A HOSTEL providing temporary accommodation for the homeless is set to close because of falling demand.

Members of the St Helens Council's housing committee were told that unless they took action Crouchley House at Newton-le-Willows could run up a loss of £70,000 this year.

A report to the committee said occupancy rates at the hostel had been falling and the provision of other temporary facilities was now meeting the demand.

Between November, 1998, and August this year the hostel averaged 6.5 people staying there each week. The maximum is 26.

The committee recently agreed that in future it would use some of its empty housing stock as temporary accommodation for people facing being homeless.

Pennington Lodge, a hostel managed by the Grosvenor Housing Association in St Helens, is also available, together with other facilities for homeless people provided by the council and by voluntary organisations.

Sale of the site could raise cash to help pay some of the huge bill the council faces for repairs and improvements to its flats and houses.

Four employees - a project officer and three project workers - will lose their jobs as a result of the decision but two cleaners will be found alternative employment.

Committee chairman, Councillor Richard Ward, said: "We clearly cannot accept a loss of the size that is forecast if we don't close Crouchley House and I am assured that there are sufficient alternative facilities to provide accommodation for homeless people. Our personnel department will be talking to the staff affected about other opportunities that may be open to them.

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