A Labour MP has condemned two close aides of former Prime Minister Tony Blair for their role in ailing care home provider Southern Cross, which runs 43 homes in the West Midlands.
As the company announced it was cutting up to 3,000 jobs across the UK, Birmingham MP Roger Godsiff has sponsored a hard-hitting motion in the House of Commons condemning the way the company is run.
He attacked “the avaricious greed of financial entrepreneurs and their apologists, who view care for the elderly as just another commodity and market opportunity to make vast sums of money”.
And Mr Godsiff, MP for Sparkbrook and Small Heath, also pointed out in the same Commons motion that two people with close links to Tony Blair had been involved with the company.
They include Baroness Morgan, previously Sally Morgan, who worked as a senior aide to Mr Blair between 2001 and 2005, while he was Prime Minister.
She is a non-executive director of Southern Cross and sits on its remuneration committee which determines the pay of senior executives and directors.
They also include Jeremy Heywood, who was Tony Blair’s principal private secretary between 1999 and 2003.
He was co-head of UK investment banking at Morgan Stanley, the financial services firm, when it managed the flotation of Southern Cross in 2006.
This provided a huge profit for the previous owners, a private equity group called Blackstone, but the firm ran into difficulties two years later.
Mr Heywood has since returned to the civil service and is currently the Permanent Secretary in Downing Street.
Mr Godsiff has also written to Heath Secretary, Andrew Lansley MP asking him if the Government will undertake a financial review of other care sector providers to ensure that they are fit for purpose.