In the State of Nation address given by Cayman Islands premier, Hon. Juliana O’Connor-Connolly at the Cayman Business Outlook, she said stability was key and she said she has rekindled the lost spirit of understanding between Cayman and the United Kingdom because quiet diplomacy has achieved far more than confrontation.

There was a need for a healthy partnership and mutual respect between both countries, she said.

The recession here was still here and she used the phrase “we are not out of the dark woods” and although a lot of people were feeling “the pinch” there was plenty of room for hope.

She announced positive tourism figures and an improvement over the last 6 months in government revenues by collecting more monies than anticipated whilst spending less. Spending was down by $11M and revenue up to $6M, meaning the country was on target for a $17M increase in the forecast surplus of $82M. However, some of the measures proposed by former premier McKeeva Bush had not been put in place therefore no new revenues had been received from them.

These new measures though would be put in place including new legislation regulating Cayman Islands fund directors.

The past projects were mentioned, ForCayman Investment Alliance, the Shetty Hospital and Cayman Enterprise City and said it was important for transparency in all the negotiations pertaining to the cruise ship berthing project.

Work permits were now increasing and the premier saw that as a positive indicator that business was improving on the Islands when more staff was needed.

She, never-the-less, urged the private sector to help government tackle the islands’ unemployment problem and to “rise to the challenge of creating a sustainable economy in Cayman.”

The premier admitted at the Press Briefing held after her State of Nation Address she has asked the United Kingdom government for permission to extend its overdraft borrowing facility starting in February from $15M to $30M. Permission had also been asked to spend additional monies that were above the previously agreed 2012/13 budget to be used for various law enforcement purposes.

As the UK has forbidden any long term borrowing until after 2015/16 budget it would be a major turn around if the UK did agree to more borrowing.