The government's crumbling asylum seeker dispersal scheme has taken another blow as members of the south west consortium opted unanimously to disband
The consortium had been told to shelve its housing provision for refugees by Barbara Roche, minister for immigration and asylum, earlier this year (Housing Today, 12 October). The home office has revised estimates of demand for dispersal outside of London from 65,000 to around 38,000.

Residual functions are to be referred to the south-west local government association by 1st December, such as maintaining links with the home office over privately-placed asylum seekers.

NASS has confirmed that it is now pursuing contracts with consortia divided at different rates. Fast track groups include three consortia who have already signed, the east midlands, who signed this week, and the west midlands who are due to sign.

Cardiff, Southampton and Manchester cities continue active negotiations independently of their original consortia. Other consortia have been asked to stay intact, but to expect plans to be shelved for the time being.

But Peter Coysh, lead officer at the south-west consortium, said: "Considering that even private landlords had only housed 200 people here, NASS couldn't expect the south-west to remain in a stand-by position."

Mike Canham, who heads NASS' negotiations said: "Unlike local councils we haven't got 30 years of patterns to judge demand. But we know that more housing units are needed for 2001/2."

Until December the south-west consortium will work to get the second of two tranches of payment allocated by the Home Office to councils for the dispersal scheme.

The second block of grant is meant to be paid once asylum seekers have been housed by a consortium.

Canham added:"If the group of local authorities are willing to carry on with their non-accommodation roles they will receive the second part of the enabling grant. If they can demonstrate that they have fulfilled these functions, they will get the full £50,000."

As a spokeswoman for the Local Government Association said:"We are continuing discussions with the government to try and assist in the reimbursement of local authorities. While the planned demand didn't materialise, a lot of preparation was carried out in advance."