GHA properties to get emergency cover after private company pulls out

A company set up by Scotland's largest local authority to make housing repairs refused to provide emergency cover for thousands of Glasgow's tenants until it was issued with a legal ultimatum.

The Sunday Herald can reveal that City Building initially declined on Friday to provide much-needed services to homes in Glasgow.

It caved in only after the Glasgow Housing Authority (GHA) threatened the body with court action.

The row is further evidence of the chaos and rows engulfing the organisations responsible for Glasgow's housing stock.

City Building, set up by Glasgow City Council as an arms-length company, lost out last year in the tender for repair services to Glasgow's housing in the South Side, although it won the contract for the rest of the city.

The contract was instead handed to housing and service provider Connaught, a move said to have enraged senior figures in the council.

However, the Connaught deal is on the brink of collapse after a row over pensions.

The company was told at the last minute by the Strathclyde Pension Fund, run by the Council, that it would have to underwrite a pensions bill of around £20million up from the initial figure of £3m.

The stalemate means that the Connaught service, due to start tomorrow, will not go ahead.

This scenario prompted the GHA to ask City Building to provide emergency cover in Glasgow, as the Council offshoot is legally obliged to step in if another contractor cannot meet it responsibilities.

However, it is understood City Building refused GHA's request on Friday morning.

The knock-back prompted the GHA to hand-deliver a legal ultimatum to City Building at 1.30pm on Friday, with a demand that the firm confirm within an hour that it would provide cover.

Court action was also promised unless City Building met its obligations.

The firm then agreed to provide emergency cover for Glasgow's tenants and homeowners.

City Building was formed in 2006 by Glasgow City Council as an autonomous company with its own board.

The body's managing director is Labour member Willie Docherty, while former Scottish Labour general secretary Lesley Quinn is its "business development" manager.

It has more than 2000 employees and an annual turnover of around £150m.

A spokeswoman for the GHA said: "Following the issue of a legal ultimatum, City Building has now confirmed they will comply with GHA's legal instruction and provide cover from 8am on Monday."

Russell Kyle, a spokesman for City Building, declined to comment.

Local MSP Charlie Gordon said: "I hope these issues are resolved as quickly as possible."