National Housing Corporation Repurposed to Better Serve Public Needs, Housing Minister Denies Claims of Collapse

Sutherland further stressed that despite the opposition leader’s assertions, HOPE Inc. remained a state-owned enterprise.

“HOPE is a commercial state-owned enterprise, with the government being the only and sole shareholder of that state-owned enterprise, and it is not a private company. It has a board of directors that was set up by the Cabinet of Barbados. While we don’t intervene in the daily operations, it is similar to the Grantley Adams International Airport, it is similar to Barbados Tourism Investment Inc, [and] it is similar to the QEH.

“We know that it was grossly misleading and erroneous to the public of Barbados when the member for Christ Church South – and soon to be former member – got in this chamber and misled the public. He has to come back to the public and say sorry,” Sutherland said.

He also strongly denied that NHC was freely giving land away to HOPE.

“Land vested in NHC is converted or transferred to HOPE at a cost… $2.50 per square foot. But why are we doing this? We are doing this to keep the costs of homeownership down for the ordinary Barbadian. We recognise as a government, we have to subsidise, so we decided to cap the cost of services and the cost of land. We are not selling at market value,” he sought to explain.

Thorne also raised concerns about the financial management of housing projects, notably the flow of public funding, and criticised the allocation of $60 million from the Housing Credit Fund to HOPE Inc.

“And $60 million later from the Housing Credit Fund, we have 131 solutions…. 131 houses and $60 million of the taxpayers’ money has been paid out,” the opposition leader had said.

But Sutherland explained that money borrowed from the fund was all above board, unlike what occurred under the Democratic Labour Party (DLP): “The facts would have it that the Democratic Labour Party took $75 million from the Housing Credit Fund to build the Grotto, and to build Valerie, the money was paid directly to the builder, and to date they have not repaid the Housing Credit Fund.”

He added: “You know how much the Grotto and Valerie were built at? $653 per square foot, and one at $651 a square foot. That is Sandy Lane prices. You know what is $651 a square foot back in 2014? Look at inflation and see how much that is now. Ask me how much we are building at [under HOPE]…. We are building at less than $380 a square foot.”

Sutherland said the DLP also had to answer for what occurred at the General Workers Loan Fund when they were in power.

“The General Workers Loan Fund was a fund that any persons who are building a home – it was administered by National Housing Corporation – can indeed borrow money from that fund to put on a little toilet and bath, they can borrow the money to buy land, they can borrow the money to do home improvement. The Democratic Labour Party that the member for Christ Church South has hitched his wagon against spent $10 million of the General Workers Loan Fund money to the point now that it is bankrupt. That is what happened at NHC.”

(SB)