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UK Secretary of State for Levelling Up, Housing & Communities Michael Gove has warned shareholders in cladding companies that the firms will face ‘severe consequences’ if no post-Grenfell financial support package is forthcoming. The housing secretary has written to Kingspan Group PLC, Arconic Corp and Compagnie de Saint-Gobain SA investors, the Department of Housing confirmed on Thursday, to call on shareholders to use their ‘position of influence’ to get the businesses to ‘engage constructively in helping us reach a just resolution for all concerned’. BlackRock Inc, Vanguard Group Inc, Fidelity Management & Research, as well as the central bank of Norway Norges Bank, have all received a letter from Gove about the matter. According to the department, shareholders were told that if the manufacturers fail to bring forward a financial package ‘the consequences for that firm are likely to be severe’. Gove also told shareholders that their reputations could face consequences if he is forced to use ‘the legal and commercial tools available’ to make the position of cladding companies ‘extremely uncomfortable’. A total of 72 people died in the June 2017 fire at the Grenfell tower block in north Kensington, London. The latest set of letters come after Gove wrote to Kingspan, Arconic and Saint-Gobain, earlier this year, directly on the matter. ‘I have always been clear that those responsible for the building safety crisis must pay,’ Gove said. ‘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 innocent, hard-working 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.’ The department also said that 46 firms have now signed up to post-Grenfell building safety contracts, after Gove sought to put public pressure on firms that initially did not join the agreement. Kingspan shares traded 0.9% lower at €60.58 each in London on Thursday afternoon. Saint-Gobain was down 1.3% at €51.17 in Paris. source: PA Copyright 2023 Alliance News Ltd. All Rights Reserved.
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