Government considering ways to cut fuel costs, electricity bills: Cayman News Agency

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(CNS): Acting Finance Minister Andre Ebanks says the government is looking at ways to help people cope with the cost of living crisis and high electricity bills over the summer. But a relief package like the one introduced in 2022 would now cost about $8.6 million. Opposition Leader Roy McTaggart called on the current government to take advantage of the windfall tariffs from inflation by cutting fuel import taxes for a year and subsidizing electricity bills over the summer.

In a recent parliamentary debate Private Members’ Motions Ebanks, proposed by McTaggart and seconded by Barbara Connolly, said cutting the fuel tax for one year would reduce budget revenue by $17 million.

Nevertheless, the acting prime minister said the motion had been accepted and its intent would be considered, albeit with strict restrictions. He said the government wanted to help people but it had to do so in a fiscally sound manner.

Ebanks said the government couldn’t easily find other savings to make up for the $17 million loss, noting that helping those most in need was a better approach than blanket relief or support.

“The government recognises that our people are facing huge cost pressures and we are currently considering proactive measures to reduce the financial burden on our citizens, but we have to look at this holistically,” he said.

Mr Ebanks said despite budget constraints, Treasury and government department chiefs would look closely at the state of public finances in the first half of the year and forecasts for the second half to see what could be done to raise more money. They would then compare that package with other options to see which would have the “greatest immediate impact and are affordable”.

“We all want to help our people,” Ebanks said, adding that the government would consider the suggestions. However, when he took the proposal, he said it was a practical matter and there were other expenses that needed to be balanced.

As he made the case for the government to cut fuel taxes and introduce electricity subsidies, McTaggart noted that a fall in headline inflation did not mean the cost of living crisis had gone away, as prices were still rising. He said the government’s job was to help people when they were suffering, and with everyone expecting a very hot summer, cutting taxes and reintroducing the electricity relief scheme would provide some help.

McTaggart said prices in the Cayman Islands are now at least 20% higher than when the current government came to power in 2022. But referring to the public outcry after United Utilities introduced annual rate increases as part of its contract with the government, he said the price increases were uneven, as utility bills and rents had increased by about a third.

McTaggart cited the sharp increase in food and fuel prices. Meanwhile, wages have remained flat, with many Caymanians working in low-paying jobs. He said Caymanians are facing significant price increases for basic necessities every day, while their incomes have seen little or no increase.

After the debate, he thanked the acting prime minister for his calm response and urged him to do what the motion asked, insisting the government could afford it. He said MPs knew the problems because they were faced with a steady stream of constituents who needed help every day. But as bills mount and the cost of living crisis worsens, the number of people who need help is also increasing. But he said he didn’t have $10,000 or $20,000 to donate every month.