A private company making profit out of housing asylum seekers is “immoral” Scotland’s Housing Minister said.

Paul McLennan was speaking at the SNP Conference during a meeting on the housing emergency.

He said: “Refugees are welcome in Scotland. You can’t be making profit out of people in that situation. It is immoral.”

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Sabir Zazai of the Scottish Refugee Council has asked the minister about accommodation for asylum seekers.

He addressed the argument that asylum seekers are the cause of homelessness.

Zazai said if he world was suddenly a safer place tomorrow there would still be a housing crisis and said we must ensure people seeking asylum do not end up homeless after they receive a decision.

Zazai, who has first hand experience of the asylum system as he first came to the UK as a refugee said the Asylum seeker housing providers should leave a positive legacy.

He added, however, Mears, the Home Office contractor responsible for providing asylum seekers with accommodation, made £47m profit and he asked “What do they give?”

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The council in Glasgow wanted to take over the service.

Allan Casey, Glasgow City Council convenor for homelessness and addictions, said: “Fundamentally, accommodation for asylum seekers is provided for profit.”

He said Glasgow City Council tried to apply to the Home Office to provide in the public sector but said it was blocked.

He added: “Mears are not treating the people the way they should.

“The UK Home Office needs to look at how the public sector can provide the service.”

Alison Watson of Shelter Scotland said: “We should be treating asylum seekers positively. Scotland needs immigration. We can’t allow the far right to make the argument that housing emergency is because of asylum and immigration.”

The comments were made at an ending Scotland’s housing emergency event at the SNP Conference, organised by Shelter Scotland and Scottish Federation of Housing Associations in Edinburgh.