Holness defends $57b NHT drawdown … says benefits won't be affected

Prime Minister Dr Andrew Holness has defended his Government’s extension of legislation to draw down a further $57 billion from the National Housing Trust (NHT) for budget support, arguing that this will not impair the state agency’s ability to deliver benefits to contributors.

 Holness, who was speaking at the handing over ceremony for service lots for Malvern Housing Development in St Elizabeth on Thursday, said even as NHT’s funds are being used for the national budget, the trust has rolled out a multibillion-dollar post-hurricane relief programme.

 “There is a lot of talk about the NHT and the NHT being deprived of resources by virtue of the Government, extending legislation to have fiscal support for the budget from the NHT … . The Government does not take the funds from the NHT lightly. We understand what the resources are dedicated for, and were we not in a situation that required it, the Government would not have done it,” said Holness.

 He noted, too, that a previous opposition People’s National Party (PNP) administration made a similar decision when it diverted funds from the NHT towards macroeconomic survival and fiscal consolidation.

 In 2013, the Portia Simpson Miller-led administration, facing a severe economic crisis, high national debt, and the urgent need to secure a new deal with the International Monetary Fund (IMF), passed the NHT (Special Provisions) Act 2013.

 The law mandated an annual extraction of $11.4 billion over four years, totalling roughly $45.6 billion, to provide direct budgetary support.

 Last month, the government members of Parliament outvoted opposition members to secure another $57 billion from NHT by amending the act – extending the $11.4 billion drawdown for a further five years.

 “It is worth noting that the Opposition did it and said the same thing; that the situation required it, and the situation does require it. However, we must be clear that the funds that have been taken from the NHT have not impaired the NHT in its ability to respond and to deliver benefits for the citizens,” Holness argued.

 He said the NHT has disbursed $1.9 billion in home grants to 5,078 households at approximately $500,000 following the passage of Hurricane Melissa.

 “One of the things I find very amusing as a politician, is that if you could give 95 persons something, they could get a grant or get access to something, the 95 would say nothing. But the five who didn't get will be louder than the 95 who got. And so the impression would always be given that nothing was done. I'm sure you have not seen one homeowner who has got the grant come out and say, ‘I have got the grant’,” he said.

 Further, he said the NHT gave mortgage moratoriums for six months, pausing payments for 36,000 mortgages in affected areas, while peril insurance premiums were also waived.

 He said 213 loans special roof loans have also been disbursed at a value of $6.6 million.

 Holness also disclosed that the NHT processed 3,835 insurance claims processed with a total value of $7 billion. He said $2.8 billion has been paid out so far as part of a phased process.

 The NHT has acquired 2,500 semi-permanent modular housing solutions at US$290,000 or $45 million, the prime minister said, with 1,200 units already on the island. He said 300 units are arriving today and that the remaining 1,000 are expected by July.

 He said the units are designated for individuals who must be permanently relocated from heavily damaged areas, or those who lost everything and cannot afford to rebuild.

 Holness said the NHT has identified five specific clusters across the island for deployment and noted that distribution wouldill be managed via the Ministry of Economic Growth and Infrastructure Development, with the NHT funding the construction of the concrete bases for the homes.

kimone.francis@gleanerjm.com