A single mother earning the new minimum wage takes home just CI$1,300 monthly after deductions – less than the cost of a modest one-bedroom apartment in George Town.
That’s according to opposition leader Joseph Hew who was speaking during the parliamentary budget debate on Tuesday, 11 November.
Hew criticised the government’s $1.54 billion spending plan for failing to provide meaningful relief to struggling families while core government expenditure has more than doubled since 2016-17.
“This is not a story of laziness or irresponsibility. This is the reality of a Caymanian doing everything right and still falling short,” Hew said.
He detailed how a minimum wage worker earning $8.75 hourly faces impossible choices after mandatory pension and health insurance deductions.
The opposition leader calculated that after paying $74.36 weekly for basic health insurance and 5% pension contributions, a single parent working 45 hours weekly takes home $299.70
All while facing $1,500-1,800 monthly rent, $800-1,000 childcare costs, and $300 transportation expenses.
Hew proposed immediate cost-of-living measures including reduced import duties on essential goods, suspension of recent vehicle registration fee increases, and a 12-month cut on fuel import duties.
The People’s Progressive Movement’s alternative budget would deliver free basic health care for every Caymanian child through their ‘Healthy for Life’ programme, he said.
This would cover immunisations, regular health checks, primary care, dental, eye care and mental health support.
“Families who can afford to stay healthy are families who can afford to stay hopeful,” Hew said, noting the programme was fully costed and ready for implementation in this budget cycle.
Core government expenditure has risen from $720 million in 2016-17 to roughly $1.54 billion today, with spending up 20% compared to the 2023 budget, according to Hew’s analysis.
“That is not prudence. That is expansion on autopilot,” he said, calling the government’s approach a “tax, borrow and spend” model that amounts to “deferred taxation”.
The opposition leader criticised the $15 million housing trust injection as inadequate, noting it would build perhaps 40 to 50 homes while more than 1,100 families await affordable housing.
He questioned why the Cayman Islands Development Bank’s capital was cut to $500,000 annually for 2026-27.
Citing Health Services Authority’s departing CEO Dr Nick Joseph, Hew noted more than 40% of residents earn under $30,000 annually, with nearly half that group earning less than $15,000.
“That is not prosperity. That is working poverty in one of the wealthiest small nations in the region,” he said.
Environmental concerns featured prominently, with Hew demanding transparency on the George Town landfill plans following the defunct ReGen waste-to-energy project.
He called for immediate investment in Seven Mile Beach restoration, warning that erosion threatens tourism jobs.
“Every visitor who lands at Owen Roberts International Airport can see the dump from the air and every cruise ship passenger from their balcony. That is not the first impression a premier destination should give,” Hew said.
The opposition proposed establishing a coastal resilience fund seeded with tourism revenue to ensure permanent funding for beach restoration, mangrove protection and coral reef health.
On immigration, Hew reiterated the Progressives’ calls for a fair employment commission and multi-agency task force to ensure Caymanians are prioritised in hiring, while acknowledging businesses using work permits properly deserve an efficient process.
He said the oppsoition would support positive aspects of the budget while opposing “reckless” spending and working across the aisle when cooperation serves residents.
“Budgets are not just about numbers, they are about people. This budget meets the test of compliance, but not yet the test of compassion,” Hew concluded.
