Sectoral Presentation 2018-2019 by Dr Morais Guy - Excerpts of the presentation by Dr Morais Guy, opposition spokesman on housing

THE RIGHT TO HOUSING

Mr Speaker, the right to housing is recognised in a number of international human rights instruments. Article 25 of the Universal Declaration of Human Rights recognises the right to housing as part of the right to an adequate standard of living.

Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR) also recognises the right to housing as part of the right to an adequate standard of living. This convention was signed by Jamaica in 1966 and ratified in October 1975.

Notwithstanding that, Mr Speaker, as a country, we have not been faithful to that covenant. Not when you consider that approximately 25 per cent of our population of 2.8 million live in squatter communities euphemistically called informal settlements.

Not when you interrogate the data to recognise that despite contribution to the National Housing Trust (NHT), the poorest income segments, despite being the highest net contributors, are not the majority NHT beneficiaries.

Mr Speaker, an analysis of the distribution of benefits across income levels reveals a disturbing picture.

Middle- and upper-income contributors have received more mortgages than those in the lower income groups. Contributors earning $20,000 weekly - which is the highest income group served by the Trust - were twice as likely to gain mortgages as contributors earning less than J$10,000 - the lowest income group.

This, Mr Speaker, is a not a recent phenomenon. What I want to highlight here today are the approaches made by differing administrations in tackling this issue. But more importantly, Mr Speaker, how the well-laid foundation built by one administration becomes the plank on which another will continue to build houses and create homes for the Jamaican people.

The National Housing Policy 

Mr Speaker, any government's response to addressing shelter needs must be informed by policy and policy directions in achieving the goals that it wishes [to achieve]. These policies inform strategies and expected outcomes in achieving the desired results.

Having said that, the need for a national housing policy is vital. When we left office in 2016, we left a final draft of that policy.

We would expect that with the new administration, there would be some changes, but it cannot be that the changes have been so monumental that it has taken upwards of two years to achieve these amendments. The then minister without portfolio with responsibility for housing in his sectoral presentation in 2016 committed to the House to have this National Housing Policy in a short period of time. To date, two years down the road, Mr Speaker, this policy has not been laid. The opposition is now requiring that this policy be made public so all can have a look at it.

Prime Minister ... over to you.

The National Housing Trust 

Mr Speaker, my colleague, the member from Western St Andrew, in his presentation made reference to the NHT, for which he has shadow responsibilities.

He commended the Government for having the review of the NHT done and the report provided. I must add that it is indeed a comprehensive report. Among the many agreeable recommendations, one that accords favour with the Opposition, is the recommendation which proposes that a portion of the NHT unclaimed contribution be put towards addressing the issue of upgrading of squatter settlements.

This is the very same point made by the leader of the opposition in his Budget presentation as one of the recommendations coming from the PNP's National Land Ownership Commission.

Mr Speaker, this phenomenon of squatting is quite a serious one, one worthy of a committed and unified approach to correction as well as prevention. And it has to involve all of Jamaica.

In fact, Mr Speaker, addressing this problem will redound to a sense of security and will enhance the social fabric of this country, resulting in a win-win for all.

Mr Speaker, the Prime Minister in his Budget presentation in March this year trumpeted that he was 'The Builder', but to be the builder, Mr Speaker it had to be with the acknowledgement that someone had laid the foundation.

Yes, Mr Speaker, the NHT did not build as many houses as would have been desired during the period 2012-2016, but what is important to note is that this was recognised and corrective efforts were initiated to accelerate the provision of housing solutions by the Trust.

The NHT then reported that one of the challenges it was experiencing and which retarded speed of development, were the long delays in the procurement of services in the allied building professions (these being engineers, quantity surveyors, etc).

The Housing Agency of Jamaica (HAJ) 

Mr Speaker, it is our view that there is a place for the HAJ in the construction of houses in Jamaica. We agree with the Government in that respect, and we further endorse the prime minister's new-found realisation that the HAJ, "uses profits earned to regularise informal communities, by expanding its capability to provide affordable housing through innovative housing solution designs and effective project execution."

The fact that there are new announced projects with which the HAJ will be involved, is welcomed. As again, we are of the view that this entity has a role in the development of housing in the country.

The Jamaica Mortgage Bank

Mr Speaker, in the auditor general's report of 2017, (it was) found that the Jamaica Mortgage Bank had non-performing loans averaging 68 per cent of the loan portfolio.

Even though that has been reduced by measures instituted by the bank since then, the main reason for the inability to maximise this arm of the Government to build houses is the undercapitalisation of the bank.

During the last administration, a proposal to have a bond offering by the JMB was not supported by the finance ministry due to the constraints of the then IMF Programme.

Since there are fewer restrictions now, this may be an opportune time to so do. You will recall, that the JMB did a loan syndication with the National Commercial Bank to fund 138 students living, which was a profitable venture for the JMB and was a win-win for all concerned.

The face of the JMB, Mr Speaker, is shown on many private housing developers' billboards in the city and across the country.

Can you imagine the potential for additional housing developments were they able to provide more financing to private developers?

The Rent Restriction Act

Mr Speaker, the rental market is an area that is not fully exploited in this country. In other Latin American and Caribbean economies, the rental market comprises a significant part of housing accommodation ranging from 20 per cent to 40 per cent. Whereas it is desirable that many persons would want to own their own houses, there will always be a market for the rental component.

Private entities need to become more involved in this area, but one of the hindrances they cite, is the skewed provisions of the Rent Restriction Act with its bias towards tenants.

We recognise that things and times have changed, from when these provisions were necessary.

This was recognised from the last administration and the process of amending the Rent Restriction Act commenced. This act was last amended in 1983 and part of what now needs to happen is the removal of some of the provisions which overly protect the tenant and stacks up against the landlord; as well as some other provisions.

Mr Speaker, I would like to know what the status of this review is and when will this House get the bill to amend the Rent Restriction Act.

Mr Speaker, this aspect of Kingston's redevelopment has been on the agenda for more than 25 years.

The Kingston Restoration Committee (KRC) was formed in 1983 with a mandate to restore the ageing city. In 2003, the Morin Report was done to inform the KRC on the concrete developments within the Kingston city.

Many other studies have been done and the UDC has been the repository of many plans and attempts at this restoration.

Mr Speaker, Kingston can be regenerated. It is important to have people live in proximity to where they work. Time caught in traffic is time lost to productivity, as well as to comfort and family life.

The issue of the redevelopment of Kingston, in respect of my focus on housing, is the fact that many empty lots litter the city. Areas which were once thriving communities have been abandoned. It is now time Mr Speaker, for the Government to lead the way in rebuilding residential homes in the depressed areas of the city.

The young professional who comes from some of these communities, after earning some qualification, would want to return to live and develop their communities.

Government should start the process of purchasing these open lots and abandoned buildings and initiate a process of constructing low-rise apartment complexes for the citizens of these communities at all ranges of the socio-economic strata.

Mr Speaker, for a green field construction project, infrastructural costs (road, water, sewerage) usually run between 35-40 per cent of the final price of these houses.

These inner city communities have roads, they have water and most, if not all, have sewer mains running by or close by. Can you imagine the significant cost reduction that would accrue to the purchasers of these units? This would no doubt make them more affordable for most.