Minister stands by consultation on new fees
(CNS): Financial Services André Ebanks is standing by his decision to engage local financial institutions in a consultation over proposed fee hikes next year. Premier Juliana O’Connor-Connolly has claimed that she was not aware of a proposal to implement a $200,000 annual fee on the Credit Union, among other financial institutions. However, Ebanks has said that his ministry was following the government’s budget policy statement by exploring proposed fee changes.
“This is being done in consultation with most financial services entities, including the Credit Union,” Ebanks said in a statement issued Friday evening. “When the Cayman Islands Government’s 2024/2025 Budget was approved by Parliament in December last year, it included a budget policy statement that gave all Ministries a broad mandate to review all current fees and consider new revenue.”
He said that this was to help the government meet its budgetary needs next year.
“It was expected that many fees would be considered that derive from financial services, including Cayman Islands Monetary Authority licence fees — those that might be suitable for an increase, as well as potential new fees. The Ministry for Financial Services and Commerce is therefore supporting Government’s budget policy statement by exploring proposed fee changes,” he added.
Ebanks said no formal action to change fees has been taken.
“The consultation process is designed to give stakeholders input into the recommendations that the Ministry prepares. I will then present analysis and recommendations to Caucus. Per standard procedures, Caucus will then decide which revenue measure recommendations to support. Caucus’ recommendations then advance to Cabinet for formal approval; and again, in line with standard procedures, any necessary amendment bills will be presented, debated and considered by Parliament for passage,” the minister explained.
“I appreciate all feedback that has been shared to date, including by the Credit Union. I also ask all stakeholders to continue providing feedback so that the Ministry can develop well-informed analysis in the overall best interests of the country,” Ebanks added.
Following the backlash from the Credit Union and public comments from the institution that imposing a fee on the bank would threaten its “foundational principles and financial stability”, the premier called into a radio show last week stating that she did not support introducing a fee on the civil servants’ financial organisation and that it would not make it to Cabinet.
The incident has served to further highlight the significant differences that now exist among the current Cabinet and caucus members of the UPM. Less than six months before the start of the official election campaign, the United People’s Movement is looking far from united.
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Category: Business, Financial Services, Politics
CIG cannot be balance sheet solvent if you consider unfunded health and pension liabilities. No politician seems to care.
Why do they need more money??
“Premier Juliana O’Connor-Connolly led a sizeable delegation around the region last week [as of 22/07/24] to take aid to islands hit by Hurricane Beryl ( … ). On Tuesday they delivered bout 17,500lbs of aid cargo, worth $100,000, to Grenada and to St Vincent and the Grenadines as well as cheques for $700,000 [‼️].
( … ) the delegation went to Jamaica with a donation of $200,000 [‼️].
Cayman gave $200,000 [‼️] to Grenadian Prime Minister Dickon Mitchell ( … )”
https://caymannewsservice.com/2024/07/jocc-takes-1m-in-aid-and-cash-to-islands-hit-by-beryl/
Look at the facts here. Class A banks pay up to CI 1,000,000 per year in fees. All other licensed entities pay fees and most of that goes to the general spending of the CI government. CIMA needs to operate. EVERY entity should pay their fair share to cover the cost of oversite for this jurisdiction, period. What that fair number is can be debated, but not the fact that every financial entity needs to pay.
CIMA Fee Schedule:
https://www.cima.ky/upimages/commonfiles/UpdatedFeeSchedule-25March2024_1712159885.pdf
EVERY entity should pay their fair share to cover the cost of oversite for this jurisdiction
They pay more that 1000 times the costs of oversite. The extra if for Kenny to operate loss making flights to Barbados, JuJu to build school monuments to herself in Cayman Brac, Jay to go look at cows in Jamaica, etc. etc. etc.
Dido said it best.
To the Ambassador of Absurdistan
Dear Ambassador,
It has come to our attention that since the events later known as the Covid-19 Pandemic there has been instances of your tender ministrations with some special attention to your involvement in the Island’s affairs through all branches of the Government of the Cayman Islands.
Your continued attention to overcome the limits of logic, reason and common sense are nothing short of spectacular and extraordinary!
Not only did you bless us with the barmaid strangler , the wife beater extraordinaire as well as the donkey rider, you are doing a wonderful job of keeping their presence in the headlines !A fountain of abundance for the inhabitants of the island in search of well deserved comic relief from their daily struggles with the lack of direction and rudderless governance that characterizes the island for the past 10 years!
At this stage of decline (both functional and structural) that your ministry has wrought, any strategic involvement of your countless armies (For clarity, Absurdistan’s military forces is fully composed of KFC chickens , cooked, uncooked seasoned with all 11 herbs and spices, but mostly headless, their armaments are styrofoam sporks and their means of transport consist exclusively of big wheeled water bikes filled with heavy metals) would be welcome as a joyful gift and an enlightening addition to the present electoral college and political representation !
You ceaseless efforts have gone so far that the government has now taken under consideration to tax , the government! We , at the Ministry of Silly Walks cannot even begin to comprehend the genius of the ideas your staff conceived !
With my Admiration ,
The Head Janitor of Starship Cayman !
👍😂🤯
Well said!
Do we grasp how much the Credit Union, and other Class A banks, are licensed to steal on USD->KYD->USD forex spreads, consumer credit card, and mortgage spreads, versus this $200k fee?!? Who is the villain again?
The villains in the case of the Credit Union are the shareholders who are the same people whose money is deposited there, whose houses and cars are financed, whose children are going to college because of the same Credit Union.
Maybe you should do some research before lumping the Credit Union in with the rest of the robber barons here.
Say it again!!! I really don’t like when persons comment on topics they have no clue about!!
Other banks, yes. Totally agree. The Credit Union? It has been and continues to be the only entity which pays its members a decent return on their investment.
My bank pays .5% on savings. I would actually make money by putting whatever money I have in a coffee can and burying it. After bank fees and yearly fees are taken out, that money hasn’t made diddly.
The Credit Union has taken a hit same as other financial institutions, and no longer pays the 6% or 4% it used to. Still, it pays more than ANY other Cayman Islands fund and enjoys the back of the government. You get what that means? It means it will be the LAST thing to fall here, and when it does, we are ALL done.
Chew on that.
You obviously know nothing about the Credit Union. Pls educate yourself before making a ludicrous comment concerning it!!!
Does the minister not understand basic economics? By raising fees to justify a government budget, simply means the cost will be passed to the consumer and hence the cost of living will only go higher, the minister should be considering ways to cut government spending in order to achieve the budget. One only needs to look at the number of government vehicles on the road that are used as personal vehicles, insurance paid by the government paid by the government and so on? $50 million on a new School in the brac. Where was the consultation process for this?
i have a dream,,,that one day cig will implement just one recommendation of miller shaw or e&y reports.
i have a dream….that one day cig will announce plans curb uncontrolled spending and expansion of the civil service.
how about attempting to tackle out-of-contril cig spending????…then you won’t have to invent new stealth taxes on people and businesses!
just another day in wonderland…..zzzzzzzzzz
What spending? They have so much money that they hive it away.
tax and spend…recipe for economic disaster.
A quicker recipe is spend and don’t tax.
It doesn’t take a rocket scientist to know that the UPM is not united. They are a group of individuals who all have different agendas called me, myself and I.
People are forgetting the level of debt that increased under their leadership PACT/UPM and their spending is out of control so they have to raise fees.
They want to raise fees versus addressing the cost of living. They want to raise fees instead of controlling spending.
They want to raise fees versus getting people off NAU and in jobs
They want to raise fees yet they just spent $45million purchasing land and raiding the environmental protection fund in some instances
I could keep going but you all catch my drift.
Could the Auditor General please get the financial results of the various ministries in the public domain this year so that people can hoping make an informed vote next April.
Can someone do something about the ridiculous fees charged by local consumer banks? You can’t shop around, as every bank levies stupidly expensive fees on different areas.
The charges to use debit and credit cards in an ever increasingly digitized economy are nuts.
clearly JuJu dont even understand how the process works SMH
Vote Juju out!
She is the Finance Minister that does not under sound fiscal management processes and views the role as an open check book for the Brac.
She is worse than McKeeva as Finance Minster easily the worst in our history
She wasn’t voted in.
TheCayman Islands governor appointed her as a new premier so she could fly around with suitcases full of cash “donating” it to whomever she wishes
This bit here: “He said that this was to help the government meet its budgetary needs next year.”
Andre, please don’t become part of the circus. Stand up for the “Honourable” man you really are and speak up against your colleagues.
If you need more money stop milking everybody else and look closer to home at ministerial overspending and whimsical conflicted projects against public wishes which in itself brings in a careful balancing obligation on the public purse, which they all seem to think is pocket money. Stop the “friends and family” perks and major conflicts. Stop them from fleecing us and ruining Cayman’s legacy.
Then look at spending policies, conflicts and inefficiencies in government generally. Teach them to aim to come in under budget instead of consistently over it.
This would in turn lead to MASSIVE savings that could pay off debts, bonds and other liabilities and actually result in a real and genuine surplus. Then it would be really nice if government could reward the public by actually reducing duties and fees and helping to bring the high COLA down for everyone.
Continuing with current fee practices is unsustainable and untenable. It’s time Ministers and CIG were more accountable to the public and the public purse for their massive failings. These failings will be the downfall and perpetual embarrassment of every government until fixed. No wonder we keep ending up on the grey list.
You Andre, of all people done know this already. Speak up.
Sorry… rant over!
More taxes(called fees here) needed because they have already spent everything on?????
Andre is playing politics. No mature Govt seeks detailed public input on fiscal matters. The consultation paper was put out by Andre mainly for political consumption….to test where loyalties lie.
Please, Minister, do not be so amateurish. Even at the level of consultation, you need to ask the Cabinet first to say if they are comfortable with the proposed fees going public. You have no clue how the government is supposed to operate.
Bye Bye Andre
And not to soon as he is as phony as they come.
Ah yes. Two typical Caymanian woters upset that someone with intelligence and integrity is in office.
What’s wrong he wouldn’t promise you a new fridge or pave your driveway!
Ah no I actually supported him until he decided to double down on the one institution in the Cayman Islands that regularly helps Caymanians and focuses on helping Caymanians.
I don’t vote, and even if I did I don’t live in WestGavistan, so no fridge or turkey involved.
so you “supported him” but “didn’t vote”. Got it.
I’m not sure you know what “doubling down” means.
Yet ANOTHER example of the country being run to serve the civil service rather than the civil service being operated to serve the country.
It has passed beyond unacceptable, through unconscionable, and into the absurd.
…indee,
A Civil & Public Service – with a territority attached……..as oposed to:
A territority with a Civil and Public Service attached…..
Time to man up and distance yourself from these buffoons Andre.
Wasn’t Andre with a different group and blindsided and abandoned them without even an explanation. Perhaps he should repay the monetary funding that he allegedly received from them before and during the election. Ever heard the saying ” spit in the sky it falls in your face”
Uhhhh, no. He was always an independent, never committed to or affiliated with any Party. He formed government with the group of independents and some party members who always look out for themselves first, party second and people last. He managed the mixed bag he was handed and has proven to be more competent and driven than the whole lot of them combined.
hmmm….who do you believe? Juju or Andre? hmmmmm….
Neither!
I mean… Andre… duh, he’s not the best but as far as i can remember he has never bailed on a cabinet meeting so he can protests against “the gays like Juju has done.
which is another question, why can i be fired as a government employee for being involved in a protests but the the ministers i work for can be out there with megaphones going to town?
For the same reason MP’s involved in single car accidents driving government vehicles are not alcohol tested.
CIG charging fees to CIG.
Somebody has to pay for Judasanna’s excessive spending and Kennef’s referendum.
Nothing wrong with Andre considering fee hikes and new revenue streams. If the $200,000 annual fee for the Credit Union is going to be controversial and voted down, then it will not be proceeded with.
Why is the fee being condidered for Credit Unions 10 times more than for Building Societies. They are more alike than the Credit Union and Commercial Banks.
But as we have this huge surplus, why do they need to increase fees? How about getting our electric bills down Mr Bead Rubber
Ahhhh, the old CI Govt buzzword “surplus”…..aka we can only pay next month’s bills.