Thursday 10 March 2011

Buhari on Remuneration and Housing


Awareness
The Buhari/Bakare manifesto puts the issues of remuneration (wage rates) and housing together in one section and on some level putting these two things together shows a lack of awareness of the scale and scope of both these issues taken separately.
That said there is a recognition that the issue of wages exists in both the private and public sector. It also highlights the importance of saving. It however ignores a number of issues including the role of trade unions in wage disputes, the effect of inflation and the cost of staples like food, fuel and electricity. There is also no mention made of the minimum wage.
In regards to housing, it acknowledges the importance of instituting a solid mortgage market that is able to catering to those in employment as well as the need for mass housing schemes. It also alludes to the issue of funding. It however doesn’t explicitly talk about low cost housing or the differing housing needs of urban and rural areas or the maintenance of existing buildings and how to ensure safety standards in future builds.

Ambition
This section contains the explicit promise to enhance public sector pay, which to be honest is mandatory at this stage. While it will require some moving around of money, it really ought not to put a strain on the economy to properly remunerate civil servants. Encouraging employer-employee consultations is not ambitious at all as neither party is bound to anything and it will be very difficult to force results from such an arrangement.
In terms of housing, the institution of proper mortgage system is very ambitious as it will require a number of institutions to ensure that there is sufficient supply at reasonable interest rates and that there is demand from people who are trackable and are able to repay the loans.  As to building ‘mass-housing’ this really depends on the scale of the housing that is to be built as to whether it will be ambitious or not.

Detail
This section like much of the manifesto is lacking in any real detail. The goal is painted out in vague terms, but we are not told what a fair wage will be, how it is to be calculated an how it would be enforced. We are not told how many houses the government intends to build using this Private Public Partnership nor where they will be or how long they will take to complete. We are not told what incentives/regulations will be put in place to have the desired effect on the mortgage market.

My View
This is one of the weakest sections of the whole document.  Firstly it takes two issues that should be big issues in their own right and then tries to amalgamate them. The issue of housing, particularly in urban areas is one of great concern. I think that the government should be looking to move people away from Lagos and Abuja by building cheap housing somewhere else.  If not for the problem of corruption in Nigeria, I would advocate that the government build these low-cost houses using private contractors and then sell them at a fixed price , giving preference to young couples.
As to the issue of wage, the CPC really needed to come out in favour or against the minimum wage as they did not their rhetoric on a fair wage will be seen as just that, rhetoric. I would have preferred a plan that set up a system akin to what they have in Ghana that pegs all government employees wages to each other’s e.g a teacher makes x, university lecturer makes 2x, a senator makes 4x etc so that if the cost of living rises then everybody’s wages rise proportionally. It would also reduce the propensity to strike and would give a whole new meaning to the term collective bargaining.

Scores (Out of 5)
Awareness: 1.75
Ambition: 1.75
Detail: .75
My view: 2.0

No comments:

Post a Comment