McTaggart makes pitch to voters over economy

| 02/05/2024 | 36 Comments
Opposition Leader Roy McTaggart delivers a message on government debt

(CNS): Ten months ahead of the expected start of the 2025 election campaign, Opposition Leader Roy McTaggart has begun campaigning in earnest based on the party’s previous time in office. In a political message, McTaggart, who was finance minister during the last PPM administration, claimed that his party had successfully managed the economy when in office and criticised the current administration’s efforts.

McTaggart said that under the UPM/PACT government, public debt has doubled and unemployment has grown, which has happened during an inflation crisis and a decline in living standards.

“The country is stagnant and the future seems uncertain,” McTaggart said in a video posted on social media. “But you have the power to change course. In the next election, you can choose a new Progressives government that prioritises responsible financial management and the welfare of Caymanians.”

McTaggart took aim at the current administration, beginning under PACT, led by Wayne Panton, and now as the UPM, led by Juliana O’Connor-Connolly, for increasing the debt burden from under $250 million to around $500 million. However, the public debt is still well within the range permitted in the Public Management and Finance Law, with a debt-to-GDP ratio of 7.3%, well under the 10% limit.

Borrowing had gone mostly towards funding social programmes, such as the power bill subsidies, to meet the fallout costs from COVID and the subsequent global inflation. It is only in this latest budget for 2024/25 that the UPM government is borrowing for capital projects, some of which, such as a new high school on Cayman Brac, are being criticised by the community.

McTaggart claimed that when the Progressives were in office, they used surpluses to invest in infrastructure and reduced the public debt, which he said will cost nearly $40 million in interest and financing costs over the next two years.

However, even with the rising cost of borrowing and the need to borrow more for investment in infrastructure, which the PPM was criticised for neglecting, not least because of the fallout from the 2008 financial crisis, the annual cost of servicing the public debt of around $20 million is still not one of the government’s major budget outlays.

The CIG is spending tens of millions over budget on healthcare provision for locals who are either under- or uninsured. Just last month, Cabinet agreed to allow the health ministry to juggle its appropriations, just four months after the start of this budget cycle, to add another $8 million for healthcare provision for local people, putting it on track for a nearly $25 million overspend this year alone on this expence.

Almost all of the policy advice budget has been cut in the health ministry, and around $3.5 million has been slashed from essential mosquito control. Another half a million has been cut from wellness programmes to meet additional medical bills and needs for elderly or uninsured people and for overseas care.

McTaggart is now asking the government whether it will cut spending on social programs or increase fees and taxes to meet the debt burden, which is relatively low compared to other countries in the region. However, McTaggart said that the level of borrowing, which currently stands at about CI$430 million, is unsustainable — a point of view that has been challenged by the current government.

“It’s a ticking time bomb that threatens our financial stability for generations to come,” the opposition leader said. “We cannot ignore the ripple effects of the PACT/UPM’s financial and economic missteps. Rising unemployment, a cost-of-living crisis and declining living standards are not statistics but the harsh realities our communities face daily. No wonder many Caymanian families and small businesses feel worse off after three years of this PACT/UPM government.”

McTaggart urged voters to choose at the next election a new Progressives government that prioritises responsible financial management and the welfare of Caymanians.

“From 2013 to 2021, Progressives’ leadership sustainably grew the economy, reduced import duties, halved unemployment and created jobs for over 3,000 Caymanians. We used cash to build infrastructure, reduce fees, pay down debt, and strategically invest in our nation’s future,” the PPM leader claimed.

He said that the Progressives had taken a compassionate and sensible approach to the management of the pandemic. “That’s the kind of leadership we need again — compassionate, sensible and unified Progressives’ leadership that prioritises the long-term interests of our people, economy and finances,” he told voters.

However, some of the most pressing problems in Cayman that led voters to oust the PPM have not gone away and have been compounded in the post-pandemic world: overdevelopment, the loss of local access to the natural world, especially the coastline and beaches, the rapid uncontrolled population rise as a result of what many see as years of immigration mismanagement and the gentrification of traditional neighborhoods by the rich elite.

The PPM has been criticised, as have members of the current administration, for pandering, largely due to political financing, to the wants of the country’s largest landowners and developers, who are ignoring the infrastructure needs of local people in favour of catering to the rich elite.

The development of luxury second homes for rich overseas investors has led to a massive increase in work permits to service them, with almost no benefit to the wider community and fuelling socio-economic vicious circles that are almost impossible to break.

See McTaggart’s video message below:


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Category: Economy, Government Finance, Politics

Comments (36)

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  1. Anonymous says:

    I have a letter from mr mctaggart when he was the minister for finance that I’m going to pitch to show how much he cares about the economy and people that need a hand , then people will really see who he is if they are not already sure

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  2. Anonymous says:

    Roy is right on the statistics. This isn’t about PPM or UPM. The current debt to GDP is 7.3% under the threshold of 10% but ask yourself if that sustainable? This assumes that the country will continue to sustain the level of investment and spending by households too. We are gripped by inflation and those figures are facts.
    Even if we are currently below the threshold does that make it prudent to more than double the country’s debt burden????
    Under PPM this country’s debt reduced.
    PACT/UPM’s budget records a billion in expenditure in one year. These are all facts and everyone should be alarmed.
    If you care about your children’s futures you will realize that no government is perfect but PPM has a frugal track record.
    I am voting PPM!!!

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    • Anonymous says:

      You must love corruption and be a part of their developer/contractor largesse cabal.

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    • Anonymous says:

      I am not a fan of this Govt but sadly the PPM are no better. If you are going to be a stooge for them please have them properly explain the facts so you dont sound like an idiot. Debt to GDP is not the same as debt servicing ratio. The latter is one of the metrics required by the FFR provisions to have a maximum limit of 10%. Our debt to GDP is in fact low whereas our debt servicing ratio is climbing. But when this Government put forward a budget to push debt borrowing even higher by $150 million what was the response of the PPM? That is right – they gave it the thumbs up! Much of the extra $150 million in borrowing will be spent in the Brac by Juliana. Doesnt it make you wonder what kind of deal Juliana has with the PPM to get their budget vote?

  3. Anonymous says:

    when will people realise…pact/upm were never elected… they had no common agenda or manifesto…they just grouped together for their own selfish needs.
    that’s what you get for voting in small minded, small town independents.

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  4. Anonymous says:

    do-nothing-ppm or no-plan-pact/upm?????….neither thanks.
    direct rule for 2 years while a new raft of political candidates are selected/vetted based on qualifications, experience and integrity. then we have new elections.

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  5. Anonymous says:

    so what solid economic proposals do you have roy?
    do-nothing-ppm did pretty much the same when in power and just continued the tax/spend policy.
    of course ppm are better than upm/pact. literally anything is.
    will keep asking:
    How many recommendations of the miller-shaw or ernst & young reports were implemented by ppm over 8 years?

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    • Anonymous says:

      Just beachside MillerShaw or Ernst & Young recommended, doesn’t make them right.
      Changing times and circumstances were dealt with by PPM as a group, more than we can hope for from the current self seeking UDP in sheep’s clothing.
      Apologies to Wayne and Andre.

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  6. Jo says:

    Best believe the country’s future will be stagnant and unclear under PPM leadership as well.

    I will not be voting in the next election.

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  7. Anonymous says:

    Roy, ole buddy. Please explain to the country how the PPM will recover all the funds given away as import duty concessions for the runaway development that happened under your administration. The PPM thought it wasn’t needed. These funds could have been used to expand our inadequate infrastructure like roads to reduce traffic. Also, explain how the PPM will raise the needed funds for the very much needed infrastructure upgrades? Finally, can you confirm the total number that was just given away to investors who clearly made profits at the expense of all Caymanians and residents? That way, we can really put things into perspective and quantify how much the PPM has cost the Cayman Islands over the long-term. Mind you, this is just one of the holes created in our coffers by the PPM.

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  8. Anonymous says:

    Roy is right.

    Why did we think that Bernie Kenneth Jay Kathy would be able to run a Government.

    What have they every achieved?

    These are serious questions running into 2025.

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    • Anonymous says:

      Well he puts up pretty billboards with his smiling face on them!

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    • Anonymous says:

      @9:55PM..everyone was and is still looking for some thing better than the PPM. I would never want to go back to that dark time. I would never want to see them in power ever again.I can only hope any pray that the next election will see them go away for good.

      We need good men and women willing to stand for country and not looking for another job, power and definitely not in it for the love of money. I keep wondering why elections always bring out the worst people in our population. Maybe it’s time we put some qualifications on who can run other than age and popularity.

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      • Sam sam says:

        time to open our eyes and see where our country are heading to .caymanians has no place here in our own country. the men in long black coats high in government positions are keeping the public out of the picture.

    • Anonymous says:

      Don’t forget DuWayne The Brain in the group🤪🤪🤪

  9. Anonymous says:

    Love them or hate them based on personality but admit it… the economy was doing much better for all of us under the PPM!

    Sorry not sorry I said it !

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    • Anonymous says:

      The economy of the *ENTIRE WORLD* was doing better while PPM was in power. Do you attribute that to them as well? Or do you perhaps recognize now that it is more than a little silly to be comparing a post-pandemic recovery period to a time where everything was easy and life was good for the majority of the world?

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      • Anonymous says:

        Hopefully common sense prevails.

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      • Anonymous says:

        You forget that part of the PPM era was during the pandemic and we came through that just fine! I will be voting PPM next election – sorry not sorry!!!

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        • Anonymous says:

          3:02 pm, you forgot the PPM gave themselves a huge raise of pay during the pandemic when the rest of the world was cutting their pay.

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        • Anonymous says:

          @3:02, yeah Alden locked down the country with no plan to open it up again, had a press conference once a week, while John John prayed in multiple languages and to top everything off the Governor rewarded Alden with Knighthood..Sounds like a great time and very rewarding for the PPM and Alden.

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    • Anonymous says:

      Well try living on a pension of $1200 a month when I have 300k in a poorly invested pension fund. It is my money but government controls it. The government ensures they get a golden pension but doesn’t give a crap about the people especially senior citizens.

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    • Anonymous says:

      nothing like being confident and clueless. govt got a spot for you.

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  10. Anonymous says:

    Mr. Mctaggart my humble respect to you sir, but I am tired of all the politricks, the back and fourth between the parties and the overspending. I take my hats off to the PPM government who made some solid decisions to save lives like closing our borders during the pandemic. I’m certain when they made that decision they did not factored in how that decision catapult our economy in a positive financial position. That took “balls”. 3+ years later the country is in a worst position for Caymanians than ever before. We cannot own properties, the best jobs are secured for the expats family and friends, our way of life has been disfranchised by way of the quality of life we now have and the loss of our environment. As you all continue to seek control and power between your parties, people are loosing their homes, their jobs, unable to meet their bills….in a nut shell, we are struggling. The kool aid you all sell is that, we the politicians got your back, we sell your space for a better tomorrow, similarly like the CAL Barbados route which by the way we tax payers are funding.

    The part of the article that brought tears to my eyes is the part pertaining to the recent approval for additional funds granted for medical expenses for the uninsured and seniors. How can this rich country that boast millions of dollars in surpluses allow this to happened? No person in the Cayman Islands young or old should not have medical insurances. I worry what will happen to me i when I retire. I have always been independent and never had the need to want more than I can afford. However, with the rate things are going, it would be better if i die before retirement, at least my offsprings would have the means to take care of themselves at least for a while.

    I will says this, I will never vote for the person of my choice in the upcoming elections. The last time I voted for a particular candidate, I ended up with a person who don’t have a clue of what it takes to build a nation. It’s all for greed!

    We need some new candidates in the next election. People who place country before self. I’m tired of the party games and the pointing fingers that gets us nowhere. I’m also tired of all these round bouts and more roads. Lets slow things down a bit, bring back tranquility, allow me some family time, allow me to retire with dignity and independence.

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  11. Anonymous says:

    I’m so fed up of this new government I might actually listen to what this man has to say. So you know I’m desperate.

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  12. Anonymous says:

    100% with you Roy. we need good governance not clowns

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  13. Anonymous says:

    The PPM have brought through the worst policy packages of modern times. Voters need to stage an intervention to wrestle in some governance standards. Amend the Elections Law.

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  14. Anonymous says:

    So what, we can afford it so just spend the money. All representatives need a 50% raise for all their dedication and hard work, all civil servants need a 60% raise because they are working really hard and we need 12 more paid holidays.

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