Southern Cross Healthcare

Baroness Clark of Kilwinning Excerpts

Thursday 16th June 2011 Commons Chamber

[Paul Burstow]

That catastrophic outcome is by far the most unlikely of all the outcomes for Southern Cross. The most likely outcome is a successful restructuring with some of the business being moved to other operators that currently are the landlords of some of these homes. When I spoke to Nicola Sturgeon earlier this week, we discussed all the issues that concern her and me, and we agreed on the need to pursue the path of a consensual, solvent restructuring of the business as the best way of securing the welfare of the residents in those homes.

[Katy Clark (North Ayrshire and Arran) (Lab)]

Eighty per cent. of Southern Cross’s income comes from the taxpayer, yet attempts seem to have been made to offshore as much of that money as possible. Age UK says that in the future all care home providers should have to demonstrate to the regulators that they have a solid business model. In his answer to my hon. Friend the Member for Wolverhampton North East (Emma Reynolds), the Minister seemed to imply that there had been no suggestions for how regulation could be strengthened. Will he seriously consider Age UK’s suggestion over the coming months?

[Paul Burstow]

I am grateful for that question because it allows me to make the point that Age UK was very welcoming of the Government’s proposition to look at Monitor’s role in the social care sector. We are in discussions with it and will continue to consider the idea.