Electronic Tagging

Henry Smith Excerpts

Thursday 11th July 2013 Commons Chamber

[Chris Grayling]

I would make two points to the right hon. Gentleman. First, we must be careful not to apply the judgments that will inevitably be made after today’s announcement to all private sector contractors that work with Government. That would be a great shame and the wrong thing to do. I should also say that even in the two companies in question, there are large numbers of people—all our constituents—who are at work today, doing their best to operate on behalf of the public sector. We should not allow them individually to be tainted by what has happened.

At the same time, when we look at our plans for probation reform, we see a large number of organisations —public and voluntary organisations, as well as potential mutual organisations from staff—interested in providing a solution to what is a glaring problem, whereby at the moment people who go to prison for less than 12 months get no supervision at all. The longer we wait to introduce the reforms, the longer those people will walk our streets without supervision. When people talk about “leading candidates” for contracts, I am clear that there are no “leading candidates” for contracts in our probation reforms. We have not started a contracting process. We are actively encouraging as wide a range of participation as possible. I have been talking to the social investment sector to bring in social capital. We are working actively with the Cabinet Office to encourage employee mutuals to come forward, either individually or in partnership with potential investors. This is not a world that will simply be handed over to a couple of big companies. I am very much of the belief that there is expertise out there, which I want to capture, and skills that will help to bring down reoffending.

[Henry Smith (Crawley) (Con)]

G4S is headquartered in my constituency and operates a number of contracts there, so these fraud allegations in connection with electronic tagging are deeply troubling. May I seek an assurance from my right hon. Friend that, as the local Member of Parliament, I will be kept up to date with the investigation, particularly as it will be concerning to many of the day-to-day, honest employees who work for the company and who are going about their business?

[Chris Grayling]

I give my hon. Friend that assurance absolutely. I say again that, as of today, I do not have evidence of dishonesty in either company. What I do have is legal advice that says that, on the back of the audit we have carried out, I have a duty to do further detailed forensic work to establish where there is a possibility of dishonesty. Serco has agreed to co-operate with that work. To my regret, G4S has not. That is what has prompted me to believe that I have no option but to ask the Serious Fraud Office to consider whether a formal investigation should take place.