One of the earliest statements made by the new Leader of Government Business/Premier Designate, Hon. McKeeva Bush, upon assuming office in May, was that he understood the practical necessity for government to support local businesses, even though it may cost slightly more to do so than sourcing goods or services overseas.

Furthermore, any additional cost on tangible goods very often comes back to the government in customs duties on whatever is imported by the local supplier.

This problem of sending money overseas that could otherwise be used to stimulate the local economy doesn’t just extend to major projects but also occurs in routine areas of business for which there is really no excuse not to support local suppliers and service providers.

Traditionally, governments frequently pretend to operate under private sector principles – at least when it suits them – but this should not be used as an excuse for denying local businesses desperately needed financial support.

The private sector has an obligation to its bottom line and the business owners and shareholders to seek out and employ the most cost effective solutions.

Yes, the government, on behalf of the taxpayers, should not waste money but, in contrast to the private sector, it also has an obligation to the economic well being of the community as a whole – a responsibility that is not furthered by supporting foreign businesses.

And in these dire economic times, it is of crucial importance that the government of the day pays close attention to all expenditure that could be funneled into the local economy.

This can range from millions of dollars in architects and other consultancy fees for major government projects to just hundreds or thousands of dollars paid for overseas services and products that are readily available locally.

After all, we have qualified and competent architectural firms here, so why should it be necessary to divert large sums of money for the benefit of foreign firms?

We have equally competent and experienced printers and publishers locally, so why was it necessary to award the contract for our national airline’s in-flight magazine to a foreign firm?

We also have local firms that were ready, willing and able to deal with the scrap metal situation on the island, so why was it necessary to award the contract to a Canadian firm, only to get ripped off in the process?

We have established health care facilities locally, which are no doubt ready to expand their facilities if given some encouragement to do so. Why is it necessary, therefore, to allow foreign providers to set up shop in the Cayman Islands?

We really must get away from this mindset that foreign goods and services are somehow intrinsically and automatically better than the local product.

Perhaps we need a “Buy Caymanian Law” to force the government to do what it should be doing as a matter of course when the economic chips are down. After all, if the world’s largest economy can do so in the 1930s in the shape of the Buy American Act when faced with difficult economic circumstances, there’s no earthly reason why the Cayman Islands should not follow this example.

The Buy American Act passed in 1933 required the United States government to prefer US-made products in its purchases. Other pieces of Federal legislation extended similar requirement to third-party purchases that utilise Federal funds, such as highway and transit programmes.

We hope that Mr Bush’s statement was not just some vague assertion of support that was easy to make and equally easy to forget. The new government now needs to get specific on this issue of overseas expenditure in preference to local firms. This might include “Buy Caymanian” legislation and whatever other rules and regulations that should to be put in place to protect local businesses.

For several months, and especially during the last few days, we have been focussing on what we perceive to be the most urgent problem facing our economy during the current global economic crisis – that of providing consumers and businesses with the necessary liquidity to enable the Cayman Islands to pull through this difficult period and develop a new and sustainable plan for future development.

There will not, however, be a one size fits all solution but it will take a series of individual measures to make a difference in these present, dire economic times. Active government support of local businesses must be one important part of this.