DISGRACEFUL HOUSING POLICY UNDER CURRENT LABOUR GOVERNMENT

Speaking at today's mass lobby of Parliament by Council tenants, Paul Holmes,addressed the failures of the current housing policy led by the Labour Party: "I can understand why some tenants MIGHT want to get rid of the Council as their landlord since some estates might be very poorly run. But what tenants do not want is to be given a Hobson's choice; they do not want a shotgun divorce."

Referring to the new effort by the Labour Government to forcibly privatise Council housing, Paul said: Tenants do not want to be forced into privatisation to secure investment or otherwise be starved of funds if they choose to remain with their council. Chesterfield constituents have £3.2M of their rent money stolen every year to be spent elsewhere and 75% of Right to Buy receipts. That was £6M out of £8M in the last year. A total of £9.2 Million robbed from Chesterfield Council Tenants in the last year, to be spent elsewhere in the country, in one year alone. If the Council in Chesterfield could keep just half of that money each year they could have the most immaculate Council Estates and be building new OAP Bungalows and even new Family Houses too."

In a response to Labour Minister David Miliband on the claim that rent money is only taken from affluent Tory Shire authorities, Paul rightfully responded: "Chesterfield is not an affluent Tory Shire but a deprived Coalfield Community with higher than average unemployment! Most tenants, given a fair choice, would choose to stay with their council, as they already have in Chesterfield and over 100 other Councils despite Labour Government blackmail and pressure."

Holmes urges tenants to recognize the dangers of this irresponsible housing policy put forth by Labour. "Chesterfield will be starved of funds because they had democratically chosen a route that government did not want - some choice!

"The policies of this Labour Government are a disgrace. They have ignored the overwhelming vote of two Labour conferences. They have forced council tenants to privatise. They have denied investment money to those who democratically choose to stay with the council. They steal money from Council Tenants to spend elsewhere. Money that Housing Associations or PFI landlords can keep as soon as they take over!

"This Labour government has refused to listen to reason. They have refused to listen to Labour members & Labour conferences. They will have to listen if Chesterfield continues to kick them out at the ballot box this May as we did in the last elections. It seems that this is the only way we have at our disposal to make this out of touch Government see sense."

The full text of the speech by Paul Holmes (MP for Chesterfield and Vice Chair, House of Commons Council Housing Group) to Defend Council Housing mass rally, London 8th Feb 2006:

"Some will say that Tenants do not want choice. But some may. I grew up in a Sheffield Council Flat from the age of 10 after my family were made homeless, so I fully understand the feelings of those who are grateful to and have confidence in the council provision of Council Housing. But over 20 years and more as a campaigning politician I have visited many estates around the country and some have been very poorly run. I can understand why some tenants MIGHT want to get rid of the Council as their landlord. But what tenants do not want is to be given a Hobson's choice; they do not want a shotgun divorce. They do not want to be forced, by a Labour Government into privatisation to secure investment or otherwise be starved of funds if they choose to remain with their council. Chesterfield constituents, for example, have £3.2M of their rent money stolen every year to be spent elsewhere and 75% of Right to Buy receipts. That was £6M out of £8M in the last year. A total of £9.2 Million robbed from Chesterfield Council Tenants in the last year, to be spent elsewhere in the country, in one year alone.If the Council in Chesterfield could keep just half of that money each year they could have the most immaculate Council Estates and be building new OAP Bungalows and even new Family Houses too.

Labour Minister David Miliband, told me in a personal meeting that this redistribution of money was essential - and that rent money is anyway only taken from affluent Tory Shire authorities! I had to explain to him that Chesterfield is not an affluent Tory Shire but a deprived Coalfield Community with higher than average unemployment.

But in any case, if this money HAS to be redistributed around the country why is that the minute a Housing Association or a Private Finance Initiative Landlord takes over, they can keep all this money which is otherwise taken by the Government?

Most tenants, given a fair choice, would choose to stay with their council. As they already have in over 100 Councils despite Labour Government blackmail and pressure. As they have in Liberal Democrat run Councils such as Chesterfield, Cambridge, Milton Keynes, Birmingham, and Southwark & Bermondsey.

Remember too, that you can choose to change your council landlord at every election, just as Chesterfield Council Tenants threw Labour out after 30 years at the last election. You cannot, however, change Housing Association or PFI landlords. Once you have them you are stuck with them, there is no going back, it is a one way road. What's more, they however can and do change, by mergers and takeovers which you have absolutely no say in at all.

As Vice-Chair of the Defend Council Housing Group, I and a delegation of Labour M.P's met Miliband & Housing Minister Yvette Cooper in December. They offered little hope for changing government policy. They admitted that:

They want as much privatisation as possible so that borrowing of funds to invest would be off of Gordon's books (the Public Sector Borrowing Requirement). It's the same money being borrowed and spent (although more expensively because private firms pay higher rates of interest, just as when they build Schools and Hospitals), but it is being hidden by accountancy tricks from Government borrowing figures.

The more limited Government money available will continue to go to Arms Length Management Organisations - a half way house to privatisation.

The rest, like Chesterfield, would be starved of funds because they had democratically chosen a route that government did not want - some choice! The policies of this Labour Government are a disgrace.

They have ignored the overwhelming vote of two Labour conferences.

They have forced council tenants to privatise.

They have denied investment money to those who democratically choose to stay with the council.

They steal money from Council Tenants to spend elsewhere. Money that Housing Associations or PFI landlords can keep as soon as they take over!

This Labour government has refused to listen to reason. To the Defend Council Housing Group report. To the National Audit Office. To the relevant Select Committee. All of whom have produced scathing reports condemning Government policy.

They have refused to listen to Labour members & Labour conferences.