Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 219-239)

16 DECEMBER 2003

MR COLIN MEECH, MR ALAN WALTER AND MS EILEEN SHORT

  Q219 Chairman: May I welcome you to the second session this morning and ask you to identify yourselves for the record.

  Mr Meech: My name is Colin Meech. I am National Officer with Unison.

  Mr Walter: Alan Walter from Defend Council Housing.

  Ms Short: Eileen Short. I am a tenant in Tower Hamlets and part of the National Committee of Defend Council Housing.

  Q220 Chairman: Does anybody want to say anything by way of introduction or are you happy for us to go straight to questions?

  Ms Short: May I say very briefly that we urgently need help to defend the right of tenants to a real choice in the process of what is going on on our estates. In order to have any kind of choice we have to have some kind of level playing field, with a real option of investment in council housing. It is what we do not have at the minute. We also need your help to highlight and to put an end to the abuse of what is supposed to be local democracy that is going on at the moment in order to lever tenants out of council housing.

  Chairman: Thank you very much. Christine Russell.

  Q221 Christine Russell: Could I ask you at the outset to comment on the Decent Homes Standard and whether or not your two organisations believe it is an acceptable benchmark to deliver decent homes in Britain.

  Ms Short: We are very clear, tenants want whatever improvements we can get. There is a real backlog of them, there is a lot of urgent work that needs doing. Decent Homes, on the one hand, does not sort out the lifts or the estates or the paths. On the other hand, it has sometimes been used to force people to have new bathrooms when they are perfectly happy with the ones they have. We think the problem is that it is being used as a big top-down stick instead of being applied locally.

  Q222 Christine Russell: You think it is not flexible.

  Ms Short: Yes.

  Q223 Christine Russell: We have had evidence from groups representing people with disabilities that there are no proper access standards incorporated.

  Ms Short: I think that is what you get if you do not talk to people locally in the right way and allow local democracy to work with tenants and say what they need. If you apply top-down standard, you must do.

  Mr Meech: I think that is the real issue. The real issue is that tenants are being railroaded into making decisions without having effective local independent support to understand what is required to improve their home to a reasonable standard, and then, above that, what they consider they want extra. Too often we see consultants and local authorities pushing tenants down a particular route in order to achieve a particular investment outcome. Lots of local authorities we believe have undertaken stock transfers, for example, simply to gain a capital receipt, not to improve tenants' homes. That is one of the real issues.

  Q224 Christine Russell: Surely the reality is that those tenants' homes have been improved.

  Mr Meech: Where is the evidence to suggest that is the case?

  Q225 Christine Russell: We have received plenty of evidence that the landlords have delivered on promises.

  Mr Meech: That is not what the National Audit Office said. As far as we are concerned they saw intangible benefits, they said that tenants were paying a high price for that investment in higher housing benefit costs and higher service charges and a higher cost to the tax payer in housing benefit.

  Q226 Christine Russell: Could I ask you about Unison's definition of a decent home. It does not actually include the current fitness standard.

  Mr Meech: With all due respect, we are not that technical an organisation. We are an organisation that represents workers at the work place and, from a citizenship point of view, policy issues. We believe tenants should determine what a decent home is within civilised parameters, particularly the ones that support their educational and health attainment.

  Q227 Christine Russell: Therefore, you are saying that if someone wants to live in a slum, that is their right, to live in a slum.

  Mr Meech: No, we never said that at all.

  Q228 Christine Russell: Even though that may have a detrimental effect—

  Mr Meech: We never said that.

  Q229 Christine Russell: You are.

  Mr Meech: No, we are saying that tenants should decide the quality of their homes with guidance from their local authority.

  Mr Walter: It is pretty amazing that top-down standard has been applied to council tenants, when, with respect, I do not think government would be walking down the leafy streets in the suburbs and applying a similar top-down mandatory standard to home owners. I think there has to be a question about why one gets treated one way and one gets treated the other way. Tenants are capable of making real judgments about what is important to them. In all of these issues there is more than just whether you have a new bathroom. There are bigger issues involved. The trouble is that tenants are being force-fed in one particular way and that is not choice.

  Q230 Christine Russell: You do not think in any way it reflects the aspirations of tenants.

  Mr Walter: I think if you asked tenants on a particular estate what they wanted you would end up with a list of demands and there would be a significant overlap with Decent Homes. When it is then put into the equation that as a condition of Decent Homes you will have stock transfer, you will probably find on most estates that the response you get completely changes. There is not the subtlety for tenants to be able to decide what they can have without the penalties of privatisation. That is just a monolithic blackmail which is not necessary in economic terms, and you have to ask the question why has it happened in political terms. In terms of bathrooms, whilst tenants want nice bathrooms (my bathroom is 20-odd years old and there is no problem, the bath is not cracked, the tiles are not cracked)—and it may be that the building industry would rather strip out bathrooms than put in bathrooms wholesale—tenants who have got perfectly good bathrooms might be quite happy to keep them and have some other improvement externally. Then they want to know what is the price in terms of the other bigger issues.

  Q231 Mr Sanders: If tenants are not satisfied that their current landlord can deliver decent homes by the target set—accepting it is a top-down target, nevertheless that is the target that landlords have to meet—should tenants not be given the choice of another landlord if their existing landlord is failing to meet their targets?

  Ms Short: Actually that is not the choice we face. I live in Tower Hamlets. We are being told that because of the pressure of Decent Homes you have to go through the stock transfer process. The borough has been split into 84 areas and face up to 60-odd stock transfer ballots, and the borough will not meet Decent Homes. Partly what we have come to bring urgently to your attention is that there is a game going on outside here, on the estates—and it is not just in Tower Hamlets or Camden, it is all over the country. In Wakefield and Grimsby, where I was last week, tenants are being told—or not being told—"The council can meet Decent Homes Standards but we have upped the standard. You cannot meet that, so you need a stock transfer." We are being levered out using Decent Homes target as the stick.

  Mr Meech: We can give many examples of that situation. I understand in Sedgefield, where 96% of council tenants had registered satisfaction with their landlord, the local authority has still taken a decision against their wishes to explore stock transfer—against the express wishes of the tenants, 96%. If tenants had a level playing field, if they had equality of information available, independent information—not from consultants employed by the local authority to give a particular direction or from tenants' friends who are employed by the local authority to give a particular direction, but thoroughly independent analysis—with different investment vehicles in front of them, and they knew the consequences of taking each investment vehicle, then I think we would be hard pressed to say that tenants were not right in choosing a type of landlord. But it is not the case.

  Q232 Mr Sanders: The ODPM specialist and independent advice should have been made available to tenants in these circumstances. You are saying that is not the case.

  Mr Walter: No, it is not the case. The record is that you have, as Colin has said, a consultant who is employed by the local authority. There is a very small number of them and it is a very internalised and monopolised market. They are neither independent—because they are paid by the council—and I have not yet met one who is a tenant—and they are not friends, in the sense of being invited by tenants into our homes or into our area. Usually tenants are given a choice of two or three by the local authority. In my authority, Camden, we have just been going through an ALMO ballot and tenants' representatives in the official tenant forum voted democratically to ask the council to employ an independent financial expert of our choice to model the council's existing finances and what the various different government proposals might mean. The council refused that. You have to ask why that is. There is a very proud tradition in the tenants' movement of tenants fighting for repairs and improvements to their homes. We are not inundated with lots of examples of lobbies at town halls and demonstrations on estates with tenants demanding that councils do something. That is not to say there are not problems, because there are, but this whole process has been driven by a government which wants to privatise. That is a very different context.

  Q233 Mr Sanders: Do you think the Government's prioritisation on the Decent Homes target is actually diverting attention away from other important housing issues such as estate and neighbourhood management?

  Ms Short: Just by sending out one email to the tenants' organisations on our list saying that we were coming here today, we were sent tons in response, tenants pleading really with the arguments they want to put in front of you. I will give you a copy later, but I think it just touches the surface of the need that is out there. The example I would like to put is Birmingham, where the tenants overwhelmingly said, "We do not want stock transfer." This year, because the Audit Commission is breathing down their necks, money has been put into the repair budget to address what they call a stack of 48,000 or 49,000 outstanding repairs, and they are saying that money has been taken away from the money put aside to do Decent Homes. To me that says that the Decent Homes part of it and doing repairs have become two different things. What does that mean? Does it mean that tenants cannot have taps fixed or running overflows sorted out because the money is in another pot to do Decent Homes? That is madness.

  Q234 Christine Russell: You have just mentioned taps. You talk about the "gold tap effect" in your submission. Could you explain what you mean by that?

  Ms Short: I am using it as a shorthand. Stock transfer targets investment fairly randomly, I would say. Where you get a yes vote, it targets a concentrated amount of investment for which, because it is privately financed and because the people who lend it want their return copper bottomed or gold tapped or whatever, they set quite high standards on the amount of money which has to go in, in order to make their asset effectively pay back in a fixed, short period of time.

  Q235 Christine Russell: When my local authority transferred its stock—and that was done seven years ago—there have been a number of assessments done since and they have honour their pledge to tenants to do worst first, upgrading properties. You are saying that Unison have evidence from around the country that that has not happened.

  Ms Short: I am definitely not an expert on this.

  Q236 Christine Russell: You have put it in your submission that this is what happens.

  Ms Short: I am saying two things. One is over the country the greatest need has not been addressed first. Where I live—-

  Q237 Christine Russell: Give us some examples.

  Ms Short: In Tower Hamlets there are families of eight and ten living in two bedroom flats.

  Q238 Christine Russell: And they have transferred their stock?

  Ms Short: No, they have not transferred their stock.

  Q239 Christine Russell: Give us examples of where it has happened.

  Mr Meech: I can.

  Ms Short: Could I just make the point that areas of greatest need are not only within where stock has been transferred. We are talking about council housing as a national asset, and some sane, rational decisions taken about where investment is needed.


 
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