Topical question asked in the House of Commons, by Nick Smith (Labour). It was answered on Thursday, 9 June 2011 on behalf of the Department for Business, Innovation and Skills.

Topical Questions

Question: Given the public outrage at the ““quick buck”” strategy at Southern Cross, the Financial Timessays that the future of 31,000 elderly people is in jeopardy. Will the Secretary of State investigate the conduct of the directors and consider whether regulation should be extended to ensure the financial stability of companies that care for our parents and our relatives?

Answer: My colleague the Secretary of State for Health has made it absolutely clear that no resident, whether publicly funded or self-funding, will be left homeless or without care. In other words, the residents will be given priority and the Government have taken the responsibility to ensure that they are protected. As to the company itself, it had a long-standing failed business model. The Minister of State, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes) has been in touch with the banks to ensure that the their credit is properly managed in this critical period so that it happens in an orderly way. There is no way in which we can bail out the company, but I have asked my officials to look carefully at the business models of companies that provide public services to ensure that they are stable and that the responsible sector regulators are able to act appropriately.

Secondary information

Type: Oral question
Reference: 529 c277
Session: 2010-12
Oral question type: 1st Supplementary
Chamber / Committee: House of Commons chamber
Related items: Care Homes: Private Sector
Wednesday, 6 July 2011
Written questions
House of Commons
Subjects: Care homes Regulation
Link: View this Topical question on www.publications.parliament.uk