The motion was moved by Councillor Michael Bull and seconded by Councillor Najeeb Latif.

The Labour amendment, as set out in agenda item 14 was moved by Councillor Martin Whelton and seconded by Councillor Abigail Jones.

The amendment was put to the vote and unanimously carried.

The substantive motion (as amended) was put to the vote and was unanimously carried.

RESOLVED:  

This Council notes the proposed merger of Circle Housing Group Limited with Affinity Sutton which was approved by the boards of both organisations in December 2015, with the legal merger likely to occur in November this year. This Council furthermore notes with concern the feeling of many Circle Housing Merton Priory (“CHMP”) residents that the, now imminent, merger will result in the larger combined group being unaccountable to them and recognises the anxiety that many CHMP residents have regarding the Council’s role, as established under the terms of the stock transfer agreed by Merton’s previous Conservative administration, in being able properly to scrutinise the new Circle/Affinity Group.

Council notes that Group Operations Director of Affinity Sutton and Chief Operating Officer of Circle Housing Group appeared before the Sustainable Community Overview and Scrutiny panel on 7 September, making clear that the government decision to cut funding to housing associations was a key driver for the merger.  Council commends the panel who raised a number of issues, in particular repairs, with Affinity and Circle confirming:

·         the provision of a local and in-house maintenance and repairs service will be a key outcome of the merger

·         the new organisation will have customer service at its core, undertaking 1,000 repairs a day

·         All emergency repairs will be completed within 24 hours.

Council welcomes these commitments on repairs, a key issue for residents, and intends to hold the new organisation to account in this regard.

Whilst, in view of CHMP’s consistent difficulties in offering a quality repairs service to residents, the merger with Affinity, who have a much higher quality in-house repairs service, may offer opportunities for improved services to residents, this Council requests that the Cabinet seek guarantees from the Board of Directors that:

a.    the merger occurs with appropriate transparency, and further consultation with those tenants, leaseholders and freeholders affected so that it is fully understood what this merger will mean for them;

b.    the significant efficiencies which the new group hopes to realise will not be achieved by a worsening of service quality, particularly given residents’ existing concerns about Circle’s responsiveness with regard to repairs and maintenance and that Affinity’s in-house repairs model is rolled out as soon as possible, replacing the current inadequate CHMP repairs service;

c.    profits generated by the Merton Estates’ regeneration will be reinvested in Merton, that LEAF monies are retained for the communities they were promised to, and that the new organisation honours in full the “10 Commitments” to residents on he three regeneration estates that the council successfully convinced CHMP to sign up to;

d.    the new structure will be locally accountable to housing association tenants, leaseholders and freeholders and that such tenants, leaseholders and freeholders will have representation on the Board of the new association;

e.    the policy regarding disposals of stock is clarified and publicised prior to the merger;

f.     the current financial position of Affinity Sutton is clearly presented prior to the merger, and in particular the impact of any debts and liabilities on CHMP residents;

and

g.    the democratic decision making process and the involvement of tenants, leaseholders and freeholders in CHMP’s regeneration plans for the High Path, Ravensbury and Eastfields estates are not prejudiced by the merger.