Construction sector hit by labour shortage- CH&PA targeting rogue developers
June 23, 2013, By KNews, Filed Under News, Source
Government says that it is battling a worrying labour shortage in the housing sector. The sector, along with gold, has been a main prop for the country’s economy for a number of years now.
Thousands of house lots have been issued in recent years but a number of factors affecting the work force are now threatening to break the momentum.
The country’s construction sector is facing a severe labour shortage, government says.
According to Housing Minister, Irfaan Ali, the issue has been engaging the government at the highest level with a number of alternatives being mulled. Ali stopped short of saying what these were.
The gold boom in the hinterlands, fueled by high world prices in recent years, has affected almost all the other sectors. With the lure of big bucks, residents from the coastlands have been trekking to the gold fields. Badly affected are the traditional employers involved in forestry and even sugar and even bauxite.
Questioned Friday during a media tour of the Housing Expo site at the National Stadium, Providence, the official pointed to the higher pay for workers in the housing area which moved from $3,500 up to $7,500 daily for skilled workers.
Labourers, who once received $2,000 daily, are now demanding up to $4,000. But despite the heavy demand for workers in the housing industry, the shortage of workers remains.
The situation, from all indications, seems to be getting worse, if the figures from the banks are to be believed. For this year alone, as compared to last year, the Ministry of Housing issued thrice the number of ‘Letters of Assurance’, which are used in the interim by the banks as proof of ownership of house lots to process mortgages. The demand for labour will only grow, the Ministry said.
Meanwhile, the government official was pressed on complaints by Guyanese who said that they have been robbed by developers who failed to deliver.
There have been a number of cases of police becoming involved after developers collected millions of dollars but failed to deliver.
According to the Minister, the Central Housing and Planning Authority (CHPA), has over time, been issuing warnings about some developers. He admitted that more needs to be done.
Persons, before conducting any business with developers of housing schemes, should first check with the CH&PA.
“Almost all private developers that had issues, we have a caution statement,” Ali said in defence of criticisms that his Ministry should be playing a more active monitoring role.
It is imperative, he urged, that persons conduct their research on these developers.
There have been instances where developers collected monies and claimed that CH&PA and the banks were holding up the process.
“We call the bank and confirm that the bank was not even close to approving. We have a fluid system of sharing information with the bank.”
According to Ali, his Ministry has also been screening developers ensuring that housing development is kept clean. Even the now annual Housing Expo has been ensuring certain developers have not infiltrated the system.
“We carefully select them based on our information.” (Leonard Gildarie)
