CAMPAIGNERS have vowed to fight on to prevent the 'privatisation' of all Chester-le-Street's council houses.

The Labour-run district council, like all councils across the country, has been ordered by the Government to look at whether it should continue to manage housing, one of local government's main traditional functions.

It has agreed to seek Government approval to hold a ballot asking the tenants of its 4,600 properties whether they want their homes to be taken over by a 'registered social landlord'.

The move comes after the council's tenants panel, a consultation group, backed the take-over option.

But a campaign group set up to oppose what it calls the privatisation of council housing, says it will continue to persuade tenants to vote against the idea.

The Government has set a 2010 deadline for housing to meet its Decent Homes Standard and the council says that there will be much more investment in improvements to the houses if control is transferred to a not-for-profit organisation.

Save Our Council Houses, formed by former district councillor George Watson and former Durham county councillor Derek Bates, says tenants could face big rent increases and that the Government could improve homes by giving councils the money to do it.

Tenants across the country have voted for their homes to be either owned and controlled by a housing association-type body or managed by an arms-length management organisation.

But in some areas they have voted against these options, despite being promised big spending on their homes under stock transfer.

More than 200 MPs have signed a Commons motion calling on the Government to provide the investment through council housing.

Mr Bates said: "The tenant panel is only a minority. There are 4,600 homes. When the time is right we are going to leaflet all the tenants and give them our side of the story.

"The only story they have had so far is from the Tenants' Participation Advisory Service, which is funded from the Housing Revenue Account.

"The whole thing is still there to be won if we can get the right information out. We will fight this through to the end."

The council's director of community services Ian Broughton said: "I am delighted that both the tenants' panel and the council have arrived at the same option for the future ownership and management of the council's housing service.

"I am happy to be part of an on-going process to provide the best housing service to our tenants."

He rejected Mr Bates' claims that it would be privatisation of the service and said rents would only rise by about £1 over the first eight years.

He said the move would provide funding that the council could not access.

The council's housing department was criticised by the Audit Commission in 2003 after an inspection uncovered a catalogue of problems including a 1,300 per cent increase in rent arrears over six years, housing income that pays for the town's closed-circuit television system.

A spokesman for the council said it would have to apply to the Office of the Deputy Prime Minister to hold a ballot.

It was envisaged that it would be held in July of next year.

North Durham Labour MP Kevan Jones said: "The important thing is that the tenants have the final decision and I would urge them to make their voices heard.

"The council hasn't had a glorious record on housing in the past. The important thing is that we have extra investment and that tenants are at the centre of it. In the past it has been too much a case of politicians dictating what council housing should be."

* The Save Our Council Houses group has organised a meeting in the Greenbank Club, Picktree Lane, Chester-le-Street, on Monday at 7pm. Everyone is welcome.