Labservatives: Incredible digital election campaign by Liberal Democrats

The Liberal Democrat Party has launched a website warning about the political complacency of Labour and Conservatives, and how they have both proven themselves equally inept.

• Winston Churchill was formerly a Liberal MP, over Free Trade in 1903

• The brilliant MP Roy Jenkins was part of the original formation of the later-combined Social Democratic Party

• The Liberal Democrat Party has been out of power for decades, so it's escaped scandal.

 

Liberal Democrat policies include:

• A per-plane environmental tax, rather than per-passenger (to ensure planes don't fly half-full)
• Alternatives to nuclear defence system Trident, which benefits no-one but arms dealers
• Reform voting system to be proportional, so there are no safe seats. (Weimar Germany got Hitler as a leader with proportional voting. It is fair to say it rewards dynamic leadership, and punishes political complacency - or "safe seats").
• An elected House of Lords (which I think would turn them into a bunch of snivelling, yes-men, as they are forced to pander to the media and electorate in vote-winning tactics. For now they can be politically indefensible about legislation, which is good for true debate).
• Scrapping ID cards and removing innocent people from DNA database (Tony Blair reportedly got the idea for ID cards from Jacques Chirac in France, so - you know...).
• Independent BBC, so we don't just have "Sky" (David Cameron has already had his meeting with Rupert Murdoch, who Alistair Campbell revealed influences policy like you wouldn't believe if it's in his commercial interests).
• Raise Capital Gains Tax rate in line with Income tax rate (so it's an interchangeable decision for people)
• Use raised funds to supplement income tax threshold to £10,000 (rather than £6,500).
• £55 a week minimum payment for work experience (this will be fantastic for social mobility and graduates).

UK MPs criticised for Cayman government-paid holiday on Cayman Islands

Lindsay Hoyle, Labour MP for Chorley and Nigel Evans, Conservative MP for Ribble Valley are facing criticism for not declaring a five-day trip they took to the Cayman Islands, which was paid for by the Cayman Islands government (with flights courtesy of Virgin Atlantic).

The accusations are severe given that MPs are not allowed to accept gifts in exchange for questions back in the House of Commons, or to influence debate.
 
A quick search through Hoyle and Evans' speeches however, and it appears the Cayman Islands government didn't get much value for money.

Evans has never mentioned the Cayman Islands in the House of Commons.

Hoyle has mentioned them four times.

He chairs the all-party group on Gibraltar, whatever that means.

Hoyle said he was 'pleased to visit many of (the Caribbean Islands) as an MP (for free). This year I went to the Cayman islands and Gibraltar. I sat and drank Pina Coladas the whole time'.

He said the Cayman Islands should have an 'official voice' in Parliament, and they are asking for 'more powers'.

Not particularly inspiring.

He also asked Geoff Hoon what the UK's feelings were on the Cayman Islands. Mr Hoon said they were 'good'.

He asked Meg Munn the same question. She repeated they were 'good'.

I think as long as the Cayman Islands don't declare war on the UK, they will always be 'good'. It's a friendly nation.

After Hurricane Paloma, when Cayman Brac was damaged, he asked what was going on. He was told the Royal Navy were there but the Cayman Islands government said they didn't need any help.

And that's it. That's all he said.

Not much bang for your buck, eh, Cayman Islands.

Cayman Islands Visa: Cost of renting and buying a house

This second part on the cost of living and working in Grand Cayman on a working visa will deal with accommodation and renting a home in the Cayman Islands.

I was fortunate enough to move in with a family friend. The couple had purchased a three-bedroom, three storey semi-detached house for around CI$250,000 (US$300,000) in 2006. The place had two and a half bathrooms, was furnished throughout, and shared a pool with other residents (paid for through a strata system).

Air-conditioning is standard in Cayman homes. However electricity as a commodity is incredibly expensive. The average electricity bill during the summer months (when the AC is on high) was CI$400 (US$500) for a three-bedroom house with electric cooker, so factor this into your bills.

Water is also expensive, although not by as much, as Grand Cayman has no freshwater supplies. The water is desalinated and then either pumped or transported around the island. Expect to pay up to CI$100 a month again for water.

Gas will be a similar price, but we always just factored in that you don’t have to pay any direct income tax or national insurance. You can survive with the AC off during the winter months, but in the summer it’s a luxurious option.

The property market in Cayman isn’t particularly buoyant right now, and there are rumblings amongst the public sector workers - who make up half off the workers on the island - that government cost-cutting exercises will further decrease the working population, and thus the number of tenants.

In a depressed property market, it may be a good time to buy or rent a place in Grand Cayman.

Average rental prices in a shared accommodation along Seven Mile Beach, where the restaurants and bars are mostly located, are around CI$900 to CI$1300 a month and upward.

If you’re working in the service industry, or you’ve just arrived on the island, the Treasure Island resort offers weekly and monthly rental options on its rooms. This might be a good option if you’ve just arrived.

Away from George Town and Seven Mile Beach you might find the rent a little cheaper. My friends moved into a small top-floor two bedroom apartment near to the airport for CI$1800 a month. This is about standard for a pool and a parking space.

Over on the North Side houses frequently sell for a few million dollars. These are favoured by retirees from abroad, and don't reflect the reality of the area. It's quiet and beautiful, but there's a lot of undeveloped land left unused.

West Bay offers potentially the cheapest rent. Homes are made up of typically one or two storey cool brick buildings. The roads are a little more dishevelled as it's a rustic setting, but it's close to the town and beach. This area is favoured by true Caymanians and the expatriate service community.

Although it's generally a safe island, Grand Cayman has more than its fair share of murders, drugs and drink drivers, and a lot of it unfortuantely occurs on West Bay. Although infrequent, you'll be surprised at the brutality of attacks, and the difficulty in placing a conviction.

Check out this story on a murder in a busy tourist night club in the national newspaper for a taste of crime on the island.

Finally, expect most places to be furnished, which tends to suit an expatriate working community. An unfurnished apartment means you'll have to import furniture from Miami, and there will be customs duty to pay on that.


Be prepared to look around for your dream home. It's not difficult to find a beautiful place to live and sleep on the island. One of the benefits of frequent hurricanes means homes are very well-kept and tend to be newer builds, so you can expect a high standard in whatever price range you settle on.




The next instalment in this series on moving to live and work in the Cayman Islands will provide information on driving as a foreign national, buying a car and driving legally.

Cayman Islands Visa: Cost of living: Part one

This is the third instalment for those considering leaving Britain and living and working in the Cayman Islands on a work permit or visa. Previously I’ve given advice on quality of life and money. This instalment will look into the cost of everyday living on the island.

It’s a big area with a lot of different subjects so I’m going to look into it bit by bit. Send me a comment if there’s anything you want me to explicitly cover.

As previously noted, the Cayman Islands has to import all of its food and consumable items. Nothing is grown or produced beyond the island rum cake, and you can’t live on only that for long.

The import duty on food, alcohol, electrical goods and tobacco is around 22 per cent for most items.

The rates were increased by two per cent in January 2010. They previously stood at 20 per cent.

For instance, an importer paying CI$2,000 for a Jet Ski would have duty on that item of 22 per cent.

So the import duty on the Jet Ski would be CI$440.

Below are listed a few of the more unusual customs tariffs outside of the general 22 per cent figure:

Alcohol is taxed by the litre, so for sparkling wine you will face a customs duty of CI$7.50 per litre.

Vehicles: $1,000 Environmental Tax for older models, as well as the duty on all vehicles, which now ranges between 29.5 per cent and 42 per cent depending on the vehicle’s value.


Pesticides, insecticides, herbicides, vermin poisons: Free, apparently.

A gallon of milk costs CI$6.99 - that’s about US$8. Eight dollars!
A loaf of bread is around CI$4.50 (US$6).
A bottle of beer from a bar is from CI$3.75 to CI$4 (about US$5).
An orange is CI$1 (US$1.25).
A box of cereal is CI$5 (US$6).
A frozen pizza is CI$10 (US$12.50).
Eggs are quite cheap by comparison, because chickens roam free all over the island - CI$1.50 for a half dozen).
500g of ground mince will cost around CI$9 (US$11).

These are general items to consider, so you can get an idea of food prices. I can think of more as I go, but if you’re wondering about anything in particular, please let me know in the comments and I’ll post it up.

There are six or seven large supermarkets around the island, with Kirk Freeport run by a local Caymanian family and Hurley’s on the south of the island a Canadian-owned business.

All of the major American food brands are stocked, so it’s straightforward to make similar meals to how you’ve eaten back home. The selection and choice is also exactly as you’d expect from an out-of-town supermarket.

The supermarkets have bakeries for fresh bread, counters serving hot food for lunches, and pharmacies for medecines.

Across the meat ranges and spices there may be more choice than you’d expect, as the island caters to many different nationalities and Caribbean tastes.

Expect to find chicken’s feet in the meat aisle, for example, and jerk spices in the condiments.

Each supermarket will also have a selection for imported brands from Jamaica, the UK and Canada. These are often even more expensive than normal imported items.

Premium shopping centre Waitrose had desserts and frozen foods, and at Christmas they even stock mince pies. It was 12 for CI$7 (US$8.50) and they ran out across the whole island in about three days.

Fresh fruit and vegetables are difficult to find. Nearly all the fruit is frozen or chilled when it’s shipped over, and it consequently goes from ripe to old in a matter of days, if not hours. I ended up buying bananas and apples only when I would be eating them quickly.

During my time there, I bought bags of frozen vegetables just because it was the same thing as buying a once-frozen floret of brocolli. It’s also much cheaper and more convenient.

There are also a good network of gas or petrol stations around the island. Many are open all night serving pizza and hot snacks, drinks and confectionary. They are good for ice, soft drinks and chocolate bars.

Gas is around CI$4 (US$5) a gallon. That’s pretty reasonable, I think. It used to cost about CI$40 (US$50) to fill my tank up, and I drove a Honda Etoile.

Part two of the cost of living will be coming up next.



Also check out this blog on expatriate cost of living. It uses a scientific index to calculate the standard of life relative to other cities. It's available here.

Non-doms, tax and offshore havens: new ruling from the UK Court of Appeal.

A potentially explosive tax precedent was set in the UK courts last week, which could see wealthy UK citizens living overseas being forced to cut their ties permanently to their home country.

The UK's highest appeals court has ruled that wealthy businessman Robert Gaines-Cooper never lost his UK residency, despite living and claiming residency in the Seychelles for the last 34 years.

Although visiting the UK only infrequently in that time, the judges ruled that England has remained “the centre of gravity of his life and interests”, and Gaines-Cooper may have to pay back tax bills dated from 1993.

The UK-born citizen has been fighting the case for a number of years. He felt his status as a non-resident was clear, as he had been living in the Seychelles since he bought a house there in 1976. He has only returned to the UK for an average of less than 91 days a year since then.

The ruling by the Court of Appeal is an interpretation of tax law which states UK residents must 'break' ties with the country if they are to be eligible for non-residency. The judges noted Gaines-Cooper's wife and son still lived in an estate in the country, his son attended an English school, and his personal legal documents were drawn up under English law.

The judges said this showed he had never made a “clear or clean break” with his life in the UK, and so despite living abroad had never truly 'left' England.

The Court of Appeal judges said they had “some sympathy” for Gaines-Cooper, but ultimately decided Her Majesty's Revenue & Customs, which implements tax law, was right to turn down his status as a non-resident.

The businessman may now have to pay up to £30m in backdated tax.

Traditionally, overseas residents have maintained non-residency status having left the country permanently by visiting the UK for no more than 91 days in a single year.

The interpretation of the law is that if a UK citizen is out of the UK for 274 days, the citizen won't pay tax to the UK on any overseas earnings, unless it is brought into the country.

This is crucial for non-domiciled residents in the UK who retain ties with the UK for personal or business reasons, but want their overseas earnings to be sheltered from UK tax.

Non-doms have been a political pawn in the election campaigns of both major British parties this year. As politicians look for ways to score easy wins and claw back tax, in their political manifestos they have targeted rich residents who enjoy staying in the UK but pay little tax.

The reason Gaines-Cooper's case is a significant ruling falls to how the judges interpreted the businessman's lifestyle. It was decided that it is more important how much of a citizen's life remains in the UK, rather than how many days the person is 'physically present' in the country.

Simply put, property and schooling is more important in determining a citizen than counting to 91 days.

If the court’s verdict is applied to overseas residents in places like Monaco, the Cayman Islands and the Seychelles, some may have to provide clear evidence they have made a “clean break” from the UK. Six million UK citizens live abroad.

The court decided the 91 days threshold is not an argument to claim non-resident status, but is only relevant when ascertaining the status of a returning citizen. The judge said the 91 day rule is 'important only to establish whether non-resident status, once acquired, has been lost'.

It's clear Her Majesty's Revenue & Customs are in fighting spirit on this one. HMRC said it has had enough of the "grey area" being exploited, and intends to constrict the opportunity for overseas residents to play the system.

The reality is many UK residents move out of the country and into low tax jurisdictions but never cut ties with the country, for legitimate reasons. Most wouldn't expect that they should have to sell up and take their entire lives with them.

Some return weekly or monthly to see family or friends, some own properties and some use English law to draw up documents.

With HMRC tightening its legislation, overseas residents that visit the UK for 'life and interests' such as these will have to tread more carefully now the precedent has been set.

Some may have to make drastic lifestyle changes to ensure the taxman won't try and argue UK residency.

Even UK citizens who don't return regularly, or at all, may be in trouble. As well as property or family, HMRC will assess bank accounts, business interests and even mobile phone records to prove the person hasn't broken ties with the UK.

When a citizen like Gaines-Cooper -- who has not lived in the country for over 34 years -- can still be considered a UK resident for tax purposes, it prompts an uphill battle for those with less of a claim to discarding UK status in order to benefit from lower tax.

This case has set the bar at which all others will be judged. It's going to be a lot harder to shake off UK residency status in the future. As HMRC tightens the rules, merely staying out of the country will no longer be acceptable.

In truth, it never was definitive as a test for non-residency, but it was straightforward. Many felt it a legitimate benchmark in assessing cases. The new ruling challenges the water-tight alibi of this 91-day threshold.

Until there's a clearer definition for a UK resident, concerns will only grow amongst expatriates on what is and isn't allowed. The need for a “clear break” is written in the tax code, and it can now be argued more easily by the tax man, with less defence if the citizen keeps a home or family in the UK.

Where once a grey area worked in favour of wealthy citizens moving overseas, the difficulty in pinning down non-dom status may now work against legitimate claims.

Perhaps if there was a statutory residency test that overseas visitors could take to ensure they met the requirements before they moved back it would clear up concerns.

UK citizens who have left the country but still visit family could have a definitive verdict on their status. This would alleviate anxiety on behalf of the visitor, who may fear a simple visit home could prompt a tax bill.

Until a test is in place though, be wary. If you are living in the Cayman Islands and visiting the UK to see family and friends, just make sure the UK is not the 'centre of gravity' of your life.

UK Government & Cayman Islands: how might a Tory government change things?

Although political opinion polls are often a sketchy prediction of how people will actually vote on the day, they are often more or less right. As the general election is to be called this May in the UK, it seems likely the Labour government will be pushed out by the Conservative Party.

UK Conservatives are traditionally the party of business. Led by David Cameron, a former student at posh public school Eton (attended more recently by Princes Harry and William), the party aims to lift Britain out of a recession through its natural business instincts.

But what will a change in UK government this year mean for the Cayman Islands?

Before speculating how Cameron might take things, let’s remind ourselves of President Barack Obama’s position on tax havens whilst he worked the campaign trail in 2008.

Regarding Ugland House in George Town, Obama said it’s either “the largest building in the world or the largest tax scam in the world.”

Faced with taxpayer anger at the lack of ethics in the corporate sector in the US, Obama used the building in George Town to illustrate the complicated and illusory business practices behind global corporations and their profits.

Will David Cameron look to befriend President Obama by taking a similar view on offshore tax havens?
Let’s now take a look at the current UK government, and how it sees the Cayman Islands. In the recent past, Gordon Brown’s Labour government has, like Obama, tried to firm its resolve in dealing with the Cayman Islands.

We all saw last September how UK junior Foreign Office minister Chris Bryant turned down a request by McKeeva Bush for funding. The UK Guardian newspaper reported Bush “begged the British government to borrow $310m (£190m) from banks.”

The Guardian seemed to be over-dramatising the situation. Describing the Islands, it said Cayman is divided both “economically and socially”. It said “ultra wealthy” visitors like Tiger Woods and Microsoft’s Paul Allen live side by side with “poor people who exist... to serve the wealthy in the hotels, private clubs and staffed households.”

I have experience myself as one of these “poor people”, having worked in a bar on the North Side. I wouldn’t want Guardian readers to worry -- I lived very comfortably, as I know a great many other workers in the hospitality industry do.

The Guardian was not very fair in its example to demonstrate the economic and social divide either. After all, there are few people who would look rich stood between Tiger and the cofounder of Microsoft.

The money for the Islands eventually came through from the British government, but the posturing by the Foreign Office sent a clear message. It said the Labour government does not like how the Island supports itself as a financial services supplier, and it expects it to become more self-sufficient by introducing payroll or property taxes in the future.

Labour seems to be in line with Obama on its general disdain for the Islands. The Conservative issue is trickier.

As a part of big business, the party sit comfortably with the landed gentry, oligarchs and wealthy elite. Elements within these groups will use the Cayman Islands’ financial services, and therefore serve a vested interest in keeping offshore islands running.

For Cameron, there are people with a vested interest in keeping havens offshore within his own party.

Conservative candidate and environmental advisor Zac Goldsmith has a £200m inherited fortune. He was singled out last December by the media for his status as a ‘non-domicile’. This is a position that entitles him to live in the UK but not pay tax on offshore income. He had reportedly been a non-domicile for the past decade, up to April last year.

Similarly Lord Ashcroft, a billionaire and former Conservative Treasurer in charge of party finances, has declined to confirm his status as a UK taxpayer, despite being originally asked a decade ago.

Although Lord Ashcroft operates businesses mainly within Belize, Goldsmith’s tax status specifically identifies the Cayman Islands.

Goldsmith’s private residence in London and his ecological farm in Devon are reported to be owned by companies based in the Cayman Islands. How Cameron reacts to Goldsmith must surely be an indication of how Cameron sees tax havens, and those who use them.

So how did the Conservative leader and potential government leader react?

As the media reports it, he issued a statement to the party requesting all members ‘be domiciled’ in Britain for UK tax purposes. He said the requirement for MPs to live in the UK and pay UK tax would become Conservative law at the earliest opportunity after his election.

It’s not a particularly heavy-handed approach from a leader keen to express his moral standing on this issue though. He could have expelled the members until they had issued proof of residency, which they still don’t necessarily have to do.

Voters must already see it as straightforward that an MP who would be paid by the UK state with taxpayer‘s money, and would control where taxpayer’s money is spent, should pay tax themselves. It doesn’t seem fair any other way. To UK citizens, it’s common sense.

When politicians talk about shutting down tax havens, corporations respond with the argument that forcing them to pay corporation tax on overseas income would make them uncompetitive in the international marketplace.

With so many international businesspeople surrounding the Conservatives, it seems unlikely Cameron will put the heat on tax havens to smarten up their act. Instead, he’s more likely to see the benefits of offshore havens for businesses in the UK that operate globally.

The only tipping point could come if media interest in the Conservatives and tax havens increases. To win a popular vote the Conservatives need to be seen as a Party of the People, and the People all pay taxes. Supporting offshore tax jurisdictions wouldn’t do.

If any more individual cases involving non-domiciles or offshore tax arise within the party, Cameron may have to introduce serious legislation to show he’s serious about running a government that doesn’t just take care of the wealthy few at the top. Then Cayman could be in trouble.

Future tax status scandals within the party seem highly unlikely now though, even if they are lurking behind individual members. Cameron has seen how problems like Goldsmith and Lord Ashcroft can arise and he has learnt his lesson from the damage. He acted decisively when they arose late last year, and he’ll keep a stranglehold on his members to make sure it won’t happen again.

Although Obama likes to hit out at the Cayman Islands, actual legislation from the US seems very far away. Like the bankers, offshore islands are an easy target for political points, but legislation is few and far between. This is because they serve a purpose within the global financial framework, however murky, which can’t be denied by politicians.

If Conservatives do take power this May, the man at the helm of UK government is likely to protect and covet tax jurisdictions like the Cayman Islands. It’s in the interests of the members of his party, and the businesses they represent.

So expect a few empty words of disapproval from the leader when cameras are running and journalists are watching, but assume it will be business as usual from the UK for the Cayman Islands.

Cayman Islands visa: Money

On to the money. This is the second instalment on working tax-free in the Cayman Islands on a long-term visa.

Regarding salary, the only items deducted from your wages are health insurance and pension contributions. Every person who works on the island has to have private health insurance, which is set up by your employer and costs approximately $100.00 CI per month. This gives you catastrophic insurance cover. It was explained to me that in that if a bus hits you, it covers you. If you have a cold, you’re on your own.

For health problems, the general plan seems to be that if you need to be operated on, you head over to Cuba. This is because it has the best doctors and healthcare system in the world, owing to a nationalist programme begun by Fidel Castro. If you need to be scanned or tested, you’re off to Miami or New York. The hospitals over here do the job, but there are better places in the Caribbean to get work done.

There are no social security benefits. You can’t live on the island if you’re unemployed unless you can prove to the customs officer on the way in you can support yourself financially. You may also need a sponsor to confirm an address - someone who lives on the island.

Cayman Island tourist visas last thirty days, and expire and renew every time you enter or leave the country. They can be renewed up to at least six months, after which you may want to look into more permanent options.

If you come over here as a tourist and find a job, you have to spend a few days out of the country whilst your visa is being processed.

As a service industry employee, a pension of five per cent is also deducted from your wage and matched by your employer. This can be cashed in when you leave the island for the final time, or it can be left on the island in a bank account to accumulate tax-free.

Bank accounts charge a monthly service fee for use. This was an unusual charge to get used to, but I made so much money I didn’t care. I never actually took any money out of my account whilst I was there, as I lived off cash tips. 20 per cent tip is the norm in restaurants and bars.

The big banks are Cayman National, Scotiabank and Butterfield. HSBC has recently opened up a retail outlet too. I went with Scotia but they’re all the same. Cash points are located around the island, and banks operate normal business hours.

You can choose to take out Cayman or US dollars from all the ATMs. The two currencies are accepted everywhere, but if you pay in US dollars, you can’t get US dollars back.

You’ll get Cayman dollars, and this is not negotiable unless you can find yourself a friendly barman who’ll always have both denominations in his pocket.

This is a simple chart to show how the CI and dollar ratio actually works out:

$1 US : $0.80 CI

$1.25 US : $1 CI

$5 US : $4 CI

$10 US : $8 CI

$20 US : $16 CI

$25 US : $20 CI

$50 US : $40 CI

Wikipedia states that $1 CI is equal to $1.20 US. This might be true for macro-economic valuations, but on the street it’s 1 : 1.25, so that’s what you should expect too.

Notes are in 1, 5, 10, 25, 50 and 100 denominations. They are all different tropical colours and feel good in your hand. With it being tax free it’s easy to make and easy to spend.

In the third instalment I’ll continue on the money theme with:

The cost of living.

Visa applications and moving to the Cayman Islands

I've lived over in the Cayman Islands twice on a working visa now, so I feel I can offer some advice if you're planning on applying for a visa to work and live in the Caribbean and make some money tax-free.

This is the first instalment.

Applying for a working visa to Grand Cayman is a long, step-by-step process. It begins from the moment you get the go-ahead from an employer to the point it’s sent off to the Cayman Islands visa board for approval.

I can only offer my advice from my experience with the visa application I made to work in the hospitality industry in the Cayman Islands.

It's a standardised process to apply for and complete a visa to work in Grand Cayman though, so if you’re looking at senior roles you should note the visa process is likely to be similar. The only real difference between a service and more senior managerial or financial roles will be the employer's application fees, which increase as employee salary increases.

I first moved over in 2007, and it was easily the most incredible experience of my life so far. The island has a great mix of nationalities, with expatriates from Britain, Canada, America and Australia joining Caymanians, Hondurans, Phillipinos, Cubans and Jamaicans.

Although the Cayman Islands are a British dependent territory, its proximity to Miami and the tourists who visit means it has adopted more of the American lifestyle.

Tourists visit by plane and by cruise ship for its seven mile beach, its flora and fauna and its tax-free status. Designer jewellery and watches sell from the capital George Town at a discount rate.

Scuba diving is another popular attraction. I took my Open Water qualification here, training in the tranquil, clear waters. I’ll go into more detail in a future blog post, because diving the coral, the Cayman Trench and the underwater cliff faces are exhilarating experiences in themselves and worthy of the trip alone.

So first things first: Why work in Cayman?

The Cayman Islands are a group of three small islands situated between Cuba and Jamaica. Being in the Caribbean they enjoy year-round good weather.

The currency is the CI Dollar, which is fixed against the US dollar at $1.00CI = $1.20 US.

The cost of living is high as everything is imported from abroad - usually America, but there are also Canadian and Jamaican supermarkets. Everything that is imported is subject to a 20 per cent duty. Other than the import duty the islands are completely tax-free.Most people shop for big ticket items like furniture in Miami, and many rental homes will come fully furnished.

Just to get it out of the way quickly, the island is a developed nation in every single way. Good roads, a busy airport, electricity, fast internet connection, golf courses, cinemas, food from around the world, beer, air conditioning and every thing else you could ever desire are here and have been for years.

People sometimes complain of island fever, because it is relatively small. A population of 60,000 fit on Grand Cayman island, the biggest of the three. It’s shaped like a disjointed horse shoe, with marshland and a bay in the centre. A shallow stretch of water reaches from the northern tip of the West bay area of the island across the bay to the North Side. This shallow water houses Stringray City, a really popular attraction for tourists.

Cuba is a 50 minute flight away, and costs about $350 US round trip with Cayman Air. Havana is a great place to visit for a few days, and definitely worth a visit whilst you live on the island. Cayman Air also flies over to Jamaica, Miami, New York and Honduras. A cool little plane with the old-style propellers also hops over to Cayman Brac. The Brac has a population of a few hundred people last time I checked. It’s a good spot for chilled out scuba diving.

The airport isn’t huge. The biggest plane is the non-stop flight from London with BA, which has to slam on the brakes when it hits the runway. Its services Canada, the US and the UK, as well as destinations around the Caribbean.

The most significant reason for moving to Grand Cayman is undoubtedly the money, and its tax-free status. I'll go into greater depth in the next blog on this.

Next instalment: On to the money.

Combating rising gas prices

With gas prices increasing on the island as reported in the press earlier this month, there might be cause to approach more self-sustaining fuel ideas for the island.

Speculation for the latest rise in import price for gas points towards a particularly cold winter in the US. As demand rises there, so too does the price everywhere. Gas prices in Grand Cayman are thus chained to demand in the US. The price of crude oil is affected by the draw from American consumers, and can peak if it runs low after high demand.

US government regulations and taxes can also affect the price the Islands pay, as can regional conflicts around the world. Steady increases in the cost of bringing gas to the island come from refining and transportation. Prices surged across the US in September 2008 after Hurricane Ike battered drilling rigs in the Gulf of Mexico, as it led to some of the biggest refineries lying idle.

In this last case, prices also jumped higher in the US as drivers rushed to gas stations to fill their cars, stoking the demand. Larger gas companies expect disruption in the gas supply chain sometimes, and so their prices should remain steady. It didn't stop gas retailers on the roadside jacking up prices two or three times a day though, in an effort to make a quick buck on driver's fears.

Retailers know that gas is an inelastic commodity, which means people rely on gas, and will pay increasing amounts whether justified or not. The gas industry knows higher prices don't necessarily hurt demand.

So the Islands pay a market price that can be affected by factors ranging from general global demand to uncertainties in the supply because of bad weather, geopolitical instability, the US consumer, retailers looking to make a quick buck, regional instability or unforeseen operating and transport issues.

Taking each point on its own, is the price of gas likely to increase or decrease given the unstable world we live in?

What stranglehold does a foreign petrochemical industry currently hold over the Islands, that it can increase prices without any backlash or fear?

So if there are likely to be disruptions and demand increases, perhaps the Islands can insulate themselves by finding alternative fuel sources right here. Wind or solar energy seems possible, especially with large areas of unused land in the centre of the island. Wind turbines may not be feasible, given their height, but with the amount of sun Cayman receives all year round, perhaps solar panels could provide an alternative energy source.

The Islands will never stop importing fuel. Gas drives our cars and boats and powers our generators. It's incredibly important, and an economy without gas wouldn't function in the same way.

But what if 10 percent of the energy consumed on the Island was drawn by alternative power. That would be a 10 percent cushion against powerful global market forces, and the Islands would gain back control.

Economists will say that when a price goes up, demand will fall. Crude oil prices won't drift higher and higher forever; they'll reach a series of peaks and slows. But volatility in the wholesale price of crude oil is lower than volatility at the point of retail. Basically, drivers are more likely to panic if they hear of a shortage than oil companies are, because one has more information about the market than the other.

Alternative sources of power - especially renewable types made here on the Islands - would mean there's less reliance on an unpredictable and expensive foreign industry.

The next question is to ask what price the Islands have to pay for a long term freedom from imported gas. It may simply be that the price is too much for a small island nation, which relies on a healthy tourist economy and booming financial sector, to cover the bills for solar panels or wind farms. It may help to look at two small islands facing similar circumstances in other parts of the world. Both are extreme examples of what is possible.

There's an island off the coast of Denmark called Bonholm. It has 43,000 inhabitants and relies on tourism and short stay visitors from the Baltic cruise ships to feed its economy. It has no financial industry, and it gets very cold in the winters. It has made a pledge through its local government to be carbon neutral within the next five years. It uses wind power to create electricity, and burns straw for district heat.

Part of its future plans includes an electric car grid network around the island. Electric cars receive a lot of press, but perhaps they are only relevant to small islands; with their limited range and power, electric cars seem suited to islands where there's not very far to go and speed limits are naturally low.

Across the oceans, an island sits in the Pacific Ocean called Tuvalu. If you've ever been on a website with .tv at the end of its address, it's been registered through this little island.

Tuvalu has also declared it wants to be a carbon neutral island within a few years. It only has a population of 12,000, but it has pledged to commit $20m to introduce environmentally friendly energy projects to the island such as wind farming and recycling.

These two islands lie thousands of miles apart. Bornholm relies on tourism and farming, sits off mainland Europe, and deals with a mild European climate. Tuvalu's local economy is fishing, sits in the expanse of ocean between Hawaii and Australia, and its weather is split between a rainy season and tropical summer.

Culturally and geographically, these islands could not be any further apart.

In their outlooks on their environment however, they can be placed side by side.

Both islands are small, which means their regional government governs close enough to the actual community to act selflessly in its interest. There are no long term directives here.

Is there a case for solar or wind projects in Cayman beyond the economic value? What are the spiritual benefits to a society to know it is truly self-sustaining? With such a delicate and unique ecosystem, renewable energy might benefit the island in other ways. How proud might the Cayman Islands be if it became one of the only sustainable nations in the world? How much more tourism would it attract for its environmental credentials, and how much more would the islands feature in the foreign press for other reasons?

Gas prices will rise and fall and no one can do anything about it - unless there is another option for fuel.

First published in Cayman Net News print edition, February 3, 2010

Small island nations and climate change: Commentary

At the mercy of strong winds and angry swells.

Coral reef and mangroves acting as the first line of defence against wave action and storm surges.

Much of the island resting only 1.5 metres above sea level.

These are facts about The Maldives, a collection of islands scattered across the Indian Ocean. But these facts aren’t far from the environmental realities of the Cayman Islands, thousands of miles away.

Although a tiny group of flat islands, The Maldives has succeeded in positioning itself in the centre of the Copenhagen Climate Conference. Experts state it faces disaster if climate change isn’t reversed and sea levels rise in worst possible scenario predictions.

In October it grabbed attention from the world by holding a government cabinet meeting at the bottom of a lagoon. Seated at a table submerged five meters underwater, officials in scuba diving gear signed a document calling for leaders to agree global cuts in carbon emissions at Copenhagen this December.

At its highest point, The Maldives are 2.3 metres above sea level. That’s about the same size as Yao Ming, the tallest player in the National Basketball Association.

By the end of the century, not even Yao Ming will be able to stand on the shores of The Maldives with his head above the water. So the government there has made it clear the leaders of the biggest nations of the world need to act now or it will disappear forever.

Like Cayman, most of these nations are too small to contribute much to carbon emissions, but they will be hit the hardest by the effects of the seas swelling and warming. It’s only fair they are attempting to shout the loudest at the climate conference in Copenhagen.

The responsibility of small island states is clear.

There are currently 350 active campaigns across the world by small, flat island nations and seaside communities. They are all urging governments to respond quickly to the fear of rising sea levels.

An interactive map available online uses ground heights and satellite mapping to project how rising sea levels will affect island nations.

At one metre, this map shows that areas around Governor’s Creek and North Side will be underwater. At 3 metres, large parts of Rum Point and areas of West Bay are submerged. At 5 metres, the whole island is covered in large spots of blue shading to indicate water rising above land, except around Bodden Town and areas of Savannah.

At a projected rise of 6 metres, most of the island is submerged.

George Town, Patrick’s Island and Seven Mile Beach are underwater. The most concerned scientific theorists have said the seas will rise to 6m not long after the end of this century. That’s four or five generations of family.

In the past six months, the island has had one of the quietest hurricane periods in history, a brief mercy in part because the most severe weather moved across to the other side of the world.

Hurricanes will return, however, and they will grow more ferocious, strengthened by rising sea levels and warmer waters.

Slightly warm temperatures can kill life in reefs. Scuba divers will have spotted the bleached white coral across the tops of underwater reefs. When the coral dies and turns white, the island loses a major natural defence against wave action and storm surges.

Mangroves hold the soil together and act as a sponge when swells occur, but increased ocean flooding will damage these plants too, by changing the supply of nutrients in the wetlands.

Mangroves also absorb carbon dioxide in the air, and lock it into the peat formed from dead branches and leaves compacted at the bottom of the ocean. As the sea level rises, so does the level of peat at the bottom. More peat means less carbon dioxide in the air. In its own way, nature tries to work against rising temperatures.

When Department of Environment Director Gina Ebanks-Petrie announced the department was creating a National Climate Change Adaptation Strategy for the Cayman Islands last September, in association with a number of Caribbean climate change associations, it was criticised by a resident in the newspaper as a waste of resources.

The adaptation strategy will investigate how climate change should influence future government policy on coastal setback and building regulations, beach erosion, water treatment facilities and drainage. It would push environmental concerns up the agenda of government.

It would be funded by the UK Department for International Development (DfID) and the Caribbean Community Climate Change Centre (CCCCC), not the Cayman government. This was confirmed by Ms Ebanks-Petrie.

The resident said the DoE could better use its time to develop a recycling plan and energy policy for the Cayman Islands instead. A home recycling plan is something I attended to in my last commentary piece. Ms Ebanks-Petrie noted the concern, but brushed this off as a matter for the Department of Environmental Health. Responsibility for Mount Trashmore is a difficult one to pin down on a particular government department.

The resident then said it would be a waste of time because the government can’t influence the rate at which global sea surface temperatures and sea levels will rise anyway. On this, the two sides reached agreement.

A single government can’t change sea levels, but all governments of the world working together may be able to.

We should shout loudly in unison with all small island states. The resident is fair to say there are more pressing environmental concerns for the Islands, but any government willing to take an informed approach to the climate situation should be applauded.

Perhaps if the government had held the strategy meeting at the bottom of the sea we’d have received some attention from the world. That is the role our islands and islands like us have to play in the global climate change conference.

Like the islands of The Maldives, we are not the biggest polluter. We don’t export any oil or gas. Our input in the climate change conversation is limited to the damaging effects it will have on the Island.

The effects of rising sea temperatures and sea level will be seen most obviously here, and in places such as Bangladesh, The Bahamas and The Maldives.

China, America and Europe need to hear about these little island nations, which stand to lose everything should sea levels rise a single metre.

The Maldives is taking up its duty with great enthusiasm. We should expect to do the same.

The climate change strategy is a good start from the Department of Environment, but studying beach erosion is a defensive move. We can’t do anything to prevent inevitable changes.

We need to join up with other Caribbean nations and raise our voices in the climate debate.

We need more publicity-seeking stunts like The Maldives. We need to add the Cayman Islands to the list of nations that are asking for a solution within the next century.

If this is a real fear, let’s take action before rising sea levels caused by climate change begin to wash away nations.

First published in Cayman Net News print edition, December 31 2009.

Grand Cayman and recycling

Time for the Cayman government to get serious about recycling.

Today I did something on Grand Cayman Island I would never have done during my time in the UK, the US or Europe. I threw a tin can in the garbage.

I shouldn’t feel bad about not recycling it though. No-one on Grand Cayman should. Because until there’s a government sponsored home recycling drive in place, there’s nothing we can do.

I threw the tin away, off to a life on top of what could be Cayman’s highest point; the landfill mountain outside of George Town.

I found myself asking, as well as the main garbage bin for household rubbish that can’t be recycled, where are the separate boxes for paper, for tins and glass and for plant waste?

I know many do recycle, many do take care to turn off lights and many still preach lessons taught by their elders to never waste clothes and food.

But even in this age of consumerism there’s no room for ignoring the mountain of garbage on this island. Put simply, there’s no more reason to throw away a tin can than there is to follow it with a few dollar notes in the waste basket too.

A quick search through Cayman’s newspaper archives shows that the majority of businesses on the island are working hard to be environmentally responsible. Recycling initiatives in schools, in bars and the Global Green Caribbean’s initiative to recycle old telephone directories shows there’s a growing will amongst Cayman’s citizens and businesses to work on this.

But recycling should start in the home. We all have a hand to play in keeping the island clean. By allowing the government to ignore household waste, the mountain of trash will only grow.

Although responsibility ultimately falls to us to dispose of recyclable trash in the proper way, it’s the government which has to step in to ensure there’s a service available to guarantee household waste will be discarded properly.

The attitude of government has to be that if people take care in what they throw away, it will then ensure it’s properly collected and recycled.

In Europe, the EU has pushed forward for the last decade with its Landfill Directive, a policy requiring European governments to commit to find new ways of dealing with their household waste. This has included the large scale composting of biodegradable material, something which Grand Cayman would have a ready use for, even if only to provide high quality compost for parks and wildlife areas.

On June 16 of this year, the ever-sensible Dave Schudel and Jack Benz gave some good pointers on what we as citizens can do to reduce the size of the landfill: “Don’t buy what you don’t need, buy items with less packaging, reuse what you can, give to charity rather than throw away and so on.”

Dave and Jack questioned whether this would make a difference to the size of the landfill. It seems a start, but the landfill should be a last resort for garbage. Better to put a system in place to categorize different materials before it leaves the home or business.

A recycling plant would be an expensive upfront cost but once in place that landfill will be full of only materials, which can’t be recycled. A composting site for vegetable and fruits would cost even less, and could be used as high quality soil feed.

Is there a reason then why the government has so far offered only half-hearted gestures to update what is an archaic way to dispose of household waste, simply allowing it to fester in the heat?

Possibly it’s the economic cost of recycling.

In truth, we make little on the island. What would Cayman do with the recycled metals, plastics and paper if it couldn’t be reused for products manufactured on the island? In other countries it could be fed back into the manufacturing industry, so what could our government do with it?

Is it too costly to ship it out to where it could be sold for reuse?

Caybrew’s pledge to collect empty bottles makes sense. It must lower its operating costs to be able to reuse the glass, rather than import bottles from abroad. On the other hand, it makes no economic sense for Crown Imports to collect up its empty Corona bottles, as it would have to ship them back to the US for reuse. It’s easier for the importers to simply ignore island recycling, to the detriment of the island.

So could it be living on an island is holding the government back from updating its garbage disposal system?
If it is a cost issue, ignoring Mount Trashmore will continue to unless it’s forced to put a recycling process in place by the people.

Critics will say that this is not the time to be worrying about introducing costly new measures to protect the environment, when the island economy is facing economic losses as part of the global downturn. But our environmental actions should stand firm against the cost to our pockets.

Never should we allow our civic duty to be pushed aside by economic pressure. Never should we discard good ideas to maintain a status quo that’s incompatible with the environment, and soon to be the rest of the world.
Recycling is the most immediate way we can ensure Grand Cayman retains its beauty, and set an example to other Caribbean islands.

Urge the government to make a stronger case for recycling. The future isn’t landfills, dumping garbage on cargo boats or burning it, it’s working smarter to minimize waste.

Tins, bottles and paper should be in a separate box outside the home or apartment. The government should organize a separate collection after general garbage is collected, and it should subsidize the collection. It can sell the recyclable material it collects.

All over the world and as Dave and Jack said on cruise ships too, people are starting to smarten up to the idea of recycling.

Let’s not let Grand Cayman fall by the wayside in this new age of austerity.

First published in Cayman Net News print edition, December 8, 2009.