By Kevin Shereves
Kevin@caymannetnews.com

Premier Hon. McKeeva Bush said his government is proposing the reintroduction of a twenty-five year Direct Investment Certificate for private individuals seeking to invest in the local economy.

Speaking in the Legislative Assembly on Wednesday, Mr Bush outlined this proposal as part of a list of initiatives the government has proposed to boost the financial services sector, by attracting high net worth individuals to reside in the Islands.

The Premier was delivering the 2010/2011 Strategic Policy Statement (SPS), the first for the United Democratic Party (UDP) government, which outlines the government’s strategic outcome for the next three years and establishes broad parameters for the 2010/2011 budget.

Noting that the Cayman Islands is currently facing serious economic challenges, he said this was also related to the fact that the North American and European economies have been severely impacted.

“We must do everything possible to mitigate the negative impacts of this current crisis,” the Premier said, stating that the government needed to rebuild for a stronger, more diverse economy to better deal with any future crisis.

Previously called the Entrepreneur and Investor certificate, the Direct Investment Certificate would grant private individual investors the right to live here and work in that business for a renewable period of twenty-five years. It was first introduced into immigration legislation by the government in November 2003.

“The right of residency would also apply to persons already living here, who can show that they have made similar levels of investment,” Mr Bush said.

The twenty-five year certificate was recommended by the previous Immigration Review Team. “For reasons largely unexplained, the last government removed these provisions, and discontinued the initiative,” Mr Bush said.

Stressing the importance of the financial services sector to Cayman’s economy, Mr Bush made reference to a recent economic impact study commissioned by a consortium of associations of the private sector that reported that the industry generated CI$1.2 billion or 55 percent of the country’s gross domestic product (GDP).

In 2007, the study showed, the financial services sector generated CI$204 million or 40 percent of all government revenues. It was also reported that the sector provided employment for some 5,700 persons, of which 60 percent are Caymanian.

Mr Bush has been leading a campaign to persuade the financial services sector companies to create incentives for new businesses to establish a presence in the Cayman Islands.

Other new measures proposed as part of the campaign include accelerated work permit processing times, with a greater degree of certainty, 3-5 year work permits for financial services entities relocating their operations here, and key employee status for senior staff.

“It is hoped that these new measures will address the concerns of the financial services sector, and reassure those that we are seeking to attract,” the Premier noted.

“We are here for the good of the whole Cayman Islands and we know that to achieve such a balance requires us to be delicate at times, and tough when necessary,” he added.

The Premier indicated that the SPS continues what was started in the 2009/10 budget, noting that it continues the drive for clear strategies, “to strengthen and diversify our income base, to strengthen and enhance our competitive edge in financial services and tourism.”