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Craven District Council has not run away from its responsibilities to tenants by supporting proposals for Craven Housing to become part of a bigger group, a meeting was told.

The council's policy committee approved the proposal to amalgamate Craven Housing with Yorkshire Housing last Thursday.

It means the Craven Housing Board will cease to exist as an independent entity and will become part of Yorkshire Housing.

A Craven Committee, comprising tenants and local authority representatives, will be set up to serve the particular interests of the district's tenants.

Craven Housing took over the council's housing stock four years ago and currently manages more than 1,500 homes and six sheltered housing complexes.

All legal contracts agreed under Craven Housing will continue to exist.

Coun Chris Knowles-Fitton said it was important tenants knew Craven District Council had not run away from its responsibilities to them.

"We're anxious that we maintain protection for our tenants as much as possible," he said.

Coun Marcia Turner expressed concern that promises made by Craven Housing, for example to build 20 new homes a year, would not be kept.

But Tansy Hepton, interim group chief executive of Yorkshire Housing, said: "They will continue to be delivered, they will just be held in a different name."

David Bolton, director of Craven Housing, said that agreements with tenants lasted for the lifetime of the tenancy.

The meeting was told one of the reasons Yorkshire Housing wanted to amalgamate all its housing groups was to save on corporation tax, which was paid on profits.

Colin Walker, Craven District Council's director of environmental and planning services, said Craven would see significant financial benefits as a result of the merger, as Yorkshire Housing would save more than £1 million.

Councillors were told Yorkshire Housing could use the money outside Craven, however.

In considering the proposals, the committee was urged to look at the wider picture.

Carol Matthews, acting solicitor for the council, said: "The whole housing sector now comprises housing groups that are getting bigger and bigger. With the amalgamation you would get the benefits of being in a big group and get to keep what's important to Craven Housing."

Mr Bolton pointed out that the Craven Committee would be responsible for local performance but would benefit from Housing Corporation grants and subsidies from Yorkshire Housing to build new homes.

The amalgamation is due to come into effect from April 1.

The name Craven Housing will continue to be used and tenancy agreements will be unchanged, while rents and service charges will be calculated in the same way.

Services will continue to be provided locally and by the same staff.

Gill Dixon, chief executive of Craven District Council, said the authority would not be transferring responsibility for homelessness and housing advice.

"The council is not allowed to do that," she said.

11:49am Friday 22nd February 2008

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