As trailed earlier this week, Huw Irranca-Davies (Lab, Ogmore) held a short debate yesterday in the Senedd on the Caerau insulation scandal.
I’ve gone over the events to date in some detail in the recent timeline, so I won’t cover that again. If you want to watch the debate in full it’s available here.
“An issue of natural justice”
Huw described the issue as one of “natural justice”. Residents were promised warmer and more energy-efficient homes but instead ended up with “extensive damp and mould and deteriorating conditions” which have damaged not only homes but lives.
The Welsh Government needs to step in a play a leading role in resolving the issue because “no-one else can now do this”.
He emphasised his support for home retrofitting as a means to cut bills and meet climate change targets. If it’s done correctly, fuel poverty in Wales could be eliminated by 2030, saving hundreds of pounds a year on energy bills for people living in “some of the oldest and least efficient housing in western Europe”.
However, the public needs to have confidence that “when things go wrong….things will be put right quickly and efficiently”. This hasn’t happened in Caerau, as well as other parts of Wales and the UK.
A 2018 report commissioned by the Welsh Government accepted that serious problems can arise with external wall insulation caused by, amongst other things, “poor procurement, installation and maintenance” – all issues which have affected residents in Caerau. Since then the rules have been strengthened, but it’s of little comfort to those who are still waiting for repairs.
Huw believes the solution lies with a joint scheme funded by the UK and Welsh governments, Bridgend Council and the energy companies. He noted the continued arguments over who is responsible for what.
“…for residents affected, this complexity is irrelevant. The solution to them is blindingly obvious: somebody needs to step up and make good the damage done. It is long overdue.”
– Huw Irranca-Davies MS
He asked several questions. It’s best to summarise how the Minister for Climate Change, Julie James (Lab, Swansea West), answered those questions:
Does the Welsh Government support the principle of repairing all of the affected properties regardless of how the original work was funded?
“I do want to reassure you, Huw, that we absolutely do want to find a solution for the residents of Caerau, it’s just that we’re in the process of a budget cycle and I absolutely have to consider it in the round. But my heart goes out to them and I really do want to find that solution.”
– Minister for Climate Change, Julie James
Can the Minister provide an update on proposals from Bridgend Council to resolve the issues?
An outline business case seeking a programme of repairs to 104 homes was submitted to the Welsh Government by the council. BCBC would project manage it, supported by funding from themselves and “government” (presumably both UK and Welsh governments). The Minister is awaiting legal advice on this.
Can the Minister provide an update on discussions with the energy regulator and UK Government on their possible contribution to a repair programme?
The issue has been acknowledged by Ofgem (the energy regulator). A meeting was held with the Welsh Government, Ofgem and Bridgend Council but this was unsuccessful. The Minister “has been clear” to the UK Government that they have a responsibility to contribute towards the repair work, but the UK Government is advising householders to contact Citizens Advice (which is the same advice given to householders by Bridgend Trading Standards in 2016).
The Minister is yet to receive a response from Lord Callanan (an official at the UK Department for Business and Energy).
Will the Welsh Government need to underwrite any risk taken on by Bridgend Council and council tax payers?
In some cases, the costs-per-household could be up to £30,000 (much higher than the previous £16,000 estimate). Legal advice on what support the Welsh Government can offer is yet to be received, as mentioned, but the Minister promised to update the Senedd when she gets that advice.
“Difficult budget decisions” will need to be made in the forthcoming Welsh budget, but it was clear that households will be unable to pay for this work themselves.
Would the Minister seek to resolve the issue as quickly as possible and report back to the Senedd?
Does the Minister have a timetable for any budget decisions relating to this?
The draft Welsh budget is due to be published on 20th December, with further work taking place at the start of 2022. It’s difficult to say when a decision will be made but the Minister understands the urgency.
Better late than never
Huw Irranca-Davies said what affected residents (in Caerau and elsewhere) needed to hear.
It’s right and proper to point out that it’s several years later than it should have been said, but given how long this has been going on the fact it’s now being discussed openly is a good sign. Overall, it was a solid speech that covered most of the issues.
What else can we take from this?
The Minister was more enthusiastic about intervening in Caerau than it seemed from last week’s discussion. We’re still a long way from a solution, but it seems the forthcoming Welsh budget process (December 2021 – February 2022) will decide whether the repairs happen sooner rather than later.
From my experience of following the Senedd and Welsh Government over the last decade or so: “believe it when you see it”. Don’t accept anything as a given until the repair work is actually being carried out. Anything else before that is just words and PR.
What I don’t understand is the quibbling over a fairly small sum of money in the grand scheme of things.
I don’t think anyone even needs to admit legal culpability for anything. They just have to make a capital grant available for the works to be carried out.
It’s a bit of a lazy argument, but Bridgend Council and the Welsh and UK governments can find tens of millions of pounds for all sorts of things, but when it comes to cleaning up a mess they collectively caused they start counting pennies. The F-35 jet which crashed into the Med the other day would pay for the Caerau repair works 100+ times over. One jet.
The only thing I would take exception with was Bridgend Council’s claim there wasn’t an issue with how they procured the works, only how the works were carried out.
“At a very local level, some (installations) – though not all – were administered by the local authority, Bridgend County Borough Council, though they contend that the problems are due to the installer, as the reports have shown, not the procurement process and the awarding of contracts or oversight of works.”
– Huw Irranca-Davies MS
We’ve never been told the whole truth on this as internal audits have never been published – though the internal audit would be published in January 2022 – but it’s clear from BCBC’s own reports that there were issues with procurement and contract awards. There’s been an attempted cover-up, I’m in no doubt about that. We all know who for and why, but to get this fixed the focus needs to be on the organisations and people who are still here.
Overall, it’s a case of “two steps forward, one step back” but it would be difficult to argue that Huw Irranca-Davies hasn’t made a case for the Welsh Government to step in. Still, it would’ve been better in 2017.
