Hon. Joey Hew

Presentation by Honourable Joseph Hew, JP, MLA Minister of Commerce, Planning and Infrastructure

Tabling of 2019 Annual Report 

Cayman Islands Legislative Assembly 

 Wednesday, October 14, 2020

Mr. Speaker,

Honourable Members,

Let me first commend His Excellency the Governor, the Honourable Premier and other Members of this Honourable House for their leadership and solidarity in dealing with the coronavirus pandemic we currently face.

These Cayman Islands stand at an enviable position today as a result of the proactive measures taken by the Government to contain the number of local COVID-19 cases.

Early lockdown efforts, widespread testing and contact tracing, quarantining of travellers, good communication, and provision of the necessary resources to strengthen the economic and social systems – are some of the effective strategies that our Government implemented, and continue to carry out to deal with the virus and its fallout.

The residents of these Islands must also be commended for their general adherence to the public health regulations, which now allows us to have some level of normalcy as we go about our daily lives. I want to encourage the people of the Cayman Islands to continue to be on alert and follow the relevant guidelines as we are clearly not out of the woods.

Please allow me, Mr. Speaker, to express my gratitude to our frontline workers who have gone above and beyond over the past few months – and continue to be central to us managing the pandemic. We owe them a debt of gratitude, which we cannot repay.

I would also like to commend (and thank) the various departments and agencies of Government including those under my Ministry –  Facilities Management, Public Works Department, Department of Planning and the Cayman Islands Centre for Business Development – that supported the emergency, and now our recovery efforts.

Mr. Speaker, turning our attention to the matter at hand. This morning I present the 2019 Annual Report for the Ministry of Commerce, Planning and Infrastructure – before tabling the report.

The theme of the Annual Report, “Pathways to Strength and Prosperity” captures the essence of my Ministry’s key focus during the period covered. It will be evident when you review the document that the Ministry sought to introduce an effective e-process of doing business across government, strengthened our information technology infrastructure as well as supported and facilitated commercial activities across these Islands.

This report is for the financial period from January 1^st 2019 to December 31^st 2019. It provides information on a wide cross-section of our work including the operations, trends, plans as well as the achievements of the Ministry.

The Auditor General audited and issued an unqualified opinion on the financial statement of the Ministry of Commerce, Planning and Infrastructure for the financial period from January 1^st to December 31^st, 2019.

An unqualified opinion means that the financial statements present fairly, in all material respects, the financial position of the Ministry as at 31^st December 2019 and its financial performance and cash flow for the same period.

This Government has placed priority on fiscal responsibility and I can confidently state that my Ministry’s fiscal affairs are in line with this priority.

I must applaud our Finance Team for their diligence and hard work which contributed to the Ministry’s receipt of two awards from the Public Accounts Committee – for achieving unqualified audits for the years 2018 and 2019.

Mr. Speaker, there were significant achievements within the Ministry’s agencies and departments for the 2019 financial year.

The Department of Commerce and Investment (DCI) continued to blaze trails with the achievement of new milestones while taking on additional responsibilities. The Department’s major successes in 2019 were centered on four main areas:

• Supervision of Designated Non-Financial Business and Professions (DNFBPs); 
• Changes to policy;
• Talent management; and 
• Improving efficiencies.

The Anti-Money Laundering Regulations imposes a duty on DCI to supervise compliance by DNFBPs to relevant anti-money laundering and terrorist financing laws. In executing its duties, DCI conducts on-site and offsite reviews of the records and operations of DNFBPs. 

In 2019, the Department carried out twenty-nine inspections of licensees in the real estate sector, as well of dealers in precious metal and precious stones. The inspections were followed by detailed reports to each licensee which identified areas for compliance, along with recommendations on how to address deficiencies.

To positively engage and assist the industry in their journey to full compliance, DCI delivered eight workshops, twelve compliance meetings, four industry meetings and thirty-five sensitization visits during the financial year.

Four new board policies became effective in 2019. These concerned the supervisory role of DCI for DNFBPs, and its other responsibilities under our anti-money laundering framework. The policies also addressed money lending enterprises such as payday loan providers, and the licensing period for developers making applications under the Local Companies Control Law.

During the year under review, the Department processed and issued over 11,500 trade and business licences. These included 3,133 new licences as well as renewals and amendments. In an effort to increase business efficiency, the Department also carried out major improvements to its online platform.

Mr. Speaker, the pathway to greater strength and prosperity requires a team approach to work, and DCI continues to exemplify this through employee engagement and talent management. In 2019, the Department was awarded Gold accreditation status by Investor in People, a UK public body that represents international standard for people management. 

This is a rare feat for any organisation assessed the first time, and is a testament to the Department’s efforts in promoting positive staff welfare through training, development and innovation.

I pause to congratulate them on achieving that award, and also for being shortlisted for three upcoming 2020 Investor in People awards – Employer of the Year, Employee Engagement and Leader of the Year.

Turning now to the Department of Planning, the team continued to refine the Online Planning System to offer enhanced features. The planning portal now facilitates most of the Department’s planning activities, from the issuance of certificates of occupancy to payment collection.

It has reduced the need for members of the public to attend the planning counter and has allowed technical personnel to focus on substantive areas of work rather than administrative duties.

One of the main advantages of the Online Planning System is the ability to track processes. Documents entering work queues are date stamped. They have a movement trail that is auditable, and there is backup capabilities to ensure documents are not misplaced or deleted. These features have delivered significant improvements to staff and customers, including timeliness of service and enhanced customer experience.

Mr. Speaker, significant progress was made by the Department last year on the Builders (Amendment) Bill, 2019. This is an important piece of legislation that will enable the full implementation of the Builders Law, which will promote greater industry accountability through changes in the categories of registration for contractors.

The Plan Cayman Development Framework underwent its first round of public consultation in 2019 and generated significant interest and participation with over 350 people submitting formal responses.

This is the first development plan drawn up in 20 years that looks at the future infrastructure demands for Grand Cayman, such as new schools, roads, and public transport improvements required in the years ahead, as well as balancing the protection of the environment with ongoing development.

Our infrastructure has a direct impact on our businesses, communities and families; and so, the consultations are important for the public to have a say to ensure it is sustainable in the future.

We are now moving to the area-by-area planning phase with the aim of covering the Island over five years. The first plan will be created for the Seven Mile Beach Corridor to positively deal with both the development pressures there as well as ensuring that the Island is maximising on the economic opportunities available. 

During the financial year Mr. Speaker, development continued to grow with marked increases in all sectors of the Department of Planning as follows:

• Approval of 748 projects, valued over $890 million dollars;

• Issuance of 1,249 planning permits, valued over $470 million dollars;

• Issuance of 435 certificates of occupancy, valued over $205 million dollars; and

• Approval of 11,324 inspections out of a total of 12,267. This was an approval rating of 92.3% in 2019. 

I must thank the Planning Department team for all their hard work and dedication in supporting and strengthening the construction sector.

Moving on to the information technology and e-services, the Computer Services Department in 2019 continued the implementation of information technology frameworks to facilitate delivery of services, project management, applications and operations.

The team of sixty-six employees are a driving force behind the Government’s strategy to leverage technology to support and enable business units to deliver more efficient services. They currently support core revenue-earning systems that collect and record approximately $700 million dollars per year on behalf of the public treasury. This includes the support and maintenance of eighty-eight applications and seventy-six websites.

For the period under review, the Computer Services Department service desk:

• Raised and disseminated over 39,000 logs;
• Addressed over 59,0000 telephone calls; and 
• Upgraded or replaced some 1,200 machines.

In addition to technical support, the team also played crucial roles in various IT infrastructure projects including:

• Implementation of the disaster recovery system for added resilience to CIG’s revenue generating systems;

• Installation of communication circuits to improve network communication for the Fire Services Department;

• Facilitation of Customs Border Control and WORC mergers; and

• Upgrade of server and network infrastructure in Grand Cayman and Cayman Brac.

These were among several projects undertaken which you can peruse in the Annual Report.

Last year, E-Government Services Unit completed significant work on the National Identification System with the register of natural persons which is a key pre-requisite project to uniquely document all residents of our Islands electronically. Work also progressed on the Government’s X-Road initiative, which is crucial to the development of various online systems that augment our overall system security.

In 2019, E-Services continued to expand online services. Mr. Speaker, the cargo customs process, for example, has over five thousand monthly declarations. Ninety-two percent are now completed through the online process. 

Similarly, over ninety-six percent of company registrations, annual reports and director changes are now being processed digitally.

The online criminal records certificate process was one of the E-Government Services early projects. They have also supported the Department of Vehicle and Driver’s Licensing with the implementation of text message reminders for expiring vehicle licences. Nearly 8,000 reminders were sent out during the first full month of operation, and the system continues to assist the public by reminding them of expiring documents in a timely manner.

More recently, the General Registry commenced its rollout of e-services to various clients. This is part of an initial launch, which will be expanded through further development.

E-Government allows us to deliver more services within shorter periods than would be otherwise be possible using conventional service delivery methods. The small unit is making a big impact as we journey along the digital sphere through strength and prosperity.

Mr. Speaker, you will see from the Report that under the Facilities Management Department, work progressed with the procurement of a 100kw modular solar panel system, which will provide covered parking for areas of the Government Administration Building, and stations for the charging of electric vehicles.

Upgrades were also made to our closed circuit television system by directly linking it to the 911 emergency response centre. To ensure that staff can evacuate the Government Administration Building in a safe and timely manner during emergency events, the team is developing the capacity for virtual training to enable new occupants to become familiar with exit routes.

Last year, the Government Administration Building underwent several internal configurations as new offices moved in and other changes made for re-composition. Through the leadership and coordination of the team, the changes were effectively executed with minimal interruption to the building’s occupants.

Mr. Speaker, the Facilities Management team is another example of a small unit that is delivering big impact. The team is accountable for the supervision, operations and maintenance of nine government-owned properties. These include seven community centres, the environmental centre and the Government Administration Building.

In 2019, the Department’s staff earned five of the twelve Chief Officer’s awards for the year. This is a remarkable achievement, and an indication of the passion with which the team members executes their duties and responsibilities.

Turning to the Department of Vehicle and Driver’s Licensing – in the financial period under review, steps were taken to improve the quality of services provided to customers. 

In 2019, DVDL staff processed some 61,883 vehicle licence renewals, over 11,350 drivers’ licence renewals, and facilitated the booking of 9,762 appointments for written tests.

Work continued under the Electronic Vehicle Registration System with the re-plating of over twenty-five thousand vehicles, allowing a significant number of users to renew their vehicles online.

The new Electronic Vehicle Registration System will be a critical enabler to more efficiently serve the public and to improve registration and insurance compliance on our roads.

Mr. Speaker, last year the Government offered an amnesty which provided a waiver of fees for persons who accrued a backlog for unlicensed vehicles. It was also aimed at reducing the number of derelict and abandoned vehicles across the Islands. 

Over 8,000 vehicle owners benefited from the amnesty. Of that number:

• 4,655 vehicles with expired registrations were relicensed;

• 2,523 vehicle registration were suspended; and

• 823 vehicles were voluntarily terminated from the register.

The amnesty assisted in the purging of the vehicle registration system, reducing the numbers from 74,000 (as at 2015) to 45,659 at the close of 2019.

Mr. Speaker, great strides were made at the Department of Vehicle and Equipment Services with the opening of the two-story, 8,734 square foot administration building. This was a major priority of the Government as we seek to provide a safe, modern and comfortable working environment for the hardworking members of the civil service. 

The new building, which is Phase 1 of the redevelopment project, has now provided much needed space to house employees, stores and manage fleet services. The enhanced facility also provides more vehicle bays which will shorten repairs and increase turnabouts. 

We are reaping the benefits of inventory management and control, which we anticipate will lead to reduced capital expenditure for the department, Ministry and ultimately the Government.

Mr. Speaker, last year I had the distinct pleasure of visiting DVES and meeting with mechanics who were being training in electric vehicle service and safety. This was the first in a series of training being provided by Government in preparation of our plan to convert 30% of our fleet to energy efficient vehicles by 2027.

After completion of Phase 2 of DVES’s redevelopment plan, these competent mechanics will be able to put their training to good use in a modern state-of-the-art service bay.

I want to commend the management and staff of DVES for including the National Energy Policy as an important part of their strategic goals for 2020/2021. 

Mr. Speaker, please permit me speak on the work of the Public Works Department. My Ministry continued to invest in the future of young Caymanian men and women through the successful delivery of Public Works Apprenticeship Programme.

Last year, construction progressed on a new facility which will enable the expansion of our apprenticeship programme to have a capacity for 50 Caymanians in training, as well as customized classes for persons already working in the industry. It is expected that the new facility will officially open during the first quarter of 2021.

Allied with the Public Works Department is the Major Projects Office which in 2019 continued with providing project management several government projects. These included the John Gray High School, the Airport Redevelopment Project, development of the Integrated Solid Waste Management System and the residential mental health facility which is under construction.

Additionally, the team was successful in completing the construction of Phase 1 the Department of Equipment and Vehicle Services administration building, Phase 1 of Heroes Square and re-roofing works to the National Museum. The project management team in collaboration with Facilities Management continue to work assiduously on completing various community park, dock and ramp remediation projects across the Island. 

Mr. Speaker, just to mention a few ministerial projects which you will see in detail in the Annual Report. 

We made much progress in fulfilling our commitment to the goals outlined in the National Energy Policy. In 2019, I announced import duty incentives for clean energy transportation in support of the Policy. The duty waiver applies to electric, hybrid, energy efficient vehicles, electric motor cycles and bicycles.

TheMinistry of CPI recognises that the transportation sector has vast potential for energy efficiency and energy conservation. This initiative was a kick start to assist our residents with switching to low emissions vehicles for the wider social and environmental benefits to be gained from reducing greenhouse gases and petroleum dependence.

We are optimistic that the position taken by Government will encourage Caymanians to make choices that are sustainable and are aligned with both local and global sustainability. 

Mr. Speaker, the Ministry also continued its work with the National Housing Development Trust to implement policy recommendations in all their newly built homes. And with the Department of Planning on building codes requirements to simplify the process for renewable energy projects.

To further reflect our commitment to the Energy Policy, my Ministry employed an Energy Policy Coordinator to support the Ministry to deliver the strategic initiatives of the National Energy Policy. We also recently embarked on a public education campaign to get our community involved in good energy practices, and we anticipate you will hear more about the campaign in the coming days.

Mr. Speaker, work has been ongoing on the George Town Revitalisation Initiative. Last year, the team started Phase 1 upgrades at Heroes Square with the incorporation of semi-circular planters into the monuments, and placement of new statues at the site. Work on the Revitalisation Initiative is continuing with the design and development of the existing infrastructure, which will include road redesigns and upgrades, along with a focus on the pedestrianizing of the central business district.

The team is also looking at reducing parking requirements through new regulations which will allow shared and off-site parking. Mr. Speaker, later this month the Ministry will be piloting a hop-on hop-off shuttle service in and around the George Town area, which will give people the option to move around the town easier. 

Moving on Mr. Speaker, in 2019, the National Community Enhancement (NiCE) project had another successful year. The programme was utilised to manage the local sargassum influx which we experienced.

Programme participants cleared and collected over 200 tonnes of sargassum at the onset. We extended the project for an additional two weeks to use a combination of manual labour and machinery to clear several beaches across Grand Cayman. 

Mr. Speaker, we were able to assess how the different sargassum management approaches worked. Now we have a better idea of what can work, how many people we need and what types of equipment we require. This information will assist us to be more proactive in the years ahead, should the problem arise.

During the year in review, Mr. Speaker, participants in the NiCE programme also provided support to the Mosquito Research and Control Unit in its clean-up efforts to halt the spread of dengue fever. While the project is not part of the target response for dengue control, my Ministry assisted MRCU by allowing crews members to join the fight.

In addition, the Department of Agriculture and Agriculture Society facilitated the use of NiCE crews in preparatory activities of the agricultural grounds leading up the agricultural fair which was held in February.  

Since the start of the project, NiCE has ensured that Caymanians benefit from a healthy environment. The Ministry will continue to partner with stakeholders in the public and private sectors in delivering the programme to help build stronger communities and support the most vulnerable, in keeping with Government’s broad outcomes.

We are committed to continuing the NiCE programme, and are finalising plans for the upcoming project later this year.

Before I submit the Annual Report to this Honourable House, Mr. Speaker, I want to state that I am proud to be part of an administration that encourages and supports the business community. 

Last year, we extended the small business incentive programme, which since its inception have benefited more than 5000 micro businesses and more than 700 small businesses. This has cost the Government over $2.8 million dollars. I also signed a Memorandum of Understanding with the Cayman Islands Small Business Association aimed at delivering a range of assistance including grants and training. 

This partnership and the award of the grants, valued up to $5,000 to each recipient, underscore Government’s commitment to providing improved access to funding for small business owners.

The Ministry has strengthened its relationship with the business community through proactive interactions and support framework. We are confident that with the support of all stakeholders, we will continue on our mission to achieve our mutually shared goal of a strong and prosperous Cayman Islands.

I want to further state, Mr. Speaker, that despite the challenges that we currently face as a result of COVID-19, I am optimistic about our future of these Islands.

I am optimistic about the programmes and initiatives that the Ministry – its departments and agencies will complete over the next fiscal year – will make these Cayman Islands and its residents grow stronger and more resilient.

Thank you, Mr. Speaker. 

I now submit the 2019 Annual Report to the Honourable House.