THE EDITOR, Sir:
I read Daraine Luton's front-page story of May 24, 2012, titled 'Don't raid NHT, Shaw warns Gov't ahead of Budget debate', and now use this medium to clarify a point and make an observation.
If you look at the accounts of the National Housing Trust (NHT), you will see that the employers' contributions amounting to approximately $12 billion per year are accounted for not as an income and expenditure item, but rather as an addition to a fund on the balance sheet, i.e., this figure does not figure in the calculation of the $451 million surplus "this year".
If the employers' contributions are redirected to the national Consolidated Fund, NHT would be forced to look more carefully at how it manages the several billions of dollars in assets already being carried on its balance sheet, leading to:
1) Sale of mortgages to raise cash or;
2) Securitisation related to existing mortgages.
All of this would serve to bring the NHT into the 21st century with respect to mortgage-management efficiencies.