22 March 2002
Leeds City Council was so surprised that tenants rejected the scheme by 54% to 46% that housing officers have been instructed to meet them to discover why.
The ballot, held last month, is the first by a local authority considering a PFI scheme in housing. There is no requirement to ballot tenants as the PFI does not involve transfer of ownership.
John McDermott, local spokesman for the group Defend Council Housing, said tenants in the Little London and Woodhouse areas of Leeds had voted against the scheme because they were concerned about how it would be financed in the long term and about methods of service delivery.
There were particular worries over whether land would be handed to the PFI provider. 'The fiasco over Railtrack has been our biggest ally,' he said. 'People have seen what's happened in transport and didn't want the same to occur in housing.'
Leeds' executive board agreed on March 13 to meet tenants again. Council leader Brian Walker stressed the council was not ignoring the result of the ballot, for which there was a 67% turnout, but had to make sure tenants understood the full implications of rejecting the PFI scheme.
'We must feel confident that the information tenants received helped them to make an accurate, informed decision about their future,' he added. 'This is such an important issue, with the potential for significant investment being lost, that the decision cannot be rushed.'
Leeds is promising to spend the £45m on new kitchens, double-glazing, heating systems and other facilities. It is one of 12 second-round housing PFI pathfinders announced last year. The issue will go back to the council's executive board when the new analysis has been completed.
Leeds proceeded with an earlier PFI scheme on its Swarcliffe estate without balloting tenants. It decided to hold a ballot this time following pressure from trade unions and local politicians.
PFmar2002
