Up Front
House Approves Additional Fundsfor 2001 Budget
In a special meeting of the LegislativeAssembly held on Monday, 12th February, to consider an $18.78million advance of the 2001 budget to continue the operationsof Government, MLAs voted unanimously to approve the funds requested.
In addition to the $69.5 million already advanced under GovernmentMotion 03/00, approved by Legislators in November 2000 for the2001 financial year, the $18.78 million represents $12.77 millionrelating to recurrent expenditure, and $6.01 million of capitaldevelopment expenditure to be incurred in the first quarter ofthe year.
However, the $69.5 million did not cover certain expenditure itemsthat Government had committed to pay during the first quarterof this year. This has resulted in the need for additional appropriations,according to officers in the Portfolio of Finance, a release fromGovernment Information Services (GIS) said.
A breakdown of the $18.78 million follows$7.83 million for cost-of-living adjustment (COLA) payments dueto employees for January 2000 to October 2000, and January 2001to March 2001; $6.01 million for capital development expenditure;$3.46 million additional first-quarter subsidy to Cayman Airways,on top of the $1.15 million already paid in January 2001; $1.18million for seamenís grants; and $300,000 0.3300,000 millionfor recurrent expenditure matters that could not be met undermotion 03/00.
The $6.01 million for capital development projects is based upontwo figures. First, Government is contractually committed to pay$8.28 million during the first quarter of 2001 for work that isongoing from 2000, the release stated.
Second, an additional $230,000 is expected to become payable byMarch 2001 for contracts that are expected to be granted shortly;the total of these two amounts is $8.51 million. However, sinceMotion 03/00 authorised $2.5 million for capital development projects,the amount that lawmakers will consider on Monday is $6.01 million.
Cayman Airways has requested an additional $3.46 million in itsfirst quarter subsidy, combined with the $1.15 million receivedas a result of the November motion, would result in the airlinereceiving its customary full yearís subsidy in the firstquarter of 2001.
Government expects that the total advance of $18.78 million willbe covered in the draft 2001 budget when it is presented in March2001, the GIS release said.
In a reaction last Thursday to notice of the special meeting ofthe Legislative Assembly, five members of the House wrote to FinancialSecretary, Hon. George McCarthy, pointing out that there were"no explanatory notes and/or itemized line items attached,"to the notice.
"This is especially significant when we consider that approximately$70 million dollars advance appropriate was passed on November16th 2000. We believe such information is vital too the publicinterest and for Members to properly vote on this motion. We alsonote that this action sets a precedent and in the interest ofopenness and transparency in Government every effort should bemade to ensure that complete information is available from theonset," the letter stated.
The signatories to the letter were Bodden Town MLAs, Mr. GilbertMcLean and Mr. Anthony Eden, Cayman Brac and Little Cayman MLAs,Mrs. Julianna O'Connor-Connolly and Mr. Lyndon Martin, and GeorgeTown MLA, Dr. Frank McField.
The five also requested "that the proposed meeting of theHouse be postponed until Wednesday, 14th February...to allow sometime to examine the requested information.