PM promises 8,000 houses per yearBy Andre Bagoo Sunday, September 13 2009
PRIME MINISTER Patrick Manning on Friday night announced that the Government expects to return to meeting its target of constructing 8,000 houses annually, as he was forced to defend his administration’s housing programme as well as the 2010 Budget’s introduction of a new property tax regime.
In a series of exchanges with the Cumuto/Manzanilla MP Harry Partap during the Budget debate on Friday night, Manning clarified the current position of his administration’s new housing programme, which had been placed on hold in November last year ostensibly because of restructuring of the Housing Development Corporation (HDC) and in the wake of the global economic downturn.
“We are doing some significant re-organisation in the HDC now and, in fact, the HDC is now ready once again to accelerate the rate of housing construction and we are going back to the 8,000. That is the position,” the Prime Minister revealed.
Partap had earlier noted that the Government in 2003 had set a target of 10,000 houses per year, but this target was not realised.
“It would seem to us that the PNM housing bubble has burst... The housing figures are being dressed up to make the PNM look good, while thousands of citizens are in need of housing,” Partap said. “Mr Prime Minister, you promised in 2003 that 10,000 units will be provided every year for ten years. Remember that?”
Manning rose to his feet immediately to respond.
“The target was 8,000 constructed by the public sector and 2,000 by the private sector. It is an important distinction,” he said.
“And if you add 8,000 and 2,000 you get 10,000,” Partap quipped in response, as members of the Opposition benches laughed. Partap continued, “but let us look at the record. By your admission in 2003, now, at this present time, we should have 70,000 units. And that should be ready for occupancy by the end of the year, 2009. And if we are to believe the Vision Operational plan, that figure is 32,000. Therefore you are short by 38,000.”
The Prime Minister was once more moved to respond.
“Sometimes I wonder if the member for Cumuto/Manzanilla is beyond redemption,” he said. “The fact of the matter is that we set ourselves a target. And it took some time for us to be able to gear the industry up to be able to construct houses at the contemplated rate. So that in 2003, when the announcement was made...we by no means met the target that year. It took time for that to happen. But in a subsequent year – 2007 I think – it was.”
The exchange was one of many during Partap’s contribution which saw the Government several times forced to go on the defensive as the Opposition MP criticised Government spending.
Partap attacked the 2010 Budget’s introduction of a new property tax regime which would see the values of properties re-assessed by the State and the imposition of a three percent tax on such properties’ rental values. The plan is expected to raise taxes and trigger a spike in real estate prices.
“You feel sorry for pensioners; for all those people who built their house and saved money all these years. And now you want it back, you want to squeeze every cent from people,” Partap said. The comment triggered Manning to defend the new property tax.
“Is the honorable member suggesting that properties ought not to attract any level of taxation by the State?” Manning said. “Are you aware that the level of taxation for properties in the US are at ten and eight and six percent and that the new level is three percent?”
“You leave it as it is, we are in hard times Mr Prime Minister. People are in dire straits. That is the level of the propaganda you are spreading,” Partap said. “Mr Prime Minister you still have time to withdraw that tax and give the people of this country a little ease up.”
Partap said the Government has allocated $126 million for “promotion, publicity and printing” for its ministries. “You are spending too much money on propaganda,” he said. In relation to the HDC’s housing programme, Minister in the Ministry of Housing Senator Tina Gronlund-Nunez yesterday said the first phase of a re-organisation of the state agency had been completed.
“We have been reforming the HDC structure to ensure that there are proper processes and systems in place which will encourage more efficiency,” she said. “We are ensuring that different departments are more accountable.”
However, she noted that the reform of the HDC was ongoing and that there is further work to be done. “All of this will take some time to roll out to the full extent. But we are aiming to ensure better deliverables at the end of the day.”
