I RECENTLY received a leaflet from Hyndburn Council regarding the transfer of council houses to housing companies.

It states that the council wishes to form a housing management board, consisting of a third Hyndburn councillors, a third Hyndburn tenants and a third independent people with useful expert skills.

It adds that £35 million is required over the next five years to bring the housing stock up to scratch, but the council will only be able to come up with between £11 and £14 million.

At present, government regulations limit councils on how much they can borrow. If the housing stock were to be transferred to a management board, they would not be governed by these restrictions. What this leaflet fails to point out is that the council housing stock is already £29 million in the red.

So by transferring to this management board would this debt be wiped out? I think not.

A debt is a debt whatever you change the name to. And who is going to pay? If this management board were to borrow £35 million, the debt would then be £64 million.

If, however, the housing stock were to be sold to housing associations, which is another option, would there be a difference between the monies received from the sale of the properties and the £29 million debt?

If so, who would pay any shortfall and how much would it cost the local community in higher council tax or even cuts in services?

These are questions which Hyndburn Council needs to spell out.

JOHN D FARRER, Mallard Place, Oswaldtwistle.

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.