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Stoutly defending his position on the European Union's Draft Directive on Taxation, Cayman's Leader of Government Business says that the ...
UK 'Not Playing Level'
The United Kingdom (UK) is not on a level playing field with respect to the European Union's (EU) Draft Directive on the Taxation of Savings income, says Leader of Government Business the Hon. McKeeva Bush.
Caribbean Overseas Territories Leaders (left - right) Hon. Ralph O'Neil, Hon. Osbourne Fleming, Chief Minister, Anguilla; Hon. McKeeva Bush, Leader of Government Business, Cayman Islands Government; Chief Minister, British Virgin Islands; Hon. John Osbourne, Chief Minister, Montserrat; Hon. Noel Skippings, Minister of Works (Deputy Chief Minister) Turks and Caicos.
In an interview with Cayman Net News, Mr. Bush maintained that he would not be compromising the Cayman Islands' interests by signing on to the EU directive, adding that he will challenge the UK if it enforces an Order-in-Council to ensure the Cayman Islands signs on to the EU directive.
"There is precedent for challenging an Order-in-Council and if we have to take that route we will do so," Mr. Bush said.
In relation to the EU Draft Directive on the Taxation of Savings, he added: "It is not a measure at this time in the United Kingdom or anywhere else. They are are only trying to implement it, but we have advanced to the point where we can negotiate bilateral agreements which the Cayman Islands can get something out of any agreement that it signs. I have put this position to the Legislative Assembly and that is exactly what I will following through on."
(Left) Leader of Government Business, Hon. McKeeva Bush, supported by Attorney General, David Ballantyne and Dr. Christopher Rose of the Financial Secretary's Office make apresentation to Chief Ministers of the BVI, Hon. Ralph O'Neil and his entourage at the one-day meeting at the Westin Casurina last Saturday.
Mr. Bush said that the interest of the Cayman Islands will be foremost in any position he takes on the EU directive.
"For many years the Cayman Islands has been forced into signing agreements to please the UK and other financial institutions; measures which they themselves do not have in place, but I will not be placing this country in a bad position and then think afterwards," Mr. Bush added.
Cayman Islands officials at the meeting (left - right) Ms. Gloria McField, Mr. Charles Clifford, Ms. Letitia Solomon and Hon. George McCarthy, Financial Secretary.
The Government Leader said it is important to protect this country's financial industry otherwise there will be social and economic fall-outs.
"I cannot afford for this to happen," he said, adding that he has received letters of support from various organisations in the Cayman Islands.
Meantime, at their meeting here on Saturday November 22, the Caribbean Overseas Territories (COT) have agreed to commission an economic impact assessment in relation to the European Union's (EU) Draft Directive on the Taxation of Savings income. The objective of the assessment will be to determine the likely impact of any implementation of the draft EU directive on their economies, according to a communiqué issued after the COT meeting at the Westin Casaurina Resort and Spa.
It is anticipated that a draft report on this matter will be available by mid-December for proper consideration.
The statement said the COT Ministers were mindful of the 31st December 2002 deadline specified in the Feira Accord.
The meeting re-affirmed that there is a willingness on the part of the COT to cooperate with the objectives of the EU based on a fair, transparent and non-discriminatory approach.
Note was taken of the objectives of the association of the Overseas Territories with the European Union. The statement said the COT ministers also took note of the fact that the economic impact study which the Memorandum of Understanding on Partnership for Progress and Prosperity promised and considered relevant has not been carried out.
The COT Ministers said they will meet again in the near future.
Attending the meeting were the Honourable McKeeva Bush, Leader of Government Business, Cayman Islands Government; Honourable Ralph O'Neil, Chief Minister, British Virgin Islands; Honourable Osbourne Fleming, Chief Minister, Anguilla; Honourable John Osbourne, Chief Minister, Montserrat; Honourable Noel Skippings, Minister of Works (Deputy Chief Minister) Turks and Caicos.