Deputy Minister for Housing and Regeneration Jocelyn Davies, has expressed her deep disappointment that the UK Government's agreement to take forward the sustainable homes LCO is now being watered down.

Following a meeting with the Parliamentary Under Secretary of State, David Jones, the Deputy Minister issued an Oral Statement to Assembly Members, calling for their support in order to ensure that important powers that will help thousands of people are not lost.

Despite having committed to take the LCO forward in its programme for government, the UK Coalition has now demanded amendments so that the LCO does not devolve powers either to abolish the Right to Buy or to suspend the Right to Buy for a period beyond 10 years. In addition, no assurances were given on securing this LCO by the summer, which is the request that the First Minister made to the Secretary of State for Wales Cheryl Gillan in May.

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The Parliamentary Under Secretary of State also made it clear that no progress could be made unless specific written reassurance was given in respect of the exercise of powers on the provision of sites for Gypsies and Travellers.

Ms Davies said: "The UK Coalition Government very clearly stated in its Programme for Government that it would take forward the Sustainable Homes LCO. I, like many other Members I am sure, took this to mean that the LCO would be taken forward as drafted.

"Unfortunately, that is not the case and it is very disappointing that the UK Government has refused to take forward the LCO unless we amend it.

"Let me reiterate, it is not, and never has been, the Assembly Government's intention to do away with the Right to Buy for tenants.

"The Order was introduced in December last year. Now, more than six months later, we find ourselves in great danger of being unable to bring forward a Measure as part of our own Legislative Programme to address what we consider to be the more pressing issues before the end of this Assembly term."

The Deputy Minister invited Assembly Members to give their views before she considers her response to the amendments demanded by the UK Government.

(CD/GK)