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Regulator: English sector has ‘no material exposures’ to Carillion
The English social housing sector does not have “material exposures” to the liquidation of construction firm Carillion, the Regulator of Social Housing (RSH) has said.
A spokesperson for the regulator, which has been in touch with the sector over the contractor’s collapse, said: “At present it does not appear that the English social housing sector has material exposures to Carillion.
“The regulator has always been clear that outsourcing of services does not remove the responsibility for their delivery and has flagged the importance of managing counter-party risks in our regular sector risk profiles.”
It is not responsible for regulating the Northern Ireland Housing Executive (NIHE), which is implementing contingency plans for its heating contracts with Carillion.
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The NIHE signed an eight-year contract with Carillion in November last year and has warned that there could be “disruption to routine services” as contingency arrangements are implemented.
Other associations affected by the contractor’s collapse were West of Scotland Housing Association, which, according to Glasgow East MP David Linden, is “in the process of transitioning its maintenance contract from Carillion to Robertson Facilities Management”.
Partick Housing Association – also based in Scotland (outside of the RSH’s remit) – switched its gas service and maintenance and its day-to-day repairs away from Carillion on 1 December 2017.
Carillion Amey, a joint venture between Carillion and construction firm Amey, manages housing for military veterans on behalf of the Ministry of Defence. Amey has said it will continue the services itself.
In a statement, the company said: “Both legal entities get paid directly by our customers and we have our own banking facilities, therefore we have no concerns about our ability to continue to operate our businesses and our staff and suppliers will continue to be paid as normal.”
Carillion was also engaged in a custom-built homes joint venture in Cornwall with the Igloo Regeneration Fund in partnership with Homes England. A spokesperson for Igloo told Inside Housing the project would be completed as it was underwritten by Igloo.
