Last updated 21:59, Wednesday, 27 August 2008

THE Scottish government’s U-turn on cutting housing association budgets does not go far enough, claims Dumfries MSP Elaine Murray.

MSP Elaine Murray: ‘The money which was to have been spent has just been brought forward’

Labour claimed an important victory for Scotland’s house builders when First Minister Alex Salmond announced he was reversing his decision to cut £90 million from housing association budgets.

Dr Murray, who is Labour’s enterprise spokeswoman said: “Mr Salmond has perhaps recognised the folly of his proposal to cut housing association budgets by £90 million but nobody should be fooled that this announcement means extra funding.

“All that has happened is the money which was to have been spent in 2010/2011 has been brought forward to this year and next year. What happens after that when the money has been spent?

“Labour has consistently called for these cuts to be reversed. The SNP’s U-turn after sustained pressure is a first step but it does not go far enough.

“House builders are reporting that 15,000 workers have already been laid off as a result of the credit crunch. We need imaginative solutions to help the industry in these difficult times.

“The SNP’s credit is low after disappointing first-time buyers by failing to deliver on its promise to provide £2,000 grants and now deliberately setting out to mislead the public that it is providing new money.”

Ronnie Nicholson, leader of the labour group of councillors on Dumfries and Galloway council said: “The Scottish government revealed earlier this summer that the affordable housing investment budget for Dumfries and Galloway for the current financial year would be £9 million.

“This represents a massive cut of more than a third on last year’s award of £14 million. Last year 276 houses and flats were built using this grant money.

“This year it is projected that only 115 will be built. And this is at a time when about 5,000 people are on the homeless register in our region and many others are forced to live in accommodation which is unsuitable for their needs.

“I was very surprised when Mr Salmond made his announcement, that he also said he was looking for local authorities to find an additional £40 million to build affordable homes.

“This, as far as I am aware, has never been discussed with the council or the Convention of Scottish Local Authorities and means Dumfries and Galloway council will have to find something like £1.5 million a year from a budget which is already stretched to breaking point.

“I tried to arrange a meeting with housing minister Stewart Maxwell to discuss these concerns when he visited Dumfries recently but, unfortunately, he was too busy. Perhaps he could explain to councillors which other areas should be cut to find this money.”