Fire Safety Cladding: Heysmoor Heights

Debate between Louise Ellman and Jim Shannon

Wednesday 16th May 2018 Commons Chamber

[Mrs Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

Today, following the campaigning of MPs across the country, the Prime Minister made a commitment to fund replacement cladding for some of the properties at risk following the Grenfell Tower catastrophe in June 2017. Her welcome statement refers to properties owned by councils and housing associations, but it leaves residents in privately owned tower blocks, such as those in Heysmoor Heights, Liverpool, out in the cold. They face bills of £18,000 to keep safe following the horrendous failings exposed by the Grenfell catastrophe.

After Grenfell, Heysmoor Heights was inspected by Merseyside fire and rescue authority—with commendable speed. It was found to have dangerous ACM— aluminium composite material—cladding. Fire marshals were put in place, and all lethal cladding has now been removed and is being replaced.

Heysmoor Heights is a 16-storey block comprising 98 flats, 63 of which are owned by Grainger plc. Grainger has funded the costs of fire safety measures for its flats, but it is unclear whether those costs will be reflected in higher rents or service charges in the future. The private leaseholders face major problems and anxiety. Theirs are modest properties, with a value of between £80,000 and £100,000, yet they are required to pay £18,000. How can hard-pressed residents find £18,000? Is the value of their flats affected by what is happening? Will more work be required, thus requiring more funding? It is unjust for residents to be facing demands to foot the bill to keep them safe because the regulatory system failed.

[Jim Shannon (Strangford) (DUP)]

First, I congratulate the hon. Lady in raising an issue that is gripping the House this week. Does she agree that every social housing provider, local authority and landlord who is paid from the public purse has a duty of care and must ensure that buildings are up to the highest safety standard; and that where that is not the case, they must carry out the work necessary to bring the building up to that standard? That should be their responsibility.

[Mrs Ellman]

I agree with the hon. Gentleman; he makes an important point. Who should pay? Who is responsible for putting the situation right? The position is obscure and complex. The original development company, FM Heysmoor Heights Ltd, was dissolved in August 2014. It went into administration in 2010 after building renovation works were completed.

The current freeholder is an anonymous beneficial owner: Abacus Land 4 Ltd, an offshore company based in Guernsey. It is part of the Long Harbour Ground Rent Fund, which is thought to be worth £1.6 billion. HomeGround is responsible for the day-to-day management of the company. It has appointed the Residential Management Group—RMG—to manage the block.

RMG tells me that an insurance claim—taken out in 2008 by the now defunct FM Heysmoor Heights Ltd—is currently being pursued with Lloyd’s against the original build guarantee. That could see an insurance warranty meet some or all of the costs incurred, but we do not know if this will happen.

RMG first raised the claim on 18 October 2017, but no decision has yet been reached. The claim has now been submitted to the formal complaints process via the Lloyd’s underwriter. When will there be a response? Will it be adequate? There are no answers in sight to those important questions.

The public inquiry into the Grenfell disaster is not due to start until next week. Indeed, there is still dispute about how it will proceed. A separate investigation into building regulations—the Hackitt inquiry—is due to report soon, and I understand that there may be a statement on that tomorrow.

Those investigations involve complex issues, including safety assessments, warranties, installations, certification and regulation. They could include questions of criminality. Years could pass before legal culpability in relation to any individual property is established but, in the meantime, my constituents face bills of £18,000. Payment by instalments is being offered in some cases, and sums of around £2,000 are being added to the quarterly service charge for some individual residents. That is an enormous amount to find. The situation is highly stressful, and payment by instalments does not reduce the size of the bill, which remains £18,000.

I have campaigned strongly on this issue on behalf of my constituents, as have other hon. Members on behalf of theirs. I first raised the matter with the then Secretary of State in October 2017. His response, dated 11 December 2017, stated:

“Where costs do not naturally fall on the freeholder, landlord or those acting on their behalf I urge those with responsibility to follow the lead of the social sector and private companies already doing the right thing and not attempt to pass the costs to leaseholders”.

I have continued to pursue that important matter in the House and I have made further representations to the Minister.

The Minister told me this week in a letter, and in an answer to a written parliamentary question, that

“the morally right thing for building owners to do is to take responsibility for meeting the cost of remediation and interim safety measures without charging leaseholders”,

and that

“building owners should do all they can to protect leaseholders from paying these bills. This could mean funding it themselves or funding it through warranties or legal action”.

The residents of Heysmoor Heights cannot wait for long and potentially protracted negotiations with the insurance company to be resolved. There is no guarantee that a satisfactory solution will be reached.

A letter I received today from HomeGround confirms that, should the insurance route fail, costs will be recovered through increased service charges. That is simply not good enough.

The Minister tells me that he will speak to the agent of the freeholder at Heysmoor Heights. Will he attempt to establish the identity of the owner—or owners—of the offshore Abacus Land 4 Ltd, an anonymous beneficial company?

There has been a further recent development. Barratt Developments, owners of Citiscape in Croydon, have now agreed to pay the costs of cladding removal and fire safety measures for their residents. The Minister’s letter to me states:

“I am aware of some private sector building owners who are not charging leaseholders and, as you know, the previous Secretary of State urged others to follow suit”.

I call for the same treatment for the residents of Heysmoor Heights. What is good enough for the people of Croydon is good enough for the people of Liverpool.

Let us remember what all this is about: 71% of people at Grenfell Tower lost their lives because of grotesque failings in fire safety. Inquiries are yet to establish precise liability and culpability. The catastrophe at Grenfell exposed the danger in other high-rise buildings, including at Heysmoor Heights, yet it is the residents who are being asked to foot the bill to protect their safety in a situation they did not create.

Today, the Prime Minister bowed to the inevitable and agreed to refund the cost of replacement cladding for councils and housing associations. The campaigns throughout the country have been successful, but residents have been put through too much stress for too long. What about the situation for the private residents—the leaseholders—at Heysmoor Heights? The Prime Minister did not give any answer to their calls for help. They must not be abandoned. I call on the Government to act to ensure that residents do not foot this bill—it is a question of justice.

Disabled People (Access to Transport)

Debate between Louise Ellman and Jim Shannon

Thursday 9th January 2014 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

In Northern Ireland, people who are registered blind or nearly blind get free bus passes. In April 2013, nine out of 10 people who were registered blind or nearly blind expressed concern that there were no announcements on bus routes and requested an audio system. The needs of blind and nearly-blind people are relevant not only to England, but to the whole United Kingdom of Great Britain and Northern Ireland. Does the hon. Lady agree that those nine out of 10 people deserve to have audio systems fitted in transport systems across the whole of the United Kingdom?

[Mrs Ellman]

The hon. Gentleman has made an important point. I will speak specifically about audiovisual systems shortly, reinforcing the point he has raised.

On training, one issue that has been raised with me is whether the content of training is adequate. There is also the issue of whether training takes place. It was disappointing that the Department rejected our recommendation that bus and coach drivers should be required to have disability awareness training. Instead, the Department defended its decision, taken last year, to opt out of the EU requirement for such training. Will the Minister think again about this issue and discuss it with his colleagues?

I have listened with interest to hon. Members’ comments today. They have all referred to practical examples of difficulties that occur because the right facilities are not in place. I joined campaigners from the Royal National Institute of Blind People on a local bus journey in Liverpool. They showed me how important it is to receive information, at the right time, about the numbers of the buses that are operating, the routes being run and, indeed, where the buses have stopped. It was clear that the lack of practical information deters many people from travelling, including people with sight impairments, learning difficulties or mental health problems, and undermines people’s confidence to undertake journeys and lead independent lives. Drivers play an important part in providing information, so it is important that they are given disability awareness training so that they have the confidence to do so. I cannot emphasise too much that training should be adequate, available and compulsory.

Hon. Members have raised the issue of audiovisual systems, which are vital. In May last year, of the 46,300 buses in the UK, only 8,500 were equipped with audiovisual equipment. Most of those are in London.

Rising Cost of Transport

Debate between Louise Ellman and Jim Shannon

Wednesday 9th January 2013 Commons Chamber

[Mrs Ellman]

People often travel at peak times because those are the times when they have to get to work. They have no choice. However, there are other ways of addressing the question of demand, and I shall say something about them later.

The report also talks of the importance of achieving efficiencies, although we think that the aim of making efficiency savings of £3.5 billion by 2018, as McNulty recommends, is a challenging one. The bringing together of different parts of the rail industry in the Rail Development Group, and through other means, is welcome, but it is important for the industry then to work in the interests of passengers and the taxpayer, not just in its own interests. It is also important for it not to cut corners and put safety at risk in order to achieve efficiencies. We have high safety standards which should not be jeopardised, and strong regulation is particularly important for that reason. The regulator needs to be able to act firmly and decisively.

Members have mentioned other means of achieving efficiencies and reducing fares, or at least reducing the rate of increase in fares. We need to think about smart ticketing and innovation, and about introducing more flexibility in the way in which fares policy is drawn up and implemented, which has been sadly lacking. There should also be more transparency in the use of public funds. It is extremely important for the rail service to receive a public subsidy, because it is a public service, but it is equally important for the £4 billion public subsidy going into the system this year to be dealt with in a way that people understand, so that they can assess whether it is being used effectively. Not all the information that we have at present enables them to do that.

[Jim Shannon (Strangford) (DUP)]

Will the hon. Lady give way?

[Mrs Ellman]

I am sorry, but my time is very limited.

Some information has been published about the subsidy for the London North Western route, which, we are told, amounted to £1.2 billion in 2010-11. That is a significant proportion of the £4 billion that is going into the overall system. The area covers wide expanses, including the west coast main line run by Virgin and Cumbrian rail services run by Northern Rail. We have been given an overall figure—a very major figure—but we do not know how the subsidy is allocated between different services, or indeed between different parts of the country. That is just one example of the need for more transparency so that we can assess whether subsidies are effective.

I welcome Network Rail’s recent announcement that more than £35 billion will be invested in the next control period, 2014-19. However, the Committee will look at the figures in detail and consider what they actually mean, and the rail regulator will look at them as well before anything is finally approved. It should be noted that although the announcement of more much-needed investment in the rail system has been welcomed, passengers have expressed the fear that they will have to pay for it through even higher fares, which renders the need to look again at a policy on regulated fares even more urgent. The Committee has asked Ministers to do that.

In due course there will be an opportunity to discuss the Committee’s complete findings, and we will do more work on rail franchising and rolling stock acquisitions, another important area in respect of savings. I hope my comments this afternoon have helped to inform the debate. Rail is increasingly popular and a good service is currently offered, but there is increasing concern about fare levels, and we must address that.