UPM not prioritising economic decline, says McTaggart
(CNS): In his response to the United People’s Movement budget, delivered on Friday, Opposition Leader Roy McTaggart accused Premier Juliana O’Connor-Connolly and her new team of continuing to ignore the Cayman Islands’ broader economic decline and growing inequality gap, which he implied had emerged during the past two years. He accused the premier of failing to prioritise developing a strong economy, given that the GDP per capita fell by more than 10.5% in Cayman during 2022. The PPM leader urged the UPM to switch direction rather than follow the path of PACT.
It is hard to determine how much of this budget would still have been presented if former premier Wayne Panton had remained at the helm or how much the spending plan has changed to accommodate O’Connor-Connolly’s policy plans. However, as the opposition leader noted, there is almost nothing in the budget to meet the proposed climate change policy and the desperate need to start building resilience here, indicating that it is likely money has been reallocated.
Nevertheless, the PPM leader accused the UPM of making the same mistakes as PACT, particularly in its approach to economic growth. Taking aim at one of the core principles linking PACT’s policy platform with the UPM’s, as both claimed to have a people-centred government, McTaggart pointed out that the last Labour Force Survey revealed that salaries had not increased for many Caymanians, and while there were more salary earners in the top economic bracket, these were largely expatriate employees rather than local people moving up the ladder.
What was notable about the opposition leader’s response to the Budget Address was his position regarding population growth. He said that economic growth was very modest in 2022, but population growth “has spiralled out of control”. He said that at the end of 2022, the economy had grown by just 2% since 2019, but the headcount had grown 18%, which meant productivity had fallen dramatically.
Echoing concerns members of the public have been raising for several years, he pointed out that Cayman’s population was growing significantly without offering any economic benefit. Wages for most people had remained the same and inflation was crippling local families, while the rich were doing very nicely. He claimed the decline in living standards for many people was due to a lack of economic strategy over the last two years from the PACT Government, as he accused the new premier of taking the UPM down the same road.
“Is it any wonder Caymanains are concerned about unexplained skyrocketing population growth?” he said.
McTaggart claimed the PPM had prioritised the economy but said nothing about how the PPM-led government policies contributed to the problems of today, including the beginning of the unprecedented population growth. Instead, the opposition leader said that during the governments he served in, the population and economy had grown in tandem.
Despite the over-simplistic explanation of Cayman’s current economic troubles, which have been fuelled by a range of complex issues since the pandemic, many people are feeling far worse off today than they did just a few years ago. Meanwhile, over the last four years, Cayman has seen an influx of people resulting from the economic policies pursued by past and present governments, such as the continuing addiction to cheap labour, the constant development of high-end properties around our coastline aimed at foreign wealth, and initiatives like the Global Citizen Programme
McTaggart accepted that the growing population is not necessarily beneficial to the broader community, but said that stopping immigration would not necessarily address that problem. He urged the UPM to “think deeply and consult widely” about their proposed immigration reform bill, which the premier said her government planned to bring before the 2025 election.
“We need to get this right,” McTaggart stated about the potential overhaul of immigration, which has posed problems for the Cayman Islands for decades as governments tried to address the shortage of specific skills in a small and limited workforce to supply a large financial sector amid pressure to allow employers to seek the talent they need overseas. However, while the need for a foreign workforce was once about finding the right skills, today, it is more about hiring cheap labour.
McTaggart said that getting the immigration balance right first meant the government had to have a better understanding of the economy. He pointed out that Cayman’s workforce had increased in 2022 but was producing less than in 2019 when there were far fewer workers. The Economics and Statistics Office does not routinely look at productivity, which he said was something it needed to do to help the government shape its immigration policy. McTaggart claimed that his own rough calculations indicated that productivity over the last two years had declined by some 18%.
“The new government must urgently get to grips with this issue because we know that the marked decline evident in the 2022 figures has likely continued in 2023,” the PPM leader stated, adding that he estimated a further 5% decline in productivity this year.
He said the repercussions of neglecting to understand and address these economic challenges are affecting households across Cayman. He spoke of the serious impact that inflation is having on families as well as crippling interest rates, which was reflected in the 45% increase in families going to the Needs Assessment Unit for help. The household income for working families has been squeezed, and while expatriates in the top income group do better than ever, most people’s income in real terms has fallen.
Aside from taking aim at PACT’s past actions, McTaggart also questioned the new UPM administration’s spending plans for the 2024/25 fiscal years, especially its decision to borrow to fund “pet projects”, and accused them of getting the priorities wrong. He took aim at plans for the airport, especially the $42 million upgrade to the General Aviation Terminal for wealthy travellers being funded by those who will only see the new terminal “in the distance”.
McTaggart said that by the end of this administration, PACT and the UPM would have increased debt by half a billion dollars. He said that given the revenue that the government was collecting, it should be able to fund its capital projects from surpluses and live within its means. He said that the fees the premier spoke about being increased would at some point impact ordinary people, as he accused the government of creating a free-for-all in operational spending and saddling future generations with the bill for their grand plans.
Watch or read the opposition leader’s response to the budget below:
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Category: Government Finance, Politics
End the CIREBA cartel’s price fixing now. Introduce competition law for realtors. Easy
Competent leadership not available at this time. Sorry, not sorry for the inconvenience, but thanks for the massively overpaying job with massive perks. I won’t let me down.
When those in charge of you and your families can only think of themselves and their families you are redundant. And you deserve it. Good bye Caymanian middle class.
Even in areas where I agree with the PPM like the strange school in the sister islands or the airport terminal for private jets – their criticisms hold little weight when they are the ones who mismanaged every capital project they undertook historically going back to 2005 from the Dump, to the East West Arterial (and general road expansion projects), to the new High Schools, to the Airport expansion project
For the PPM to be lecturing anyone on responsible spending, priorities or areas of concern like rampant development or immigration is the pinnacle of shameless hypocrisy.
People here might be forgetful on specifics Roy but few can forget the general decades long trainwreck that describes the 3 PPM led administrations in the last 20 years and the debacles you and your ilk championed for ‘love of country’ a lie so bold and outrageous I am genuinely surprised any of your members are even capable of uttering it without bursting into flames from magnitude of the untruth that they are producing
” … McTaggart pointed out that the last Labour Force Survey revealed that salaries had not increased for many Caymanians, and while there were more salary earners in the top economic bracket, these were largely expatriate employees rather than local people moving up the ladder.”
Correction Mr. McTaggart, you very well know that everyone of you MPs are in that “top economic bracket” because YOU approved salary increases to the tune $300k per annum. So you can get on your bloody soap box for 10 minutes (out of an entire year), but then go home and sleep well because the $300K can afford CUC, Water Authority, mortgage, insurance, food and the list goes on. You, I am afraid are not representing us Caymanians, not for one bit. Just so you know, that $1billion+ budget is paying for your ridiculously exorbitant salary and your friends pet projects. But as the ole people say … “Time longer than rope”.
two things can be true at the same time and I believe that both he and you are right.
At least he is pointing out the issue which affects more people.
All these capital expenditure funds being directed to various vanity projects – yet nothing has been allocated to remediating the dump that grows bigger and uglier day by day!?
Come on MPs, we realize that you all suffer from a complete lack of intelligence and competence, but you need to start getting your priorities straight and pulling in the same direction for the benefit of the people at large – not yourselves and your egos.
Or a light rail system.
Our grandchildren will be paying for this excessive spending. Does anyone in the public fully grasp what is happening here? This government will put on over half billion in DEBT that we will struggle to pay when the economy slows down.
The revenues collected over the past 2 years was based on record real estate sales so common sense will tell you it is not sustainable and to rely on same is stupid!!
Raising permit fees hurts small business and doesn’t stop the amount of work permits being issued to middle class workers.
The Opposition can’t sound the alarm alone.
Please people wake up and start a petition.
I’m not clear- where can I sign the petition you’re starting?
🤷🏻 🤷🏽♀️ 🤷🏾♂️
Re post at 10:00 am. The reference to our grandchildren paying for thie failures of Government is true but I wonder how many of our grandchildren will even be residing here. Many are actively looking at alternatives.
It’s hard to believe that the PPM can’t admit that they failed to take remedial action when they were in power. Stop the blame game. You all have ruined this island, Socially, economically and environmentally.
If you value the personal and intellectual growth of your children, you will get them out of Cayman. It is becoming rather insular and feral.
There is so much more culture in other places.
Governments are not households and the sooner people realise that the better – a Government incurring debt to pay for capital projects is not necessarily a bad thing it just depends on the cost to deliver, efficiencies and benefits of the projects which are where the real issues lie
Stop framing government expenditure as if it is a household the questions that need to be asked are whether these projects going to be worth the money spent on them in 5-10 years and what other projects were turned down to fund strange ideas like a new school on the Brac – an area that in all liklihood will decline in population significantly over the next 10-15 years as older folks die
Never going to happen Guido. Never.
Does not matter which party Roy McTaggart is associated with. Listen to him. He is not wrong.
Well said Roy! He’s said what the majority of us are thinking. Thought we already said no to the port and the PPM listened. I was not always a fan and they may not have always made everyone happy but they certainly listened to the public more so that the UDP, PACT, UPM. No port for Kenny, fix the dump, and no need for a 50 million dollar school in the Brac. We are tired of subsidizing them. Any increase in fees and duties by the government will be reflected in prices increases that only make it more difficult for the lower and middle income earners to afford. Any project over $20 million should be brought forward and voted on by the people. Government should prove to us why it is needed. No more pet projects!!!! Thanks Wayne and to a certain extent Andre for making the wrong decision when it counted two years ago. I will not be voting for the same representative again in West Bay South. No thanks.
Agreed. Roy is almost alone as a politician in what he says is good for Cayman. Obviously with his pedigree he understands finance whereas the current team has no clue. Certainly he would ensure we have feasibly studies before flying south to Barbados. This daft idea replicates the decision of Jim Bodden to fly to the Turks. We know how long that lasted.
Get the name right Roy. The new party is the NewDP. Or NUDP.
Thanks Captain Obvious.
Ju-Ju and her little gang doesn’t care one bit and will press ahead as they see fit; to benefit themselves and their select associates. The rest of us can go eat cake.
Whatever problems we thought existed with Wayne at the helm are now ten times worse. Her and Kenny and the rest just in cahoots to spend spend spend. This is NOT ok.
Since she took power I haven’t seen one single positive comment about her.
…which is exactly what Roy would be doing right now if he were in “power” (i.e. Alden’s puppet “leader” of PPM).
Don’t be fooled. He stumbled all through his speech yesterday, likely because it was his first time reading the script that was written for him. Shameful. At least NuDP aren’t lying to your faces.
Fix the dump!
Damn it!