THE Government should follow industry's lead and do more to help

reduce homelessness in Britain, according to Shelter, the charity which

campaigns for homeless people.

Speaking at the launch of a book to raise funds for the charity in

Glasgow yesterday, Ms Sheila McKechnie, Shelter director, said that

although the charity was receiving more support than ever from companies

the Government was preventing local authorities from tackling the

problem.

She said: ''The number of large well-known companies which have

started to work with Shelter has increased greatly. Many have been

involved in fund-raising and many more have been doing lots of lobbying

with us.

''I want the Government to recognise the importance of investment in

housing in terms of job creation and improving the quality of life.''

She added: ''Putting money into the building industry makes economic

sense and what is special about housing is its capacity to keep us

coming out of inflation in a safe way.''

Mr David Orr, director of the Scottish Federation of Housing

Associations, said local authorities were spending almost nothing on

investment in housing because of ''arcane'' Treasury rules on the Public

Sector Borrowing Requirement.

''Local authorities' expenditure on housing is all from internal

accounts, not new investment. There are plenty of councils in Scotland

which would like to be able to go to banks and building societies and

borrow money with the security on their assets, but the Government

doesn't allow them to do that because any borrowing of that kind is

charged against the PSBR.''

Recent statistics show that 39,100 households in Scotland applied to

district and islands councils for help under homeless persons

legislation last year.

Shelter yesterday launched a book, Under Cover, to celebrate its 25th

anniversary. Sponsored by the Post Office, the book is an anthology of

poems and writing by 50 of Scotland's leading writers, including William

McIlvanney, Liz Lochhead, Norman MacCaig, and Jeff Torrington.

Under Cover, Mainstream, #6.99. All royalties go to Shelter.