More than 700 civil servants attended an emergency meeting on Monday night to discuss possible wage cuts, a pension suspension and health insurance contributions.

The civil servants were surveyed to determine what measures they would be willing to take to help reduce government deficit.

The Civil Service Association, which called the meeting, has until today, Wednesday, 10 March, to give cost-cutting proposals to the government, the association’s president James Watler said, adding that it was unrealistic of the administration to expect detailed responses by then.

“You do not push someone into a corner and expect them to come up with concrete proposals, concrete responses or answers, in such a short term,” said Mr. Watler after the meeting.

He said the government had not provided civil servants with enough facts to enable them to come to a consensus on what measures should be taken.

“We are not in a position to sit down and tell government how to do their budget. That seems to be what is being required of us. I have made that abundantly clear, we are not going there,” he said.

Premier McKeeva Bush, who was accompanied by Cabinet colleagues, addressed the audience at Mary Miller Hall at the beginning of the three-and-a-half hour meeting and answered questions from the floor.

He denied that the government was proposing that civil servants in a $3,000-$4,499 wage bracket would be required to pay 50 per cent of their health insurance, despite the circulation of an inter-office memo from Financial Secretary Kenneth Jefferson stating that all civil servants earning more than $3,000 would have to pay half their health insurance premiums.

Mr. Bush said the government was considering taking the entire issue of health insurance contributions off the table.

He told the packed hall that any cuts to public service salaries would have to be done voluntarily or by legislation.

The premier also warned contracted staff against suing the government if the terms of their contracts are changed, referring to a case in Barbados in the 1990s in which the government was sued for cutting civil service salaries. The government’s move was legal and the decision was upheld by the Privy Council. “If you believe the state in any country [doesn’t] have the authority above a contract, go ahead,” he said.

Responding to a suggestion that the government introduce a two-per cent income tax, Mr. Bush told the audience that his Cabinet was against implementing income tax and property tax.

The government officials left the meeting early to enable civil servants to talk freely about the options before them.

Mr. Bush, Mr. Jefferson and Governor Duncan Taylor travelled to the UK Tuesday and are scheduled to meet with the Foreign and Commonwealth Office Wednesday to discuss Cayman’s financial situation.

Among the proposals discussed by civil servants at the meeting was the purchase of the new government administration building by the Pensions Board – an option ruled out by an official from the board. Mr. Watler said a show of hands at the meeting for support for that proposal resulted in only 40 people agreeing with it.

They also discussed the possibility of unpaid leave for staff as an alternative to pay cuts. Mr. Watler said this option could avoid an impact on staff pensions. “If you take a cut, your pension is calculated on your last salary. Suppose tomorrow someone retires, it will affect their overall carry home pension,” he said.

A proposed freeze on civil service pensions was also not a popular option.

The Civil Service Association president said the government was giving no guarantees that if public servants agreed to a “triangle” of cuts, that it would help the financial situation in the long term. “It is a salary cut, it’s 50 per cent pay for health care and then there is also either 50 per cent pay on the pension or a cessation, or both... If we go that route, we have asked what will happen. Will this help bring the government out of the doldrums? No-one can give us a clear-cut answer,” Mr. Watler said.

Deputy Governor Donovan Ebanks who remained throughout the meeting, said he felt it was fruitful and that staff had put forward constructive suggestions.

“There was a high level of maturity and professionalism in terms of how the association is handling the interaction between its members and the government and the public bodies,” he said.