EC threat to housing transfer
5 Oct 05
Glasgow's plans for tenant control may have to go through EU tender process
Glasgow Housing Association's plans to devolve control of its housing stock to its tenants may have to be put out to tender in the EU, according to today's Herald.
The Association, which took control of Glasgow's social housing in 2003 from the city council, is devolving control to over 60 local housing organisations (LHOs) in order to allow tenants to have more say.
However it appears that this process may have to go to tender across Europe after the UK Government accepted a European Commission ruling classifying registered social landlords as public bodies. That would make the association unable to allocate the sums involved - which include staff costs - to the LHOs without putting the contracts out to tender.
The majority of the agreements between GHA and the LHOs will expire next April, but if the ruling applies, could not be renewed without a tender process.
The GHA said that the Scottish Executive is lobbying for the rules to be waived and that Europe-wide tendering was only one option being examined. The Association is working with housing groups, the Executive and others to explore the options available.
An Executive spokesperson said that the commision tended to deal with these issues sympathetically if they involved the provision of public services.