From projects to products Mike Owen Merthyr Valleys Homes

One of the largest businesses in Merthyr Turnover of £16m a year Capital spend of about £12m a year Employs about 180 staff Registered housing association regulated by the Welsh Government

New objectives Live with us We want our housing service to be part of creating homes where people love to live We want tenants to be at the heart of our organisation We will support a fairer community Work with us We want our staff to be proud to work with us We will work social enterprises to deliver change We will support the local council Improve with us We believe everybody should be in a quality home We will work to improve our neighbourhoods We believe in economic equality and we will invest in our community

New strategy on supporting social enterprises Background MVH did not want to be a social enterprise Wider goal than housing Existing social enterprise are very strong on our most hard pressed estates Social enterprises fit with our ethos and values

Challenges Is the governance strong enough? Can SE fund legal and technical advice to tender? Has the sector got the right finance skills? Are SE over reliant on grant funding? Will supporting the sector undermine local business? Are we undermining hard fought terms and conditions in the public sector? Can the SE effectively deal with health and safety and other risks? How do we grow the sector without overwhelming it? How do we stay within EU procurement rules?

The MVH way forward Supporting Social Enterprise In Merthyr Reviewed non core work programmes looked at areas could externalise to the sector Agreed new standing orders to allow fast track issue of work to the SE sector – No competitive tenders required on work below £10,000 for designated local SEs – Approval needed for quotations between £10,000 and £50,000 Developed a method of growing the sector within acceptable risk levels and we have agreed the first phase of ground maintenance contract with the Gellideg Foundation

Gellideg Foundation and MVH Ground maintenance in Gellideg area worth about £30,000 MVH have agreed with the Council that work will transfer on 1 July to the Gellideg Foundation Working with GF to define the contract We want a contract that GF will have the best chance of winning when we tender it for a bigger area and a larger amount.

The new form of contract Mobilisation cost included at start Cash flow management and timing important No schedule of work till month 3 VFM to be defined after month 6 and will include added value items Improvement notices Joint governance as part of improvement notice

And the bad news What will the benefit reforms mean? Higher debt for households Higher costs and higher debt for MVH More evictions More private sector squalor and homelessness What we might see? A radicalisation of class A movement towards self reliance?