(9 years ago)
Commons ChamberMany of my constituents were dismayed when I went back at the weekend after hearing last week, as my hon. Friend the Member for Eltham (Clive Efford) suggested, that the Government were going to limit council tenancies. What does the Minister say to people in my constituency who are absolutely dismayed that this Government have pulled a flanker on them, and pulled the rug from under them, in what they consider to be their rights as tenants?
I refer the hon. Lady to the answer I gave a few minutes ago and remind her that council tenants who already have a tenancy are not affected by this—it is about new tenancies. This is the right thing to do, as I am sure she would agree, given that the previous Member for Holborn and St Pancras had a council house when he was on a Cabinet salary. I am sure that many taxpayers would wonder whether that was good expenditure.
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Obviously, rent changes are going through the House at the moment, but this right-to-buy scheme helps housing associations build more homes. It gives them access to more finance and a greater realisation of their assets, and I support that. With regard to the rent changes, bearing in mind the savings that are going on right across the public sector, looking for efficiencies of 1% a year from housing associations is not unreasonable. Many housing associations are embracing that idea.
The New Charter Group is a major social housing provider is my constituency. How can its housing associations support right to buy with no staff? As my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) said, a loss of 150 jobs has been announced today. Inevitably, that will mean poorer services for tenants and fewer homes built for local people. Will the Minister meet New Charter’s management and the union Unison, which represents the workers? What action will he take to protect our social housing for the sake of current and future tenants?
What I say to housing associations and generally is that we do need to ensure that we are efficient in our use of public funds and of tenants’ income. Housing associations should be looking at that and at whether they have the right mechanisms and structures in place. I cannot comment on particular housing associations, but right to buy will mean that there is more work for them to do in terms of building those extra homes that we want to see right across the country.