The Central Housing and Planning Authority (CH&PA) escaped a proposed budget cut of $130M on Wednesday, before the Committee of Supply’s approval of $7.1B budget for the Housing and Water Ministry.
The main contention with the agency was the proposed allocation of $150M for its annual subvention, which APNU proposed reducing to $20M.
Asked about the use of the money by APNU MP Joseph Harmon, Minister of Housing and Water Irfaan Ali stated that the entire sum was used for 67% of salaries for the 140 employees of the agency.
Harmon noted that for the 2013 budget, the total wages and salaries for the Authority was listed at $177.38M and therefore the $150M subvention seemed excessive. However, Minister Ali said that the total employment costs were actually $222M, prompting Harmon to ask if the figures were indeed inaccurate. Ali stated that they were, but no further follow-up was done by members of the opposition.
APNU MP Carl Greenidge asked the minister about the progress of the Low Income Settlement Programme (LISP). He read from the IDB’s report on the initial programme, which stated that “only half of the allocated lots have be occupied” due to incomplete site and service infrastructure; the limited access to financing, sanitary services and construction; and lack of stakeholder participation in project development.
Ali stated that while there were problems with the first LISP, the second was much more progressive.
The Inter-American Development Bank’s investment for 2013 in the second LISP amounts to $850M.
“In the last five years, we have completed in excess [of] 28,500 allocations,” Ali said, while adding that the results have been good and within two years 65% of lots were occupied and within three years 70% of them were occupied.
Harmon asked how the criteria were set specifically for the LISP and Ali stated that persons making below $60,000 and with one child under the age of 21 would qualify for the programme.
Harmon further asked the minister how he was able to assess if the criteria were a successful measure and if they were tested to ensure that person who would qualify indeed do.
Ali said that “the price is beyond reasonable to the extent that the private sector accuses the authority of setting the prices that is inhibitive to the growth and development of their businesses based on the price they are setting.”
Ali also said that with the assistance of a technical committee, including economists and the Permanent Secretary, calculations are done to determine the value in terms of stratification of house lots.
Minister Ali stated that the backlog in applications has stemmed from the desire of low income qualifiers returning to the Authority and wishing to be given lots in the middle-income bracket.
Prior to the ministry’s budget approval, Ali noted that he will be working on plans to regularise squatting areas as well as relocation projects for current squatters. Harmon was seemingly satisfied with the response and the Committee of Supply passed the budget.
