Plaid Cymru AM Leanne Wood is seeking assurances that the financial problems faced by social housing giant Connaught will not affect the updating of homes in Rhondda Cynon Taf.
Administrators have agreed to sell the bulk of Connaught to building firm Morgan Sindall for £28m and take over the majority of its maintenance contracts. The employees will be transferred to Morgan Sindall’s own affordable housing unit, Lovell Partnerships. There is uncertainty over the future of up to 1,900 employees.
The Rhondda-based AM said: “Despite the news that Connaught has been bought, we all need to know that the updating of their homes will not be affected.
“We warned about the impact of stock transfer where firms are involved in a Dutch auction to win work and then find they cannot deliver what they promised.
“I support the view that housing maintenance should be brought back in-house.”
Ms Wood, who represents South Wales Central, added: “There have been suggestions that contracts may have to be renegotiated, leading to higher costs which have not been budgeted for. This would not be acceptable.
“I have written to RCT Homes and the local authority to seek assurances about the work contracted to Connaught.”
