§ Mrs. EllmanTo ask the Secretary of State for the Environment, Transport and the Regions what arrangements are in place for the supervision of housing associations in relation to severance payments to staff; and if he will make a statement in respect of the Liver Housing Association in Liverpool. [155547]
Mr. Robert AinsworthThe Housing Act 1996 prohibits registered social landlords from making payments or providing benefits to their staff which are non-contractual without the consent of the Housing Corporation.
Liver Housing Association has been the subject of a statutory inquiry by the Housing Corporation. The inquiry was prompted by Liver's plan to make severance payments to three senior directors worth over £1.7 million as part of a proposed merger with Grosvenor Housing Association. The Corporation's inquiry found that certain members of Liver's Board had been responsible for mismanagement in handling the construction of redundancy, retirement and severance policies and in the 632W application of those policies to the three directors. The Corporation has used its powers to make three new appointments to strengthen Liver's Board. The proposed merger between Liver and Grosvenor will require the approval of the Corporation.