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Possible extension of Construction Stimulus Package

SNO

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Government could be considering an extension of its Construction Stimulus Package.

The Construction Stimulus Package was being implemented with funds under the 2012/2013 National Budget, seeking to boost employment within the construction sector. This would also encourage low income earners to build their homes.

That programme was expected to end today, Monday, February 10, 2014. However, St. Lucia News Online has been reliably informed Cabinet has met this morning to discuss a possible extension of the Construction Stimulus Package.

That programme has been ongoing since May 2012 and was projected to last for 18 months.

Prime Minister Kenny Anthony in the 2012/2013 national budget address explained all duties and taxes would be excluded from selected construction items used for building homes and commercial buildings. This included  sand, cement, plywood, steel bars, iron pipes, aggregates, nails fencing and stone products ,paints and other building products.

Bank of Saint Lucia was to put $100 million towards the stimulus programme with five percent fixed interest rate on the loans for the first five years with an incremental increase to match market rate. The government’s contribution was to waive $45 million in construction revenue, which would result in materials being 41% less than the actual price. Government also waived 0.25% on loans for residential and commercial mortgages.

Government is expected to issue a statement on Tuesday coming out of Monday’s discussions.

St. Lucia News Online will provide a further update on this.

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9 comments

  1. Why not continue? Without this construction stimulus package construction would definitely come to a halt as a result persons employed in this sector become unemployed. can we afford more person becoming unemployed?

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  2. These are the things the opposition UWP,LPM should be fighting to remove those bunch of SLP exploiters and liars out of office but what KING fighting like he just lost his toys, Richard another fool, trying to bully everyone. All you politicians god bury yourselves in the pit of hell that's where you all belong with the devil. greedy bunch of fools.

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  3. A possible reason why the stimulus program may not have achieved its objective may be because of the greedy merchants. Normally a 10% discount would be given if you purchased a certain amount, but the construction stimulus was used as a reason not to apply the usual discount. They practically gave the wrong impression that the VAT exemption was costing them

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  4. Right now I have lost all hope and confidence in this government. Their priorities are grossly misplaced. I am disappointed once again.

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  5. The question to be asked is whether the Stimulus Package achieved its goals. Items under the Stimulus package is not the only things you need to build a home. Electrical and pluming supplies were not included and the prices of these items were increasing during the Stimulus package period. Those who planned to build before the Stimulus Package definitely benefited but I do not think it encouraged anyone to build. Things are too hard in this country.

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  6. Think if people were honest with themselves they would see this as a smoke screen to say that something was done to help people construct a home. The bottom line is that we cannot afford it. Taxes and increses in services have put holes in our pockets. Where will we find money to take advantage of these consessions? Is the PM listening? I guess not? He is probably more interested in making a reality other things. Those secret things we will get to find when he leaves office. I think he tends to use these events as smoke screens while doing something secretly elsewhere. Just see how much sensationalism is drawn to the Opposition scuffle and shuffle- a non issue in determining the price of medication.

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    • The bottom line is that the averaged St. Lucia must survive on a 3rd world salary while having to pay first world prices. Plain and simple.

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  7. extending it is a good idea.

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  8. Ofcourse they would meet to consider the extention of the Stimulus package. Why do you think? It would be surprising that they would choose to meet instead for considering the removal or decrease in VAT on medication, a point which is brought regularly to the Government by the ordinary citizen of the country.

    This Government cares not about the people but does care about the numerous Party Hacks turned Contractors about the place. They are now using much needed revenue to deflate the construction costs of projects for their contractors.

    I cannot see the presumption in a bad economy that the ordinary St. Lucian would be seeking to build a home. I am an average St. Lucian and i could barely afford my monthly bills farless to even entertain the idea that i would embark on such a venture at this time.

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