Bush wants 100% local ownership in range of businesses
(CNS): McKeeva Bush MP is filing a private member’s motion ahead of the anticipated parliamentary meeting on 5 July calling for a moratorium on Local Companies (Control) Licences (LCCLs), which are companies operating in the Cayman Islands that are not majority-owned by a local person. The motion seeks to limit the growing number of LCCLs and carve out a list of business types that should be 100% Caymanian-owned.
These include real estate and property firms, construction companies valued up to $1.5 million, car rentals, light-technology businesses valued up to $2.5 million, and watersports operators.
Speaking on Radio Cayman’s Talk Today last week, Bush said the motion asks the government to arrange for the Cayman Development Bank to give loans to local people so they can set up businesses. It also calls for the government to introduce a fee for foreign developers of condo complexes and hotels to place money in a fund that will be used, under specific conditions, to buy land to sell to Caymanians at a subsidised rate.
The motion is seconded by Chris Saunders. Both men said the aim of the motion was for more Caymanians to benefit from the development of the Cayman Islands. Bush said the constitution paves the way to favour Caymanians.
He noted that for many years, there were around three dozen LCCLs. However, that number has exploded in recent years, and there are currently around 250 such licenses in which Caymanians Caymanians are not involved at all or where they own less than 60% of the company.
Explaining why he had agreed to back Bush’s motion, Saunders said people were working hard and getting nowhere as the middle class was disappearing in Cayman. He said it was time for things to change and for the “difficult conversations” to happen.
Saunders said he was concerned about how “bad mind” has impacted the country and how unscrupulous business owners have come to Cayman and found a home here after being run out of many other places. He spoke of the oppression of Caymanians by some foreign business owners.
“At some point, a line needs to be drawn,” he said. Caymanians have lost economic power, but they have not yet lost political power, he said and warned of the potential emergence of far-right politicians who would “mash everything up”. He stressed the need to address the issues that could fuel such a rise, such as the marginalisation of Caymanians in business.
Bush said that the motion was not “anti-foreign national”, adding, “That’s not what this is about.” He noted that the standard of living in Cayman would not be possible without foreign investment.
“Perhaps… I would like to have seen the back of some of them a long time ago,” he said, but Cayman is a democracy. “We don’t want to go that route,” he said and spoke about “sensible nationalism”.
Bush said Cayman had developed to the point where people are feeling left out and the motion was designed to help people here get something out of the development.
Bush remains an influential figure in the UPM government despite sitting on the back bench, but he has not said if he expects support from his front bench colleagues to ensure passage of the motion.
However, the government can accept the motion without necessarily implementing it. PMMs are not binding on the government but require the Cabinet to consider the proposal to determine its viability.
See the relevant edition of TalkToday below:
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Breaking news! NOBODY gives a shit want macbeater wants. He’s a clown that needs to go away.
Big Mac suddenly realizes that after all those years of selling LCCL licenses when he had the power, he should have been renting them.
im all for being open for business but I have always found it strange for foreigners to be selling property and land in Cayman.
Airbnb and rental should only be permitted for Caymanians. This will help lower prices to enable Caymanians to buy a home. You need a work permit for any other job so why not property ownership and rental?
All DCI and government would have to do is actually get off their butt and enforce the penalty provisions of The TBL Act and LCCL Act to fix the issues they bring up in this article… The laws are in place already, the government just does not enforce them….
“fund that will be used, under specific conditions, to buy land to sell to Caymanians at a subsidised rate.” The specific conditions being whose “re election” fund you contributed to, and which realtor you used. Good news is either Mac or Kenny can help you out on both aspects – Chris needs to widen his game.
only a handful of wealthy caymanians will benefit from this idea.
I count 4. Dart, Dart, Dart, and Ryan.
Take a good look at those two folks, they are a threat to the well being and the interests of the Cayman Islands and all of her people whether those people may know it yet or not.
This proposed bill is nothing more than a charlatan attempt to divert attention away from their very own wrong doings which has created the situation which they are now disingenuously attempting to act as if they are not themselves the reason for the situation in the first place.
Neither of these individuals, or anyone else like them, deserves any position of leadership, power and/or influence.
Cayman needs change.
They are not it.
While i agree with you on those two, it doesnt make this a bad bill
So Mac wants to use CIDB again as his own personal checking account, lawd have mercy.
And look who they got in charge of CIDB now, Mark Scotland, another UDP-ite.
GOOD NIGHT HANNAH
A little bit too late Mack…..
As a proper starting point, any entity carrying out business in the Cayman Islands should be 100% Caymanian owned and controlled and, if not, there should be rational and proportionate justification for an exception for such requirements.
The 60/40 % control and ownership rule has been used and abused at the expense of Caymanians, as well as the relevant legislation is, at certain times, ignored altogether. When things are broken, they need to be fixed.
Let me boil this down for y’all. The change is now simply asking to be paid to front for 100% of the business instead of the existing 60%. Got it?
What or who is this for? That gate has been opened too long!! Is not Dart and many more Developers now Caymanians, sue their friend Developers could be the other 40% will be them. And the cycle continues. I smell a dead rat!!!
The answer to all these problems for Caymanians is to become a civil servant.
Low hanging fruit. Start with the work permit holders working in bars on smb etc that are running businesses on the side being fronted by Caymanians.
This is a classic bait and switch. Blame an absolute minority of businesses whilst letting foreigners from Jamaica and everywhere else get away with murder running businesses on the side well within the rules!!
How about we ban Caymanians from selling out our islands and people fronting for bar staff on SMB, wives of expat lawyers etc.
Can’t do that. What’s good for the goose after all?
‘More Caymanians to benefit from development’ or to put it another way … ‘to enable a few well placed Caymanians to benefit’ no doubt including Bush, Saunders and their cronies.
This should have been done 10 yrs ago. Mac i never look a gift horse in the mouth, but, when you were all cushy courting every cash carrying foreign national with deep pockets you were fine with us sitting at the bottom. What changed may i ask? I personally know people who were here on minimum wage getting business loans to start what have become million dollar a year businesses, while the banks claimed me and many others couldn’t qualify. How can we be outnumbered in our own land.
LTD da unboozler
I endorse this bill.
It takes nothing to become Caymanian so there wont be much impact. He’s maybe 20 years too late. You have to change the immigration laws FIRST.
That horse is gone.
Agreed. Immigration reform is necessary. Not everyone the world over can be Caymanian.
Process the bag logged PR and status grant applications, then close the doors for now.
Our population is growing faster than we can cope with, without getting left behind, and there are solutions.
The Cayman Islands were once the Islands that time forgot, then, when time caught up and modernization occurred, it forgot about the Caymanian people (our most precious resource).
It’s time to recalibrate things.
Immigration legislation, as well as amending the Local Companies (Control) Act and expanding its scope to cover all businesses entities carrying on business in the Cayman Islands, should all be on the table.
Immigration reform (with fairness to people entitled to apply under existing legislation for grants) should be carried out simultaneously with relevant amendments to LCCL legislation that are necessary (for preserving and protecting carrying on business activities, in the Cayman Islands, to be in control and ownership of Caymanians).
There is no need to import foreign unscrupulous business owners: there are more than enough of those available locally.
On the face of it , this is just a pre election populist ploy, but in reality , these two have teamed up to further their personal agendas, leading Cayman to Independence.
Both are power hungry, greedy and very very dangerous.
Exactly!
Bush is a POS, but he’s correct that this needs to happen (and is lonnnnng overdue.)
True dat.
Love him or hate him, he’s got the right idea here. Pity that the rest of our politicians have had no intention of proposing anything to benefit the rest of the country. Sure, big Mac will likely benefit too somehow, but this is him acting like it’s the 1990’s again.
Great ideas, idiots. Caymanians, we have got to do better with our politicians. These people have sold our children’s futures and lie by saying it’s expats faults.
WE got Kenneth tho’
Mac will forever be guilty of the 3,000 status grants in 2003, but the points he made are not wrong.
The fault doesn’t necessarily lie with expats, the fault lies with Caymanians for letting the situation get out without a satisfactory and effective resolution.
And once you lose brain power you can sit in the LA.
Not for too much longer. Even the intellectually challenged are realizing that idiots making policy decisions is a very bad idea and will negatively affect them down the line.
did you watch the US debate last night… bush looks like a genius compared to those two clowns…
100% Dart owned.
Anti- trust legislation is needed for people like the dart family, whether Caymanian or not, to ensure that vulture capitalists do not corner the market.
There are 14 accounting firms on that list. Why is there a need for 14 accounting firms in the Cayman Islands owned by external interests?
The local accounting entrepreneurs are taxed heavily by the Regulator CIIPA, DCI, WORC (if you have expat staff) and others and find it difficult to thrive and grow when they have to compete equally with the giants from all over the world.
Perhaps it may be useful to look at taxing LCCL in a different category and offset some of the tax burdens on small accounting firms.
All agreed. Equally important, the principles of Caymanian ownership and control should apply equally to law firms (as they do to accountants and other local businesses).
Local Companies (Control) Act does not apply to lawyers and law firms, but it does to accountants and accounting firms as was other local businesses. Things need to be on more equal terms.
This is soooo short sighted. Those firms fund most of our existence. Those are not the companies you need to worry about.
You need to worry about all the teeny tiny fronts that exist left right and center. There’s already a law against that. It just needs to be enforced.
You’ll never get a full moratorium of LCCLs…how is Hyatt or Hilton going to give up 60% to a Caymanian? So, you need to focus on the realistic which is to enforce current anti fronting laws (which btw require a consenting Caymanian to an evade) and go from there.
No sense in new laws when you can’t enforce the existing ones.
Can you articulate how foreign-owned accounting firms fund our existence?
Like the labor pool, the country should only allow 100% foreign-owned firms to come in under an LCCL where there is a need and a shortage in the local market of a particular industry.
Whilst the big 4 could be valid exemptions (since they all compete with each other anyway), there is no justification for small and mid-tier firms to be given exemptions to be foreign-owned. This means that profits will most likely be repatriated, and staffing will most likely be work permit holders.
Part of the issue is the lack of access to capital. As long as foreign-owned firms can compete directly with the local firms the playing field will continue to be tilted in their favour.
CIIPA charges $5,000 per year for each licensed accountant, DCI charges $2,500, and if you have foreign staff, WORC requires another $13,500. That is $21,000 and the person hasn’t earned a dollar for you as yet. Add to that the firm registration fee, trade and business license etc. and one can see how difficult it is for Caymanian Accountants to get their foot through the door to set up their own firms and compete with those foreign-owned operating and taking revenue from the local market.
Foreign firms benefit from tax-free income (compared to the jurisdiction of the owners), but what benefit is there for local firms?
I support the notion for the list of companies with LCCL to be reviewed with a view to only allowing those where there is a need and a shortage in the local market. That is how it started, I’m not sure how we got to where we are.
This is the problem with Bush. Sometimes he talks sense. But no one can take what he says seriously anymore, can we?
no, as of 20+ years ago. He is a disgrace. Cayman voters are a disgrace to keep him in office. Cayman deserves what it has elected – expats are the ONLY element to save this piece of rock for a few more years, and we will leave in an eyeblink when necessary! (Yea, you won’t like this reality check, but the truth sucks).
Hey Guys
You do realize you passed a Trade & Business Licensing Act that no longer requires Caymanians to be in actual ownership of anything?
Section 2.:
“Caymanian owned and controlled” means, in the case of a company, where no less than sixty percent of —
(a) the voting rights attached to each class of shares in the company is
beneficially held by Caymanians; and
(b) the directors of the company are Caymanian, and that sixty percent of the voting rights and directorships is enjoyed by Caymanians, to the exclusion of any other person, and cannot by means of any arrangement, artifice or device be exercised either directly or indirectly by persons who are not Caymanian;
This means that Caymanians only need to own the voting shares. They need not have any genuine ownership or profit share even without an LCCL.
Our government has failed us. Who do we hold accountable, and how?
The Minister of Commerce directs policy with respect to the Trade and Business Licensing Act and the Local Companies (Control) Act. Perhaps starting with accountability there is not a bad place.
>This means that Caymanians only need to own the voting >shares. They need not have any genuine ownership or profit >share even without an LCCL.
What do you think ownership of voting shares means when it comes to owning a company versus whatever you think “genuine ownership” means?
You can have different classes of shares. 1,000 voting shares and 1,000 profit shares. The law no longer requires Caymanians to participate in profit shares, at all.
No, it means what it says. Majority control of the voting shares, which allow the replacement of any of the directors and the control of the company’s management, and 100% of the directorships. That’s control of the company. The problem is not the law; as usual in Cayman it’s enforcement of the law. Fronting by Caymanians
who hold the shares under a private deal not to exercise voting rights or control or on the back of “loans” which allow the shares to be taken from them if they don’t play the game, and wholesale granting of LCCLs where no local ownership is needed. LCCLs are only meant to be awarded where there is a clear advantage for Caymanian having the company and no Caymanian prepared to invest. 250 LCCLs? Really?
Hopefully voters in Bodden Town West are making note of who Saunders is joining up with. Hopefully they will be alarmed now if they weren’t before. He has always been a Big Mac follower and is an “ends justifies the means” politician as long as the ends benefit him.
Oh yes we are!
Nevertheless HELP is on the way!!!
BTW voters will not see anything wrong with this partnership. They will be encouraged that this is just another step towards the Jamaicanisation of Cayman.
I smell 2 rats. With these guys its always about money into their pockets or votes in an upcoming election. I don’t disagree with the concept but coming from these 2 you have to be on guard. Bush was the man responsible for elimination of the Caymanian Protection Law back when he was brokering a deal to sell Island Companies, a locally owned jewelry business to a 100% foreign owned company. He got rid of Caymanian protection then for a big personal payoff and now he’s acting like his people have been victimized by the same LCCL law he ushered in. He’s very good at talking out of both sides of his mouth.
Is there anything we rue the day of that he or Jim Bodden weren’t responsible for?
A new and improved version of the Cayman Protection Law (on steroids) needs to be injected and reintroduced that is extended into every business sector, employment and immigration policy, as well as into real property ownership considerations and policy to ensure that Caymanian ownership and control of local resources is not depleted further than it is already.
Why the Cayman Development Bank? Why not First Cayman Bank?
Real estate, property firms and construction companies up to $1.5 million – that’s not going to make a significant difference. This figure should be substantially higher than that. McKeeva has done nothing in the past to stop this from happening so why is he so concerned now about non Caymanians running businesses?
With the 3,000 status grants, which was aimed at the UDP getting votes in due course, was a failed attempt and now Mac, more than anyone, is needing to right some his wrongs to the Caymanian people.
Mack – You gave many those unscrupulous business owners and developers status. Much of the problem is of your making!
This is the same fool who sold Cayman and Caymanians out on 31 December, 2003 (aka the Mass Status Giveaway).
Now, having fully Jamaicanized the place, he’s playing from the Mugabe Policy Manual.
Very good proposal, despite the messengers, that takes the pragmatic view of understanding that Caymanians require commercial opportunities, which, at many times, have been intercepted by non-Caymanians (for whatever reason, whether with innocent intentions or not).
LCCLs are being granted too freely and, when companies controlled and owned by non-Caymanians carry on business in breach of the legislation, there is poor enforcement by D.C.I. and the DPP, as well as a nonchalant attitude taken by the courts to such breaches by non-Caymanians.
This is an important issue of Caymanian protection for opportunities in business and in ensuring Caymanians enjoy and control the socio-economic benefits in the Cayman Islands, rather than being marginalized, as it now stands.
Let’s hope this is not merely pre-election rhetoric, which is intended to prop up these MPs favor with the electorate, but instead genuine desire to do right by the Caymanian people. Good idea. Now let’s see action.
First Mac is never far from anything that could be used for corruption.
Second this plan would just let all the people he enabled to become Caymanian earn more income from Fronting.
Third no one should have any faith in CIG to be picking which industries to “protect” for Caymanians and who should benefit. More use of the Cayman Development Bank to funnel cash to favourites or some politically appointed board getting to decide who gets subsidised land is frightening
This is a very bad idea which hopefully does not pass.
The idea of Caymanian protection is a rational and logical notion in the Cayman Islands for relevant topic areas (including business, profession and employment, as well as immigration policy).
It is also the law. A law that has been ignored for two decades.
once you lose economic power, you lose political power.