Budget creaking under weight of COVID costs
(CNS): Government voted an additional CI$28.4 million for managing and administrating protocols surrounding the COVID-19 pandemic for this year, including quarantine and testing costs. In addition to paying people who are out of work as a result of the closed borders and supporting small businesses, the government is spending a significant amount on the isolation programme, secure transport, contact tracing, administering the vaccine and thousands of tests every month.
As members of Parliament voted for the extra funds for Travel Cayman, the Health Services Authority and private hospitals, they heard how the money was being spent and the pressure on the current budget. Government is expected to spend over CI$10m on testing alone this year.
As the members voted on the money, Finance Minister Chris Saunders, who chairs Finance Committee, explained that the COVID-19 response and recovery line item was going through his Ministry of Finance, Economic Development and Labour (FEDL) to try and control the large sums of money.
He said everything that is being spent under this budget would pass across his desk, and that the questions raised by members on Wednesday were valid and what was expected from those managing the people’s money.
During the proceedings looking at this one line item, Accountant General Matthew Tibbetts explained that the government owes the HSA more than $6m as the authority has been using its own funds to cover the cost of testing at the hospital. It has also been paying the Doctors Hospital bill for the PCR testing that they were contracted to undertake, as well as a much smaller amount to Health City.
HSA CEO Lizzette Yearwood said that at the beginning of the coronavirus outbreak the government hospital could not respond to the testing demand and had contracted Doctors Hospital to help with the workload. Each PCR test costs $150, she said.
The HSA is also running up a significant bill to cover additional staff and a lot of overtime is being incurred by existing health professionals, who on top of their day jobs are helping with the vaccine and other COVID related work. Yearwood pointed out that actually recruiting new staff to meet the extra workload is very difficult given the worldwide shortage of healthcare workers.
Money has also been appropriated to reimburse Cayman Airways, which has been paying its staff to work for Travel Cayman to help with monitoring of the quarantine and isolation programme.
While testing and personnel costs are running up government’s budget, the management is also expensive. However, government is looking at passing more costs on to travellers as the borders open and the need for essential travel tapers off, especially as local students studying overseas return to school and college to be replaced by paying leisure travellers.
Wesley Howell, the chief officer in Chris Saunders’ ministry, said all of the COVID-19 management and administration costs were being reviewed to see what government should be paying for and what could be passed on to travellers and visitors. As a result, some areas were being budgeted on the basis “of worst case scenario”.
But as policy changes occur, government is hoping to see some of the costs currently being borne by the public purse are moved on to travellers. Examples of such costs are the secure transportation between the airport and quarantine or home isolation, and the decontamination and cleaning of rooms and taxis.
Joey Hew MP (GTN), who owns one of the country’s largest cleaning companies, was concerned about the CI$635,000 being spent on decontamination and cleaning, which is going to one company. “A line item of that size is probably something that should go out to public tender,” he said.
See the appropriation document in the CNS Library.
Watch Finance Committee proceedings on CIGTV below:
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Category: Government Finance, Politics
WORC is already approving any permit requested so we can’t get more money that way….we could close down the whole department as it really is doing nothing anyway…save some costs there.
A surge in Covid cases and a Hurricane will kill this pact government DEAD ! An it would appear that exactly what some want so they can regain power ! Who are we opening for exactly when the recent study indicates people want to travel to areas with strict quarantine rules ????? Open up but leave the strict quarantine rules in place ! Why take the risk that we cannot possibly manage !
Pandemic is to blame?
Until 2023? Parts shortage will keep auto prices sky-high
https://www.winknews.com/2021/09/05/until-2023-parts-shortage-will-keep-auto-prices-sky-high/
“The global parts shortage involves not just computer chips. Automakers are starting to see shortages of wiring harnesses, plastics and glass, too. And beyond autos, vital components for goods ranging from farm equipment and industrial machinery to sportswear and kitchen accessories are also bottled up at ports around the world as demand outpaces supply in the face of a resurgent virus.”
I hope someone is REALLY paying attention, because it is going to affect Cayman one way or another and create critical situations that could be labeled as UNFORESEEN.
Meantime in the US:
Shortages of supplies and workers will delay Gulf rebuilding
https://www.winknews.com/2021/09/06/shortages-of-supplies-and-workers-will-delay-gulf-rebuilding/
As a self-made multi-generational Caymanian, it is honestly embarrassing and disgusting how much money CIG spends unnecessarily when we have hard-working elderly Caymanians and their children struggling and barely floating by. Meanwhile, government contract workers and newly-minted Caymanians are enjoying all the lavish spoils that give very little back to the community and can’t be bothered to help the average local.
I understand the need to open but hopefully CIG will consider requiring vaccinations for all public facing staff and vaccine passports for entry into non-essential businesses so that we can get our vaccination rate as high as possible first.
There is in fact no need to open. Not if that means giving up quarantine.
The budget is creaking under the weight of many things. COVID costs are just the latest ones to pile onto the hill.
Unneccessary spending in bottomless pits is one!
Exactly. Cayman needs to retire the culture of subjective indefinite Cabinet-directed bursaries in lieu of proper vetted social structures. Social band-aids are much more expensive than treating the ailments. Recreational travelers shouldn’t have automatically qualified for a free 3-star catered beachfront stay on their return, without essential travel scrutiny or needs testing. It’s been fast and loose for too long. The honour system doesn’t work when the cash faucets are left open like this.
It’s creaking under many other unnecessary costs too! Why, when there is a private Miss Cayman franchise, does CIG also have to spend $$$ on a beauty pageant.
and then allow the committee’s “civil service managers” off to travel the world when they should be doing the publics work?
Its simple. The girls really deserve this chance!
Trying times indeed!
Debt burden grows!
$4mil is going to jump start the Tour Transport industry. Good. But will they be mandated to hire local Tour Guides and Drivers now?
The cheap expat labour is killing the market for local workers.
It’s also killing our tourism product!
What about a new face of CaymanKind for our new stayover guests?!
Joey Hew MP (GTN), who owns one of the country’s largest cleaning companies, was concerned about the CI$635,000 being spent on decontamination and cleaning, which is going to one company. “A line item of that size is probably something that should go out to public tender,” he said.
LMAO – BOBO WANTS THAT WORK.
Don’t all govt contracts exceeding $250 k have to go through an approvals process like central tenders?
So? Doesn’t change fact that level of expenditure should be tendered.
I was shocked yesterday to see Island Paving sweeping Discover Dr in Lower Valley. The NRA had worked on that road within the past year I’m sure and applied a fresh coat of asphalt and chips right up to peoples driveways. I drove through the road. It is in excellent condition. I didnt even see a drainwell because the area never floods even in heavy rains.
So why is the PACT government about to spend $200-300,000 to hotmix this half-mile of road? It isn’t Christmas and elections are three and a half years away.
Take a drive through and see for yourself. Well, well!!!
“ But as policy changes occur, government is hoping to see some of the costs currently being borne by the public purse are moved on to travellers. Examples of such costs are the secure transportation between the airport and quarantine or home isolation, and the decontamination and cleaning of rooms and taxis.
Joey Hew MP (GTN), who owns one of the country’s largest cleaning companies, was concerned about the CI$635,000 being spent on decontamination and cleaning, which is going to one company. “A line item of that size is probably something that should go out to public tender,” he said.”
The definition of irony is Joey Hew suddenly seeking transparency now that he is in opposition. Why didn’t he think or behave like this as minister after all the concessions he negotiated and gave to developers? SMH
HE WANTS THAT $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
What concessions did Joey Hew negotiate with developers? Name then. The answer is none. Technocrats in The Ministry negituated with a tech based entity with regards to attracting tech businesses here. That’s it. No developers. Get your facts straight please.
The kids do enjoy having the keys to the candy store. As soon as they pass a law that says everyone in Cayman is entitled to free healthcare we might have to say enough is enough. Or maybe everyone over 65 is entitled to a government stipend of $3000 per month plus free heathcare. But after that it has to stop.
CNS. Your spending spree list forgot to mention the cost of 4700 laptops and free meals for all students at Govt schools. All this additional spending will need a lot of monitoring (i.e. adding it all up), the additional burden will no doubt require a bonus to all employees in the Finance Dept.
CNS: The money for the free meals was included in this article. As the article was about additional spending over and above money already approved, the laptops were not included. This article is about spending related to covid.
As a Caymanian parent I welcome that my child has a government supplied laptop, I welcome that government schools are getting better ratings than private schools. Educating our children to be prepared to enter a very competitive workforce is an investment for the government and our future. Thank you government for this investment.
Better ratings than private? You really stretching…
Reports are public you fool
Laptops approved under the Progressives’s administration and school improvements are a result of the work over the past 8 years of Progressives led government’s.
The financial position we are in today is also due to the Progressives. All work well done.
Anyone who didn’t see this coming is a fool. Hundreds of people taking ‘repatriation’ flights for shopping trips to Miami and then having 2 weeks of hotel stay with everything paid for by Government.
I wonder how much of the line of credit that was held for emergencies has been spent by the PACT. What happens if we have a real emergency like a hurricane or earthquake. The ‘spend it while we can’ attitude needs to stop and its time for people to pay their way.
This current government is obviously way too excited about this line of credit secured from the previous administration. It is like giving a child a brand new credit card…
Or like giving a former premier a government credit card….
PACT printing money in the basement must be.
While cayman islands is maintaining the buble 28.4 million for a pop of 70000 is too much. Imagine how much uk and usa have to spend. Possibly too much unnecessary work and wastage. Need careful review.
65,000
80,000
45,000
Err, that’s $400 per head.
Just a few short months ago, I distinctly remember so many people hopeful for positive change after the election while a few of us clearly said that nothing good would come of Panton’s tenure…or anyone’s for that matter.
Where are the promises now?
The size of the government is a joke. It is massive, profligate and totally unsustainable I feel sorry for the expat locusts that have been tricked into relocating and for the Caymanians that cannot afford to live in their own islands.
There will soon be nothing left….except Roper’s army and the Bluff.
You mean you can’t close down the country, send out stimmy checks for 18 months and have big price give-a-ways for no cost? Freaking math! Errrr
What big price giveaways?
Dam right! No cash incentive or 2nd pension fund withdrawal from those grossly underperforming overcharging pensions then no vaccine shot
Anyone that is shocked by this budget impact is clueless…..either by choosing blind oblivion or by significant mental deficit.
Everyone knows you have to decrease outflow of cash when inflows of cash decrease. Instead, we’re spending like the goal is to go for broke!
Ya that’s what happens when he government pays people to stay at home and do nothing. Why weren’t the people collecting stipends at least cleaning up pollution on beaches and roads?
spend,spend,spend…it the only thing pact know how to do
This can’t be true. Didn’t the politicians just give themselves a salary and benefits increase? Didn’t this administration just pay out bonuses without clear justification? Didn’t this government just implement several policies that will increase long term costs to the people of this country?
It is time for this government to be clear about where the money is coming from to cover all of the waste and excessive expenditure.
If you get a stipend, you should have to show proof of vaccination. Lack of vaccinations are contributing to a closed boarder and damage to the economy. Although we may not mandate a vaccination, one shouldn’t be able to contribute to the economic damage and at the same time gain a monetary benefit.
Why is CIG offering free Civid testing for non Caymanians/non residents?
Travellers should be charged a fee that at least covers CIG costs for this.
The excuse heard is that the world class civil service does not know how to account for this – as this involves multiple CIG departments.
They cannot tell who is Caymanian, so how can they tell who is not?
Because they force quarantine
In that case charge anyone who cannot prove he/she is a Caymanian.
There are thousands of those, including many in the civil service, and others receiving stipends and government assistance.
AGAIN the entitlement. EVERYONE SHOULD PAY regardless of immigration status. If you can afford to travel you can afford to pay.
EVERYONE should pay regardless of immigration status.
Time to open up the border! Get rid of the quarantine period for those vaccinated, accept the CDC card if can be notarized from the state ( since digital passport not available for all currently), offer welcome back specials.
Get the economy moving. Live cautiously with Covid. Mask and social distance in high traffic areas. No reason for lockdowns.
Unvaccinated will still need to quarantine.
Agree. Covid is now an endemic disease and we will all get it one day. This should no longer be a government problem. This virus needs to finally become an individual problem and be treated as such. Allow our economy to begin to recover because government cannot afford this Covid free paradise forever.
Why should business suffer because of a disease that cannot be waited out? Best that anyone can do is limit the spread through vaccines, masks and strict entry requirements. All we can do now is slow the spread and not stop it.
No. We can stop it. We have. All we need to do is maintain strict quarantine. That is well worth the price.
Quarantine will not get the economy moving.
The economy is moving. In many areas it is thriving. Hundreds of people are willing to come here through quarantine. There is no reason to throw the doors open to Covid. We can allow people in safely and enjoy the hard won freedoms we have. 5 days of quarantine for the vaccinated is not too high a price to pay.
Instead of quarantine have tourists stay for 5 days in Little Cayman where they can enjoy the natural beauty then get tested on the 5th day prior to their flight to Grand Cayman. Turn Little Cayman into Covid quarantine island
That would be a great idea if tourists had long vacation time, but most have just a week at a time.
Actually not that bad of an idea haha.
Why not Cayman Brac,plenty space up by the lighthouse?
How about they quarantine with you in your house?
You haven’t stopped it.
It’s the same as every other country. Once it’s detected, the person goes to quarantine. Still had 690 cases.
Not true. Those testing positive are already in quarantine. They are not sent into quarantine.
That is because the borders are closed. So people go directly to quarantine. The student and close contact was sent to quarantine. The ones in the beginning ( in the neighborhood and I believe in the grocery store) were sent to quarantine. If you were a larger community, they would be sent to quarantine from the community. , When the border opens, just like everywhere else, when covid is detected, they will be sent to quarantine.
Cayman Islands 690 cases of covid. 671 recovered. 2 deaths.
Maybe your mom should be the next death, then see how important it is to keep covid out.
My mom died from treatable cancer, unable to get a hospital bed because they were all taken up by persons who refused to get vaccinated, but thanks for your concern.
My dad died from Covid in March 2020. Extremely sad death.
Sorry for your loss. Wish we had a vaccine back then……
Our family does, too. Thank you.
And it was not counted?
He did not live in Cayman. ( If that was the point of 10:39)
It’s already there. What aren’t you understanding? Covid is not going anywhere. You need to cautiously live with it.
We can actually continue to cautiously live without it.
Actually it is not here. If we maintain quarantine we can cautiously learn to continue to live without it.
Sadly the only way to live Covid free is to stay isolated. That means staying the way things are now – forever – . Find out what endemic means.
Just like everyone will get some kind of influenza, we will all get some kind of Covid one day. Just like the common cold.
Just like the common cold … if you are vaccinated.
Budget creaking under the weight of keeping government running while closing all else. Now is the time to spend more while you still have some left.
Waste and incompetence. Ineptitude and corruption. Thousands now feed at the trough.
Question is how come it took MP Hew so long to raise this question about the cleaning going out to tender. All these things should be publicly tendered to qualified companies. Just who is the single company that has been getting all this work anyway?
Hew is quite right, we surely have moved on from the days of backroom deals granting favors to gain wotes.
Because Hew wants the contract for his own cleaning company… would be my wild guess. It’s all “me, me, me” in there
Not Hew’s Janitorial they have had a long run at special treatment now it’s time for some other lucky company
It used to be Hew’s Janitorial but things have changed now that he is not influencing things sitting on the government bench but now in opposition.