Is this the end for £75 million man?

Building chief on the brink as MPs call for debate over his shoddy new homes

PRESSURE grew on Persimmon’s boss Jeff Fairburn last night as MPs blasted the housebuilder’s ‘shoddy’ treatment of customers.

Kate Green told fellow MPs that her constituents had been ‘brushed aside’ by the company after complaining that its new build homes had been left incomplete with serious defects.

The Labour MP also raised concerns about chief executive Fairburn’s £75m bonus, declaring: ‘He certainly does the reputation of his company no favours, taking these vast pay-offs when clearly the company is failing to serve the needs of its customers.’

The comments came as Green, who represents Stretford and Urmston in Greater Manchester, called for a debate in Parliament on introducing tougher regulations on housebuilders.

The decision to single out Fairburn piles more pressure on the 52-year-old as he fights for his job.

The Mail revealed last weekend that Persimmon’s chairman Roger Devlin and other directors are discussing Fairburn’s future as they seek to repair the company’s tarnished reputation.

Fairburn’s handling of the row over his bonus is understood to have left the board seriously considering his position, especially when he walked off a television interview after being asked about the pay package.

It has also emerged that housing minister Kit Malthouse and a group of Persimmon customers recently met with the housebuilder’s bosses to discuss concerns over the properties sold to them.

Malthouse described it as ‘a constructive but at times heated meeting’, adding that ‘senior executives from Persimmon went away with a clear view of how dissatisfied their customers are’.

Addressing Parliament’s business committee, Green said Persimmon customers had moved into homes to find dangerous unfinished electrics, skirting boards and bannisters left unfixed and gardens in a sea of mud.

‘Not only were they dissatisfied with the quality of workmanship when they moved in but they were also very disturbed when they approached Persimmon to have these defects rectified to be brushed aside,’ she said.

‘It’s really distressing for people who have worked hard and saved up enough to be in a position where their first home turns out to be such a nightmare for them.

‘It would be a real opportunity for us as parliamentarians to speak up for hundreds perhaps thousands of our constituents that have been affected by this kind of shoddy treatment in what ought to be a really important, precious and happy experience for people.’

She added: ‘There is particular outrage and political interest in Persimmon because the chief executive has just been awarded a bonus of £75m.’

Green said last night that Fairburn’s massive pay package and his management of the situation was further damaging Persimmon’s reputation.

‘People who have bad experiences with Persimmon will think how on earth can it be right that the chief executive walks away with £75m?

‘It’s one law for the rich and another law for them.’

A Persimmon spokesman said: ‘The vast majority of our new home sales are completed to the customer’s satisfaction but problems do sometimes occur. We have increased our focus on the quality of our customer service significantly over the last few years and we are making tangible progress. Persimmon, and the new homes industry generally, has improved the quality of its product significantly over recent years.

‘The industry has been under pressure to increase demand and Persimmon has done more than most peers, increasing production by more than 60pc over the last five years.

‘Regrettably there have been occasions when some of our new homes have not been able to be delivered to the original target but we have been working to improve our performance in this area, with positive results.’