Mac: PPM can’t take credit for fiscal compliance
McKeeva Bush, Cayman Islands Opposition Leader
(CNS): Opposition Leader McKeeva Bush says the PPM government should not be taking credit for meeting the requirements of the Framework for Fiscal Responsibility (FFR) that the UK made him sign because of the “terrible way the PPM had destroyed up our finances”. Bush said it was his administration that set the wheels in motion when he, as minister of finance, put in the necessary revenue measures, supported the financial services sector and grew the tourism product to raise the revenue Cayman Islands Government needed to keep the UK “off our backs”.
Bush said he made the hard decisions and agreed the four year budget with the Foreign and Commonwealth Office that set government’s finances on the trajectory for the current position but the current administration is now bragging about the achievement of meeting the Public Management and Finance Law ratios.
“They had borrowed over $400 million in their four years and had created hundreds of millions of dollars of debt,” Bush said, as he again blamed the current premier for the new high school development project and the deficit in the PPM’s final year of their previous term, which led to the FCO taking control of the public purse for what Bush said was the first time in the history of the Cayman Islands.
Bush claimed that while the PPM had “criticized, accused and belittled” him when they were in opposition, this was his victory.
“But yet they now try to stand cold faced and brag about what they have done,” he said. “Thankfully, the good people of this country know that the best thing they have done in three years is take over from a leader who knew how to get the country’s economics right,” he added.
The UDP administration inherited a large deficit but it also incurred deficits of its own in the subsequent years as deficits do not carry forward. With the recession still in play, when Bush took over as finance minister he also had to increase debt, not just to cover the first deficit left by the PPM but its own subsequent deficits and operational expenses as well as capital development projects.
The FFR was forced upon all British overseas territories in the wake of the financial crisis as the UK, struggling with its own fiscal troubles, wanted to ensure it would not be left holding the tab for any contingent liabilities of its territories, especially after the crisis in the Turks and Caicos Islands. Bush signed the document in November 2011, more than two years after taking office in May 2009. The wrangling over how it would be adopted into local law went on for a further 12 months and it was finally incorporated into the Public Management and Finance Law in November 2012.
Category: Government Finance, Politics
It’s continually funny to me that PPM supporters all ranting about Mac buying votes. So your telling me that PPM don’t do the same. I believe we all need to look at the figures before passing judgment. We need new blood that is level headed but as we all know no change will be made because we caught up in out pass instead of the future. We continually questioned why do we have to have work permits for trade work and the answer to that we rather spent million build/upgrading the prison instead of investing in trade schools. No one here is speaking about the youths downward spiral due to our own people having no faith at all in them. Come on people! You have to wake up and smell the coffee.
You may not like Mac but he is 100 percent correct. I must say that I admire the PPM for following a good plan laid out by The UDP under the leadership of Mackeeva Bush.
thank the fco…not mac…..
The Finance Minister is not to be compared with the previous one, nor the present situation under the PPM with the UDP. Anyone remember the scandalous rhetoric spued by the government during the construction of the Dr. Horton Memorial Hospital.
How can a man that is so obsessed with the past ever be a forward thinking member of our government. Time for new leadership in West Bay next election.
There will never be a change in .w. bay as long as handouts are the key to vote buying.
The problem with all politicians is that, as a distinct subhuman species, they are almost universally corrupt or incompetent or a combination of the two. And the very few among them who are neither are blind like Bartemeus and pretend not to see the shenanigans of their teammates.
The reality is PPM and UDP are best described as the “Same dog puppy”
She must have been a real bi*ch because their fathers are totally different breeds.
Better to remain silent and be thought a fool than to peck at your keyboard and remove all doubt.
#PLEASEJUSTGO
And you still went on pecking?
While I’m no fan of WMB, he is spot on and in fact is under-stating his case.
There are two things a government can do to improve the fiscal situation of the country. They can either DECREASE SPENDING or INCREASE REVENUE.
The PPM has demonstrably both INCREASING SPENDING and DECREASED REVENUE.
Don’t believe it? Check out the successive years Strategic Policy Statements. (You can easily check these numbers yourself by googling Strategic Policy Statement with the corresponding year).
Expenditure
2014/15 = 532,000,000 (Unaudited)
2015/16 = 554,000,000 (Budgeted)
2016/17 = 567,000,000 (Annualized)
2018 = 572,000,000
*(in the 2013 SPS this is described as “revised budget 2011/12” presumably because the accounts were still not final, but the SPS is dated June 30, 2013)
So the PPM will have increased spending by $32m per annum by the end of the next fiscal period. Sound familiar?
In fact, the picture is a little worse than it looks because the surplus has allowed the PPM to pay down debt, saving a few million in interest payments (again, it’s hard for them to take credit for this without evidence they increased the surplus). The interest saving is a little over 2m since 2013/14 so they will actually have increased spending by $34m.
Revenue
Revenue is more complicated. Yes, the revenue has gone up over the period, but unlike expenditure, that is not attributable to any policy of the PPM.
As the Hon Marco Archer boasted at great length during his recent appearance on Rooster (don’t believe me? ask them for the recording, perhaps CNS would do the honors and post it in their archive) the PPM government has reduced revenue in a number of areas by for example (per the Finance Minister on Rooster):
– Reducing duty for licensed traders from 22 to 20%
– Reducing gasoline duty (4m a year).
– Concessions aimed at small business.
One can debate the merits of these policies, but in relation to the fiscal position, the fact is that they reduced government revenue.
Since all of the PPM policies were CUTS to revenue, the INCREASE in government revenue is self-evidently due to historic revenue measures and increased economic activity (which, unless anyone can name a project started under this government, must be attributable to the previous one). That’s not an argument for having the UDP back, it’s just a fact.
Conclusion
The PPM can’t have it both ways. You can’t argue that you have reduced revenue (whilst having demonstrably increased spending) and yet somehow also improved the fiscal standing of the government. This would be to defy simple arithmetic.
The fact is that had the PPM done NOTHING (i.e. kept spending at the 2012/13 level) and not cut revenue, we would have a substantially higher surplus.
The problem with all this, as we ought to have learned last time it happened, is what happens if the tide goes out. If economy nosedives and government revenues plummet unexpectedly we will be stuck with all that additional spending, and then the interest on the debt that it gives rise to.
http://www.bloomberg.com/graphics/2016-another-recession/
PPM spent money on infrastructure which irrespective of cost will serve Cyman for decades.
UDP spent on self serving world travels , expensive hotels, commissions, law suits, vote buying (aka nation building fund) and more which is generally known but unspoken.
Money gone and wasted, not to mention
No one is saying the UDP spent the country’s money wisely, but the facts are that he PPM spent more!
The real question peeps is: can either of the two political institutions in place. Stem the oncoming slide of the Cayman Islamds; Banks leaving, Funds Mamagement companies ,leaving,, finance scandals soccer scandals, health care scandals, police scandals, and the list goes on and on.
People of the Cayman Islands please encourage savy persons , un corrupted persons, persons who love this country and would die for it; to lead us forward, lead us in cleaning up the corruption, in establishing the much needed governance structures, firing where necessary, ensuring that we deal with our security by being involved in the process of finding suitable people from within and without to lead against crime in this country. Leaders who will prioritize and not disguise, leaders who at the end of the day will put the good ship Vayman on a steady course in the rough seas of the Global oceans.
We can see what the PPM spent money on, and whatever it cost we will have it’s benefits for generations.
We will never benefit from your UDP spending on luxury world travel, hotels, jets, limousines, law suits , commissions , not paying stamp duty and much more we can’t mention.
Go away Mac,your time is done.
You are such a foolish person. Both parties are destroying Cayman.
Six people think this analysis is the work of a troll? Really?
Its that damn kool aid again my friend.
1:49. Stop drinking the cool aid please. This government with the support of the civil service has delivered tremendous results.
What you are neglecting to mention because of the cool aid is this
The government has re started payments of over 10m per year to its pension liability
Created a sinking fund
Gave civil servants a much needed cost of living salary raise which the previous government took away to fund the nation building cash give away scheme
Paid down debt
Implemented a travel policy that has saved the country millions. No more jolly trips with friends and supporters
Eliminated permanent drivers for elected official savings tens of thousands of dollars
No borrowing for 4 years
No new revenue measures for 4 years
Reduced the cost of living by rolling back taxes on fuel
Reduced fees like trade and business licenses
That’s just a few achievements and we have the nerve to complain. How quickly we forget the jolly trips the expensive drivers the credit card abuse the wasteful schemes. All gone.
Thank you PPM. Those are facts.
Sonny boy I can spot the red colour mark all over your lips and mouth, you well and know that the 2005-2009 ppm govt is the main culprit here carrying responsibility for most of the financial problems that we are in now. Thank God for minister Archer and his tireless and honest work…. Looks like he will be the only ppm member returning to the LA in 2017.
Wow, talk about kool aid.
You’re honestly citing the saving in travel expenses and drivers from a $567m budget? Ever heard of rearranging the deck-chairs on the titanic?
Paid down debt? Ehhh, okay, but anyone could have done this given the enormous surplus. That doesn’t take any skill or judgment. Likewise “no borrowing”. You are double-counting the same thing there I’m afraid. The point is they could actually have paid down more debt had they not cut revenue and increased spending.
No new revenue measures for 4 years. Yes, it’s great in terms of cost of living, but it doesn’t help the fiscal situation. That was the commenter’s point. You can’t have it both ways, bragging about reducing revenue, providing better services by spending more money, and somehow claiming credit for the surplus.
It’s simple maths. Surplus = revenue – spending.
If you reduce the revenue and increase the spending, you can’t take credit for also increasing the surplus. It’s mathematically impossible! If the revenue went down (which the PPM have themselves have boasted) and spending has gone up (evident from the SPS numbers) then the surplus can only have gone down.
Everyone forgets the fact that the cost of the schools doubled when the incoming UDP (aka. McKeeva) government cancelled a valid contract, shut down the project, and then methodically handed out small contracts to contractors that would “wuk wi dem”. It is the UDP that caused the piss poor value for money of the schools by jumping in the middle of a large capital project to make sure they got their piece.
Very convenient blaming the PPM.
ROTFL! That has got to be the dumbest comment yet: “The fact is that had the PPM done NOTHING (i.e. kept spending at the 2012/13 level) and not cut revenue, we would have a substantially higher surplus”. It is like saying you would have a big bank account if you paid none of your bills and didn’t maintain your house. Real stupid.
Errrr no it’s not.
It’s like saying if you spend less money on your weekly koolaid/crack supply you will have more money left over at the end.
Who said anything about not paying bills?
The people who have voted over the past 30 years are as much to blame as the greedy, and dirty dealing politicians they elected. Electing sane, straight shooting candidates on an individual basis rather than flip flopping between parties is clearly the way forward. One dominant party after another claims to have the gumption to fix it, yet they become embroiled in it. To add, once corruption in the system is allowed to fester, it slowly becomes accepted as the new norm. Some get things done mafia style while others make progress on the way to independence.
Adopting a constitution obligates us to play by the rules, some don’t seem to realize that and use this as an excuse to blame our watchdog. Snubbing the nose of the UK at every turn will get us nowhere and ultimately put us under greater scrutiny, it’s the way it is. We might ultimately gain independence but only if we make proper social and political choices, prudent fiscal responsibility has a better chance of evolving as a result.
Cayman is not going to forget the fiscal compliance you showed up in court for mckeewa. Or the one the one the uk had to put a leash on you for.
Or the ones the last two auditor generals got chased out of the country for, or the one his church had the good conscience to return.
Bush is correct, by the way what in the hell has the PPM done except for styling up Smith Rd
Clearing up the financial accounting and reporting disaster bush left them with while he was out gambling is more than bush can ever hope to accomplish.
I agree with you but you forgot to mention the hundreds of millions that was wasted on the space station, sorry, I meant the high school
Not even bush would make THAT exaggeration.
not a mac fan but what he is saying is true…..
the do nothing ppm have done…nothing.
If that were true it would still very much outshine the less than nothing that bush accomplished when he had the chance to.
i’m sorry that caymanian standards and expectations are so low….
Then perhaps you should go home and learn how to write proper English.
You are just plain sorry.
You would do much better concerning yourself with your writing standards.
Taught by the leader.
How lonely Vegas, Nassau and Macau casino high rollers miss Mac.
I wouldn’t say that they haven’t done nothing……… smith road is cute and feels good too.
William McKeeva Bush is a millstone around the neck of the Cayman Islands.
Is anyone really listen to his dribble anymore?
unfortunately some who dont know any better probably are listening
Dribble is what can be said by the ppm bloggers abd gambling is what the ppm is doing with the lives of our people. I didnt play any game of chance with the govt money. Else the jury would have seen but they saw the set up and how easy it is for the persecution/ prosecution to make someone look guilty.
Its always obvious when the ppm “set up” bloggers on cns come out of their holes.
But the truth is there.
Ppm borrowed and spent and borrowed and spent millions. Put us in deficit using the 106 million surplus i left in may 2009 and left the 80 odd million current acct deficit. I left in dec 2012 70 million surplus and laws to get another 30 odd million in revenue.
So those who can only insult can go ahead. I know they would never face me
You see Mac, there is a big difference in genuinely not knowing and being plain ignorant. By reading most of these comments on the website, most people are obviously ignorant to facts. Sensible and reasonable people will see the facts for what they are and understand that the PPM truly did nothing. Regardless of what people think you did, it does not change the facts. This does not mean you have my vote next election but I just call it how I see it.
There is a big difference in genuine not knowing and being plain ignorant.
Boys and girls, this is a fine example of the importance of education.
Hey Mac, try do something productive with your time instead of writing drivel on CNS, aren’t you the Leader of the Opposition? You really do have some nerve to sit there and tell us you were not gambling, that’s exactly what you were doing, they proved it in court even though you won because you needed it written down in black and white instead of being a responsible Leader who should know better. End of Story. You are an utter disgrace, and the way you carry on about it is a massive FU to each and every Caymanian. Do us all a favor an F-off once and for all.