PP 2021/0012 STANDING COMMITTEE OF TYNWALD ON PUBLIC ACCOUNTS First Report for the Session 2020-2021 Salisbury Street Nursing Home STANDING COMMITTEE OF TYNWALD ON PUBLIC ACCOUNTS FIRST REPORT FOR THE SESSION 2020-2021 SALISBURY STREET NURSING HOME 3.1 There shall be a Standing Committee of the Court on Public Accounts. 3.2 Subject to paragraph 3.6, the Committee shall have – (a) a Chairman elected by Tynwald, (b) a Vice-Chairman elected by Tynwald, (c) four other Members, who shall be Chairman of each of the Policy Review Committees (ex officio) and the Chairman of the Committee on Constitutional and Legal Affairs and Justice; and a quorum of three. 3.3 Members of Tynwald shall not be eligible for membership of the Committee, if, for the time being, they hold any of the following offices: President of Tynwald, member of the Council of Ministers, member of the Treasury Department referred to in section 1(2)(b) of the Government Departments Act 1987. 3.4 The Committee shall – (a) (i) consider any papers on public expenditure and estimates presented to Tynwald as may seem fit to the Committee; (ii) examine the form of any papers on public expenditure and estimates presented to Tynwald as may seem fit to the Committee; (iii) consider any financial matter relating to a Government Department or statutory body as may seem fit to the Committee; (iv) consider such matters as the Committee may think fit in order to scrutinise the efficiency and effectiveness of the implementation of Government policy; and (v) lay an Annual Report before Tynwald at each October sitting and any other reports as the Committee may think fit. (b) be authorised to require the attendance of Ministers for the purpose of assisting the Committee in the consideration of its terms of reference. (c) be empowered to issue directions under Standing Order 5.6(3), provided that any direction so issued shall be reported to Tynwald within a year. (d) be the Accounts Committee referred to in section 3 of the Tynwald Auditor General Act 2011, with the relevant powers and responsibilities in relation to the Tynwald Auditor General; and (e) be the Tynwald Public Accounts Committee referred to in section 3 of the Tynwald Commissioner for Administration Act 2011, with the relevant powers and responsibilities in relation to the Tynwald Commissioner for Administration. 3.5 The Chairman, Vice-Chairman and any member of the Committee shall not sit when the accounts of any body of which that person is a member are being considered. 3.6 Should the need arise in relation to a particular matter, such as a conflict of interest, Tynwald may elect an alternate member for the purpose and duration of the Committee’s consideration of that matter. Subject to paragraph 3.5, a conflicted member so replaced shall continue to serve as a member of the Committee for all other purposes. The powers, privileges and immunities relating to the work of a committee of Tynwald include those conferred by the Tynwald Proceedings Act 1876, the Privileges of Tynwald (Publications) Act 1973, the Tynwald Proceedings Act 1984 and by the Standing Orders of Tynwald Court. Committee Membership The Hon J P Watterson SHK (Rushen) (Chairman) Mr L L Hooper MHK (Ramsey)(Vice Chairman) Mrs C L Barber MHK (Douglas East) Ms J M Edge MHK (Onchan) Mrs J Poole-Wilson MLC Mr C R Robertshaw MHK (Douglas East) Copies of this Report may be obtained from the Tynwald Library, Legislative Buildings, Finch Road, Douglas, IM1 3PW (Tel: 01624 685520) or may be consulted at www.tynwald.org.im All correspondence with regard to this Report should be addressed to the Clerk of Tynwald, Legislative Buildings, Finch Road, Douglas, Isle of Man, IM1 3PW. Table of Contents I. EXECUTIVE SUMMARY................................................................................... 1 II. INTRODUCTION............................................................................................. 2 III. BACKGROUND............................................................................................... 3 IV. BACKGROUND TO THE PROPOSAL TO PURCHASE SALISBURY STREET NURSING HOME................................................................................................................... 6 V. APPOINTMENT OF OPERATOR AND OPENING OF HOME ................................ 7 VI. ALLEGATIONS MADE IN THE MEDIA BY DAVID MURRAY ................................ 8 VII. CONSIDERATION OF ALLEGATIONS ................................................................ 9 Bed Occupancy Levels ...................................................................................................................10 Breakeven Calculation...................................................................................................................12 Benefit Funded Percentages .........................................................................................................13 Paying Twice .................................................................................................................................14 Personal Allowance Payments ......................................................................................................16 Cost of buying Salisbury Street......................................................................................................16 Coercion ........................................................................................................................................19 VIII. INSPECTIONS PROCESS .................................................................................20 IX. SUMMERHILL VIEW ......................................................................................22 X. COMMENT FROM THE DEPARTMENT OF HEALTH AND SOCIAL CARE.............23 XI. SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS .............................23 WRITTEN EVIDENCE .............................................................................................25 APPENDIX 1: 14TH JUNE 2016 - MTTV INTERVIEW WITH HOWARD QUAYLE MHK, MINISTER FOR HEALTH AND SOCIAL CARE 27 APPENDIX 2: 21ST JUNE 2016 - TYNWALD HANSARD ITEM 7 ‘SALISBURY STREET CARE HOME – PURCHASE BY DHSC – EXPENDITURE APPROVED’ 33 APPENDIX 3: 29TH JULY 2016 - ISLE OF MAN GOVERNMENT MEDIA RELEASE ‘PRIVATE OPERATOR SOUGHT FOR SALISBURY STREET CARE HOME’ 51 APPENDIX 4: 21ST MARCH 2017 - DEPARTMENT OF HEALTH AND SOCIAL CARE RESPONSE TO A REQUEST FOR INFORMATION UNDER THE FREEDOM OF INFORMATION ACT 2015 55 APPENDIX 5: 18TH MARCH 2018 - MTTV INTERVIEWS WITH DAVID MURRAY 91 APPENDIX 6: 19TH MARCH 2018 - DEPARTMENT OF HEALTH AND SOCIAL CARE STATEMENT TO ISLE OF MAN NEWSPAPERS 103 APPENDIX 7: 20TH TO 26TH MARCH 2018 - ISLE OF MAN EXAMINER NEWS ARTICLE ‘PUBLIC MONEY ‘SQUANDERED’ ON CARE HOME’ 107 APPENDIX 8: 22ND MARCH 2018 - ISLE OF MAN TODAY ONLINE ARTICLE ‘TAXPAYERS’ CASH SQUANDERED SAYS CARE HOME BOSS’ 111 APPENDIX 9: 2018 TO 2020 - TYNWALD AND HOUSE OF KEYS QUESTIONS REGARDING SALISBURY STREET 115 APPENDIX 10: SEPTEMBER TO OCTOBER 2018 - CORRESPONDENCE WITH DEPARTMENT OF HEALTH AND SOCIAL CARE 127 APPENDIX 11: MAY 2019 - CORRESPONDENCE WITH TREASURY 193 APPENDIX 12: 2016 TO 2017 - MEDIA COVERAGE REGARDING A DEATH AT BEACONSFIELD NURSING HOME 197 APPENDIX 13: OCTOBER TO DECEMBER 2020 - CORRESPONDENCE WITH DEPARTMENT OF HEALTH AND SOCIAL CARE 203 APPENDIX 14: 4TH SEPTEMBER 2020 - DEPARTMENT OF HEALTH AND SOCIAL CARE SALISBURY STREET DATA SNAPSHOT OF COMMISSIONED BEDS AND CLIENT’S BENEFITS PAYMENTS 213 APPENDIX 15: 6TH SEPTEMBER 2019 - MANX RADIO REPORT ‘PLANS FOR A 73-BED CARE HOME ON WOODBOURNE ROAD’ 217 APPENDIX 16: SEPTEMBER 2015 - BUSINESS CASE AND EXPLANATORY MEMORANDUM FOR THE CONSTRUCTION OF SUMMERHILL VIEW 221 APPENDIX 17: 1ST APRIL 2017 - SALISBURY CARE LIMITED ANNUAL RETURN 251 APPENDIX 18: 12TH MARCH 2021 - CORRESPONDENCE FROM KATHRYN MAGSON, INTERIM CHIEF EXECUTIVE, DEPARTMENT OF HEALTH AND SOCIAL CARE 257 To: The Hon Stephen C Rodan OBE MLC, President of Tynwald, and the Hon Council and Keys in Tynwald assembled STANDING COMMITTEE OF TYNWALD ON PUBLIC ACCOUNTS FIRST REPORT FOR THE SESSION 2020-2021 SALISBURY STREET NURSING HOME I. EXECUTIVE SUMMARY 1. The Isle of Man is not alone in seeing an increase in demand in the nursing care sector; and an upward trend is predicted. The purchase of Salisbury Street Care Home by Isle of Man Government, with the expectation of the facility being run by a private operator, provided an opportunity to respond to this demand. It was therefore a concern to note allegations made by David Murray, a former director of the firm selling the home and director of the private company contracted to run it. 2. We would like to thank Mr Murray for raising his concerns; we acknowledge that speaking out in this way is not an easy thing to do. We have considered each of the issues raised carefully and, while we do not agree with Mr Murray on all of the points raised, we have been pleased to have the opportunity to shine a light on what worked well and what did not. 3. We have found that there were some mistakes made, some elements of the deal were misunderstood, there was some unfortunate timing, and there was some inappropriate conduct by Department staff, but we were not able to draw all of the same conclusions as Mr Murray. Each of the points he raised in the media are addressed in detail in the body of the report. 4. We have concluded that buying Salisbury Street represented the right decision, both at the time and with hindsight. We have considered the cost of purchase and 1 the economics of block booking beds. The purchase price was