The United Kingdom is justified in exercising its right to require the Cayman Government to return to responsible financial management as required by section 14 of the Public Management and Finance Law (PMFLaw) and section 113 of the Cayman Constitution.  The UDP Government is acting responsible in agreeing to it.

The agreement called “Framework for Fiscal Responsibility” between the UK and Cayman is for the protection of the public’s money and is in the best interests of the public. Large new borrowings are subject to the UKs approval.

The Premier and UDP Government are getting  Caymans  finances under control again after inheriting some of the PPM Governments financial problems. It would have helped the public and the UK if the previous UK Government had stopped the PPM Government before they borrowed and spent so much public money.

The PPM Government’s large loans and spending on the roads (Government still has not paid for some of the land that the roads are built on nor accounted for this contingent liability in the accounts), the two very expensive new schools and the Government administration building among other spending and borrowings by them have contributed to putting the Cayman Islands Government in breach of the PMFLaw.

The PPM Government did not have consolidated published audited accounts for the 4 years that they spent about one and a half billion dollars ($1,500,000,000—) and borrowed and /or committed the country to borrow hundreds of millions of dollars, leaving $81 million of annual deficit on 30 June 2009. The PMFLaw requires a surplus annually. The public and the UK have to be worried about this damage to Cayman because when the public cannot pay the UK may have to.

During our 4 terms in Government and prior Non Political Party Governments’ terms, the Governments abided by the PMFLaw (and before the law guidelines similar to the law) and the UK did not have to intervene because we followed responsible financial management. Since political parties have been in power Cayman has gone downhill financially.

The public should appreciate the UK requiring the Government and appreciate the UDP agreeing to return to abiding by the PMFLaw’s fiscal responsibility principles by the financial year 2015/16.

If Cayman was independent there would be no one to keep the Government in responsible financial management and the Government may cause serious financial damage to the country as has happened in some other Caribbean countries.

The PPM Government has contributed to a sizeable part of a large debt which sadly our children and future generations will have to repay.

Truman Bodden                        John McLean