Cayman Islands Premier pushed into humiliating climb down

Yesterday I reported how Cayman Premier McKeeva Bush had precipitated a crisis in relations with the UK by stating on Monday in the Legislative Assembly that he would refuse to pass the Framework for Fiscal Responsibility into law without amendments (despite having agreed the FFR with the UK a year ago), and would proceed with a deal with the China Harbour Engineering Company for new port facilities, despite the outright opposition of the UK.

Less than 48 hours after making these bold statements, he has been forced into a humiliating climb-down.

In an emotive statement released last night, Bush stated of the proposed deal with CHEC:

"No reasonable person could say that our process has not been fair, open, and carefully scrutinized. It has been as robust as the standard form of tendering and would have produced good value for money. However, we are told by the UK that it is the specific type of process that matters, not the outcome; and it is not acceptable to use any other process, even one that can be shown to be as good as the one they prescribe.

Accordingly, in spite of the sustained efforts this government has made to bring improved port facilities to reality we have been stymied unless we follow their prescribed approach to the letter. I must therefore regretfully say that the government is left with no choice but to abandon the present contract negotiations, which were on the verge of being completed. .... I want to publicly extend an apology to China Harbour Engineering Company. ...I trust that having to abandon these negotiations will not harm future relations with Chinese companies."

Of the FFR Law, he said:

"The UK calls for us to implement the FFR into Law without debate or amendment. As I have said publicly, I agree with the UK on much of the FFR because of the large loans and debt left by the PPM. The Opposition has joined in the hue and cry for implementation without amendment. They should both be concerned for the position of the Cayman Islands Government, should we suffer financial or reputational loss as a result of following budget management advice handed down by the UK. The FFR Bill will therefore be taken to the Assembly as prescribed and God help us all if it proves to have the negative consequences that some experts have warned are likely.

I make these announcements with a heavy heart. I have fought against these positions, but I am now forced to do so, through the dictate of the UK Government, which is supported by the Opposition. While I am prepared to bear the political pressures that would result in continuing to resist these demands, I am NOT prepared to expose my family to the political turmoil being brought into play at the present time. I can only pray that the worst will be averted, and that we will find a way forward that shields our population from too painful a decline in our living conditions. The government will continue do its utmost to bring forward the swiftest possible advances towards an improved economy, and trust our industry partners will appreciate that while our hand is now being forced, we will do everything within our power to perform our obligations, and to work for mutually beneficial outcomes now and in the future."

Whilst the climb-down by McKeeva Bush will no doubt avert the immediate prospect of the UK forcing the legislation on the Islands by direct rule, the wording of his statement will do nothing to foster a productive relationship between the two territories going forward.

I make no comment on whether the CHEC deal was a good one or not for the Island - I do not know the details and so cannot make an informed judgement.  Nor do I comment on whether the amendments that Bush sought to the FFR would have been good and sensible ones.  The issue for me that the time for negotiation had long since passed - the FFR agreement was signed last year and, once signed, there was never going to be anything other than enormous difficulty if Bush then sought to block it or disregard its requirements. As a highly experienced politician, he should have been able to avoid both the diplomatic crisis, and being pushed into such a public climb-down.