The Editor, Sir:

We noted in your lead Wednesday Business story of September 23, 2009 titled 'NHT has cash to back new benefits' a few errors of fact that may leave misconceptions in the minds of your readers.

Please note corrections below:

1. "After two years of running operating deficits the National Housing Trust (NHT) reported a $1.8 billion profit for its financial year to March 31."

This statement suggests that the NHT ran two years of deficit consecutively. The Trust ran a deficit at financial year (FY) ending March 2006 and FY ending March 2008.

2. Only two persons can combine for a loan, not three.

3. "A survey by the Trust last year indicated that 80 per cent of its contributors, based on their incomes, would not qualify to borrow."

This statement suggests that 80 per cent of contributors cannot qualify for any loan. This is incorrect. The survey showed that 80 per cent of contributors could not afford the maximum loan amount. However, there is a portion that they can afford to borrow.

4. "The NHT is also extending the life of its mortgages by five, to 40 years."

The maximum loan term before the change to 40 years, was 30 years not 35 years. We are extending the life for 10 years.

5. The 10 per cent of scheme units will apply only to the short-term lease programme.

6. "For the 2007/2008 financial year, the deficit declined to $321 million."

This suggests that there was a deficit the previous year. This was not the case.

I am, etc.,

Earl Samuels

Managing Director

National Housing Trust