by Tony Osborne
What happens now? Some Councils, like Hackney, are scrabbling to get on the Arms Length Management Organisation (ALMO) ladder. They think this is the only way they are likely to raise the money after years of (their own!) neglect and mismanagement, to comply with central government’s directive that all Council homes must reach Decent Homes standard by 2010. However, this is by no means guaranteed even if given ALMO status.
Some ALMOs from the first round are reaching the end of their five-year contract. So what are the Councils in those areas thinking about now?
Having achieved their aim of having the taxpayer foot the bill for their neglect, and having achieved the Decent Homes standard, do they now take homes back under direct Council control and proceed to a further 30-year cycle of mismanagement? Or do they extend the contracts with a view to eventually selling them off and so privatising them?
These quotes and facts might help us to judge:
More evidence that ALMOs are a form of privatisation, despite Council denials … “High performing ALMOs are on the verge of securing a Government deal that would give them the same freedoms as housing associations. Treasury Officials are on the verge of rubber stamping proposals that would free them from rules preventing them from borrowing and could allow them to build new homes.” (‘insidehousing’ 22 April 05)
Meanwhile, a government minister confirms that their policy is to bribe residents into accepting one type of privatisation or another … “Keith Hill, Housing Minister, said there remained no option for attracting Government investment in social housing other than Stock Transfer, Private Finance Initiative or Arms Length Management Organisations." (Keith Hill speaking to ‘insidehousing’ at his constituency in Streatham 22 April 2005).”
On another front, residents are losing confidence in Councils’ so-called ‘consultation’, as “North Tyneside’s Stock Option Appraisal has run into further problems with tenant representatives refusing to work with their Independent Tenant Adviser (ITA)." (‘insidehousing’ 22 April 2005).
So as I said at the beginning: what is the future for Social Housing?
Watch this space: I will keep you informed.