PRESS RELEASE

February 12th, 2009

MSP to join housing crisis lobby

Greenock and Inverclyde MSP Duncan McNeil fears tenants could bear the brunt of cuts to housing funds.

He joined the Housing in Crisis lobby, including Cloch Housing Association , which demonstrated at the Scottish Parliament over a shortfall in housing funding.

The Scottish Government had announced they were to cut to the Housing Association Grant, which will mean a drop in funding by an average of £10,000 per unit.

But they were later forced into an embarrassing U-turn that saw communities minister Stewart Maxwell sacked and the grant increased by up to £5,000.

Greenock and Inverclyde MSP Duncan McNeil was pleased at the about turn by the government.

But he warned them that the job was only half done and that the grant must be stored to original levels.

The MSP insisted the cuts could see a significant rise in rent and a general downscale in new housing developments.

He said: “These cuts are exactly what we don’t want to hear in these troubled times.

“At a time when people are increasingly looking to the rented sector for affordable housing, these cuts to the HAG mean new housing projects will be held up or cancelled.

This creates a shortage as housing associations try to borrow the shortfall from the banks, which is no easy task in this climate as we know.

“Inevitably, it will be the tenants who suffer with less choice and increased rent levels.

“This couldn’t have come at a worst time for both the housing and construction industry and I hope this lobby will force them to fully reconsider this disastrous move.”

Mr McNeil also criticised cost-cutting measures that will see funds channelled to larger housing associations covering wider areas.

He said: “This will mean someone in Paisley deciding what the housing needs are in Greenock.

“There is no evidence that this would save any money but it would spell the end of our smaller housing associations and limit the influence of tenants managing their own houses.”

ENDS