Vow to elderly as care home landlords axe crisis-hit firm

RESIDENTS of Southern Cross homes and their relatives have been reassured by the Scottish Government after landlords said they would seek other operators to run their homes.

A Government spokeswoman said it was working on a “strong presumption”, supported by the company’s landlords and underpinned by its own contingency arrangements, that people will not be moved out.

Local authority umbrella body Cosla said it was confident of providing a safety net if other private providers did not replace Southern Cross.

The assurances came as the financially-stricken company confirmed it was to close after it was abandoned by its landlords who refused to restructure rental agreements.

The group, which has 752 homes and 31,000 residents across the UK, including 98 homes and 4000 residents in Scotland, has been locked in negotiations over its property arrangements for weeks.

Landlords of 250 homes have agreed to take them back and run them themselves but talks are continuing with the owners of the other 502.

Health Secretary Nicola Sturgeon met the company’s chief executive Jamie Buchan in Glasgow four weeks ago and said afterwards the Government would take “any steps possible to make sure that all Southern Cross residents remain in their current care homes”.

Her spokeswoman said the Government was working with Cosla and social work directors to ensure continuity of care.

She said the formal announcement of the plans to shut down Southern Cross signalled the start of a process to break up the group “on a consensual basis, it does not mean the business has gone into administration, or any care homes will close in the immediate future”.

Cosla’s health spokesman Douglas Yates said: “All of our information to date tells us it is unlikely that any care homes will close in the immediate future and that care home staff will remain in place to provide the continuity of care desired.

“Councils and their partners across Scotland have been anticipating the winding down of Southern Cross for some time and have had an opportunity to develop contingency plans.

“We are not yet at a stage when councils’ contingency plans need to be enacted – there are no care home closures to contend with at this juncture – and we will work with landlords to ensure there is a smooth transition to new operators.

“However, in the event of the market not delivering an alternative provider, we are confident that our contingency planning will be able to provide the safety net that people would expect.”

Labour’s health spokeswoman Jackie Baillie said people being cared for in the homes deserved a “complete assurance” there would be continuity of care and, given there had been complaints upheld against three-quarters of Southern Cross homes in the last five years, it was vital to turn the developments into a catalyst for long-term improvements.

In England, Prime Minister David Cameron’s official spokesman said no-one would be left homeless by the crisis but he stopped short of giving an assurance all residents would remain in their current homes.

The GMB union claimed almost half of the Southern Cross homes are owned by companies based outside the UK, including hundreds registered in tax havens.

National officer Justin Bowden said: “Southern Cross may be on its last legs but for Southern Cross’s 31,000 residents and 43,000 staff, this looks like a case of out of the frying pan, into the fire. These 80 landlords are a rag-bag bunch whose number includes overseas interests, tax dodgers and in some cases ‘identity still unknown’. Many themselves are in financial difficulties.

“The Government is today publishing a White Paper which says the future for all public services is outsourcing. Meanwhile, back in the real world, this is what happens when the private sector is given access to public money.”