GLASGOW is to share in a £17million Government hand-out for the construction industry.

GLASGOW is to share in a £17million Government hand-out for the construction industry.

Deputy First Minister Nicola Sturgeon today unveiled the cash boost for credit crunch-hit house builders across Scotland.

And £1m of the money will be spent in Glasgow.

Link Group will receive £500,000 to buy 10 unsold properties in Oatlands in the South Side from a private developer and Loretto Housing Association will receive the same amount to speed up the development of 13 affordable homes at Victoria Square.

Ms Sturgeon said: "The Scottish Government is aware of the serious challenges facing Scotland's house building industry.

"We are determined to help the country's businesses and households deal with the impact of the economic downturn and to provide much needed affordable housing as quickly as possible.

"That is why we have acted swiftly and decisively to help alleviate the pressure of the credit crunch on developers and speed up the delivery of affordable housing.

"This latest phase of funding will help to kick-start construction work across Scotland helping our hard-pressed construction workers weather the economic storm."

A further £3m will be spent on projects in East Ayrshire, Argyll and Bute and East Dunbartonshire, while £3.7m will fund land purchase by housing associations for developments in North Ayrshire, Argyll and Bute, East Dunbartonshire and East Renfrewshire.

The announcement comes a day after the Evening Times reported the pleas of housing chiefs who are demanding Government help for housing associations "desperately struggling" to meet demand for rented homes.

The Scottish Federation of Housing Associations says Glasgow needs more than 2000 new homes for rent and they want 10,000 new rentable homes built across Scotland.

Jim Strang, chief executive of Parkhead Housing Association welcomed the Government cash boost but urged them to spend more to meet pressing needs in Glasgow and beyond.

Mr Strang said: "If there was ever a time in our economy where housing can play a part in revitalising the economy, it is now.

"In the East End of Glasgow there are significant opportunities to build the houses we need and at the same time create employment opportunities.

"It's very important that the Government heed the SFHA's campaign."