Le Hunte: Govt boosts savings

THE Government is giving much-needed encouragement to creating a culture of savings in TT, Public Utilities Minister Robert Le Hunte told the Senate yesterday. He spoke in support of the Government Savings Bonds (Amendment) Bill 2019 piloted by Allyson West, Minister in the Ministry of Finance.

“You have to instil in any country and motivate individuals to save especially if you are saving for a targeted goal.” Le Hunte said this was what the bill does, that is to encourage individuals to save for a house. Replying to Opposition criticism, he said the bill does not compel anyone, but simply gives investors a very favourable 4.5 per cent return and to lets them save towards house purchase.

“It is better to save than to borrow,” Le Hunte advised, mentioning his past job as a banker and saying a $50,000 loan could turn into $80,000 in repayments.

“It is a good thing the Government is encouraging savings habits.”

He said the bill is a great bill and urged people not to try complicate with frivolities.

Le Hunte said TT’s major housing shortage can’t just be wished away but must be dealt with in a structured way. “This Government has demonstrated through our projects we understand the concept of doing ‘more’ with ‘less’.”

Le Hunte asked, “Without this bill and the amendments will life be better or worse?” He said the bill helps people get their own house, and the 4.5 per cent return is 400 per cent better than the next best investment offer.

Earlier Independent Senator Deoroop Teemal implored that more housing be built for the elderly.

He urged the funds raised by the HDC bond issue be used to fund a pilot project to build affordable housing for the elderly.

Further, Teemal called for a greater tax credit, maybe dollar for dollar, to encourage private sector participation in supplying affordable housing. In addition, he said the private sector should be allowed to buy tax-free HDC bonds to encourage their participation in building public housing.

Teemal said TT should consider emulating the non-profit housing corporations seen in other countries, with possible incentives from the Government. He paid tribute to the work of the Trinidad Building and Loan Association. “Any initiative to provide affordable housing particularly for the poor, I will lend my support to,” he concluded.