ssIN response to the letter published in the Bolton Evening News (January 22) from Peter Johnston, I would like to inform your readers that the former Director of Housing, who has doubled his salary from about £70,000 to over £140,000 since his Local Authority's housing stock was transferred to a Registered Social Landlord (RSL -- a Housing Association) works in the North East of England.
As your article of January 10, based on a Parliamentary Question of mine in the House of Commons, stated, I am particularly concerned about the high salary rises being awarded to Chief Executives of Housing Associations. Their salaries are approaching the "fat cat" salary levels of private enterprises. Since I raised this matter John Prescott has written to the Housing Corporation to inform them of the Government's concerns.
Bolton has set up an Arms Length Management Organisation (ALMO) to manage its former council housing stock. While the average salary of ALMO Chief Executives is by no means as high as that of RSL Chief Executives, there is pressure for their salaries to rise too, and this knocks on down the management structures of both RSLs and ALMOs. The consequence then is that Directors of Housing in Local Authorities become unhappy with their salaries, as do other local government chief officers. In the end either tenants pay for these well above inflation increases through their rents, or taxpayers pay to meet the housing benefits for those who are in receipt of them.
Dr Brian Iddon
Member of Parliament for Bolton South East
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