Protest against NIHE dismantlement to highlight new ‘don’t privatise’ report

NIPSA, which has invited tenant associations from across the city to join the protest in The Diamond at 12.30pm, says it was the next step in the union’s ‘Keeping Our Housing Public’ campaign.Back in January, Mr McCausland dropped the bombshell that his department wanted a Regional Housing Body staffed by housing professionals to deliver regional housing services, programmes and operational strategies. He aimed to split NIHE’s strategic and landlord functions with a greater role for private associations.

He later insisted it was not about increasing rents nor about abolishing the Housing Executive.However, NIPSA believe this is the ultimate goal and says Monday’s protest is part of a “systematic fightback” against the proposals.

“A lot of this is going to have a major impact on public services,” a local union member said. “This protest is about keeping housing in public hands.”

NIPSA points to a new report by accountant and Queen’s University academic, Stewart Smyth, which was commissioned by the union following Mr McCausland’s announcement.

Mr Smyth refers to NIHE’s success in ensuring housing was allocated in a fair and unbiased manner over the past 40 years citing PricewaterhouseCooper: “NIHE is one of the success stories from Northern Ireland’s recent history.

“Since its introduction nearly 40 years ago it has delivered significant social benefits throughout Northern Ireland with the quality of the housing stock having

moved from one of the worst in Western Europe to what is now regarded as best quality stock.

“It is rightly regarded nationally and internationally as a leading authority on ‘best practice’ on both housing management and community building.”

Mr Smyth’s report found a lack of conclusive evidence to support Mr McCausland’s desired splitting of the strategic and landlord functions of the NIHE.

He also says that “stock transfer represents privatisation where the main objective is to access private finance.”

He adds: “The private finance brings with it the culture and operations of the private sector market.”

The QUB lecturer also looked at 30 years of public housing stock transfers in Britain.

“The overall conclusion is that the policy has been pursued dogmatically and in such a biased manner that the policy has been brought into disrepute.

“Furthermore, the policy leads to tenants paying higher rents and losing their access to a process wherein they can hold those to whom they pay rent, democratically accountable,” he says.

In fact, there is some evidence of rent increases having occurred right here in Londonderry.

Back in March 2013 the Sentinel reported how 14 former NIHE properties, which were transferred to a housing association in Londonderry in 2011, underwent rent hikes of up to £19 per week after improvements were carried out.

This - in some cases - was paid for through housing benefits but one NIPSA member asked what will happen if housing benefits are reduced under the ongoing welfare reform process.

Mr Smyth sets out an alternative to the Ministers proposals arguing the NIHE should remain in the public sector, democratically accountable and providing the best value for money to both tenants and taxpayers.

He states: “First, the Minister could change the Financial Memorandum between his department and the NIHE to allow the Housing Executive the ability to borrow.

“This could be controlled using the Prudential Borrowing Framework that has been in use for local authorities in England, Scotland and Wales since 2004 and in Northern Ireland since 2011;

“Second, the Minister and others in the NI Executive government could redirect their efforts on securing a change in HM Treasury rules away from the corporation tax rates to changing the public sector borrowing rules.

“In this respect, the UK government is out of line with international practice and the majority of the social housing sector and related bodies within Britain;

“Third, there is a strong case for a stimulus package that is targeted and based on prudent borrowing, in the form of building a new generation of first class NIHE houses.”

Following Monday’s protest NIPSA members will travel to Stormont on Tuesday (November 26) to lobby local MLA and officials.