Southern Cross Care Homes

Baroness Keeley Excerpts
Tuesday 12th July 2011

(13 years, 4 months ago)

Commons Chamber
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Paul Burstow Portrait Paul Burstow
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As I have made clear, given the current stage of the announcements on this solvent restructuring, we appear to be in a position where the scenario the hon. Gentleman asks about will not come to pass.

Baroness Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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There are more than 300 residents in seven Southern Cross care homes in Salford, and their quality of life is our primary consideration. What assurance can the Minister give to those residents and their families that future providers will not play for short-term profit, but will truly consider their quality of life? Reassurances will not mean much if a new provider gets into the same business model and same way of carrying on as Southern Cross.

Paul Burstow Portrait Paul Burstow
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The hon. Lady is right. As we move forward and achieve a successful conclusion to this process, we must put in place the necessary measures to ensure that this cannot happen again. We must take a critical look at the regulatory environment in which this particular business model was allowed to grow—a business model that thrived during a boom, but that was predicated on the assumption that there would never again be a bust. There was a bust however, and that is why the company is in this mess.