Row over North landlord’s earnings

Dec 30 2007 by Michael Kelly, Sunday Sun

A NOT-FOR-PROFIT North housing group will be able to make money out of a controversial partnership, it has been claimed.

Teesside-based Erimus Housing, which is Middlesbrough’s biggest landlord, managing 11,500 houses, is to link-up with Tees Valley Housing.

And members of the newly- formed company will be able to claim significant expenses . . . cash which some believe ought to be ploughed back into housing.

It is claimed that board members of a parent group, which will be formed to oversee the two organisations, will be able to rake in significant allowances and expenses.

Both companies say they will remain separate organisations with their own housing stock but will share resources and costs.

However, Councillor Brian Hubbard, who sits on Middlesbrough Council, says the partnership paves the way for the companies to make money.

He said: “Erimus was set up as a charitable organisation, but the parent body being formed will be a profit-making company which will be able to make money from any land sales.”

And he claimed: “Although the board members of the new company won’t get a wage, they will be allowed to collect travelling expenses and the chairman’s allowance will be something like £40,000, while other board members will be able to claim around £20,000 a year.

“In my view, that money should be going back into housing in Middlesbrough.”

However, the organisation says the partnership will lead to improvements for tenants.

Brenda Kirby, director of corporate services for Erimus Housing, said: “This is about protecting the future of both organisations and our employees, as well as growing the businesses, improving our services and developing more opportunities for staff.

“No decision has been made on expenses for board members yet.

“However, other registered social landlords do choose to pay their board members because of their time and commitment, in a similar way to the way council members are paid.”