Staff at the NI Housing Executive in Londonderry fear jobs may be lost if another company is brought in to refurbish homes in the Creggan area of the city, the BBC reports.

Union officials claim 55 properties could be handed over to a housing association for renovation.

The officials said the executive does not have the money to complete the work.

"If this goes through it has serious ramifications for the Housing Executive," said Liam Gallagher from Derry Trades Council

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"Once you go down this road, once you effectively say we no longer have the resources to carry out a maintenance or repair programme - if this goes through there will be a net job loss."

A statement from the Housing Executive said it, along with the Departments for Social Development and North and West Housing Ltd, had been examining a number of options "with a view to finding the most effective way of modernising 55 properties in the Creggan area".

"This process is at an early stage and before any decision is taken, there will be full consultation with local residents," it continued.

In April 2009, the Housing Executive said social housing levels in Derry were at their worst for a decade.

(NS/BMcC)