No decision on licence fees says Financial Secretary

Financial Secretary,
Hon Ken Jefferson

Thursday,  February 9, 2006

Government said it has not finalised which new measures it would implement to raise revenue needed for major capital projects in the next financial year, beginning 1 July. 

In the Wednesday, 8 February 2006 edition of Cayman Net News, a source close to the Government said vehicle licence fees would rise to as much as three times to help finance the projects.

Financial Secretary, Hon Ken Jefferson, said Government is considering a variety of measures to service an additional $25 million expenditure but no final decisions have been taken. 

On the question of a possible hike in vehicle licence fees, he said there is “no substance” to that claim made by the source in the Cayman Net News report. 

“We have not set any particular measures in place yet, so there is no real substance to that claim that we are going to raise vehicle licences,” he said.

Mr Jefferson said Government is in continuous discussion with numerous organisations as well as the general public ahead of Budget Day on 28 April 2006. 

“Government has met with the financial services and various associations to get their opinions and thoughts on possible revenue sources, but there are no definite measures,” he disclosed. 

The new capital expenditure is needed for new roads, new schools, public offices, and equipment for police and the development of other social services, Mr Jefferson said. 

The current Government intends to service the $25 million expenditure through existing revenue, new revenue and borrowing from financial institutions, it has said on a number of occasions.

Mr Jefferson said consultations with the business community and the general public are ongoing and the final decision would be taken afterwards. 

“Government is committed to consulting widely as possible with the public before considering which measures to implement,” he said. 

He stopped short of disclosing the measures that were proposed by the private sector organisations and if any were receiving the attention of Government. 

“We’re considering a variety of measures but I am not going to say what they are right now,” he said. 

During the 30 November sitting of the Legislative Assembly (LA), the Leader of Government Business Hon Kurt Tibbetts, said a total of $245 million would be borrowed for capital projects.

In defence of the proposed huge spending, Mr Tibbetts argued that the public sector could realise $450 million in assets as a result of the borrowing. 

The upcoming projects will see the Government spending $235.6 million, according to a Strategic Policy Statement presented to the LA by Mr Tibbetts.

In the parliament, his ruling People’s Progressive Movement backed the plan but the opposition United Democratic Party led by McKeeva Bush distanced itself from it, saying it would burden the Cayman Islands with taxation.

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