensive engagement throughout  the week in Europe, at the EU level as well as with representatives of several member states, including the influential French and Germans, was  important to help ensure that those in the EU Commission, and in some Member States, who decide on these things, or who make recommendations to the decision makers, understand fully that we take our role as an international finance center seriously and that  we will continue to adhere to the evolving international standards. It also assisted in a better understanding on where some states were in their thinking,” he said.

Minister Rivers noted that “We have been directly engaging with the EU for almost two years, both at the technical as well as the political level, including some five visits by myself to Brussels and three for the Premier. We have worked with financial services partners at home in crafting the legislation and I am proud of the work we have done and for the support of Industry. 

“In addition, we have consulted with the EU along the way to ensure that the elements that they were seeking to be in legislation were present. In short we are collectively doing what we can to maintain a vibrant financial services business for years to come,” she said.

BRUSSELS, Belgium –  On Monday Premier Hon. Alden McLaughlin and members of the Cayman delegation had discussions with members of the EU Commissions of Moscovici and Dombrovskis along with representatives of the EU’s DG Taxud and the Code of Conduct Group. Discussions were also had with the representatives of Belgium, Cyprus and Luxemberg.

On Monday morning Mr. McLaughlin, Financial Services Minister Hon. Tara Rivers, Attorney General Hon. Samuel Bulgin and the Cayman delegation met with Mr. David Boublil, Mr. Gints Freimanis and Ms Emer Traynor. Mr. Boublil is a member of the Cabinet of Pierre Moscovici, the Commissioner for Economic and Financial Affairs, Taxation and Customs. Mr. Freimanis is a member of the Cabinet of Valdis Dombrovskis, whose responsibilities include Financial Services and Capital Markets. Ms Traynor is Deputy Head of Unit at the Director General of Taxation and Customs Union (DG Taxud).

Later on Monday the delegation will meet with representatives of the EU Code of Conduct Group, which assesses whether particular jurisdictions have tax regimes that are deemed potentially harmful to EU Member States. Ms Fabizia Lapecorella, the Chair of the Code of Conduct Group, will participate via telephone as she is in Rome. Other members of the group meeting with the Cayman delegation, representing the Chairs Team and the General Secretariat of the Council (GSC), include Mr. Gabriels Annolino (Chairs Team), Mr. Andreas Strub (GSC), Mr. Aloys Rigaut (GSC), Ms Kristi Raba (GSC), and Ms Emer Traynor, representing DG Taxud. 

In between the two meetings with EU representatives, the delegation will meet with Mr. Christophe Vinck, Advisor General for Direct Taxation at the Belgian Permanent Representation to the EU. Separate meetings are also planned with Georgia Nikolaou, fiscal attaché for direct and indirect taxation at the Permanent Representation of Cyprus to the EU; and also with Ambassador Georges Friden, Luxemberg’s Permanent Representative to the EU.

More details will be provided in a later press release.

Premier Hon. Alden McLaughlin leaves the Cayman Islands Wednesday, 9 January, 2018, for meetings in London, Brussels, Paris, Berlin and New York to continue discussions about recently approved legislation concerning the Country’s continued efforts to meet international standards for the Financial Services Industry.

He will be joined by Minister for Financial Services and Home Affairs Hon. Tara Rivers, Attorney General Hon. Samuel Bulgin and other Ministry officials to continue discussions about global developments in the Financial Services Industry and Cayman’s continued efforts to stay off the blacklist of the EU. They will outline the steps the Cayman Islands has taken to meet European Union requirements, reaffirm Cayman’s commitment to international standards and address any concerns of global partners.

In December the Cayman Islands Legislative Assembly approved legislation that further strengthens compliance with international standards. The legislation was produced following the Ministry of Financial Services’ in-depth consultation with Cayman’s financial services industry, Cayman regulators, the OECD and the European Union.

In New York the Premier has been invited to speak at the Cayman Finance Breakfast Seminar where he and the delegation will continue to promote the Cayman Islands as a reliable and stable jurisdiction in which to do business.

The Cayman Islands Government regrets that the Kingdom of The Netherlands has chosen to break from other EU Member States to pursue a “blacklist” of 21 jurisdictions, including the Cayman Islands, based solely on the criteria of having a lower corporate tax rate than any EU Member State.

This “blacklisting” does not take into account Cayman’s demonstrated adherence to international standards for tax transparency, or participation with the OECD’s BEPS Inclusive Framework, and ignores our engagement with the EU’s Code of Conduct Group over the last two years to address their concerns regarding economic substance.

The Cayman Islands Government regrets the unjustified “blacklisting” and rejects it as wholly lacking in fairness and credibility. It is unfortunate that The Netherlands has chosen to attempt to divert criticism of its own tax practices by attacking the legitimate tax regimes of other jurisdictions.

Putting aside this unfortunate action, the Cayman Islands continues its longstanding commitment to adhering to global standards, and to working with the global community to improve their effectiveness.  

Fellow Caymanians and residents, Happy New Year!

2018 was a year to Celebrate Cayman as we began a two-year journey to commemorate the 60^th anniversary of our Coat of Arms in 1958, and our first Constitution in 1959. 

In celebrating these two important events, we are also celebrating who we are as a people and the progress we have made in the 60 years since.  This is an opportunity to remind ourselves of our history and to involve our children so that they can be aware of the people, events, and times that set us on the path to becoming the successful nation and people that we are today.

We have indeed come a long way in 60 years.  My aim, and the aim of my entire Government, is to continue to build on the success of the past and to present the best possible future for all of you, and for future generations of Caymanians.

This we are doing.

Over the past five and a half years the good ship Cayman has been steadied and is on a good course.  Government finances are well managed, creating surpluses that have allowed us to repay debt, put aside money for rainy days, fund infrastructure projects, increase salaries for public servants, and increase assistance to those in need, as well as to retired civil servants, seafarers and veterans. 

Over the past year we have redoubled our efforts to improve the education of our children, and have expanded support for policing, with a focus on community policing. The purchase of the new helicopter will further enhance our law enforcement and border protection efforts, as well as our search and rescue capabilities.  Education and community safety remain top priorities in 2019.

We have also increased our protected lands assets over the past year and provided funding for more public and open spaces. These efforts will continue this year, as will the work to reduce the numbers of invasive green iguanas that are a major threat to our environment.

In 2018 we saw another year of record tourism arrivals.  Financial Services, despite continued external challenges, also performed well. The development sector is booming with many projects under way, including a number of new hotel projects that are needed for our growing tourism business.

And we are also continuing to diversify our economy.

We modernised our intellectual property and copyright laws and encouraged the growth of technology business, including financial technology or Fintech business.  These efforts are paying off with the Cayman Islands becoming a jurisdiction of choice for fintech and similar businesses with digital assets.  The private sector, including locally owned businesses such as Cayman Enterprise City and TechCayman, have embraced the opportunity and are attracting these businesses to our shores.  Government continues to play a key role and in 2019 will set up a regulatory framework to assist the private sector in attracting and supporting businesses with digital assets.

With a growing economy, businesses of all sizes are benefiting; and because of this we have seen job growth and greatly reduced unemployment. Indeed, last year saw the highest number of employed Caymanians since 2007.  Growth will continue this year and bring more opportunities for Caymanian businesses and the Caymanian people.

We are moving forward with the development of Workforce Opportunities & Residency Cayman, or WORC for short. The objective of WORC is to oversee the labour market, including the work permit and residency regimes, and to ensure that all Caymanians have a fair opportunity for gainful employment in our growing economy.

The creation of a Cayman Islands Coastguard Service is under way and we have appointed a capable Caymanian leadership team. We are also well on the way to implementing our new Customs and Border Control Department to provide joined-up, modern and more effective border security for our Islands.   

We continue to build necessary infrastructure such as roads, improved schools, our major airport, and more with surplus funds and not by increased borrowing.  And we are moving forward with plans for a modern waste to energy plant and an integrated waste management solution to solve the problem of our current overburdened landfills.    

We are also moving forward with the delivery of the cruise and enhanced cargo port facilities that these Islands need to help secure our economic future.

At a time when significant economic threats are looming, we cannot and must not turn our backs on $245 million of net economic benefit, hundreds of construction jobs, and then decades of increasing employment and business opportunities for Caymanians that the cruise berths will bring. Neither can we turn our backs on the opportunity to modernise and enlarge our now out-dated cargo port.

It is essential that we deliver this critically important project and continue moving Cayman forward, preparing us for the future.

There are other ways that we are preparing Cayman for the future.

We recently had very positive constitutional talks with the United Kingdom and I look forward to completing these early in the New Year to put our Islands in the best possible position to govern our own affairs and continue to prosper as a modern, progressive and successful democracy.

As we enter the New Year I believe that the work that government and private sector have done, and the legislation passed in December, will help us avoid blacklisting by the European Union.  But the challenges to our financial services sector will not stop here, so we are prepared to continue defending Cayman and our economic pillars wherever we need to.

The UK, too, is going through its own challenges with Brexit, and the outcome remains uncertain.  In an ever-changing world it is therefore vital to seek out new opportunities to benefit our Islands and protect our future. This is why we have increased the engagement done in the UK by our Government office in London over the past two years, as well as direct engagement in Brussels and London by me, my Ministers and other officials. 

And this is also why we are starting a new Ministry of International Trade, Investment, Aviation, and Maritime Affairs, and will open a Government Office in Hong Kong this year to better facilitate business from Asia. We will not sit back and hope that business will keep coming our way.  We must increasingly fight for it in those markets that are important to us, and to defend Cayman wherever we need to. 

We will also continue to work hard at home to ensure that our people have the opportunities to live good, healthy, productive, and happy lives and to be able to share in this miracle that is the Cayman Islands.

I cannot leave you without reflecting that last year has been a year filled with challenges as well as blessings - much of which I highlighted earlier.  It was certainly a year that saw us bid adieu to two Governors and recently welcome another. As the New Year begins I wish Governor Roper and his family well and look forward to working with him over the remainder of my term as Premier.

As I said at the start, we have certainly come far over the past 60 years. From humble beginnings we have created a modern and diverse Cayman Islands that is the envy of the region.

Our future is bright. 

Despite much change over the decades, our three Islands remain a wonderful place to live and work and to celebrate family and community. At our core, Caymanians are still a hardworking, welcoming, caring and loving people.

I pray that we as a people never lose those traits.

On behalf of my Government, and from my family to yours, I again wish each of you and your families God’s richest blessings and a very Happy, Healthy, Peaceful and Prosperous New Year.

As we go through the year the days and weeks can sometimes seem to stretch on forever but by year’s end we often reflect that though the days and weeks may seem long, the years are indeed short.

We are reminded of this every year as Christmas seems to come around sooner and sooner, especially as we get older.

But no matter the speed with which it arrives, to me it is still a magical time; a time to spend with friends and family; a time when everyone seems happier; a time to give; and a time to celebrate not only the birth of our Lord Jesus Christ, but each other and our accomplishments in 2018.

I hope that today you take some time to reflect on your personal blessings as well as those of the Cayman Islands, give thanks and join together in celebration. We are indeed blessed.

Christmas time gives me the chance to slow down and get out to visit more with people, both young and old, in my wanderings through our many communities and at the festivities of the season. These interactions certainly leave me feeling blessed and rejuvenate me for the work ahead in the coming New Year.

I also cherish the time I get to celebrate this glorious season with my wife and two sons, my father, sisters and the rest of my family and friends.

Like you, I too cherish this time because of the opportunity to reflect and enjoy the company of my loved ones.

I pray that the feelings we have at Christmas of goodwill and charity will carry us into the New Year and continue as the year progresses.

I will leave you with words from our beloved National Song, Beloved Isle Cayman:

Away from noise of cities,
Their fret and carking care,
With moonbeams' soft caresses,
Unchecked by garish glare,
When sweet church bells are chiming,
My fond heart yearns for thee…
And when comes on the season
Of peace, goodwill to man,
'Tis then I love thee best of all,
Beloved Isle Cayman.

I sincerely hope that each of you has a joyous Christmas.

On behalf of my Government, my family and myself, I wish each of you a very blessed Christmas.

With permission Mr. Speaker I will make a statement concerning the United Kingdom Overseas Territories Association Joint Ministerial Council meetings I recently attended in London.
Before I do so, I would like to put on record my thanks to the United Kingdom team led by Lord Tariq Ahmad, Minister for the Overseas Territories; Mister Ben Merrick, Director of the Overseas Territories; and Mister Will Gelling of the FCO for organizing the series of successful meetings and events.
I would also like to thank the Hon. Minister for Financial Services and Home Affairs; the Attorney General; the Cabinet Secretary; and the Cayman Islands London Office led by Mr. Eric Bush.
Mr. Speaker, the London Office did a splendid job organising several very successful events during the week, in particular the largest London Friends of Cayman dinner that I have ever hosted, which was very well received by all who attended.
Mr. Speaker the week of meetings began with an Environment Workshop, which I led as President of the Political Council of the United Kingdom Overseas Territories Association (UKOTA). This was the first UKOTA Environment Workshop and participants included leaders of Overseas Territories, Departments of Her Majesty’s Government as well as Non-Governmental Organisations (NGOs) and Organisations and Charities in the environment sector. I was very pleased to see Nadia Harding in attendance, Chairperson of the Cayman Islands National Trust.
The topics discussed included environment funding, ocean conservation strategy and the inclusion of Overseas Territories in the UK Government’s “The Green Future – 25 year plans to improve the Environment”.
Mr. Speaker I was very happy to share with the attendees at the workshop the good news of the procurement of six hundred and thirty four acres of protected land in the Cayman Islands, which has now increased the protected land in Cayman to four thousand one hundred and eleven acres, equivalent to six point three per cent of Cayman’s total landmass.
The Overseas Territories are custodians of environmental assets of global importance. Over ninety per cent of the United Kingdom’s biodiversity is in the territories including many endangered species.
The Overseas Territories need to ensure that we receive the support and assistance by way of specialist technical advice as well as funding for environmental research and protection remains available post Brexit when access to European Union funds will no longer be available.
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Mr. Speaker as Overseas Territories we fall between the cracks, unable to access some international funds because we’re seem as too rich, but also unable to access UK domestic funding. Working with NGOs, universities and charities may mean we will be able to unblock this.
Mr. Speaker following the workshop, the Cayman Islands chaired the UKOTA Political Council meeting. This was our opportunity to discuss matters relating to UKOTA as an organisation, as well as discuss and agree positions to be taken at the upcoming Joint Ministerial Council meetings.
It was agreed at this meeting that the Cayman Islands will host the 2019 pre-JMC meetings at the beginning of July.
Mr. Speaker I look forward to hosting the Leaders of the Overseas Territories Governments on our beautiful Islands, not just to progress discussions but to share with them our culture and the Celebrate Cayman festivities that are planned to mark the 60th anniversary of our Constitution.
Following this meeting our delegation met with the All Party Parliamentary Group for the Cayman Islands.
Mr. Speaker this gave me an opportunity to update the group on how well the Cayman economy is doing and to discuss concerns around the EU Blacklisting process and the upcoming Constitutional talks with the UK Government.
On Tuesday of that week, the two-day Joint Ministerial Council Meeting between the British Overseas Territories and Her Majesty’s Government began.
Mr. Speaker I want to go on record and thank the UK Ministers who attended the meetings, despite important debates taking place on Brexit in the House of Commons at the same time.
The meeting focused on discussions about Brexit, contingency planning, updates on domestic parliamentary process, trade policies and development funding. Discussions included an overview of planning for a “no deal” scenario in Brexit, trade policies post Brexit and potential changes to funding through the Overseas Development Fund.
Mr. Speaker the Overseas Territories were advised that European Union funding that supports environment and other projects in the Territories will be guaranteed by the UK until 2020. However, some Overseas Territories leaders noted that may create challenges for projects that need longer term funding. The Cayman Islands is not in that category.
There followed a lively debate on British Overseas Territories citizens’ passports. Concerns were raised that British Overseas Territory passports are now electronically coded with the same electronic code as British passports. For some Territories’ nationals this created occasional problems when travelling. It was requested that British Overseas Territories citizens’ passports be encoded with a code for each Territory to avoid this issue. The Cayman Islands is not affected, but the British Virgin Islands has some agreements with the United States for travel.
Mr. Speaker a key session of the meeting focused on Child Safeguarding. Territory leaders updated the Joint Ministerial Council on work that had been done in their countries.
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I was very happy Mr. Speaker, to give an update on the work that has been done over the past year in the Cayman Islands, the advancements of the Multi-Agency Safeguarding Hub (MASH), training and capacity building, raising community awareness on safeguarding children and older persons, and the restructuring of the services of the Department of Children and Family Services.
On Wednesday of that week Mr. Speaker, the meeting began with Overseas Territories leaders providing updates on their disaster preparedness. Those territories that were affected by hurricanes last year gave an update on their recovery progress. They thanked the UK government for its help and once again thanked the Cayman Islands for the assistance we provided.
The Hon. Minister for Financial Services and Home Affairs gave an update on work that has been taking place in our Islands to enhance our resilience to natural disasters as well as to strengthen the regional cooperation frameworks. This includes working with the Governor’s Office and the Foreign and Commonwealth Office (FCO) to pilot the FCO’s Crisis Hub. This is a tool that will aid in evacuations and in tracking missing persons during disasters.
Mr. Speaker, the Cayman Islands has also agreed to participate in a formal regional Overseas Territory Rapid Deployment Team that can swiftly provide support for impacted territories. A second new specialist helicopter will be purchased with the assistance of the UK Government for use in the Cayman Islands as well as to participate with disaster relief in the British Overseas Territories. The Cayman Islands has already begun implementing a National Emergency Notification System as well as upgrading the National Public Safety Radio Systems.
The Financial Services session centred on the European Union blacklisting process with Mr. Stride, the Financial Secretary to the UK Treasury, noting that the UK Government is committed to assisting the Overseas Territories during the process.
Mr. Speaker I explained that the Cayman Islands has been actively engaging with the EU throughout the process, and is on track to meet our commitment by the end of this year.
Discussions moved to the UK’s goal to make public registers of beneficial ownership the global standard by 2023. It was noted that although the Sanctions and Anti-Money Laundering Act passed by the UK Parliament in May this year required that an Order-in-Council be issued by the end of 2020 requiring Overseas Territories (but not Crown Dependency’s) to implement public registers, the UK expects that such registers would be fully implemented and operational by 2023.
I requested, once again, that the UK extend the United Nations Convention against Corruption (UNCAC) to the Cayman Islands. Mr. Speaker, as you know this has been a request of the Cayman Islands for several years.
The afternoon session started with a discussion on Trade and Investment. A background was provided about the work done by the Caribbean Investment and Trade Advisory Group and the GREAT Campaign. Overseas Territories leaders were encouraged to determine how these organisations could work with the Overseas Territories on trade matters.
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Mr. Speaker, as you are aware the Cayman Islands participated in the UK’s GREAT Festival of Innovation in Hong Kong earlier this year and I could attest to the benefit of attending.
The day closed with a session on the Constitutional Relationship with the UK. It was noted that the UK wants to have positive constitutional relationships with the Overseas Territories.
Mr. Speaker the challenge to the Overseas Territories and the relationship with the UK that the passage of the Sanctions and Anti Money Laundering Act in the UK Parliament caused earlier this year was acknowledged again by the UK Government. It was also noted that the UK wants the best constitutional options available for the people of the British Overseas Territories.
The aim is to recognise that the OTs are self-governing and subject only to the UK retaining power to carry out its obligations under international law.
Various territories provided their thoughts and several have started conversations to revise certain aspects of their constitutions with the UK. But the Cayman Islands is ahead of the game.
Thank you, Mr. Speaker. I commend this statement to the House.

Mr. Speaker. I previously advised this House of the Government’s intention to create a new international trade and investment Ministry as well as open an office in Hong Kong.
I am happy to advise this Honourable House that both of these have progressed with the UK Government, via the Governor’s Office, having formally confirmed their agreement for a new Ministry and have also agreed that it will be named the Ministry of International Trade, Investment, Aviation and Maritime Affairs.
I can also confirm that the UK has also provided a Letter of Entrustment that approves the opening of a Cayman Islands Government Office in Hong Kong, subject to receiving the necessary approvals from Hong Kong authorities. The UK Government and the Governor’s Office have also committed to assisting with both endeavors, the startup of the new Ministry and the Hong Kong Office. It is with the latter that this assistance will be especially useful and the UK Consulate General in Hong Kong will provide advice and on the ground assistance to get the initiative going, including seeking approvals from the Hong Kong Government.
While it is perhaps extra ordinary for an Administration to create a new Ministry, Mr. Speaker, these are indeed extra ordinary times. The principal purpose that brings us here today is to debate and hopefully approve a series of amending bills that seek to defend the Cayman Islands from being blacklisted by the European Union or falling afoul of the Organisation for Economic Cooperation and Development’s Forum on Harmful Tax Practices. What we continue to see, Mr. Speaker, is an ever changing landscape as regards the required regulation of the financial services sector; requirements that are no longer European Union-centric but are becoming the international standard – and so Cayman must move with the times if we are to
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maintain a vibrant Financial Services Industry.
But the landscape will continue to change and the Cayman economic model will continue to face external threats, particularly as a result of the widespread misunderstanding of the Cayman Islands, our Financial Services Industry and the regulatory regime that underpins it. And despite our efforts to educate and engage with politicians in the United Kingdom, this misunderstanding even extends to Westminster Mr. Speaker, as we saw earlier this year. And Mr. Speaker whilst we are all hopeful that the UK will find a good solution to the challenge that is Brexit, it will continue to face challenges post Brexit.
So we must do our bit to lessen their burden and at the same time, as I have said before, to step out of the UK’s shadow and stand up for ourselves when it comes to matters of international trade. This is the role, Mr. Speaker that the new Ministry will take on.
Mr. Speaker, this Government recognises that in general terms, foreign policy or external affairs are functions reserved to the Governor under Section 55 of the Constitution. However, that Section also recognises that in the discharge of their normal functions, key Ministries will necessarily need to relate to overseas governments and institutions. The Constitution therefore provides that, in consultation with the Premier, the Governor may delegate responsibilities for external affairs to elected Ministers, which then gives them freedom to act within certain prescribed limits.
In reality, every Ministry has responsibilities that bring them into contact with other jurisdictions or inter-governmental bodies. This varies considerably in scope and in the resources required to develop and maintain overseas relationships within each Ministry.
Sadly Mr. Speaker, there is limited joining up of activities across Ministries and from the point of view of partners abroad in both the public and private sectors, the Cayman Islands Government can at times be difficult to work with. At the political level, I, as Premier, act as the de facto lead for cross-Governmental international activity and therefore, traditionally, the Premier will lead significant overseas missions. However, within the civil service there is no one similarly charged with coordinating or leading this activity. Opportunities to present a coherent and consistent approach to other governments and to potential investors and partners are being missed. The new Ministry will provide this coordinating function.
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In summary the Ministry of International Trade, Investment, Aviation and Maritime Affairs will advance the economic and political interests of the government, the Caymanian people and the local business community, to make it easier for potential overseas investors to do business in the Cayman Islands, and to help enhance the reputation of the Cayman Islands.
Generally, Mr. Speaker, the benefits of the new Ministry include:
• improved reputation and promotion of Cayman with key opinion formers in overseas governments and institutions and in the private sector
• increased inward investment as we attract a wider pool of potential investors and make it easier for them to gain access to Caymanian markets
• increased tourism and financial services business as we help to open up and secure markets
• economic diversification as we are able better to understand and attract an increasingly diverse range of businesses to Cayman
• bringing a renewed focus on growing our aircraft and shipping registries.
To achieve these benefits Mr. Speaker, the new Ministry will take direct responsibility for the Cayman Islands Government Office in London and a limited range of existing government departments and entities. The Ministry will, more broadly, be charged with coordinating the jurisdiction’s activities internationally though many of those activities themselves would remain with existing Ministries.
The departments, offices and statutory authorities that will fall within the new Ministry will be those that have a principal focus on external trade and customers.
They are identified as:
• the Cayman Islands Government Office in the United Kingdom (CIGO-UK)
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• the Department of Investment (to be split off from the Department of Commerce and Investment)
• the Shipping Registry of the Maritime Authority
• the Aircraft Registry but not the regulatory functions of the Civil Aviation Authority
I wish to make plain that with regards to the last two that the Ministry’s role will be limited to the promotion of the shipping and aircraft registries and does not affect the Governor’s responsibilities over other areas of maritime and aviation affairs.
In addition to the UK Government Office, it is anticipated that over time the Ministry will develop a network of international offices in locations where their establishment would enable it to better achieve its stated purpose. Proposals for such offices will be brought forward on a case-by-case basis and as I have mentioned previously the first business case, for the establishment of an Asia Office in Hong Kong, has already been developed and approved.
Mr. Speaker several potential locations for an Asia Office were considered, however, in consultation with key business leaders it was determined that Hong Kong would be the most advantageous location. That is because of its existing links to Caymanian businesses and government entities and its ideal location as a gateway to other Asian markets.
Mr. Speaker the establishment of the Cayman Islands Government Office – Asia will create a focal point to promote all aspects of the jurisdiction in an increasingly significant market. It will strengthen and deepen business ties and provide a gateway for future trade and investment in Asia. It will also facilitate the development of cultural ties between Asia and these Islands.
The primary focus for the office will be in the realization of economic benefits. It will support the existing twin pillar industries of tourism and financial services and also serve to support the diversification of the Cayman economy through establishing links and promoting inward investment opportunities with Asia’s highly-developed knowledge-based industrial sectors.
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Mr. Speaker a physical presence on the ground in Hong Kong will mean that the Office can provide certain real-time support services such as certificates of good standing, dealing with immigration related queries for Asian visitors, and potentially company incorporation and funds registration in a same day and time zone convenient manner. This will add tremendous value to the efforts of Cayman-based firms already operating in Asia, and in particular in Hong Kong.
Previous attempts to establish an office in Hong Kong were unsuccessful but times have changed. Both the Government and the business community share optimism that the new Asia Office will provide a springboard for improved business and other links for the benefit of Cayman. And as I have indicated the UK is also geared up to assist us to make it a success this time around.
As I indicated earlier Mr. Speaker, Brexit is presenting a challenge to the UK and in some regards to its Territories. However, we also see opportunities. These include the opportunities that the UK’s Global Britain initiative could bring to Cayman if we put ourselves in the best possible position to exploit those opportunities.
Mr. Speaker the obvious example is our participation in the GREAT Festival of Innovation in Hong Kong earlier this year. We were very grateful for the Secretary of State’s invitation to take part and we would welcome the opportunity to participate in similar events in the future. We believe that had this new Ministry been up and running we could have been even more effective participants in the Festival; and so this demonstrated to us that if we raise our game we can make the most of the opportunities that working closely with the UK can bring us.
In setting up both a new Ministry and an Asia Office in Hong Kong, the case for change is underpinned by the view that international issues will become increasingly important to the wellbeing of these Islands. It is therefore essential that high calibre and suitably skilled staff are employed and this will present opportunities for Caymanians to gain invaluable experience and exposure working in the Ministry or in the London and Hong Kong offices, and in any future offices that may be opened.
Mr. Speaker the Government accepts that there are costs and indeed potential risks in this approach. We intend to provide an annual budget, estimated at some $3M, for the Ministry and
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the Asia Office. There will be new civil service headcount but much of the budget will go directly into promoting the Cayman Islands and attracting business. This represents a considerable investment when we are well aware of the other potential calls on government funding.
However, we believe the benefits I have outlined are significant enough to justify the investment; an investment in the future and prosperity of our people and our Islands.
Mr. Speaker I said at the start that the creation of a new Ministry is an extra ordinary step resulting from the extra ordinary times in which we live. What is not extra ordinary, however, is this Government’s determination to make the right decisions to support our economy, our businesses and our people.
Thank you, Mr. Speaker.

Mr. Speaker, as this Honourable House will recall, last month I confirmed to members and the public that the UK had agreed to begin talks with the Cayman Islands on proposals for various safeguards to our Constitution. These talks did occur over two days in London: Friday, 7 December, 2018, and again on Monday, 10th at the Foreign and Commonwealth Office (FCO).
I am pleased to report Mr. Speaker that the two days of talks went as well as one could have hoped. Indeed, they were constructive and fairly positive, and for this I would like to thank the Cayman delegation as well as the delegation from the FCO in London.
I wish to especially thank Sir Jeffrey Jowell, QC, for the excellent preparatory work done that allowed us to not only make an excellent case for reform but also for the clearly drafted proposals provided to the FCO prior to the talks. These made it easy for the UK to readily understand our position and to take a position themselves.
I extend my gratitude as well Mr. Speaker to our own Attorney General for his excellent contribution and solid recommendations to our effort.
These were important talks Mr. Speaker that took us over six months to arrange. I acknowledge the work done by our London Office, in particular the head of that Office and our representative in the UK, Mr. Eric Bush, in assisting in getting the dates pinned down.
Mr. Speaker, as you know we sought these discussions in the aftermath of a breach of
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convention and possible constitutional overreach when in May this year the House of Commons legislated for the British Overseas Territories in the area of domestic policy.
As all members of the House will know, responsibility for domestic policy has been devolved to the territories under the terms of their respective Constitution Orders made by Her Majesty in Privy Council. Contrary to longstanding convention, the UK Parliament sought to legislate for the territories in an area of devolved responsibility by attaching an amendment to the Sanctions and Anti Money Laundering Bill that was making its way through the United Kingdom Parliament. The Bill with the amendment was passed by the Commons and then later by the House of Lords. This amendment requires the British Overseas Territories, but curiously not the Crown Dependencies, to establish public registers of beneficial ownership, and to do so no later than 31 December, 2020.
Failing this, the amendment requires the UK Government to utilise an Order in Council to change local legislation to force the governments of the territories to implement public registers of beneficial ownership, effectively legislating directly on a matter that has been devolved to the local governments.
This break in longstanding convention and overreach by the UK Parliament represents a line that once crossed cannot be uncrossed. The concern is therefore not just about beneficial ownership registers, but about what other areas of devolved authority the UK Parliament may feel it should interfere in without at least consulting with the Cayman Islands Government.
And so, Mr. Speaker, the safeguards we seek will confirm that the Cayman Islands Government has autonomous capacity in respect of domestic affairs, and that the UK will not seek to legislate, directly or indirectly for the Cayman Islands without, at a minimum, consultation with the Cayman Islands Government.
Prior to the meetings in London, as I mentioned before, the Government provided the FCO with proposed constitutional changes in draft form. These proposals were discussed with the Opposition prior to the trip to London and again with the Leader and Deputy Leader of the Opposition while we were in London. I wish to thank the Leader of the Opposition and his Deputy for their able assistance during the talks London. I also want to thank those on the
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Government bench who also ably assisted with the negotiations: the Minister for Commerce, Planning and Infrastructure and the Minister for Financial Services and Home Affairs.
Mr. Speaker not only did the country see before we left for London that Government and the Opposition both recognised the importance and necessity of the safeguards being sought, but in London the UK was presented with a solid Caymanian front, with the Premier and Opposition Leader, together with our delegation, sitting not on two separate sides, but united in the cause of defending our beloved Islands.
In addition to addressing the principal concern mentioned earlier, the opportunity was also taken to seek a small number of administrative changes to the current Constitution Order to improve the operations of the local government and legislature.
I am pleased to advise that by the end of the talks the majority of the proposed changes were agreed in principle whilst the remainder is still under consideration by the UK. Mr. Speaker, UK officials listened and genuinely sought to be helpful whilst asserting that the UK’s interests and its ability to ultimately legislate for its territories must remain paramount. We are a British territory and so we understand this, but we argued our case hammering home the points we needed to make. And Mr. Speaker, the FCO team certainly did seek to understand our positions and provide suggestions to address the concerns where they thought they could.
Mr. Speaker, the UK has committed to formally responding to us in the coming weeks. This formal response will include a Draft Order in Council that will confirm the matters already agreed in principle and provide the UK's proposals on how to address the matters that were left to be considered. Once the UK's response and Draft Order in Council are acceptable to the Cayman Islands delegation, then the constitutional negotiations will be considered concluded and the proposed amendments, with Draft Order in Council, will be published and later debated in this Legislative Assembly.
Mr. Speaker, everyone in this House would be aware of the challenges that the UK Government is now going through with Brexit; challenges that are impacting the UK’s internal politics. In recent days there was even a no confidence vote called on the Prime Minister within her party. The Prime Minister won that round but things are still poised on a knives edge politically in the UK.
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These safeguards we seek on behalf of the Cayman Islands cannot be allowed to be caught up in the UK’s internal Brexit cauldron as it heats and boils. So I am grateful to the UK Government for seeking to conclude these negotiations as quickly as possible. This is also in our interest, so I - and I believe this House - commit ourselves to seeing this through as best we can within a reasonable timeframe early next year.
Following debate, and if approved by the Legislative Assembly, and subsequently by Her Majesty in Privy Council, the proposed changes are expected to come into effect in time for the 60th anniversary constitutional celebrations in July 2019.
I wish to thank the team, providing administrative support for the Cayman delegation: Samuel Rose, Cabinet Secretary; Roy Tatum, Head of the Office of the Premier; Jason Webster; Cabinet Office Policy Analyst; and Jana Pouchie-Bush, Personal Assistant to the Premier.
I thank the UK team, which included Mr. Ian Hendry, Constitutional Advisor to the FCO; Mr. Ben Merrick, Director of the Overseas Territories; and Mr. Will Gelling of the FCO; and Greg Reisman, Assistant Legal Advisor to the FCO. His Excellency Governor Martyn Roper also attended.
I would like to again thank all the members of both delegations for the hard work and constructive dialogue during the two days of talks. On the UK side I particularly wish to thank Lord Tariq Ahmad of Wimbledon, Minister for the Overseas Territories, for his approach when working with us and with all the Territories. Lord Ahmad, I believe presents a real sense of partnership and friendship to the UK’s relationship with its Territories that is greatly appreciated. Indeed, despite a very hectic and uncertain week of Brexit debates in London, Lord Ahmad ensured that he was able to keep his finger on the pulse of the negotiations and made time at the start of the talks to meet with me and again at the end of the talks to ensure sufficient progress was made.
Mr. Speaker, we now await the formal response from the UK Government and I look forward to successfully concluding the negotiations and to publish them and then bringing them on the floor of the House for consideration and debate.

The United Kingdom Government has committed to formally responding to proposed Cayman Islands constitutional safeguards in the coming weeks.

The UK and Cayman Islands Governments held constructive, positive talks on changes to the Cayman Islands constitution over two days in London: Friday, 7 December, 2018, and Monday, 10^th at the Foreign and Commonwealth Office (FCO).

The Cayman Islands sought these discussions because of a breach of convention and possible constitutional overreach in May this year when the House of Commons legislated for the British Overseas Territories in the area of domestic policy.  Responsibility for domestic policy has been devolved to the territories under the terms of their respective Constitution Orders made by Her Majesty in Privy Council.  Contrary to longstanding convention the UK Parliament sought to legislate for the territories in an area of devolved responsibility by attaching an amendment to the Sanctions and Anti Money Laundering Bill that was making its way through the United Kingdom Parliament. The Bill with the amendment was passed by the Commons and then later by the House of Lords. This amendment requires the British Overseas Territories, but not the Crown Dependencies, to establish public registers of beneficial ownership, and to do so no later than 31 December, 2020.  

Failing this, the amendment requires the UK Government to utilise an Order in Council to change local legislation to require the governments of the territories to implement public registers of beneficial ownership, effectively legislating directly on a matter that has been devolved to the local governments. The concern is therefore not just about beneficial ownership registers, but about what other areas of devolved authority the UK Parliament may feel it should interfere in without at least consulting with the Cayman Islands Government.

The Cayman Islands is seeking safeguards that will confirm that the Cayman Islands Government has autonomous capacity in respect of domestic affairs, and that the UK will not seek to legislate, directly or indirectly for the Cayman Islands without, at a minimum, consultation with the Cayman Islands Government.

Prior to the meeting the Cayman Islands Government provided the FCO with proposed constitutional changes in draft form. These proposals had the backing of both the Cayman Islands Government and Opposition and formed the basis for the discussions. 

In addition to addressing the principal concern, the opportunity was also taken to seek a small number of administrative changes to the current Constitution Order to improve the operations of the local government and legislature.

 During the talks the majority of the proposed changes were agreed in principle whilst the remainder are still under consideration by the UK.  UK officials listened and genuinely sought to be helpful whilst asserting that the UK’s interests and its ability to ultimately legislate for its territories must remain paramount.

The UK committed to formally responding to the Cayman Islands in the coming weeks. Their formal response will include a Draft Order in Council that will confirm the matters already agreed in principle and provide the UK's proposals on how to address the matters that were left to be considered.  Once the UK's response and Draft Order in Council are acceptable to the Cayman Islands delegation, then the negotiations will be considered concluded and the proposed amendments will be published and debated in the Legislative Assembly. 

If approved by the Legislative Assembly and subsequently by Her Majesty in Privy Council, the proposed changes are expected to come into effect in time for the 60th anniversary constitutional celebrations in 2019.

Participating on behalf of the Cayman Islands were Premier McLaughlin; Commerce, Planning and Infrastructure Minister Hon. Joseph Hew; Financial Services and Home Affairs Minister Hon. Tara Rivers; Attorney General Hon. Samuel Bulgin; Leader of the Opposition Hon. Ezzard Miller; and Deputy Leader of the Opposition Hon. Alva Suckoo.  They were joined by Government’s Constitutional Advisor in London, Sir Jeffrey Jowell, QC.  

Administrative support for the Cayman Delegation was provided by Eric Bush, Cayman Islands Government Representative in London; Samuel Rose, Cabinet Secretary; Roy Tatum, Head of the Office of the Premier; Jason Webster; Cabinet Office Policy Analyst; and Jana Pouchie-Bush, Personal Assistant to the Premier.

The UK team included Mr. Ian Hendry, Constitutional Advisor to the FCO; Mr. Ben Merrick, Director of the Overseas Territories; and Mr. Will Gelling of the FCO; Greg Reisman, Assistant Legal Advisor to the FCO. HE Governor Martyn Roper also attended.  

Lord Tariq Ahmad, Minister for the OT's, kicked off the talks on Friday and returned for the closing session on Monday. 

Both Premier McLaughlin and Leader of the Opposition Ezzard Miller thanked Lord Ahmad, Mr. Hendry and the UK Government for proceeding with the talks despite the current political tumult in the UK. 

The Cayman Islands Delegation now awaits a formal response from the UK Government. 

LONDON - The two-day Joint Ministerial Council Meeting (JMC) between the British Overseas Territories and Her Majesty’s Government continued Wednesday at Lancaster House.  Lord Ahmad started the day discussing Disaster Management with Imogen Parsons, Deputy Director of Readiness & Response – Civil Contingencies Secretariat, in attendance.

Lord Ahmad noted that the UK continues to coordinate disaster management planning across the Overseas Territories (OTs). This includes planning in the event of hurricanes as well as other disasters such as earthquakes, tsunamis, serious flooding, or volcanic activity. An annual planning and readiness meeting will also take place between the UK, OTs, and other Caribbean countries that wish to participate. It was also noted that the UK has improved its own plans to swiftly respond to disasters in the OTs.

OT leaders provided updates of their disaster preparedness, with those who were hit by hurricanes last year noting the progress made in recovery. They thanked the UK for the assistance in the rebuilding efforts and once again thanked the Cayman Islands and other territories that provided immediate assistance after the passage of hurricanes in 2017. Lord Ahmad said the UK appreciated the effort of Cayman and fellow territories to provide assistance.

Minister of Financial Services and Home Affairs Hon. Tara Rivers provided an update on work in the Cayman Islands to help enhance its resilience to natural disasters, as well as strengthen regional cooperation frameworks.  This includes working with the Governor’s Office and the Foreign and Commonwealth Office (FCO) to pilot the FCO’s Crisis Hub, which is a tool to aid in evacuations and in tracking missing persons during disasters. The Cayman Islands has also agreed to participate in a formal regional Overseas Territory Rapid Deployment Team that can swiftly provide support for impacted territories. A second new specialist helicopter will be purchased with the assistance of the UK for use in the Cayman Islands as well as to participate with disaster relief in the Overseas Territories. The Cayman Islands has already begun implementing a National Emergency Notification System as well as upgrading the National Public Safety Radio Systems.  

The session on Financial Services was attended by the Rt. Hon. Mel Stride, the Financial Secretary to the UK Treasury. The discussion centred on the European Union (EU) blacklisting process with Mr. Stride noting that the UK Government is committed to assisting OTs during the process. He said the UK has worked to ensure that the process is fair and to promote objectivity in the criteria used for assessment by the EU. 

Several of the OTs encouraged the UK to continue its efforts with the EU, especially at the political level. Premier Hon. Alden McLaughlin said the Cayman Islands has been actively engaging with the EU throughout the process, and is on track to meet its commitment by the end of this year. All the OT’s and Crown Dependencies (CDs) were expected to meet economic substance requirements of the EU and the OECD/FHTP.  

The conversation then moved to the UK’s goal to make public registers of beneficial ownership the global standard by 2023. It was noted that although the Sanctions and Anti-Money Laundering Act passed by the UK Parliament in May this year required that an Order-in-Council be issued by the end of 2020 requiring OTS (but not CDs) to implement public registers, the expectation of the UK is that such registers would be fully implemented and operational by 2023, and that the Order could be drafted as such.

The Premier also requested that the UK extend the United Nations Convention against Corruption (UNCAC) to the Cayman Islands. This has been a request of the Cayman Islands for several years. 

The afternoon session started with a discussion on Trade and Investment with Chris Bennett of the Caribbean Investment and Trade Advisory Group; and Conrad Bird, Director of the UK’s GREAT Campaign. Both provided a background to the work done by their respective organisations and encouraged the OT leaders to seek to determine how the organisations could work with the OTs on trade matters. The Cayman Islands participated in the UK’s GREAT Festival of Innovation in Hong Kong earlier this year and could attest to the benefit of attending.

The day ended with Chloe Smith, Parliamentary Secretary – Minister for the Constitution, leading the session on the Constitutional Relationship with the UK. In her introductory statement Ms Smith noted that the UK wants to have positive constitutional relationships with the OTs. She admitted to the challenge to the OTs and the relationship with the UK that the passage of the Sanctions and Anti Money Laundering Act in the UK Parliament caused earlier this year. She noted that she is eager to get the best constitutional options available for the people of the OTs, because it is people who are at the heart of the constitutional relationship. The aim, she said, is to recognise that the OTs are self-governing and subject only to the UK retaining power to carry out its obligations under international law.

Various territories provided their thoughts and several have started conversations to revise certain aspects of their constitutions with the UK.  

The JMC ended with the OT leaders and FCO officials and members of the UK Government attending the Annual JMC Reception at the Locarno Suite at the Foreign and Commonwealth Office. Joining Premier McLaughlin were Minister Rivers; Commerce, Planning and Infrastructure Minister Hon. Joey Hew; Attorney General Hon, Samuel Bulgin; the Leader of the Opposition Ezzard Miller; Deputy Opposition Leader Alva Suckoo; and other members of the Cayman delegation. Premier McLaughlin gave a closing address on behalf of the OTs and welcomed HRH The Duke of York who was the guest of honour at the reception.

Following the reception members of the delegation including Premier McLaughlin, Minister Hew, Mr. Bulgin, Mr. Miller, Cayman’s London Office head Eric Bush and Charles Parchment attended a dinner with the Friends of the British Overseas Territories (FOTBOT), hosted by Andrew Rosindell MP, Chair of the APPG for the Oversees Territories.

LONDON - The Premier, Hon Alden McLaughlin and the Cayman delegation in the United Kingdom including Minister of Financial Services and Home Affairs Hon. Tara Rivers; Minister of Commerce, Planning and Infrastructure Hon. Joseph Hew; Attorney General Hon. Sam Bulgin; Leader of the Opposition Ezzard Miller; and Deputy Leader of the Opposition Alva Suckoo gathered with over 200 friends and associates at the Institute of Directors in London for the Annual Premier’s dinner on Thursday. 

The event is an opportunity to network and thank business and political partners, associates and friends who have taken an interest in, or have worked with, the Cayman Islands Government in the UK throughout the year. It is also a valuable opportunity for the Premier to update an engaged audience about the current state of affairs in the Cayman Islands and the recent JMC meetings with the UK Government. 

“This was the largest networking reception and dinner that we have hosted in London with a turnout of 215 people,” said Premier McLaughlin. “We are delighted to have been able to share Cayman news and update our friends and associates. The dinner also serves as a vital time to thank and keep close ties with political and business partners.”

Also in attendance were Minister for the Overseas Territories, Lord Ahmad of Wimbledon; His Excellency the Governor and Mrs. Roper; Former Governors John Owen, Duncan Taylor and Bruce Dinwiddy; Director of the Overseas Territories Directorate of the Foreign Office, and Cayman APPG members Lord Naseby, Sir Graham Brady and others.

Also in attendance were business partners including members of Friends of Cayman and the Nth Degree dining club as well as persons from cultural partnerships, Caymanians living in the UK and Caymanian students studying in the UK who are members of the network Cayman Connection UK (CCUK). 

Cayman Islands Representative in the UK, Eric Bush commented, “It was an honour to organise the largest event of its kind for Cayman in the UK and a fitting time to say my regards and farewells to those I have worked so closely with over the last two and a half years. It is extremely important for the Cayman Islands Government in the UK to develop and retain relations with a cross section of public, private and political partners, and this is our opportunity to harness and foster these relationships.”

LONDON - The two-day Joint Ministerial Council Meeting (JMC) between British Overseas Territories and Her Majesty’s Government began Tuesday at Lancaster House with welcome remarks from the Cayman Islands Premier Hon. Alden McLaughlin as President of the United Kingdom Overseas Territories Association (UKOTA).

Lord Ahmad of Wimbledon, UK Minister for the British Overseas Territories also welcomed participants. Joining Premier McLaughlin at JMC 2018 are Minister for Financial Services and Home Affairs Hon. Tara Rivers and Attorney General Hon. Samuel Bulgin, QC.

In his opening remarks the Premier thanked Lord Ahmad for his work on behalf of the Overseas Territories. He also expressed his thanks to UK Ministers attending the meetings despite important debates on Brexit taking place in the House of Commons.

“Today’s agenda was busy but productive, with a lot to get through on the Brexit agenda,” said Mr. McLaughlin at the end of Tuesday’s meeting. “We are grateful for the attendance of those from the UK Government who were able to give us updates as far as possible given the uncertainty of the day caused by the Brexit debates in the House of Commons. It was regrettable, though understandable, that the Right Hon. David Liddington, Chancellor of the Duchy of Lancaster, was also not able to attend the JMC meetings today as expected.  However, we look forward to his colleague Chloe Smith, Parliamentary Secretary (Minister for the Constitution), joining us on Wednesday to lead the session on the Constitutional Relationship with the UK.”

The day’s meetings focused on discussions about the European Union exit negotiations (or Brexit) and contingency planning, including updates on the domestic parliamentary process, trade policies and development funding.

Discussions also included specialist details of Overseas Territories-related environmental work through the Department of Environment Food and Rural Affairs (DEFRA), an overview of planning for a ‘no deal’ scenario in Brexit, trade policies post Brexit and potential changes to funding through the Overseas Development Fund. 

Overseas Territory leaders were again advised that EU funding that supports environmental and other projects in the Territories will be guaranteed by the UK until 2020. However, it was noted by some Overseas Territory leaders that whilst this was appreciated, it means there will be challenges for those projects that need longer term funding. 

The Cayman Islands has benefited in the past from EU funding for projects including post Ivan housing, the Doppler Radar Project and the Blue Iguana Recovery Programme.

Assurances were also provided to Territories with trade arrangements with EU countries, and UK officials noted that interests of OTs are being considered alongside that of the UK with regards to trade.  It was pointed out that in the proposed EU withdrawal agreement that every Overseas Territory is listed by name – an indication that the UK is determined to take all the UK family into consideration in any deal with the EU.

There was a lively session on British Overseas Territories citizens’ passports with the UK agreeing to look at concerns that impact some citizens; especially those travelling through the United States.  The concern was that BOTC passports are now electronically coded with the same electronic code as British passports and this presented occasional problems for some Territories’ nationals when travelling on some airlines.  The request was that BOTC passports be encoded with an appropriate code for each Territory to avoid this issue. 

Another key session of the day focussed on Child Safeguarding. Territories’ leaders updated the JMC on the work that has been done.  Mr. McLaughlin noted that much work was done over the past year in the Cayman Islands, with advancements of the Multi-Agency Safeguarding Hub (MASH), training and capacity building, raising community awareness on safeguarding of children and older persons, and restructuring the services of the Department of Children and Family Services. 

During the day Ms Rivers spoke with Lord Bates, the Minister of State for International Development, and thanked him for the work done by the UK to press for funding to be made available to OTs damaged in hurricanes and other natural disasters. She said more should be done and was assured that the UK Government intends to work with the Organisation for Economic Cooperation and Development (OECD) to help foster a greater understanding of the needs and vulnerabilities of small island countries. 

The JMC meetings continue today with sessions on Disaster Management, Financial Services, Trade and Investment and the Constitutional Relationship with the UK. 

LONDON, UK – As President of the Political Council of the United Kingdom Overseas Territories Association (UKOTA), The Premier, Hon Alden McLaughlin, opened and hosted the first UKOTA Environment Workshop in London on Monday 3 December. The workshop was organised by UKOTA, and participants included leaders of Overseas Territories, Departments of Her Majesty’s Government as well as NGOS, Organisations and charities in the environment sector. 

The Premier was able to share the good news of the procurement of 634 acres of protected land in the Cayman Islands; this has now increased the protected land area in Cayman to 4,111 acres, equivalent to 6.3% of Cayman’s total landmass.

The Premier highlighted to those present that Overseas Territories are custodians of environmental assets of global importance, due to the fact that over 90% of the UKs biodiversity is in the territories with many endangered species, also that the territories hold a third of the world’s albatross, a quarter of the world’s penguins and the largest coral atoll on earth. Lastly, the territories make up over 70% of the UKs marine estate in the world.  

He went on to highlight on behalf of the Overseas Territories the need to ensure that assistance by way of specialist technical advice as well as funding for environmental research and protection remains available particularly post Brexit when access to funds from the EU will no longer be available. This was a matter of significant importance to several organisations participating in the workshop.

Speaking as President of the Political Council of UKOTA, the Premier noted that “as Overseas Territories we fall between the cracks, we are unable to access some international funds but are also unable to access UK domestic funding. Working with NGOs, universities and charities may mean that we will be able to unblock this.”

The topics discussed at the workshop included environment funding, ocean conservation strategy and the inclusion of Overseas Territories in the UK Government’s “The Green Future -25 year plan to Improve the Environment.”

The importance of the role of universities in helping protect the environment through research and funding education was discussed. The University of Exeter has sponsored several overseas territories students including a Caymanian student to obtain Masters Degrees in environmental studies. 

Also discussed were pioneering new innovations that can assist with monitoring and protecting the environment, even within those smaller territories with little access to technology.

The UK Government support for the Oversees Territories efforts in organising this environmental workshop was demonstrated by the attendance of Ben Merrick, Director of the Overseas Territories Department of the Foreign and Commonwealth Office, who commented on the important role that the territories play in preserving such a significant amount of rich global biodiversity.

Nadia Hardie, Executive Director of the Cayman Islands National Trust attended the workshop, she commented “It has been a fantastic opportunity to network with NGOs and Organisations to review funding possibilities; it has also been worthwhile meeting and discussing these issues with our own Premier here in the UK.”

One of UKOTA’s recent achievements in the area of the environment and climate change is the direct representation of Overseas Territories for the first time at the COP24 Global climate change meetings, a very significant milestone for Overseas Territories.

The workshop was chaired by Colin Clubbe, head of Conservation Science, Kew Gardens and  included presentations from eight panelists; Hon Prof John Cortes, Minister for Education, Heritage, Environment, Energy and Climate Change Gibraltar, Ben Merrick, Director, Overseas Territories Directorate, FCO, Thea Edwards, Deputy Head, Wildlife, Natural Environment, DEFRA, Fiona Charlesworth, Darwin Plus, DEFRA, Hugh Raven, Chair of John Ellerman Foundation, Tara Pelembe, Deputy Director, SAERI, Professor Brendan Godley, Chair in Conservation Science, Centre for Ecology and Conservation, University of Exeter, Jonathan Hall, Head, UKOTs team, RSPB.

LONDON, UK – The United Kingdom Overseas Territori