Statement From Premier McKeeva Bush 2^nd November 2012

“Following discussions over the last several months, and leaks to certain reporters, the FCO Minister for the Overseas Territories has put out a statement today through the Governor’s office. Below is my response to the letter dated 1 October from Minister Mark Simmonds MP.”

30th October, 2012

Hon. Mark Simmonds, MP

Minister for Overseas Territories

King Charles Street

London, SW1A 2AH

Dear Hon. Minister,

Your letter of October 1st refers.

When I called on you on September 20th, it was in an effort to get off on the right footing soon after you took up your post. In attendance was Lord Blencathra (Director of the London Office, Mr. Leonard Dilbert – Chief of Staff Office of the Premier and Mr. Richard Parchment – Senior Political Assistant to the Premier). I congratulated you on the appointment, and looked forward to working together. I however made it no secret that I was disappointed to see your colleague Henry Bellingham removed, as I believed his influence was working to the good in the malnourished FCO-OTs relationship. This was a real improvement on the situation as compared to under the Labor Government.

Nevertheless, I continue to hope that reason and reasonableness will prevail, over the all too often doctrinaire approach that appears to be the default mode of the OT Desk; again I can only hope that Mr. Hayes’ tenure will bring a fresh approach.

We live in the real world, where good business practice requires nimbleness, and the capacity to strike the right balance, whether or not the path to that point may or may not fit bureaucratic pre-conceptions of how certain processes ought to take place, or how value for money is to be secured.

On the FFR specifically, let me say to you that I am an honourable man, and I speak for an honourable Government, that represents honourable people. Our Legislative Assembly will meet in that first week of November and as I said to you, the Bill which transposes the FFR will meet the necessary requirements to which we are committed. The provisions will be based in sound practical application of the relevant principles. One document is an Agreement; the other will be a Law; the two documents cannot be identical. The bill will be set down for debate and voting by the Elected Members of the Assembly in this meeting beginning 5th November.

In the transposition, essential commercial tests must be passed for the mandatory performance that the legislation, as a law, would require. We cannot afford the collapse of our entire structure of budgetary obligations under the weight of unwieldy processes, which will be coming into play even as we are moving to down-size the service. Neither can we be seen to tie the hands of our legislature prior to such a momentous measure being formally tabled in the House.

Cruise Port and Airport Facilities Developments

On the Cruise facilities, any undertaking of ours will deliver two things – value for money in the project delivery; and optimal benefits for the Government and people of the Cayman Islands in the final. I disagree that the Auditor General or Chairman of the CTC, (useful though their input will be), can be the final arbiters of how we should achieve such fundamental objectives. I believe KPMG who is doing our ‘value for money’ test, to be much more competent in these matters, who’s responsibility it is to audit a project once it has been started. It should be noted that over the past seven years there have been more than ten separate proposals on port development in Cayman. This provides the basis upon which KPMG is carrying out their value for money analysis. What has been done thus far and continues to demonstrate a rigorous “value for money exercise”, with clear processes and procedures. I have communicated to you, the Governor, and the public that it will be sent to the Central Tenders Committee for final review.

Our position in relation to these major and now overdue infrastructural developments, is that our approach will produce value for money and real sustainable benefits to the Cayman Islands, having been suitably tested – or we will reject it, and move on. There is no Government guarantee for the project. CHEC pays off the existing Port Authority loan and there is only a 1.5% – 3.0% interest rate applied to the investment.

Your concerns over contingent liability are duly noted, but with all due respect, Cayman has not got this far through the micro-management of the FCO, nor its successive Commissioners, Administrators, or Governors from the 1930’s until today. Whilst we will appreciate a mutually respectful working relationship, geared to resolving our budgetary planning constraints, such micro-management is no more necessary, nor desirable, at this time. Value for money is the order of the day, we have a responsibility to create jobs and other needed economic benefits for Caymanians. Due process is being undertaken, the project will be affordable, and it will represent the best “value for money”.

Budget Delivery Committee

Like the UK, Cayman too wrestles with discontinuities and incompatibilities between the elected policy-makers and its civil service. Our concern with this Committee is to ensure it does not resolve these difficulties, at this critical time. While we fully understand that the Deputy Governor, with delegated authority for the Civil Service, drives accountability for civil servants’ performance; there must be no misapprehension as to the content of what is to be delivered, nor the sorts of achievement against which performance is to be measured.

Cabinet must and will retain authority to steer the budget; the monitoring capability of the Committee must lend itself to this reality, and their analysis and reporting functions must support the work of Cabinet accordingly. If this is the sort of understanding you share, then the BDC may be encouraged to get on with it, without further question as to their Terms of Reference.

On the Governor’s Role

His job should be to help the Islands – so far, the only ‘help’ coming from the present Governor – has been to keep our economy flat, people unemployed and unable to pay their mortgages and lose their homes – all of which has exacerbated the rise in the level of crime at gunpoint. If that is the FCO’s idea of good governance, it is not mine. Nor would it be the concept of the International Bodies, nor to build the confidence locally or in the international arena that you speak of. To stop the project will cause hundreds of people not to be employed which would be yet another effort to stop our economy from any growth of jobs, and loss of revenue, which the Government badly needs.

Sir, you will find the Government of the Cayman Islands may be led, but are much more difficult to push. I think you will find that we stand by our convictions, unless and until proven wrong, (even if that must be in a court of law which I will not hesitate to undertake); hence the frankness of all my dealings with yourself to date. I trust you will also find that we are an able and willing partner, and that the relationship between us can, be of real mutual benefit. But I repeat, for me, the interest and protection of Caymanians as a whole comes first.

With much respect,

Hon. W. McKeeva Bush, OBE, JP

Premier, and

Minister of Finance, Tourism & Development

These are the revised copies of the three pages of letter sent to Mark Simmonds