After further promises of funds from the Government and Scottish Executive, Glasgow Council has agreed to proceed to ballot on the transfer of its entire housing stock to Glasgow Housing Association. This transfer proposal is motivated by the simple dogma: Council Bad, Private good.
There were originally claims that there were Government rules relating to PSBR preventing council borrowing which were exposed as false by English authorities being given the rght to set up arm's length housing companies.
The latest proposals are that the Executive will give an interest free loan of £300 million to the GHA.
The plan is to subsidise the transfer by £2,000m, including a £900m write-oft of the debt and various grants of £800m, plus an interest free loan of £300m.
Whilst we called for investment in rented housing and demanded the debt be written off, this is a huge waste of resources to the benefit of banks and financial institutions. There are huge costs involved in the proposal through higher interest rates, VAT, transfer costs, insurance, establishing a new organisation which would have been avoided had the government allowed debt cancellation for the council.
Over £500m of needless expenditure will result is the tenants vote yes. This money could significantly improve the social infrastructure of citizens of Glasgow improved public transport, care for elderly, communitv programmes ,and so on.
If tenants vote against the government we cannot allow housing to remain as it is. Tenants are being blackmailed. We call for a No Vote and for houses to be improved with the same finances through the democratically elected council.