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Siu Index
Nov 2005 No 57
GPF backs Edinburgh's stock transfer fight

Edinburgh Council is spending thousands of pounds of tenants' money to convince them to privatise their housing. But now, to combat this, UNISON's General Political Fund has backed the City of Edinburgh Branch in a campaign involving 25,000 colour broadsheets for tenants, advertising and a range of other initiatives working with tenants' campaign groups.

"Most tenants do not believe they've been given enough information and UNISON is urging them to Vote No, and If You don't Know, then Vote No", said John Stevenson, UNISON Edinburgh Branch Secretary.

"But this is also about jobs. The Business Plan envisages cuts in support services from day one - and that means staff".

A recent report by the independent Tenants Information Service (TIS) confirms many of the fears tenants across Edinburgh have expressed. While it states that some of the City of Edinburgh Housing Association (CEHA) plan is realistic, it exposes huge problem areas like:-

  • The new landlord does not actually have the 'promised' money for the major demolitions and improvements. Instead all this work is dependent on future funding bids.

  • Unless CEHA can find £70 million to plug a hole in their finances, rent rises are likely after the 5-year period. The promise is for rents to rise at no more than inflation. But the report warns "beyond that time CEHA's capacity to continue with that level of rent rises is an aspiration, not a promise".

  • The report says predictions of higher rent rises after five years are 'realistic'.

  • The council has over-estimated the income for CEHA. Unrealistic occupancy levels and failing to take into account increased building costs mean that there are further holes in their finances.

  • TIS says that £38 million is needed for structural repairs but CEHA has only set aside £9 million.

  • The business plan states that there is an estimated £90 million for neighbourhood improvements. TIS say that this is "insecure" with its availability depending on the decisions of others.

  • CEHA expects to reduce staffing costs (e.g. cut jobs) in caretaking, concierge staff and anti-social behaviour staff. TIS says these plans are 'very ambitious' and would entail plans not contemplated so far. It has to start cutting 'housing management' costs in the very first year if it is to keep on target financially.

But, more worryingly, the business plan is only an intention on day one. After that it can change. The report says, "By its nature a business plan will change, through systematic updating."

"It will always be possible to vary these things to ensure viable finances year on year", the report explains.

"That could mean there would be more job losses less repairs, higher rents and fewer improvements than the business plan promises", said Barbara Foubister, UNISON Edinburgh Branch Chair. See more at www.unison-edinburgh.org.uk

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