Public property transfer could cause job losses says NIPSA

Alison Millar of the Northern Ireland Public Service Alliance (NIPSA) said the proposed transfer will also result in a loss of 1.3million in revenue to the Housing Executive and will ultimately lead to job losses in the North West.

But the Housing Executive says the transfer proposal is part of a phased improvement project across Creggan which is supported by local community representatives.

Last week NIPSA lobbied NIHE Board members at NIHE HQ, Housing Centre, Adelaide Street, in Belfast, in protest at the move.

The lobby was focused against proposals to give away the 56 properties in Rinmore, Creggan.

The NIPSA Deputy General Secretary stated: "NIPSA believes that this decision would be disastrous for the residents of the 56 properties in the medium to long term.

"It is imperative that the NIHE finds another way to properly fund the renovation of these houses which keeps them in public and Housing Executive ownership.

"If the Board decide to hand these properties over the North West Housing Association this will mean: handing Over 2 - 3m of Assets - free; loss of 1.3m revenue to Housing Executive; all grants money will transfer to Housing Association; loss of Housing Benefit - 1.6 - 1.8m; rents would increase for tenants; and job losses.

"NIPSA is aware that the Housing Executive is examining other possible projects of this nature – so this is not a 'one-off' this could lead to the demise of the Housing Executive."

A spokeswoman for the Housing Executive responded: "Due to the uncertainty in funding a proposal was made to the Department for Social Development by local community representatives that the tenants would consider transferring their homes to a housing association so that the improvement works could be carried out.

"Following an initial appraisal of the proposal the Department asked the Housing Executive to develop a pilot transfer proposal for the properties, with North and West Housing Association selected as the potential new landlord.

"The Housing Executive is obliged by statute to fully consult with the tenants affected and a consultation process based on the legislative requirements and best practice in stock transfers has been developed. This process involves a short period of informal consultation with the tenants followed by a formal consultation exercise."

She said the informal consultation has begun and that a public meeting was held on September 9.

She added: "The business case for the transfer proposal is still under consideration and we cannot proceed to the formal stage until approved by central government. This is an innovative approach proposed by local representatives with no public funding involved."