THE EDITOR, Sir:
This is an advocacy letter to the Most Honourable Prime Minister concerning the so-called NHT and NIF surplus funds.
MADAM PRIME Minister, the word surplus has always meant 'a quantity over and above what is needed', in other words 'excess'.
From listening to you and the Finance Minister, I get the distinct impression that you both believe that surplus means 'nuff money'.
Not because there is 'nuff money' in the National Housing Trust (NHT) and National Insurance Fund (NIF) does it mean that there is an excess of what is needed to satisfy the needs for which they were designed in the first place. It is not only poor people who contribute to these funds. Under the law, both rich and poor have to contribute and also must benefit. I was, therefore, shocked when you referred to it as 'poor people's money' in your budget debate. It is the contributors' money, both rich and poor ones.
FOR CONTRIBUTORS' BENEFIT
Both these schemes were set up specifically to benefit the contributors - the NHT to allow us to own a home, and the NIF to allow pensioners some form of income. The norm has been that the more affluent in the society do not access the NHT and the effect of the NIF on their existence is negligible. It is, therefore, the poorer persons in the society who depend the most on these two funds to satisfy their housing and pension needs.
The former Minister of Labour and Social Security announced earlier this year, an increase of 66 per cent in old age pension. Before the 'mammoth' percentage increase, the weekly rates were $900 at a full rate; $675 at three-quarter rate and $450 at half rate. The increase took the full rate to $1,500, the three-quarter rate to $1,125 and the half rate to $750. Tell me, Prime Minister, can these paltry sums cover the basic needs of the poor pensioners whose plights you so gallantly want to champion?
There is currently $42 billion in the NIF, how does it become a surplus if the allocations to the beneficiaries are so disgraceful? Prime Minister, are you suggesting that the pensioners are satisfied with these allocations?
GIVE PENSIONERS 'NUFF PENSION'
I am suggesting to you, Most Honourable Prime Minister, if there is 'nuff money' in the NIF, that you give the pensioners 'nuff pension' to balance their lives. Please heed the advice of those persons who are suggesting that an actuarial study be conducted of the $42 billion in relation to the number of pensioners who are currently in the system and those who are coming on each year for a period of say five years. This would give an idea of the adequacy of the current amount to suffice future demands. Then you could determine to an extent whether there is a surplus of funds in the NIF.
With regards to the NHT, the former Prime Minister announced earlier this year that the NHT would increase its allocation for mortgages up to $3 million for persons whose salaries can afford it. Tell me, can $3 million buy a two-bedroom house? Where then is the surplus if the allocation to beneficiaries is unable to buy a basic house for a nuclear family of three? If there is a surplus, give the beneficiaries enough allocation to purchase a basic two-bedroom house instead of allowing them to seek pari passu loans to finance their homes.
Most Honourable Prime Minister, please find other avenues to stimulate the small business and education sectors.
I am, etc.,
GEORGE YOUNG
cachidodo@yahoo.com
Kingston
