Housing Executive: Maintenance Contracts
Social Development
2:00 pm
Simon Hamilton (DUP)
3. asked the Minister for Social Development for an update on the audit that he commissioned into the Northern Ireland Housing Executive’s management of maintenance contracts. (AQO 2256/11-15)
Nelson McCausland (DUP)
Last year, I became increasingly concerned that the issues that led to the termination of the Red Sky contract by the Housing Executive in July 2011 may be present in other contracts that had not been the subject of any full investigation. I asked for a forensic investigation to be carried out of a sample of Housing Executive maintenance contracts, including those of the contractors to whom the Red Sky contract was reassigned on its termination on 14 July 2011. That is to provide me with assurances in relation to: ensuring the issues that led to the termination of the Red Sky contract are not present in other response maintenance contracts; the provision of the best possible value-for-money services to Housing Executive tenants; and the appropriate use of public funds.
The investigation has been carried out, and it considered, amongst other things: the quality of the workmanship undertaken; whether the invoices submitted by the contractors and paid by the Housing Executive were appropriate within the context of the work requested and the work actually carried out; whether the inspection regime in place in the Housing Executive operated as expected; whether the key controls in place to manage contracts — to ensure that the quality of works undertaken is monitored and price variations are identified, valued and approved — are adequate and operate effectively; a classification of any financial anomalies identified during round 1, which involved contractors assigned to the Red Sky contract, and round 2 inspections, which involved other contractors; and an extrapolation of any findings from round 1 and round 2 to determine the possible level of any overcharging or errors. That investigation work has now been completed, and I am due to meet the Housing Executive later this afternoon. The final report will be due on 29 June 2012, which is this Friday, and I am sure that it is eagerly awaited.
Simon Hamilton (DUP)
Given the importance of maintenance contracts to Housing Executive tenants, I am sure that the Minister will agree that their proper management is absolutely critical. He has outlined some improvements that are required, which will require fundamental change in the Northern Ireland Housing Executive. Does the Minister have confidence in the Housing Executive’s ability to develop a culture change in that organisation to make those improvements?
Nelson McCausland (DUP)
The Member raises a fundamental issue. I already have concerns in relation to the effective and timely implementation by the Housing Executive of the recommendations made in the 2010 governance review. My permanent secretary has met the chief executive and the chairman of the Housing Executive to discuss his concerns about contract management and what the Housing Executive is doing to ensure the effective and timely implementation of those recommendations. I intend to raise those issues with the chairman at a forthcoming performance review meeting. Almost 12 months ago, I met the chairman and the acting chief executive of the Housing Executive in the context of Red Sky. I asked for assurances, and I was given assurances about other contractors. The evidence that is now emerging raises very serious questions about the assurances that I was given by the chairman and the acting chief executive. I take that very seriously because they both sat in my office and gave me those assurances personally. The investigation that has been carried out has been thorough.
The Housing Executive will have to be afforded an opportunity to consider the findings in order to formulate a response. Contractors will also have to have an opportunity to consider the findings and comments in due course. The information being uncovered is, I think, quite alarming.
Paul Maskey (Sinn Féin)
Go raibh maith agat, a LeasCheann Comhairle. Does the Minister agree that organisations such as Red Sky sometimes seem to be like the tail wagging the dog? They seem to have something over senior members of staff in the Housing Executive. When officers in the Housing Executive were trying to put a halt to some bad practice, they were moved out of their district office. Does he agree that that was wrong and should never happen again?
Nelson McCausland (DUP)
I thank the Member for his question. It raises a fundamental issue that I touched on: it is becoming increasingly clear — it was actually clear last year to some extent, but the scale is now much clearer — that the issues that arose in regard to Red Sky are present in quite a number of contractors. There are shortcomings not only in the service provided to tenants but in the monitoring, management and inspection of work. In the past, somebody signed off work that did not even happen in a place that did not even exist. I do not know how they ever managed to sign it off.
Go raibh maith agat, a LeasCheann Comhairle. Gabhaim buíochas leis an Aire as na freagraí sin. I thank the Minister for his replies. This question is based on personal experience in my constituency. I listened very carefully as the Minister talked about the quality of the workmanship and the monitoring of improvements to homes inhabited by tenants. What is the role and function of his Department specifically in regard to housing associations and the quality of the work they deliver on the ground for tenants?
Nelson McCausland (DUP)
My Department is responsible for overseeing and monitoring housing associations. Of course, the Member will be aware that, in more recent times, there has been a much more hands-on approach to the oversight of housing associations after quite a number of them had their development status removed because of shortcomings in a whole range of areas. Work is now being done with housing associations in a range of ways. We are also talking directly to the Northern Ireland Federation of Housing Associations about ensuring, as far as possible, that there is really good practice in housing associations. So, there is a key issue with housing associations.
The question was actually about the Housing Executive. When you bear in mind that these major contracts are extremely expensive and that large amounts of public money are being spent on them, you can see that we need to be absolutely sure that there is value for money and that charges are not made for work that was never carried out or was carried out improperly, inadequately or whatever. I am determined to ensure that there is a value for money. That is why we will be engaging very thoroughly and fully with the Housing Executive over the next number of weeks and months and why, I think, others share my concerns.
Danny Kinahan (UUP)
I thank the Minister for his answers so far. Has the investigation looked into or found out whether there are efficient and effective ways of putting in double glazing so that there is less disturbance to families in future?
Nelson McCausland (DUP)
I have seen examples of double glazing installed by a number of contractors. In one case, it was so well done that you could put your hand around the frame and see your fingers on the other side of the window — that is how well it was done. In some cases, I have seen windows that were practically butchered during installation. So, there are real questions about the quality of the workmanship. The nature of the installation of windows is a separate piece of work that is being carried forward at the moment. I think that there is a way of doing it that will save us millions of pounds and enable us to do far more maintenance work in areas where there is a great need for it. There is no point in unnecessarily chipping out plaster and replacing it.