A proposal has been received to consolidate all nine of Circle Housing’s organisations into one to become Circle 33.  This would mean Merton Priory Homes board would be disbanded, with the loss of a local governance board to be replaced by a local community panel onto which the Council could place its nominated representatives.

Councillor Whelton, Cabinet Member for Regeneration, Environment and Housing, highlighted that this has been a long running process.  The Council has robustly negotiated with Circle on behalf of residents given dissatisfaction with Circle’s handling of complaints, reflected in the recent issuing of a second regulator notice by the Homes and Communities Agency (HCA).  However, Councillor Whelton also noted that the provisions of the incoming Housing and Planning Act have limited the Council’s ability to negotiate.  Additionally, whilst the stock transfer agreement requires the Council to agree any change to the company’s status as a separate legal agreement, this requirement expires on 22 March 2017.  He noted that the Council has therefore done well to extend from two to ten years the requirement that the Council’s agreement would need to be gained to either change or scrap the new local community panel once established.  Councillor Whelton recommended the need to be realistic and to reach an agreement before the deadline in the transfer agreement otherwise there is a risk negotiations will collapse leaving the Council with a reduced ability to hold Circle to account.

In response to member questions, Councillor Whelton and officers clarified:

·         The Council cannot answer for Circle’s performance which was agreed as poor.  Following the HCA regulatory notice, the Council has requested comparative data in order to be more informed about Circle’s performance but this hasn’t been forthcoming;

·         Big changes in the percentage of homes deemed non-decent were thought likely to be the result of resurveying in addition to an increased programme of planned works to the stock;

·         Addressing regulatory notices can be used to streamline structure and finances;

·         The Council will have the right to determine who will be its representatives on the local community panel.  There is no requirement for these to be or not be current or former councillors.  Party groups will be asked to put forward their nominations from which selection will be made at Full Council.  It was noted that a local community panel would provided less power to influence than currently achieved through scrutiny;

·         It was agreed that Circle’s performance did improve but this has dropped off again in recent months;

·         The Council has argued that the requirement for it to agree to change or end the local community panel should cover the period of the regeneration (10 years).  This is likely to be the maximum period that can be secured;

·         Other aspects of the stock transfer agreement mean that the Council and Circle are bound together in perpetuity; ie: the Council has 100% access to all vacancies and Circle has to make special arrangements for all aids and adaptations requested by the Council.  This gives a basis for an on-going relationship; and

·         The Council withholding its agreement will simply result in Circle waiting until the deadline in the transfer agreement has elapsed and proceeding anyway.

Councillor Bull moved a motion: “This Panel is concerned that the voice of local residents is being lost.  We therefore recommend to Cabinet that it does not provide its written permission to change Circle’s current constitutional arrangements unless there is agreement to resident representation on the governing board of Clarion”.  Councillor Holden seconded the motion.  The motion was moved to the vote and fell.