Firms take over Red Sky contract

14 July 2011 Last updated at 10:55 GMT Red Sky's Housing Executive contract is now over Maintenance firm Red Sky's contract with the Housing Executive has ended.

The east Belfast company had been employed by the executive to carry out maintenance and repairs in its homes.

In April, the executive cancelled that contract after an investigation into the company's activities. The firm went into administration shortly afterwards.

Three other companies took over the Red Sky contract on Thursday morning. They will fill in until the end of the contract at the end of the year.

The contract will then go out to tender.

The three companies had already been employed by the Housing Executive in adjacent areas.

They are: H&A Mechanical Services; PK Murphy Construction and Whitehorse Facilities Management (part of the HEAT group).

It is understood over 100 Red Sky staff will now move to other Housing Executive contractors.

'Incomprehensible'

In recent weeks there had been more controversy over Red Sky contract after Housing Minister Nelson McCausland tried to reinstate the company until a new system for awarding contracts had been introduced.

His intervention was described as "incomprehensible" by the executive and Mr McCausland failed in his attempt to stop the contract ending.

It is believed three other firms will take over the work and staff have been told arrangements are being made to allow them to transfer to new contractors.

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Red Sky contract to end next week

7 July 2011 Last updated at 19:40 GMT Nelson McCausland said Red Sky's contract with the Housing Executive would end on the planned date The Housing Minister has failed in his attempt to stop the Housing Executive ending its controversial contract with maintenance company Red Sky.

The executive will now terminate the contract on 14 July as it originally planned.

The Housing Executive said in April it was ending the ?8m contract after a probe into Red Sky's work practices.

At the start of July, Mr McCausland asked the executive to extend the contract past the initial deadline.

However, on Thursday he said Red Sky's administrator could not give an assurance he could extend the contract.

"The administrator was unable to give an assurance to the Housing Executive that he could continue a service beyond 14 July with Red Sky," Mr McCausland said.

When the Red Sky contract ends next week it will pass to three other contractors.

It is thought that about half the 350 employees at Red Sky work on maintenance contracts for the Housing Executive.

It is understood staff have been told that arrangements are being made to allow them to transfer to new contractors - safeguarding their jobs.

Mr McCausland had asked the Housing Executive to extend the contract until a new system for awarding contacts was put in place.

However, the executive resisted and threatened him with a judicial review.

On Thursday, Mr McCausland accused the Housing Executive of being aggressive and said a letter he received from its chairman sounded like "a declaration of war".

"If someone declares war, I'm not going to back away from that.

"I'm going to continue doing what I want to do, which is to get to the bottom of the contracts issue," he said.

"It's clear from all the evidence that there are serious problems in the Housing Executive as regards the management and monitoring of contracts."

'Serious and derogatory'

Earlier, up to 150 Red Sky workers protested before a meeting of the Northern Ireland Executive at Stormont.

On Wednesday, members of the trade union Nipsa held a lunchtime protest outside the offices of the Department of Social Development.

The union accused Mr McCausland of interfering with the Housing Executive.

Nipsa assistant general secretary Bumper Graham said Mr McCausland's comments about Housing Executive contracts were "very serious and derogatory".

Former Housing Minister Alex Attwood, who ordered the cancellation of Red Sky's contract in April over allegations of over charging, said on Thursday that he he supported "rigorous investigation of claims of bad performance or bad practice when it comes to the Housing Executive or other public bodies".

However, he said he did not "endorse" Mr McCausland's approach.

"It very much appears to me that some of the commentary around the Housing Executive appears not to be informed by the proper need for reform and accountability," Mr Attwood said.

He added: "There should not be reckless claims or reckless words or reckless actions."

Red Sky went into administration shortly after the Housing Executive announced its intention to end the contract.

The company has always denied the allegations over its work practices.

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