October 19, 2018

The Editor speaks: Should we be worried?

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Screen Shot 2015-06-30 at 11.34.03 AMcolin headWith all the new regulations coming into force, blacklisting, money laundering, Greece, etc. that could affect the revenues over the next years from our offshore sector, should we be worried?

I am, but then I am a natural worrier. The older I get certain worries go but new ones take their place. I am not afraid of dying now – once I was terrified.

However, when I look at the latest Budget and I see the bulk of the government revenues are forecast to come from banks, mutual fund administrators and company registrations – a total of $250M I worry.

What, if?

I have attached the three pertinent pages from the CIG Annual Plan and Estimates as it makes very interesting reading.

Screen Shot 2015-06-30 at 11.34.27 AMImport duty is the single largest amount for collection – $97M just from regular goods and $92M from exempt company fees a close second.

With the total expected revenue of just over $628M this will be the largest amount ever collected in the history of the Cayman Islands.

I find it interesting that revenue work permit fees have increased over last year S63M from $60M despite the emphasis on more jobs for Caymanians. Although Cayman status fees are down. Temporary work permits will be going up with revenue increasing by around 30%.

The other black cloud hanging over all this is Cuba and how that is going to hit our tourist industry. We may not have to worry about this now but it won’t be too long. The Caribbean Tourist association has been sending plenty of warnings and Cayman Islands was listed as one of the most likely Screen Shot 2015-06-30 at 11.34.53 AMdestinations to suffer most.

This must not be a spend, spend chapter and this administration has already been down that road. So far their management of the public purse this time around has been exemplary.

So why am I worrying?

The Greece crises is sending markets around the world tumbling and even the USA is worried.

Greece faces a critical deadline on Tuesday, when it must make a loan payment to the IMF. The country looks almost certain to default on that payment.

Yes, I am worried.

Screen Shot 2015-06-30 at 11.35.14 AMThe sun is shining.

But it is hotter than usual.

Global warming.

It is not I who should be worried at all.

It is —— WE!!

Click on images to enlarge

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