DARLINGTON council has been urged not to succumb to the temptation of off-loading a £40m bill to bring its council houses up to scratch in the next 30 years.

Members of the resources scrutiny committee recommended to Tuesday's cabinet meeting that it should agree to make transfer of housing a low priority.

Their preference was to continue with neighbourhood management on the individual estates.

Coun Frank Robson said that a survey of tenants showed that 87pc were highly satisfied with the service offered by the council.

"But under the government's best value initiative we are being told we may have to change."

Continual improvement could involve:

l stock transfer

l arms-length companies

l internal restructure

l developing neighbourhood management.

"This report says it could cost £40m to bring housing stock back up to scratch and the temptation could be very strong to transfer," said Coun Robson.

"I think in view of the strong expression of satisfaction in the housing division services that stock transfer should be a low priority."

The chairman, Coun Ian Haszledine, agreed: "I think we would be doing a grave disservice or injustice if full consultation doesn't take place. I know that it will.

"I agree a high priority should be given to internal restructuring and developing neighbourhood management schemes."

Mrs Pauline Mitchell, housing manager, told the D&S Times: "At the moment, tenants are coming down very strongly in favour of the council retaining ownership, but things can change. We are being asked to look at a number of options as an on-going process.

"We are interested in getting more information about arms-length companies, where the council can retain ownership but the housing would be managed by a board. It would be more independent, with an equal ratio of the local authority, professionals and tenants.

"Another option is private finance and forms about that will be coming out in a couple of months."

Following Tuesday's cabinet meeting, Mr Cliff Brown, director of community services, said he had advised that stock transfer would have to be considered at the same time as the other options.

He stressed: "This is not something on the immediate agenda - that is a couple of years down the line. It will be the tenants' choice and if they don't vote for an option, it won't happen.