Land Sales Down - Again!
A governmentdisclosure that the value of land sales between April and Junethis year has plummeted 23.5 per cent to $65 million is makingreality of a private organisation's forecast that current nationaleconomic policy will lead to a downturn in real estate sales.
And even as the Government Information Servicerelease speaks of the second quarter drop in sales value thatprivate organisation, Cayman Islands Real Estate Brokers Association(CIREBA), is saying the volume of sales is 35 per cent below thatof last year.
CIREBA is blaming this real estate slumpon a number of factors affecting the country ranging from externalpressures to current legislation which it says if left unadjustedwill destroy a large part of the financial industry, and wenton to list a number of woes that could take the Cayman economyto ruin.
"Prices are coming down. Some of thisis a result of a much needed price correction, some is due tothe Stock Market and the United States recession - but much ofit is due to the expected loss of confidentiality and the difficultyof doing business here as a result of our negotiations with theOECD/FATF. If we follow through on FATF and OECD legislation withoutdoing what we can to temper it to allow for user-friendly financialinstitutions and the continuation of the private banking industry,we will experience the following negative spiral to some degree.We think it will be to a greater degree," CIREBA says.
Among 23 areas of negative spiral mentionedby this organisation, the one that points directly to governmentand this organisation's report on the real estate slump this year,is a desertion of this country by mutual fund owners resultingin no need for workers at these fund offices to remain here forlong periods.
"The employees of the fund will notbuy property because their immigration tenure will be short term."
This issue of a lack of trade and perhaps a consequent drop inland value seems a precursor to an all-round gloom poised to smotherthe country.
In a letter to Financial Secretary, HonGeorge McCarthy, which the organisation made public, CIREBA dismissedwhat appears to be a government suggestion of a public relationscampaign to lift the image of the Cayman Islands.
"If this government is willing to makean honest effort to mitigate our losses we will continue to help.But we cannot support the use of precious public funds on a PRcampaign which is doomed from the start. We feel your effortsin this regard are misguided and misdirected," it says.
The organisation's contention is that asolution to the current situation lies in significant adjustmentsto legislation governing the financial industry.
"We still have an opportunity to lessenthe effects on our economy by taking steps to fine tune the existinglegislation and commit only to currently accepted InternationalStandards (not what some bureaucrat hopes they will be) with regardto money laundering and confidentiality."
Pressing its point for changes to the relevantlaws CIREBA says that the administration is not working underthe same conditions during the time the legal commitments weremade.
"We must take this opportunity anduse the level playing field principle to arrive at our country'sfinal policy in this regard. We cannot afford to let bureaucraticagendas, pride or ego - or for that matter fear - keep us fromattempting to save our economy," the organisation argues.
In its listing of the various areas characterisingCayman's downward spiral the Association drew up a scenario thatspoke of a breakdown in every link of commerce and a rise in crime.
At the same time, CIREBA asserts, therewill be a fleeing from the country of those who can expatriatesand Caymanians alike.