MINISTER PICKERSGILL OPENS HOME OWNERSHIP EXPO

Minister Pickersgill, (right) listens attentively to from left, Mr. Lenworth Tracey, Managing Director, FirstCaribbean
Building Society and Mr. Milton Brady, General Manager, First Caribbean Commercial Bank.

Minister Robert Pickersgill has applauded the private sector for the role it has played in providing shelter to the Jamaican people. He says that the Government and the Private Sector must partner to provide over 30,000 shelters each year for the next five years. These comments were made while delivering the opening address at the inaugural staging of the FirstCaribbean Building Society’s Housing and Homeownership Expo at the Hilton Hotel on September 17, 2006.

“Last year, Government’s contribution to providing shelter exceeded $8.4B which was spent to provide 20,739 benefits to the Jamaican people. These figures indicate that we can meet the housing needs of the country. What is important about this data is 45% of the recipients were categorised as the very poor,” the Minister noted.

Continuing, the Minister made the following observations:

• The NHT provided 7,149 mortgages, including joint venture mortgages, which translate into 7,181 benefits valued at just under $6.7B
• The Private Sector Facilitation Programme under the Ministry of Housing, Transport Water and Works which assists developers through the planning and approvals processes at both the central and local government levels resulted in the completion of 975 housing solutions
• The Social Housing Programme which addresses the housing needs of the very poor, provided shelter for 9,325 persons at a value of over $84 million
• The Jamaica Mortgage Bank (JMB) financed 1,598 units at a cost of $875 million
• Operation Pride handed over 1,600 housing solutions valued at about $800 million.

In highlighting the importance of housing in the Jamaican context, Minister Pickersgill said, “ The majority of the Jamaican people consider home ownership to be the single most important indicator of their quality of life and of their own personal achievement.” “But”, he said, “homeownership has a far greater meaning that is rooted in the historical underpinnings of a country that has experienced both slavery and colonialism.”

The Minister outlined plans that the government has with respect to the improvement of housing. In this regard, he noted that a review of the joint venture programme is being done with a view to improving its efficiency, accountability and providing more housing solutions to Jamaica. This review will be presented to Cabinet by the end of October this year. He noted that last year a review of the operations and organisational structure of the Jamaica Mortgage Bank was undertaken. From that review, the Bank approved the recommendations that emerged and they will be implemented in this financial year.

Chief among the recommendations, I s anew structure for the Bank and a three year strategic plan which is to be implemented over the period 2007/2010. The implementation of this strategy will result in an expansion of the Loan Portfolio of the Bank, the development of a vibrant Secondary Mortgage Market and an expansion of the Mortgage Insurance Product of the Bank.
Minister Pickersgill pointed to the successful position of the JMB at the end of the last financial year. “The JMB ended last financial year in a strong financial position. The Bank’s total assets grew by 22% over the previous year to stand at $3.561 billion. Loan commitments jumped 45% to reach $3.55B while total revenue grew by 11%, an increase of $41Million. 69% of the revenue was earned from loan related activities.

The Minister commended the FirtsCaribbean Building Society for the role it is playing in the Housing sector even as he suggested that they distinguish themselves by creating financing for persons below $5 million which would include first time home owners and young professionals.