Edited statement by the Hon Premier and Minister for Finance on the results of the Government and the Public Sector for the Year Ended 30th June 2011:   

(Premier Bush’s statement in full follows below)

Much has been said in the last several months and accusations made about the prudence of managing governments finances.

My purpose in speaking to you is to provide you with important information about the financial performance of the government and the wider public sector in respect of the financial year that ended on 30 June 2011 – that is the 2010-11 year.

Let me start by recapping brief details of the 2010-11 budget that was presented to the Legislative Assembly on 15th June 2010. That budget indicated the following:

Government’s revenue would be $510 million for the year to 30th June 2011; government’s operating expenses for the year were $508 million; Interest cost that would arise on government’s public debt would be $33 million; hence the central government was expected to have a deficit for the year of $31 million; when the performance of all statutory authorities and government-owned companies was aggregated, it was expected that the overall result would be a net deficit of approximately $1 million; therefore, the entire public sector – for the years 2010-2011 ending June 30 this year, consisting of central government, statutory authorities and government-owned companies – was expected to have a deficit of $32 million;

So for the 2010-11 year, even these budgeted results were marginally better than the $34 million deficit stated in the agreed 3-Year FCO Plan that we agreed with the FCO.

Let me now provide details of central government and the wider public sector’s actual, as opposed to budgeted, performance for the year that ended in June, of this year.

Central government’s operating revenues totalled $535 million – which exceeded the budgeted performance by a full $25 million.

Government’s operating expenses for the year were $483 million; a material $25 million less than the budgeted Operating Expenses of $508 million for 2010/2011. This is a tremendous testament to the prudent and responsible management of the country’s finances by the government!

I must immediately congratulate and thank all hard-working civil servants that contributed to this great achievement.

Interest cost incurred during the year was $30 million – which was $3 million less than budgeted. Because we were managing prudently and watching carefully our revenues versus our expenditures, we stretched out the time before it became critical that we had to borrow the $155 million, and this in fact saved the country some $3 million dollars. The audit officers never took that saving into consideration when they talked about what we paid due to the financing negotiations. They never said we saved $3 million.

Central government therefore achieved a surplus for the year of $22 million versus a budgeted deficit of $31 million.

This is a turnaround of a whopping $53 million and it points to sterling efforts of the central government in guarding and enhancing the
Islands’ finances.

Fellow Caymanians and residents of the Cayman Islands, these results will be sent to the Auditor General’s office for examination.

My government expects that there will be normal adjustments arising from the audit process; however we do not expect significant revisions to the government’s results for the year to 30th June 2011.

Government well understands the need for the provision of timely information, and the importance of certainty of information. We firmly believe that we have struck a good balance between these two factors by waiting until now, to announce this information. I should say that everyone knows how much the opposition berated me, before the new budget was presented, saying I wouldn’t reach the $15million surplus I was asking civil servants to achieve; but once again – the opposition is proven wrong, and I will continue to prove them wrong as the difference is, I have good ideas. I have the right plan to bring investment, give the government revenue and our people jobs. The opposition is at the opposite end doing nothing with no plan.

Premier Bush’s statement in full:

Good evening fellow Caymanians and residents of the Cayman Islands.

Much has been said in the last several months and accusations made about the prudence of managing governments finances.

My purpose in speaking to you this evening is to provide you with important information about the financial performance of the Government and the wider Public Sector in respect of the financial year that ended on 30 June 2011 – that is the 2010-11 year.

Let me start by recapping brief details of the 2010-11Budget that was presented to the Legislative Assembly on 15^th June 2010. That Budget indicated the following:

1)   Government’s Revenue would be $510 million for the year to 30^th June 2011;

2)   Government’s Operating Expenses for the year were $508 million;

3)   Interest Cost that would arise on Government’s Public Debt would be $33 million;

4)   hence the Central Government was expected to have a DEFICIT for the year of $31 million;

5)   when the performance of all Statutory Authorities and Government-Owned Companies was aggregated, it was expected that the overall result would be a net DEFICIT of approximately $1 million;

6)   therefore, the Entire Public Sector – for the years 2010-2011 ending June 30 this year, consisting of central Government, Statutory Authorities and Government-Owned Companies – was expected to have a DEFICIT of $32 million;

7)   So for the 2010-11 year, even these budgeted results were marginally better than the $34 million DEFICIT stated in the agreed 3-Year FCO Plan that we agreed with the FCO.

Let me now provide details of central Government’s and the wider Public Sector’s actual, as opposed to budgeted, performance for the year that ended in June, of this year.

Central Government’s Operating Revenues totalled $535 million – which exceeded the budgeted performance by a full $25 million.

Government’s Operating Expenses for the year were $483 million; a material $25 million less than the budgeted Operating Expenses of $508 million for 2010/2011.  This is a tremendous testament to the prudent and responsible management of the Country’s finances by the Government! I must immediately congratulate and thank all hard-working Civil Servants that contributed to this great achievement.

Interest Cost incurred during the year was $30 million – which was $3 million less than budgeted. Because we were managing prudently and watching carefully our revenues versus our expenditures, we stretched out the time before it became critical that we had to borrow the $155 million, and this in fact saved the country some 3 million dollars. The Audit officers never took that saving into consideration when they talked about what we paid due to the financing negotiations. They never said we saved $3 million.

Central Government therefore achieved a SURPLUS for the year of $22 million versus a budgeted DEFICIT of $31 million.

This is a turnaround of a whopping $53 million and it points to sterling efforts of the Central Government in guarding and enhancing the Islands’ finances.

Fellow Caymanians and Residents of the Cayman Islands, these results will be sent to the Auditor General’s Office for examination.

My Government expects that there will be normal adjustments arising from the audit process; however we do not expect significant revisions to the Government’s results for the year to 30^th June 2011.

Government well understands the need for the provision of timely information, and the importance of certainty of information. We firmly believe that we have struck a good balance between these two factors by waiting until now, to announce this information. I should say that everyone knows how much the Opposition berated me, before the new budget was presented, saying I wouldn’t reach the $15million surplus I was asking Civil Servants to achieve; but once again – the opposition is proven wrong, and I will continue to prove them wrong as the difference is, I have good ideas. I have the right plan to bring investment, give the government revenue and our people jobs. The Opposition is at the opposite end doing nothing with no plan.

The Government is also pleased with the actual performance of its Statutory Authorities and Government-Owned Companies. They have reported a net SURPLUS for the year to 30^th June of approximately $3 million.

Therefore, the Entire Public Sector – consisting of central Government, Statutory Authorities and Government-Owned Companies – was budgeted to have a DEFICIT of $32 million whereas the year’s actual performance indicates an overall SURPLUS of $25 million: a total turnaround of $57 million.

It is therefore obvious that the Entire Public Sector’s SURPLUS of $25 million is significantly better – an improvement of $59 million – than the budgeted results of a $34 million DEFICIT, stated in the agreed 3-Year FCO Plan for the 2010-11 year. This is a $59 million turn around.

The Audit Office made a statement about audits being carried out early. Good governance is always needed and can be improved in these Islands that is why I asked for the reviews on the way CTC works – but what I see happening is bureaucratic harassment! The Government needs to turn this economy around but how can we do anything at a quick pace, when we have these so called good governance experts trying to make the Government look like we are doing something nefarious?!!

I recognize that people are hurting, can’t pay their electrical bills and some are losing their homes. These are times that a government must be able to act quickly to help people. We can only help by getting our projects moving quickly! Bureaucratic harassment is stopping us. I can tell you as your Premier and someone who cares, that I’m only human and I too have feelings. The constant accusations and persecutions have taken a toll on me.

The Government wants to help but if I can’t change Government committees because an official feels – he will lose his “yes man” on it, how can we govern in your best interest? How can we get anything done?

Let’s take a look at debt.

Central Government’s outstanding debt principal at 30th June 2011 was CI$625 million. This is much higher than my Government would like and our aim is to reduce this as quickly as possible. As an example of this effort, during the current financial year that started on 1^st July, Government will not incur any borrowing during the year.

I repeat that my Government’s aim is to reduce debt!

We have worked hard as a Government to stabilize government finances. The result of our hard work proves that the efforts of the Audit Office and the Opposition to show that I am not managing the finances of these Islands properly, is not true! And as I have said their assumptions and accusations is coming from individuals who are, partially informed, spiteful and their main motive is to cause bureaucratic interference and harassment. As we know, there are two types of lies – there are those committed by commission and those committed by omission. The majority of those now being committed by these people who are opposers, are those of omission. And I think that they are deliberately doing it. I did try my best to find a better solution for our Country and had I succeeded, I would have saved this country over $24 million. And yes I would do it again as it is my duty to try and save money.

In concluding, I would summarise the information I have just presented as being a robust testament to the continued good stewardship of the Government over the Country’s finances and whilst that message should be at the forefront of everyone’s minds, responsibly, I need to go on to tell the Country that, like the world-over, our economy’s recovery is delicately poised to take-off but it needs the support of the people for Government’s recovery efforts.

The Government is encouraged by the modest growth of the economy in the first quarter of 2011.

Government is doing its part to aid the economy’s growth; I humbly ask that our people assist this recovery effort by acting for the “national good”.

Thank you and may God continue to bless your family and Bless the Cayman Islands.