MAGNA Housing says the results of an Audit Commission inspection into how it is performing are 'harsh'.

The report says that in some areas Magna is performing satisfactorily but in other areas there was much work to be done. Director John Wright said: "We consider some of the inspectors' judgements to be harsh. However, we look to learn from the best performers in the sector to improve these and other areas of our work.

"We can't deny we are disappointed with the overall result of the inspection. A lot of change has taken place over the last two years and staff are committed to providing a first class service. We are now looking forward to achieving the recommendations made by the Audit Commission."

The report said that Magna was performing satisfactorily in the areas of tenant involvement and nuisance/anti-social behaviour - although the inspectors recommended further improvements in these areas.

The inspectors said: "There is much work to be done specifically within the areas of equal opportunities, customer care and complaints, lettings and repairs. Overall, we conclude therefore that Magna's service shows considerable scope for improvement.

"We believe some of the improvements identified have been of a reactive nature - a genuine response to turning around poor performance. However, we would encourage Magna to develop over the period a more proactive longer-term planning approach to improvement.

"The level of performance on responsive repairs is currently below the association's own target and has been for the last two years. Further work is required to improve this for tenants."

Mr Wright added: "Magna has undertaken significant re-financing and a re-organisation within the last two years and we are particularly pleased that the housing inspectors have recognised our commitment to achieving continuous improvement and have found clear examples of our achievements. We feel that the report provides a review of our progress and offers a frank opinion of our current position.

"We are delighted examples of positive practice have been highlighted and that the inspectors have recognised the performance measuring culture in the association."

Staff at Magna will be working with tenants' panels and the housing corporation to develop an action plan to address the Audit Commissions recommendations.