Premier Paula Cox last night accused Cayman Premier McKeeva Bush of making disparaging remarks about rival jurisdictions to cover up problems in his own country.Ms Cox was answering questions from The Royal Gazette following Cayman’s decision to levy a new payroll tax only on expatriates.Mr Bush said he believed work permit holders would still want to live and work in the Cayman Islands and that he didn’t think the tax would make businesses there want to move to other jurisdictions either.“There is no racial tension here; people can own as many vehicles as they want; they can own property; they can buy their own home; and there’s no other kind of taxation,” Mr Bush said.“We have first class infrastructure here,” he said. “None of out competitors are in as good a position as us.”Mr Bush’s remarks, which appear to be aimed at other jurisdictions like Bermuda, have stoked the fire between Cayman and Bermuda.Premier Cox told this newspaper that Mr Bush’s remarks criticise other jurisdictions like Bermuda for making strides to be fiscally prudent and responsible.“To be clear, this is not the first time he has made disparaging remarks about other jurisdictions in order to cover up the problems that he has had to address in his own country,” she said.“In fact, I spoke to his comments as far back as September 2011, and I am of the view that there really isn’t anything new to add. Back then, I noted that: ‘I was recently at the Overseas Territory Conference in the UK where Cayman signed a Framework for Fiscal Responsibility that was imposed by the UK Government and that was considered to be non-negotiable. Mr Bush has admitted that as a result of that document, he has had to impose the payroll tax’.”“It should also be noted that, in addition to the 10 percent payroll tax, work permit holders in Cayman must pay an annual work permit fee each year that exceeds the highest work permit paid in Bermuda for the total of 10 years.”When asked if the Premier thought the new tax in Cayman could work to Bermuda’s advantage, she said she doesn’t see it as a factor in attracting additional business to the Island.“We don’t necessarily see this latest development with the Cayman Islands alone as an opportunity to attract more business to Bermuda, as we already have our strategy to grow the financial services sector with the establishment of the Ministry of Business Development & Tourism, and the establishment of a section within that Ministry titled the Business Development Unit.“The Business Development Unit was designed to provide an innovative body within the Government that focuses on stimulating job creation and GDP growth, improving brand equity and furthering diversification of the economy and industry sustainability, within the international business and tourism sectors of Bermuda’s economy.”“I have also stated that: ‘Provided that we remain focused on our strategies of collaboration with our business partners to enhance our enviable reputation by: strengthening our relationships with the European Union, UK and US jurisdictions; strengthening our regulations to satisfy the global regulatory agencies; and enacting business-friendly legislation, then it is unlikely that Mr Bush’s comments will represent a serious threat to Bermuda’s existing reinsurance market in the short term’.”