The Chamber of Commerce is calling for policy changes in the financial services industry, and Government says it is moving on several fronts, while promising further steps to address a slowing economy.
In a Wednesday speech to the Chamber of Commerce’s ‘Legislative Luncheon’ at the Marriott Beach Resort, Chamber President Eddie Thompson said 20 May national elections were likely to turn on the economy, and offered several prescriptions for improvements.
”We must re-evaluate all business systems in the Government and improve the processing times at customs, immigration, planning, Registrar of Companies and all boards that interact with customers,” he told the packed resort ballroom. The audience included Leader of Government Business, Hon Kurt Tibbetts; Minister for Education, Hon Alden McLaughlin; House Speaker Hon Edna Moyle; MLAs Lucille Seymour, Osbourne Bodden, Alfonso Wright and Cline Glidden; Chief Secretary Hon George McCarthy and Acting Commissioner of Police James Smith.
“There is a need to establish a policy framework to attract foreign direct investment and put in place the systems to support this policy to attract a higher level of investors for our tourism, financial services and development sectors,” Mr Thompson said.
“A small business strategy is also needed in order to ensure that Caymanians are benefiting from the investment that is being attracted to our shores.”
Government, he said, should “do business locally whenever feasible … reviewing procurement policy and reducing overseas purchases, instead buying locally and thus re-investing in our economy.”
The 40-minute plus speech offered a handful of specific prescriptions for streamlining both the finance and tourism industries, some of which Mr Tibbetts said the Government had anticipated.
“The government welcomes opportunities such as these for development with the private sector, he said, calling it ‘an engine of growth’.
Streamlining immigration policies, Mr Tibbetts said, would “allow certain categories of work permits to be processed administratively”, while a handful of ongoing capital expansion projects would help maintain employment and fuel economic activity.
Government would shortly announce a national consultation on the economy, he said, while Cayman’s new draft constitution called for creation of a Cabinet-level Minister of Finance. Additionally, the Portfolio of Finance and Economics would appoint officers to oversee legislation, administration, ‘advice’, public relations and promotions, he said.
In addition to a Minister of Finance and boosted lobbying efforts, Mr Thompson also called for a Ministry of Finance office in Washington and Brussels “staffed with the necessary experts to work with the lobbyists/media experts to carry the Cayman message … and to promote Cayman as a financial-services centre,” he said.
Several of Mr Thompson’s suggestions echoed earlier calls by former Chairman of the Cayman Islands Monetary Authority (CIMA) Tim Ridley, who has also sought boosted financial industry representation in Washington, DC, and London.
CIMA, Mr Thompson said, should work with government and private industry to sponsor and participate in international conferences and prepare papers “that expresses the Cayman Islands’ position to the world”.
One dissenter, however, suggested Mr Tibbetts had not understood the importance of lobbying, and cited government’s early 2008 employment of international marketing and public-relations firm Fleishman-Hillard to look after Cayman’s financial industry in London and Washington.
“It’s the difference between public relations and lobbying,” she said. “Lobbyists, like them or not, are people who can get access to key people so you can present your message and persuade. As far as I know, Fleishman does not do that. If they can, the results have been so subtle, that the government has not told anyone.”
Elsewhere, Mr Thompson called for creation of a Tourism Authority, a Director of Cruise Tourism and a dedicated budget for the sector.
Throwing his weight behind construction of new cruise and cargo ports in George Town, the chamber president cited such economic spin offs as marinas and berthing for luxury yachts.
“This project, if commissioned, will become the largest infrastructural development project in the history of the country,” he said, pointing to the need to exploit other opportunities for public-private cooperation similar to the government-Atlantic Star pact driving the port project.
“I have established several committees addressing such subjects as foreign direct investment, small businesses, international trade, the environment, leadership development and economic development,” Mr Thompson said, to aid government decision-making.
“The mission of the chamber is to support, promote and protect business and community success. We must all work together and all address the challenges,” he said.