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Stabroek News

NHT funds - dangerous example
published: Tuesday | August 30, 2005


Devon Dick

AT LAST week's Jamaica Teachers' Association (JTA) Conference, the Most Honourable PJ Patterson said that the Education Tax will be dedicated to education and confirmed that funds from the National Housing Trust(NHT) will be used to finance education.

The first is welcomed. I stated years ago that Education Tax should have been in addition to the normal budgetary allocation and also called for the establishment of a NET (National Education Trust) similar to NHT. And even before I did, persons such as world-renowned educator Professor Errol Miller had made that call.

However, the PM's use of NHT funds is another matter. The PM wanted to distribute most lands to most persons. That is an unfinished task. He should have stayed the course and help more Jamaicans own a piece of the rock through the NHT.

In addition, the government should be weary of using designated trust funds for other than which they were intended no matter how commendable. In fact, Trustees cannot change the purpose of the Trust. Careful we do not breach procedure like what the Privy Council said happened with the founding of the Caribbean Court of Appeal. And is there any lesson from the government's handling of the Pension Fund of Air Jamaica?

HOUSING NEEDS

Furthermore, there are many housing needs. Housing could be provided for teachers on campus as an incentive to attract and retain specialist teachers. Some principals' cottages need upgrading.

When I was pastor for the Fletcher's Grove Baptist Church, Sandy Bay, a police officer commended us for being the first church to start a prison ministry at the Sandy Bay jail, but he criticized us for looking after the inmates and ignoring the housing conditions of the police who had to sleep at the station. NHT could help there.

Then there are squatter settlements. The president of Mobay Chamber of Commerce, Mr. Mark Kerr-Jarrett, is correct in calling for action from the NHT.

Quarter million persons are squatters. Operation Pride should come under the NHT and help the programme with better management and funds. NHT has relocation and inner-city programmes which are step away from Operation Pride.

And what about NHT Funds for community shelters in the case of natural phenomena? These are all urgent, legitimate housing needs.

The NHT under the responsibility of the PM has improved the benefits and lowered interest rates. However, even the good can be better to help deserving first-time homeowners. The NHT could also engage in re-financing so that old mortgage on their books at 15 per cent could be reduced. That would ease the pressure of many. Another thing the NHT could do is to employ holiday workers to inform all contributors personally that they are entitled to a refund. Information Technology can make it a simple and quick exercise.

DEBT PROBLEMS

I have spoken with the PM, the Finance Minister and the former chairman of NHT and I am aware of their arguments: The grant will not affect the NHT's mandate which has a lot of sterile funds A loan will create debt problems for the budget and some professionals not taking up housing solutions and some are delinquent. However, one has to agree to disagree.

But, if the PM's administration wanted to make a policy shift then I believe that the better option would have been to increase the Education Tax and reduce the Housing Tax so that the result would be $5 billion toward education. It is simpler than fiddling with the NHT Act. Anything else will set a bad precedent of persons feeling that they can dip hands into the NHT tax for good purposes e.g. helping a company having cash flow problems or financing the Fire Services or Health Services or supporting vice president of PSOJ, Earl Jarrett's call to use NHT funds to pay the police!

As it is now, if a government agency has completed a project and money is left over the agency has to apply for virement from the Ministry of Finance to use those funds. School Boards cannot use ministry funds for other worthy causes in the schools! The government is setting a dangerous example.

With all due respect, Mr. PM, yuh wrong fe trouble NHT funds, yuh wrong!


Rev Devon Dick is pastor of Boulevard Baptist Church and author of "Rebellion to Riot: the Church in Nation Building"

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