HC Deb 02 March 1995 vol 255 cc670-1W
Mr. Stewart

To ask the Secretary of state for Scotland if the prior options study of Scottish Homes which he announced on 12 July 1994 has yet been completed; and if he will make a statement.

Mr. Lang

I am pleased to announce that the prior options study, undertaken as the first stage of the five-yearly policy and financial management review of Scottish Homes, has now been completed.

The study was carried out by my Department under the guidance of a steering group chaired by the Secretary of the Scottish Office Environment Department. My announcement on 12 July included an invitation to interested parties to submit comments and the Department wrote to a number of individuals and bodies with a clear interest in the functions of Scottish Homes. I am grateful to all those who took the trouble to respond. A total of 36 responses were received and the views expressed were taken into account. The majority of respondents saw a continuing need for a strong national housing agency.

I have accepted the overall conclusions of the study. Scottish Homes will continue as a single national housing agency playing a major role in taking forward the Government's housing policies in Scotland and supporting local authorities in their role as statutory housing authorities. It will continue to provide development funding to housing associations and other housing providers, promote housing research and innovation and carry out the statutory function of registration and monitoring of housing associations. It will, however, become a more focused organisation as it sheds its landlord role in line with the Government's policy to diversify the rented sector in Scotland.

The second stage of the review, which will examine Scottish Homes's performance and financial management in detail, will now get under way. Many of the comments submitted as part of the prior options study will be relevant to the second stage.

Separately, the Government will be examining the issue of housing associations wishing to operate in more than one part of the United Kingdom.

Copies of the report of the prior options study will be placed in the Library and can be obtained from the Scottish Office Environment Department, room 423B, St Andrew's house, Edinburgh, EH1 2DG, Tel. 0131 244 2234.