Chair of the Cross Party Group on Fuel Poverty and Energy Efficiency, Mark Isherwood AM, has challenged the Welsh Government after the contract for management and delivery of its all-Wales Area-Based Fuel Poverty Scheme ‘ARBED 3’ was awarded to a Scottish company, putting jobs at risk in Wales.
Mr Isherwood raised concerns regarding the situation during yesterday’s Business Statement, when he called for a Welsh Government Statement on this recently tendered Welsh Government Warm Homes contract.
Speaking in the Chamber, he said:
“The North Wales Housing Association, Grŵp Cynefin, has been working hard in partnership with South Wales based Melin Homes to develop a bid for this contract, but they heard earlier this month that the National Procurement Service for Wales has instead awarded the contract to a Scottish company, Everwarm, part of a much bigger group, which I'm told is called Lakehouse.
“I'm told that due diligence appears not to have been fully met, that Melin Homes, which have run Arbed in South Wales for five years, have reality-checked their prices, that 100 per cent of their spend goes into the local economy, they employed a team of local people, they support local SMEs, and that's all at risk.
“But I've been given a letter that says that the Lakehouse group, the parent company, has operated at a loss for the last two years, are named in an ongoing fraud investigation by the Metropolitan police resulting from work on fire alarms undertaken in Hackney and linked to Grenfell Tower, and have agreed an £8.75 million payment in respect of a fire that destroyed a school where they were the principal contractor.
“These are serious matters, and an important procurement contract on behalf of Welsh Government in a key area, fuel poverty - something very close to my heart and many others. This does merit a Statement, and these two Welsh-based housing providers need an answer.”
Leader of the House, Julie James AM, replied: “There are a range of legal issues surrounding the award of particular procurements and the process to be followed after that. If the Member has such letters in his possession, I suggest he writes to the Minister responsible quickly and puts those in front of her so that the process can be followed through to its proper conclusion”.
Mr Isherwood added “Melin Homes chose to work with Grŵp Cynefin because they wanted a North Wales partner who understood the patch, the contractors in the region and the nature of the region’s problems, particularly in the rural areas”.