(11 years, 1 month ago)
Commons ChamberI have heard empty rhetoric from Opposition Members before, but this afternoon it is particularly poor. The hon. Member for Batley and Spen (Mike Wood) tried to position the debate as a public versus private one. The entirety of my career before becoming an MP was in the public sector. The ethos of public service flows through my veins. We are talking about having effective vehicles to deliver our policy objectives. Whether delivery is public or private is not important; the important thing is that we achieve the outcomes we intend. That is why the instinctive opposition to the proposals from Labour Members is disappointing. As all hon. Members recognise, the rate of reoffending remains stubbornly high, notwithstanding the efforts of Governments of all colours. Unless we show some imagination in tackling that, we will not win the fight against crime and we will continue to fail people who are trapped in the cycle of reoffending. I welcome the initiative and imagination shown by the Government. As we have heard, the National Audit Office has estimated that the cost of crime committed by offenders released from short prison sentences is up to £10 billion. For the sake of those offenders, their potential victims and the economy, we must not allow that to continue.
Let us focus on the outcome we are trying to achieve, not on the inputs or on maintaining a provider-led system that is failing to deliver. I was most motivated to speak in this debate by hearing the comments of the right hon. Member for Tooting (Sadiq Khan), who desperately tried to pray in aid the Public Accounts Committee to back up his position. The role of the PAC is to assess proposals on the basis of value for money. It is getting increasingly tiresome to hear it being prayed in aid to attack Government policy, because that is not its role. We examine the effectiveness of the machine at delivering the policies.
The right hon. Gentleman was right to highlight the report by the PAC on contract management by the Ministry of Justice, and we never hold back on criticising poor contract management across the public sector. It is well known that Whitehall needs to learn a lot in that regard. One of the things that we did in our earlier report on the Work programme was praise the approach to that particular aspect of contract management, which was based on payment by results so that the private sector providers taking those contracts bore the risk. That is a principle that needs to be read across government, and it is an important principle for the proposals that we are talking about.
I bow to no one in my admiration for the Committee Chairman, the right hon. Member for Barking (Margaret Hodge), and the way that she is extremely inventive at spinning our reports to give maximum comfort to the Labour party. It says a lot about the lack of talent on the Opposition Front Bench that she is their most effective weapon.
As I have said, the risks will be borne by the providers. If they succeed in transforming the lives of people who are caught up in the cycle of reoffending, what is not to like? If they succeed, people are freed from the cycle of reoffending. If they do not, they do not get paid. What is wrong with that?
I was delighted to hear about the nature of the blood flowing through the hon. Lady’s veins, but could she address the question of the percentages in the contracts? The latest figures suggest that private companies will get 90% of their money whether they succeed or not.
If that were the case, I would consider it exactly the kind of poor contract management that I have been talking about. The important point is that we pay for results. Equally, we should reward those companies that are helping the most difficult.