A WARNING has been given ahead of merger talks between troubled housing provider Cymdeithas Tai Cantref and the Welsh Government’s favoured suitor for its operation – Mid and West Wales Housing Association.
In April, Carmarthenshire County Council was one of the unsuccessful bidders to take over Cymdeithas Tai Cantref, after the Housing Association found itself in difficult circumstances following an excoriating review of its management and financial structure. After the review by Campbell Tickell, which has never been fully published by the Welsh Government, the Chief Executive of Tai Cantref, Lynne Sacale, and Board Chair, David Wilcox, left their posts.
Ms Sacale had previously welcomed the enquiry on the basis that ‘any findings will be to the benefit of the association going forward’.
No public explanation has been given for either Ms Sacale’s or Mr Wicox’s speedy departures. However, the Welsh Government says the report shows evidence of mismanagement.
Hilary Jones , of Bro Myrddin Housing Association , and Doug Elliott, a former head of regulation in the Welsh Government, were parachuted in to temporarily run the Association, prior to the appointment of Kevin Taylor as interim chair.
Now, with merger talks imminent, a housing group based in Ceredigion has raised significant fears over the reorganisation of Tai Cantref, including expressing fears about the effect on the local economy, the Welsh language, and job losses within the Association.
Ble ti’n Mynd i Fyw – an independent housing group in Ceredigion – have urged stakeholders to vote against the proposed merger of the two companies.
In a letter to the Housing Association, Ble ti’n Mynd i Fyw stated that the housing group expressed fears that Tai Cantref’s local identity would be eroded by the deal.
Ble ti’n Mynd i Fyw have highlighted that ten jobs have already been lost leading up to the prospective merge r and have also underlined their concern that they feel that Cantref’s commitment to provide a Welsh language service to both tenants and staff would be undermined should the merger proceed. Ble ti’n Mynd i Fyw points out that internal meetings have already started to be held in English only and have brought to Cantref’s attention issues surrounding both tenant and non-tenant applications to become stakeholders being refused with no explanation in recent months.
Cantref have historically supported local contractors for maintenance and building works , which has supported many businesses locally. Ble ti’n Mynd i Fyw believe that this is unlikely to continue following the merger, as Wales and West have their own internal maintenance services, reducing the need for local suppliers and businesses. They express serious concern relating to job losses within the county and the risk those losses pose to communities in West Wales.
Those fears, which were expressed at the time and once the identity of the successful bidder was known, would have been addressed by Carmarthenshire County Council’s promise to ensure the maintenance of the Welsh language’s position and NO job losses at the Association’s Newcastle Emlyn HQ.
Whether the Council would have maintained in-house maintenance staff is not known, but it is likely that – bearing in mind the geographical spread of the properties owned by Tai Cantref – that local contracts would have been necessary.
The 1,400-home housing association needs to secure votes in favour from 75% of its shareholders in order for it to go ahead and fears have been expressed that the Association has deliberately withheld the names of shareholders in order to prevent them being canvassed to oppose the merger.
In June, Inside Housing reported that that opposition among some residents and board members means it is unlikely to win the vote.
Local opposition to the merger is rooted in 9,500-home Wales and West’s larger size, the fact that it is not based locally and a perception that it is less committed to the Welsh language than other local associations.
In a joint statement earlier this year, Cantref and Wales and West said: “Merger discussions are progressing in a positive and timely manner and these talks are taking place with the full support and engagement of all appropriate lenders.”
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