In the latest Minutes from the Deputy Governor and Chief Officer’s Meeting on 16^th July, 2012, Dep. Governor Franz Manderson, provided an update of the Budget and discussed some of the options provided in the Expenditure Review Committee’s (ERC) Report.

Also regarding the Report, cost saving initiatives were discussed and considered, which can be undertaken and how each option could affect the Civil Service.

The revised budget still has not been sent to the United Kingdom’s Foreign and Commonwealth Office for their approval.

We understand the UK economist who was sent over to help in the preparation of a balanced budget acceptable to the UK is still here. This is much longer than anticipated and is already over three weeks.

The economist has had many meetings with civil servants, including Mr. Manderson, to try and get the budget finished and it is now anticipated it will be with the FCO at the end of next week.

One of the measures, Hon. McKeeva Bush, Cayman Islands Premier and Minister of Finance, after having had meetings with the Liquor Licensees, is proposing is to raise their fees. He has also asked them not to pass these increases on to their customers if it is in fact introduced.

There has been much talk that public services will be cut, some drastically, but Mr. Bush said no public sector jobs will be cut although there is a freeze on government recruitment.

This was the first time in the history of the Cayman Islands, a budget was not presented to the Legislative Assembly (LA), with the premier blaming it on the FCO.

Instead, the premier announced an emergency government motion for a stopgap budget that included an interim-spending plan of $127 million. This runs out on 31^st August.

The government is running out of time, as after submission to the UK it has to get approval before being brought back to the Cayman Islands for presentation to the LA and Finance Committee.