What an unholy mess we find ourselves in with the apparent near collapse of the funding package for
HHP.
Having been party to the discussion of the Stock Transfer inside the Council - and following
SNP policy, having opposed it as being anti-democratic and unnecessary - I know a fair amount about how the deal was structured and how it was likely to progress.
My take on the news that the Council has had to
'bail out' HHP to the tune of £1,000,000 is that the real issues are being missed in much of the criticism.
That the terms of the deal are being kept secret (presumably due to 'commercial confidentiality') is a complete and utter disgrace, when such large sums of public money are being dished out to other public bodies. I don't care that they are a registered Industrial & Provident Society; they are still a body controlled by the public and the only ones who can build houses in the Western Isles. If they take the money, then they have to be prepared to let the public see where it has gone and what it is being used for, and the Council need to justify why such a sum is being given to the
organisation instead of into Care Homes or pavement repairs.
The same principle should apply to all other public bodies who receive soft funding from the
Comhairle, and if anyone can pass me the papers, I will make sure they are put in the public domain.
But back to how it happened....
My understanding is that
HHP made applications to Scottish Homes (or whatever they are called this week) for the permission to undertake certain developments.
Permission was granted and the business plan was worked up on the basis of the then current grant levels that would be expected.
Housing association grants were slashed resulting in a shortfall in funding.
Now, at the last minute, the Council have agreed to bridge the gap after a crunch
meeting with the Minister, who in turn has allowed 'more flexibility' over the use of the funds.
So what does all that actually mean, when you cut through the rubbish and verbiage?
Well, the feared
clawback of the bulk of the Housing Grant won't happen,
because the Government will give
HHP more time to get the funding for the new houses sorted; but, only
because the Council is finding £1m to cover the shortfall in funding caused by the Government.
Result? Not quite, we a £1m worse off - on top of the other cuts the Council will have to make - and the Government walks away from the blame for precipitating the problem in the first place.
It is undoubtedly a better outcome that all the other options, but that like praising the the chiropodist who was treat an ingrowing toenail for only amputating your lower leg by mistake.
The matter was raised by the Council as long ago as
January, and on many occasions since we have heard muttered concerns about the house building programme.
There is still an unanswered question about how
HHP reacted to the change in the Housing Association grant levels. But if they put forward proposals which were approved by the Government on the assumption of a certain level of grant support, then I believe that there is a moral obligation of the Government to stick to the level of assistance, not to try and back out and lumber the taxpayers of the Western Isles with the costs of their policy change.