Housing Minister, Alex Attwood said the number of housing associations could be cut by 23 to 10 when he outlined the areas in need of reform, including internal costs, oversight by the Department for Social Development and staff benefits.
He also highlighted the reluctance of some housing associations to restrain spending and commented: "It is utterly wrong and upside down that one housing association can write to government and say their chief executive is taking legal advice about the powers of government to request salary restraint.
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"Another housing association - and I jest not - dared write to government about their company car policy stating that one car was for the use of an employee 'who was a single man who enjoyed driving."
Chief executive of the Housing Association Federation, Chris Williamson, said the key question was what would deliver "maximum community benefit".
He commented: "If the minister has a rationale for why he chooses that number rather than some other number, then we would be delighted to know. But so far, we have not yet seen from the minister his rationale for choosing that number. Let's get some facts and real costed benefits and costs on the table to discuss."
Williamson added it was important to bear in mind that the housing associations were independent bodies and that government and the associations needed to understand and respect each other's role and that there was "considerable overlap" between the objectives of the government and those of the housing associations.
"We need to go back to basics and we need to get the most productive relationship between those two sectors for the purposes of delivering public policy."
(JG/GK)
