National round-up

Last month, we reported concerns regarding draft funding conditions that would have required surpluses from key worker living (KWL)-shared ownership schemes to be ringfenced.

The Housing Corporation has now confirmed that it will not be looking to recover surpluses arising from 2004/05 and 2005/06 KWL-shared ownership schemes, and will be publishing updated guidance on its website. The federation welcomes this positive change and will continue to press for maximum flexibility for members , so that they will be able to reinvest funds in line with regional and local housing priorities.

Guidance on KWL rented schemes is also due for publication on the corporation’s website shortly.

EC procurement saga continues

The government is expected to announce imminently that it will not challenge an European Commission (EC) decision that would force associations to follow its procurement rules.

At present, public bodies are obliged to tender contracts for goods and services above a certain value across the whole European Union in an often time-consuming and overly bureaucratic process. The EC decision, if left unchallenged, would oblige associations to do the same.

Previously the government resisted attempts by the EC to introduce such rules, in a dispute that has lasted for three years. The federation has already pressed the government to mount a legal challenge against the EC in the European Court of Justice against this latest move. Failure to do so could have adverse consequences.

The federation believes that the new regulations could:

• Undermine the housing association sector’s independent status
• Divert investment earmarked for social housing into unnecessary bureaucracy
• Frustrate the UK's efficiency agenda

• Threaten local job creation strategies by preventing targeted local investment.

If the government confirms its stance, it would be a dramatic climbdown in the face of EC pressure and run contrary to its efficiency agenda.

The federation will continue to closely monitor the situation and provide updates and advice for members on our website as soon as details become available.

Goods and services supplied via Procurement for Housing (PfH), the federation and the Chartered Institute of Housing's joint sector procurement service, already comply with EC rules. Those receiving these products will not be required to undertake additional administration.

Affinity deals

We have recently written to all our members to advise them about the benefits available through a series of service agreements the federation has instituted. These include affinity deals with IT firms Phoenix Software, Peapod Ltd, SSI Computer Services, Star Internet Ltd, and IT Support Desk. The purpose of these agreements is to enable all members to benefit from the discounts that buying as a group can carry. Our agreement with Phoenix, for example, will offer up to a 50% discount on Microsoft products.

The federation is also entering into a series of Partnership Alliances, to jointly promote services to the membership and the sector. The first of these “alliances” is with InTechnology plc and Cisco Systems Ltd. InTechnology provides data backup, recovery and business continuity, either directly or through accredited resellers. The Cisco Systems deal will offer members a central pricing model on Cisco telephony systems – cutting costs and reducing the risks associated with buying new equipment.