UK State Housing Secretary Michael Gove has warned shareholders in the three Grenfell cladding component producers that they will face severe consequences if they fail to provide a detailed financial package to repair unsafe buildings.
Gove wrote to Kingspan, Arconic, and Saint-Gobain shareholders, urging them to leverage their position to push the companies to offer “a comprehensive financial package” to help fix unsafe buildings.
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Furthermore, Gove has written to Blackrock, Vanguard, Fidelity Management and Research, as well as Norway’s Norges Bank, regarding the issue.
Several homeowners had to spend large sums of money to remove cladding that has been deemed a fire risk.
The risks came into the limelight after the Grenfell fire catastrophe in 2017, which claimed 72 lives.
In addition to warning about the repercussions for manufacturers, Gove also mentioned the possible consequences for shareholders’ reputations, along with their financial interest, if he is obliged to utilise legal and commercial means available.
Gove said: “I have always been clear that those responsible for the building safety crisis must pay. But despite the fact that their products continue to put lives at risk, some cladding firms have no intention of doing what’s right and addressing their moral and financial obligations to innocent residents.
“Today, we ask responsible investors to use their influence to encourage these companies to come forward immediately with a comprehensive financial package for remediation work. It cannot be right that cladding companies continue to profit whilst so many innocents, hardworking people face financial hardship and misery.
“To those cladding companies who fail to do the right thing: you will face severe consequences, and I will use all commercial and legal tools available to me to ensure you take responsibility.”
Efforts to make cladding firms pay are taking place in line with the Department of Housing’s efforts to make sure that developers and freeholders contribute to the expenses of repairing risky buildings.
