Growing concerns over Stirling care homes

GROWING concerns about the future of care homes owned by Southern Cross – including four local homes – have been further fuelled by a statement issued by care staff union GMB.

The union was responding to reports in the national media that Southern Cross may close 200 homes across the UK as it seeks £100 million to prevent collapse.

In March around 250 residents in four Stirling care homes owned by the company were given assurances that they wouldn’t be left homeless.

However, politicians called for Stirling Council to remain vigilant in case it had to step in to help safeguard residents.

Southern Cross Healthcare owns 10 homes across Forth Valley including four in the Stirling area – Wallace View in Cornton (60 beds), Forthbank (71 beds), Fairview (60 beds) and Annfield (50 beds).

It also owns The Orchard in Tullibody and five homes in the Falkirk area.

Last week the company announced that landlords have been asked to agree a fourth month deferral of 30 per cent of the current rent charge with effect from June 1, 2011. In March the firm had said its current rent burden was unsustainable and that it intended to step up its discussions with landlords to seek lower rents.

The GMB union, which has 10,000 members working for Southern Cross, has rounded on the Qatari Investment Authority, which is the owner of the biggest landlord NHP.

There are 10,000 GMB members employed by Southern Cross to staff their care homes. The majority of these staff are paid at the National Minimum Wage and the majority have had their pay frozen.

GMB Scotland organiser Barry Fletcher said: “GMB has not been advised of closures of this magnitude at Southern Cross. The situation is very serious. GMB single-handedly has been telling the authorities and the landlords – particularly QIA the larges – that the way the funding spent on the care of elderly is being used to pay inflated rents is unsustainable.

“The 750 plus care homes run by Southern Cross, including the 45 in Central and East of Scotland, are not factories that are failing from lack of demand but are an essential part of every community, which now face ruin due to the combination of privatisation and private equity.”

Southern Cross declined to respond to the GMB’s comments, however, in a recent statement issued following a meeting with landlords, the company’s chief executive Jamie Buchanan said: “I would like to thank the landlords for attending the meetings and for the time and commitment that they are giving to the process. These developments are a further step in a consensual and constructive process to create a sustainable future for the business.

“Throughout, Southern Cross remains fully committed to the provision of quality care to all of its residents.”

A Stirling Council spokesperson said: “Stirling Council has been in regular contact with Southern Cross in relation to clients of residential homes and their ongoing care.

“At national level there have been direct discussions between COSLA, ADSW (Association of Directors of Social Work) and Scotland Excel and the care home group which operates on a UK wide basis.

“We are aware that this situation may cause concern for residents and their family members. If families require advice and support this can be provided by contacting the council’s Social Care Services on 01786 443692.”