§ 7. Mr. Desmond Swayne (New Forest, West)What measures he is taking to encourage local authorities to transfer their housing stock to housing associations. [82786]
§ The Minister for London and Construction (Mr. Nick Raynsford)Our guidance on local authority housing strategies makes it clear that housing transfer is one of the options that an authority should consider when developing its strategy. However, we would not seek to encourage authorities to pursue transfer where it appears inappropriate or where a majority of tenants oppose it.
§ Mr. SwayneAs a result of the changes that the Government introduced to the scheme last year, New Forest council will have to pay out £7 million for disposing of its stock£7 million that would otherwise have been available to improve the life of tenants in the New Forest area. Can the Minister justify that? Will he undertake to review the 8 per cent. charged by his Department, as that is no longer consistent with market rates?
§ Mr. RaynsfordThis year, we have the largest programme ever of authorities seeking transfer, so the financial circumstances are not such as to put them off. The hon. Gentleman is a little out of date. Is he not aware that we have already announced that we are reducing the 8 per cent. discount rate to 7 per cent?
§ Mr. Peter L. Pike (Burnley)Is it not right to emphasise the point made by my hon. Friend the Minister that all housing stock transfers must receive the approval of the tenants concerned? Is it not important to remember that, in some cases, it will enable local authorities to tackle both their private sector and their public sector problems better if such approval is given? In councils such as Burnley, with low-value properties, there will be a residual debt problem, through no fault of the authority. Has that yet been overcome?
§ Mr. RaynsfordMy hon. Friend makes an extremely valid point about the importance of keeping tenants closely involved and securing their support for any proposal for transfer. What a contrast with the previous Government, who introduced a botched and rigged voting system for their infamous tenants' choice scheme. It was 106 designed to imply that anyone who did not vote was in. favour. That sort of gerrymandering has no place in this Government's approach.
I say to my hon. Friend that we are looking closely at the issue of overhanging debt, which we recognise is important. We are conscious of it and are seeking to make progress in ways that will help authorities such as his.
§ Mr. Nigel Waterson (Eastbourne)Will the Minister confirm that the Government have recently approved the transfer of no fewer than 130,000 homes? Given his acceptance in an earlier answer that that is a record for large-scale voluntary transfers, will he also confirm that, as long as the Government are still casting around for their own distinctive housing policy, they will continue to apply proven Conservative housing policies such as LSVT?
§ Mr. RaynsfordI will do no such thing, but I will confirm that the Government are pursuing housing policies that are designed to respond to the needs of the country and to the aspirations of tenants. I have referred to the very real difference between our attitude and that of the hon. Gentleman's party, which took tenants for granted and tried to impose voting systems that were an absolute caricature of tenant consultation. We are determined to ensure that housing needs are met through the release of additional resources, to which my right hon. Friend the Minister for Local Government and Housing has already referred, through the comprehensive spending review.
§ Dr. Brian Iddon (Bolton, South-East)Does my hon. Friend agree that, under the previous Administration, stock transfers from councils to housing associations were not always in the best long-term interests of the tenants? They drove rents even higher than they drove up council rents; they did not foster tenant involvement in the housing association sector, which they did in the council sector; and they paid no attention to management costs, from the chief executive's salary downwards. Will he assure the House that this Government will take heed of those matters?
§ Mr. RaynsfordMy hon. Friend makes an extremely fair point and highlights the extent to which the previous Government drove rents upwards in a way that led to extreme poverty for many tenants and increased the poverty trap. That is why this Government are pursuing a policy to ensure that there is moderation in rent increases for social housing and are seeking to ensure that tenants have genuine choice when they choose their appropriate future home. That is a principle on which the Government will continue to operate.