Homes merger 'would save £3million a year'

Monday's Rother cabinet meeting will receive a report from director of resources Joy Cooper recommending that Rother's appointed members on the Rother Homes board should be authorised to cast their votes in favour of the change.

Without Rother's agreement, Rother Homes would be unable to undertake the change.

At present Rother Homes is a company limited by guarantee.

The change is tied to a proposal to link the Amicus and Horizon housing groups. Rother Homes is part of the latter. Horizon and its subsidiaries want to update their constitution to fit National Federation of Housing 2005 model rules and the Housing Corporation's Good Practice Note.

Amicus has adapted the updated rules in readiness for the merger.

One of the main benefits claimed for the merger is that it is expected to save around 3 million a year by 2009.

Tenants - present and future - are expected to benefit from a more efficient and streamlined service, with the funds saved available to build more-affordable homes for people in need.

The group says tenants will notice little immediate change to their service, and will continue to deal with their existing landlord and their existing housing association as per normal.

Horizon's other subsidiaries and those of Amicus are all registered as industrial and provident societies.

The director of resources says: "Maintaining a different constitutional model for Rother Homes, which leads to different processes, is costly and inefficient."

Rother has sought independent legal opinion to ensure its interests are fully protected.

The rule change will require the approval of an extraordinary general meeting. Tenant members are entitled to 24 votes, Horizon Housing Group to 51 and Rother to 25. A majority of 81% is needed for change.

Rother has been advised that, subject to one suggested change to one of the rules so that the council's veto remains unaltered, there is no reason to object.