Officials in the construction sector have been assured that the state will invest in new projects despite economic challenges due to declining energy prices.
Housing Minister Marlene Mc Donald, who spoke at the Contractor of the Year Awards and Dinner hosted by the T&TContractors Association (TTCA) at the Trinidad Hilton and Conference Centre, said Government "will continue in a measured way, the construction of homes where there is a dire need for such."
The minister was critical of the policies of the former Kamla Persad-Bissessar administration which put low cost state housing beyond the reach of its intended clientele.Prior to 2010, she said, the average cost of a unit was less than $500,000. A perusal of the records revealed that from 2011, something went awry and construction costs increased astronomically.
"As a consequence, Housing Development Corporation (HDC) units skyrocketed and in the midst of all of this, our target group for whom HDC was established suffered badly.
"At the ministry I am concentrating on wiping out wanton wastage and squandermania, over pricing in the construction of houses and the objective here is to reduce the cost of construction of HDC units from an average cost of $1.3 million to $1.6 million for a single family unit.
" At such construction cost, the final selling price of an HDC unit is in the region of $770,000. This is beyond the reach of the target group for the HDC," said Mc Donald.
"There is a sense that the HDC has lost its moorings, its focus and so it is this government's objective to go back to basics. We have to become more people-centred and people driven. I am of the view that HDC in fact was trying to fulfill a role that should have been left to the private sector.
"I recalled in the past that HCL (Home Construction Limited) built houses in this country and so the upper middle income earners accessed such units. I am saying this to explain to you that there is a role for the private sector and I will be exploring this approach with certain financial institutions, which have expressed an interest in meeting with me.
"Once we are successful with this approach I can see more jobs being created in the construction industry which would redound to your benefit."
The minister warned contractors against under-handed practices such as kickbacks and urged them to uphold the qualities of proper procedures.Mc Donald said new projects will be started and more new contractors will be hired rather than a preferred group.
"Udecott has priority projects in the Port-of-Spain area, San Fernando (and) Chaguanas. I can assure you that the framework is being put in place to kick start all that I have said."