PRESS RELEASE

COMMITTEE FOR SOCIAL DEVELOPMENT

8 March 2010

SD/11/09/10

COMMITTEE FEARS BUDGET CUTS AND JOB LOSSES

The budget for maintaining and improving the Northern Ireland Housing Executive stock may be cut by around £40m within a year. This could lead to over 1000 job losses in the construction sector. That’s if cutbacks to NIHE capital works programmes are made in-line with proposals in the Savills Report. A debate on the Report was brought to the Northern Ireland Assembly today by the influential Assembly Social Development Committee.

Committee Chairperson, Simon Hamilton, MLA said: “The Committee had been seeking access to this important report for some time. It is essential that its key recommendations are subjected to scrutiny by the Committee and debate by the Assembly.”

He continued: “Social housing is an important and emotive issue. While the Committee supports the drive for more new social housing, Members feel that tenants in existing below-standard housing should not be forgotten. The Committee wants to see a balance between the key strands of the social housing strategy – maintenance, capital improvements and new build.”

The Savills Report highlights issues relating to the cost of maintaining and improving NIHE stock and suggests that above-inflation increases could be made to Housing Executive rents for a sustained period.

Simon Hamilton indicated: “Members believe that rents should be set at fair levels which will not disadvantage vulnerable tenants or the working poor. Raising Housing Executive rents above inflation is a difficult and contentious suggestion. The Committee expects to see an examination of all aspects of Housing Executive costs including interest payments on historic loans. In this context, the Committee wants to study further the Savills’ proposal for a wide-ranging review of social rents and other charges.”

Ends

The Committee for Social Development membership is:

Mr. Simon Hamilton MLA (Chairperson)
Mr. David Hilditch MLA (Deputy Chairperson)
Mr. Billy Armstrong MLA
Mrs. Mary Bradley MLA
Mr. Mickey Brady MLA
Mr. Thomas Burns MLA
Mr. Jonathan Craig MLA
Mr. Alex Easton MLA
Ms. Anna Lo MLA
Mr. Fra McCann
Ms. Carál Ní Chuilín MLA

The Clerk of the Social Development Committee is:

Peter McCallion
Northern Ireland Assembly
Phone: 028 90 521864
Mobile : 07825141294
Email: peter.mccallion@niassembly.gov.uk

Media enquiries to:

Sinead Murphy
Deputy Communications Officer
Northern Ireland Assembly
Phone: 028 9052 5938
Mobile : 078 998 64368
Email: sinead.murphy@niassembly.gov.uk