Jon Trickett MP
Member of Parliament for the Hemsworth Constituency
Hemsworth Office: 019777 22290
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Jon attacks Southern Cross in recent meeting
Jon Trickett met with Southern Cross employees and GMB trade union officials at the GMB Office Wakefield to receive a briefing on the latest developments in this troubled company. Jon heard firsthand the pressure that existing staff are under and the uncertainty they face with impending job losses. He was informed how it was not known which Landlord owned which care home, which care home would revert back to the Landlord and which care home would eventually close.
Jon said after the meeting: “Staff and residents are facing great uncertainty. It is appalling the way this business, which receives a big pot of public money to pay for care beds, has been run. The GMB’s research into the financial situation makes fascinating but disturbing reading.
I am absolutely appalled that the ordinary men and women who are the residents and employees in these homes are faced with such an uncertain future as a result of greedy individuals who are milking the system to the detriment of the most vulnerable in our society. It is completely wrong that the people who work in these care homes, many of whom are paid on or just above the minimum wage, are to see their terms and conditions reduced even further. These individuals have not created the financial mess but they are expected to carry the burden”.
GMB research indicates that up to half of the properties were acquired by a company called NHP, of which the ultimate parent company is Delta Commercial Property. This is a company owned by the Qatari Investment Authority and is registered in the Isle of Man. The financial returns for this company are consolidated within Libra No.2 Ltd, a company incorporated and registered in the Cayman Islands. Southern Cross rents paid to the homes acquired by QIA in 2009 equated to £6,348 per bed. This was a 4.9% increase on the 2008 figure when the rent was £6,050 per bed. This in turn was a 3.1% increase on the 2007 figure when the rent per bed was £5,866. This in turn was a 7.9% increase on the 2006 figure when the rent per bed was £5,435. Thus in the past 3 years rents have gone up by 16.8% at a time when property values were falling.
Cannot understand these landlords . Don’t they realise they are going to end up with empty buildings, and no rent. Is it not possible Southern Cross can agree a long term rent contract.