UPM ‘playing catch-up’ on public project spending
(CNS): Premier Juliana O’Connor-Connolly defended the UPM’s first budget, once again, on Friday when she told the business community that public spending on capital projects over the next two years was about “playing catch-up” with local infrastructure, which is necessary because of the significant population spike over the last few years. The premier, who has been a member of almost every government since she was elected to represent the Sister Islands in 1996, blamed “previous generations” for not recognising the country’s infrastructure needs.
“We are seeing in today’s Cayman some of the effects of previous generations not recognising these problems,” she said during her address at the annual Chamber of Commerce Economic Forum. While she accepted that some of the issues may have been unforeseeable, the government now has “the luxury of time and the gift of foresight” to plan ahead and ensure “adequate facilities for our continually growing population”.
The UPM Government has been criticised for the amount of money it plans to spend over the next two years on starting, continuing or completing major projects, and O’Connor-Connolly has defended the budget on a number of occasions.
“Right now, we as a country are faced with the task of playing catch-up in so many areas. We are trying to build roads, houses, schools, waste-management facilities, sewerage upgrades and more to deal with a population that has grown faster than our infrastructure,” she said on Friday. “With our planned capital projects, we are not only trying to catch up but also to adequately prepare for future growth. We are, in short, ‘future-proofing’ since we have the resources to do so today.”
However, it’s not just the amount of money the government plans to spend on new infrastructure that has met with criticism but the borrowing to fund it. In defence, the premier told the Chamber audience that while the new capital projects are to be funded with $150 million in loans, this will not “unfairly load future generations of Caymanians with a burden of public debt”, as has been suggested by the opposition and the wider community, because “the borrowing is prudent, responsible and well within the FFR stipulations”.
The added borrowing will not push Cayman’s debt-to-GDP ratio beyond 10%, as required by the Public Management and Finance Law, making it one of the best debt ratios in the world.
“The 2024-2025 budget has been crafted with our people foremost in our mind,” the premier said. “It offers an approach filled with hope and optimism for the people, inclusive of residents, of the Cayman Islands, and demonstrates the UPM Government’s ongoing commitment to the responsible management of public finances. It is also a reflection of our top priorities for the well-being of our people.”
She said the government had done its best to be “strategic, intelligent, prudent and farsighted” in the allocations of funds.
“The journey to this point has been a challenging one, and I am sure that the path ahead will bring its own unexpected twists and turns,” she warned. “However, we have planned and prepared for the proverbial rainy day while also seeking to expand for anticipated future growth. I believe that with our society’s strong, sound economic base, the projects this government is undertaking will go a long way in ensuring sustainability through infrastructural development, improved educational standards and sensible environmental policies.”
The UPM has committed to a massive spending programme that includes some $10 million to buy land for public use, at least $50 million for a new high school on Cayman Brac and millions more on existing infrastructure improvements to primary, secondary and tertiary education facilities. Around $3.7 million has been set aside to construct a new Department of Environmental Health facility on Grand Cayman and replace that department’s fleet. About $2.5 million has also been budgeted for a new Mosquito Research and Control Unit plane.
The Ministry of Home Affairs is expected to complete the design and pre-construction work of a new prison at a cost of $3 million over the next two years, and a whopping CI$26.5 million has been earmarked for roads. A home building and repairs project for those in need under the oversight of the National Housing and Development Trust will receive CI$15 million in the 2024 and 25 budget, while the landfill remediation project has been allocated another CI$1.4 million.
Meanwhile, the Ministry of Tourism and Ports is expected to spend around CI$2 million over this budget cycle on the proposed tourism attraction site on the waterfront in George Town. It also aims to start work on a massive airport development project, including $42 million on a controversial new General Aviation Terminal for private jets and $27 million on a runway expansion.
See the premier’s full speech below:
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Category: Business, Government Finance, Politics
Some talk because they have something worthwhile to talk about while others just talk to hear themselves. Juliana just talks to hear herself and we all have to pay for her foolish verbiage. Talk about switching a donkey for a jackass!
Population spike of work permit holders here on a permit with no means looking for work. That’s the population spike as far as i am concerned.
But we can’t find $250K for a glass crusher 😢😢😢
How about catching up to the rest of the world for CIG’s 40 plus years of dereliction of duty regarding solid waste?
we need an election to upgrade the sewerage at the parliment
JuJu version of Pokemon Go. #gottaspenditall
She was a art of those past Governments who failed to see this problem. Now all of a sudden we are “playing catch up”.
I guess they weren’t paying attention.
We need to play catch up on saving. The biggest financial period of growth in Cayman’s history and not a single dollar of retained earnings for the certain storm recovery missions ahead…with previews running today.
You do realize retained earnings is not the same thing as cash on hand or money in the bank.
I think the person meant cash reserves
We love you Premier O’Connor, please be strong and lead us to victory!
You’re trolling bobo @ 11:07, right?
#notmygovernment #notmypremier
Yes it is, 10:42, whether you like it or not and even if you didn’t vote for it.
chamber should have walked out in protest.
anytime she is in public…she should be asked the following question:
How many recommendations of the miller-shaw or ernst & young reports have been implemented?
I just want to hear the business case for the high school in the Brac. must be a hell of a population increase they see coming in the near future.
The business case is that her brother is a Brac Contractor – FACT
would be interesting if he got the contact for the school…
I love that burn in the last sentence of the 1st paragraph. Keep reminding us of the truth Wendy!
What waterfront tourist attraction?! First I’m hearing of it
How you never heard about Kenny Beach? You should know then that he spent our $7 million dollars on the land alone. Political favor and all that.
10,000 sq ft, do the math yourself.
Kenneth bought the land from Ernie Smatt…hmmmmmm..
Spending on school infrastructure and nothing on improving education standards?!
Who voted for this government?
JOC. Keep a few dollars aside as my road/driveway/parking lot* (* delete as appropriate) needs doing soon.
Sounds like a hostile take over