Gov’t in breach of borrowing guidelines – Hon. Fraser
In giving a comprehensive presentation on the motion to review the Protocols for Effective Financial Management, which was signed on April 23, 2012 between Premier Dr. D. Orlando Smith and MP Henry Bellingham, the district representative revealed that the move could be detrimental to the VI’s fiscal management.
“...because it’s so reminiscent of what I see what is happening in the Cayman, it’s the same document so to speak. Why four years to become compliant. Do we have any intention of becoming fiscally responsible as a Government or are we just going to continue doing this stuff?” Hon. Fraser questioned in the House of Assembly this morning July 3, 2012.
According to the outspoken politician, based on those protocols, Government is saying that to ensure the level of debt, is to make the VI affordable and consistent with the delivery of macroeconomic, fiscal responsibility and financial stability in the short and medium term fiscal plan.
However, comparing what is happening in the VI to the Cayman Islands, Hon. Fraser stated that in 2011 McKeeva Bush, Cayman’s Premier signed a framework for fiscal responsibility with the UK, and despite the existence of a public finance management law on that Territory, the UK was keen to see Cayman adapt a new framework.
“Sounds familiar! The Cayman Premier did it to seek assurance that his Government was committed to clear and sensible management of their financial affairs and would bring their finances back to a sustainable track within a specified timeline. That is according to their Governor. So why are we being tied to an agreement that is so similar to them?”
The HOA member also pointed out that the Cayman Premier in 2009 and 2010 requested permission from the UK to borrow large sums of money at a time when the other Overseas Territories were struggling.
However, today the UK Government is forcing the Cayman Island to cut back on their budget, Hon. Fraser disclosed and “it has everything to do with these long four years”.
He added, “We could be in breach for all of 2012, 2013, 2014, and 2015, we continue to be non-compliant and I am saying that this is something that must have been sought, it could not have been volunteered given the experience of the Cayman Islands.”
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