Government estimates that delays associated with obtaining approval from the County Medical Officer of Health (CMOH) cost applicants approximately $100 million annually.
It is now proposing amendments to the Public Health Bill to remove the routine approval of the CMOH, arguing that the change could bring forward $1.1 billion in construction spending and support up to 6,000 jobs.
Presented in the House of Representatives, Minister of Planning, Economic Affairs and Development Dr Kennedy Swaratsingh argued that the CMOH is duplicating checks already carried out by other agencies, creating another layer in an already lengthy approval process.
The Minister said the proposed reform could significantly boost economic activity by accelerating construction projects that might otherwise face delays.
“Applying construction multipliers, the reform brings forward roughly $1.1 billion of construction spending into the subsequent year, supporting about $1.8 billion of output, about $0.8 billion of GDP, which is about 0.5%, and support 6,000 jobs as a one-off gain thereafter. And about $40 million of GDP and 300 jobs a year would be created from investments in the construction sector that would have otherwise been withdrawn.”
Minister Swaratsingh said the costs associated with permitting delays extend beyond the construction sector.
“These are not abstract administrative inconveniences. These are losses borne by homeowners, developers, contractors, purchasers, lenders and ultimately the national economy. They delay housing, employment, investment, taxes and economic activity. All of this can arise from one additional approval that, where no genuine health question exists, adds no distinct regulatory value. Permitting delays are taxes on investment.”
Meanwhile, Minister of Land and Legal Affairs Saddam Hosein said the proposed changes could help address longstanding land regularisation matters and improve the efficiency of processes related to State leases and grants.
“I think the Prime Minister said it very recently, that the creation of the Ministry of Land and Legal Affairs leaves a lot of those outstanding matters to now be addressed. Outstanding issues. Caroni new workers, persons who are on State lands and so on. We are regularising. And this, Madam Deputy Speaker, will assist in persons getting their leases, their State grants, and so on, in a more efficient manner. When the Minister for Works and Infrastructure announces the data centres and so on, we have to ensure that there is a smooth system to ensure that there is constructing permission in place.”
Government maintains that the amendment is not intended to remove safeguards from the construction approval process. Instead, it said the proposal would eliminate a duplicated layer of approval where checks are already being carried out by other agencies.