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Hopes for Blar Buidhe care home                   16/7/11

The crisis-hit Southern cross care home in Stornoway is “least at risk” of closing it has emerged.

The saving grace of the Blar Buidhe establishment by Plasterfied is its profitability, full occupancy, good standard of care and excellent inspection reports, Western Isles Council has been told.

Council leader Angus Campbell said the private 40-bed unit, the only one operated by collapsed Southern Cross in the Hebrides, had a good chance of being taken over by a new operator.

Southern Cross is being wound up with massive debts and the future of its 750 leased homes is uncertain.

In a double blow the overseas corporate tax haven chain which actually owns the home via a UK subsidiary NHP Group is also suffering multi-million pound losses.

NHP is ultimately controlled by the Qatar royal family through its investment wealth fund, the Qatar Investment Authority.

However, NHP is seeking to rent Blar Buidhe and the rest of its 249 care homes to a different nursing operator.

Angus Campbell highlighted that an incoming firm may take over the lease and continue it as a care home.

He warned: “However, even if there is a new operator, they’ll be looking to the council for more money.

“The council is the 100% payer for that care home” referring to the £545 weekly funding the authority gives to pay for most of the elderly residents.

Western Isles social work chief Iain Macaulay indicated the survival of the 750 homes leased across the UK to Southern Cross had been assessed under a traffic light grading.

The Stornoway home has a green rating indicating its is in a healthy position and attractive to a potential new operator.

However, contingency plans are being drawn up incase talks with NHP break down, he said.

He said a meeting of the National Contingency Planning Group took place in Edinburgh on Thursday when the grading system was revealed.

Meanwhile, Southern Cross, which will stop trading shortly, has withdrawn redundancy notices to the 60 staff at Blar Buidhe only because they are expected to transfer to whatever new operator takes over.