Business licence regime faces overhaul

(CNS): The local trade and business licensing regime is set to undergo another review in a bid to introduce tiered fees reflecting the size of businesses, more support for small businesses and to cut red tape. Premier Alden McLaughlin told an audience of local Chamber of Commerce members last week that his government would be taking another look at the laws surrounding the business environment, as starting a small business is the route many Caymanians take to successful participation in the economy.

Speaking at the Chamber Legislative Lunch Wednesday, McLaughlin claimed that his administration understood that government must be “an enabler of entrepreneurship and not put stumbling blocks in place to prevent Caymanians from starting and growing businesses”.

Pointing to the reduction in some fees and the support offered by the last PPM administration, he said the number of micro and small business start-ups had increased dramatically, and that small businesses are faring better than they have done for over a decade, though he did not offer any detailed statistics. But he also stated that government should do more to help.

“We are now looking again at further ways to cut red tape that may put unnecessary hurdles in the way of business,” the premier stated, adding that Commerce Minister  Joey Hew, who is also a business owner, “understands very well the challenges of starting and running a business in these islands, including the impact – positive or negative – of government actions and policies”.

The premier said Hew had started to make “reductions in unnecessary red tape a priority” and was reviewing the Trade and Business Licensing Law and Regulations.

“There are also plans to introduce a tiered fee structure that recognises the need to ensure that smaller enterprises are not expected to pay fees at the same level as much larger organisations with higher revenues. We recognise this will not be easily done, but it will be done,” McLaughlin said.

Hew was committed to working closely with the Cayman Islands Small Business Association and the Chamber of Commerce, the premier assured the audience, as he revealed plans for the creation of a Small Business Development Centre that would cater to the needs of local entrepreneurs.

“We also need to make it easier to transact with government. The business section of the e-government portal already includes the online planning system, the national job link portal and immigration online. In the coming months you can expect an expanded range of e-services to simplify your interaction with government,” the premier added.

Government has been criticised for being too slow to make use of modern communication technology to reduce the amount of time businesses and individuals spent transacting with government for services or paying fees. From the immigration hall to the department of vehicle licensing, hundreds of hours of productivity are lost by the business community by queuing in government buildings.

Pushing what McLaughlin sees as his government’s pro-business credentials, he said that the growth delivered by the private sector contributes significantly to the fiscal performance of the government, with business activity delivering huge revenues into public coffers.

“What distinguishes my government is our willingness to act responsibly in terms of how we utilize those revenues. Our first duty is to make sure we put the income received to good use, delivering public services our people need,” he added.