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Scottish Government failing to help build homes         1/11/11

 

Sirs,

A small article in the press this weekend caught my eye. It intimated that the Scottish Government ‘hailed as a success’ a scheme to build affordable homes where the National Housing Trust ‘allows developers and councils jointly to fund homes with loans underwritten by the Government.’ Sounds good. It continued that ‘almost half of Scotland’s 32 councils are expected to sign up for phase two.’ Comhairle nan Eilean Siar will not be part of the scheme. Basically because CNES does not have the money to be involved in such a scheme.

This is a clear example of a Government policy being universally applied but quite unsuitable for application everywhere in Scotland. The Scottish Government may be successful in engaging certain wealthy councils in this scheme but the Comhairle has no reserves to use for housing.

The recent application to the Investment and Innovation Fund, the only other show on the road, saw the Scottish Government contribute £534,948 to a deal valued in total at £1,195,884 to build ten new houses at Melbost Farm. (There are 750 on the local housing waiting list.) This sum of around ½ million compares with Government support for housing in the Outer Hebrides in 2008 of £7.6 million. The balance of funding for the ten houses is being provided through a Comhairle loan of £910,000 which will be recouped when houses are sold. This loan is necessary since the Scottish Government grant is not payable until after the houses are built.

For my money it appears as if the Scottish Government is making it almost impossible to build houses in the Outer Hebrides. Neither the Comhairle nor HHP (who have a great track record in house building since they were formed - 350 in total ) nor local contractors have the money to fund house building locally without Government support. I believe that there should be a rethink on house building policy by the Scottish Government so that areas with special needs are assisted to build new affordable housing.

Right now it would be a suitable ‘Franklin D Roosevelt-moment’ for the Scottish Government to offer a significant grant to the Outer Hebrides for the provision of affordable housing. There is a need for immediate employment in the Outer Hebrides and building much needed housing for rent will be a huge positive injection into our struggling economy. It is very unfair that areas which have fully embraced stock transfer should be so penalised when policy changes.

The Scottish Government has a commitment to reducing poverty. Here is an opportunity to take decisive action to reduce the current relative poverty rate which stands at 25% in the Outer Hebrides - the worst in Scotland.

Angus McCormack

Cllr Stornoway South

25 North Street

Sandwick

Isle of Lewis

 

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