Offender Rehabilitation Bill [Lords]

John McDonnell Excerpts

Tuesday 14th January 2014 Commons Chamber

[Jenny Chapman]

But those are lead bidders, and I understand that none of the contracts will be taken on by one organisation alone. There is nothing to prevent G4S and others from being involved in the provision of probation services when the contracts are awarded. The other reason this information is relevant to probation is that it reveals that the quality of the supervision and enforcement of contracts by the Ministry of Justice is not quite what we would like it to be.

[John McDonnell (Hayes and Harlington) (Lab)]

The statement that was made to the House a couple of weeks ago was explicit about the possibility that G4S and Serco would form parts of consortia. I think that the Minister should make the position absolutely clear.

[Jenny Chapman]

That is certainly my understanding, and nothing that the Minister has said so far contradicts it. Unless we hear something more definitive from G4S, the Ministry of Justice or the Minister today, I think that that must remain our assumption.

The MOJ tends to take its eye off the ball as soon as a contract has been signed, so new clause 5 helpfully provides for a longer-term regular check on the performance of probation service providers. Its scope is really quite limited: it merely requires the Secretary of State to report to both Houses of Parliament on the performance of all providers that are contracted to manage offenders. In particular, the report must include an assessment of the transparency of each provider, and must specify what information it is making available to the public and how reliably it is responding to freedom of information requests submitted to the MOJ. It must also update both Houses on what measures were included in the contracts to ensure that poor performance could be penalised, and on whether any have been invoked.

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[Mr Llwyd]

I agree entirely with the hon. Gentleman. That feeling is held widely across the House, and not just on these Benches. The hon. Member for Southport (John Pugh) referred to ideology. The Bill is a victory for ideology over common sense. That by itself is ridiculous enough, but the inherent dangers of it make it even more insidious.

To avoid treading over old ground, I will not talk about the risk register. None the less, it still alarms me that the risks were seen as so high at the commencement of this exercise, and I have no reason to believe that they have changed for the better since.

Briefly, let me refer to new clause 4. The impetus behind it is to ensure that we do not rush headlong into implementing these reforms without first having a pilot, which would be independently evaluated and reported on to both Houses of Parliament. I notice that the esteemed Chair of the Justice Committee, the right hon. Member for Berwick-upon-Tweed (Sir Alan Beith), is in his place, so I must be careful about what I say. Over the past few weeks, we have taken evidence from many sectors involved in probation and rehabilitation. A considerable amount of it was from people who had been involved in previous Government privatisations. Surprisingly, they were saying, “Don’t do it. Don’t rush in. It is not proven. It may not be cost-effective and it could cause huge problems.” Such people are surely aware of the risks involved and they came before the Committee to give their opinion. It is not simply a matter of one political divide against the other. Some of those people presented as being more in sympathy with the Government than with anybody else, but they said not to do it because it is unproven and could be dangerous.

The probation service has prior experience of the damage that can result from privatisation. Building management, for example, has been contracted out to the private sector, which has resulted in a great deal of waste and inefficiency. I have heard of an engineer being sent from Liverpool to Cardiff to fit a carpet tile even though, ironically, there is a carpet shop opposite the Cardiff probation office—you could not make it up.

In 2007, the running of bail beds was outsourced to a company called ClearSprings, which had no experience in the criminal justice sector. Numerous complaints were made about antisocial behaviour and drunkenness and the contract had to be removed. We know about Serco and G4S, so I will not go there again. Clearly, there is a significant prospect of disorder and possible dangers if the plans do not prove to be sensible. As for the Government’s risk assessment, time is short so I will not go there.

The restructuring will mean that there will have to be an entirely new operating model with 21 new government companies; that staff will have to be allocated to new roles in community rehabilitation companies and the national probation service; that no fewer than 18,000 staff members will be transferred to new employers; and that up to 250,000 offender cases will be reallocated. It would be foolhardy indeed to proceed without some guarantee of success.

It would not be unheard of for new measures being introduced to the justice system to be piloted nationally. Recently, pilots on payment by results have been held at HMP Peterborough and Doncaster, albeit voluntarily, while in recent years Governments have held pilots on satellite tracking, the domestic violence 28-day prevention order and drug reduction schemes. Piloting is not unheard of.

This is not a question of reputational risk for the MOJ. We are all concerned about the safety of the public more than anything else. A further risk register produced by the probation employers last November of last year warned of a high risk of

“a failure of the programme to be delivered either in scope or within the timescale set by ministers”.

At this eleventh hour, I plead with the Minister and his colleagues to give the scheme a chance and to give us all a chance to evaluate it. We might come back one day saying, “Yes, it was right,” or, “No, it was not.” If the answer is no, many people will suffer. Those members of the public are the people whom it is our duty to protect.

[John McDonnell]

I apologise to the House for the fact that I will leave after my brief remarks, because at 3 o’clock I have a meeting, which I have been seeking for a couple of months, with the Secretary of State for Education, about a school in my constituency. I hope that I will be back in time for the Minister’s response.

Let me pick up on the point made by the hon. and learned Member for Harborough (Sir Edward Garnier). We have all been pressing for some time, under the previous Government and this Government, for the supervision of offenders with sentences of less than 12 months, but we all expected that to proceed normally—that is, with a proposal being made with a budgetary paper attached that the existing system would be challenged to meet—so that we could plan the development of the probation service. If there were to be additional funds, some of us would have lobbied the Treasury while others would have argued that the service should swallow its own smoke and keep the budget within its existing budgets. That was what we expected.

I think that clause 1 was inserted in the Bill in the other place because none of us expected the use of the previous legislation to introduce proposals for the wholesale privatisation of the probation service—that is what this means for 70% of the service going forward. When that legislation was going through, I opposed it and I warned those on my Front Bench that it could be abused in such a way. I was assured that the legislation, which was supported on both sides of the House if I remember rightly, would ensure that the third sector, voluntary sector organisations and others could participate in rehabilitation, and that it would introduce flexibility to the system. A number of organisations lobbied for that, particularly in the drugs rehabilitation field. That is why I think that this is an abuse of process. It is an abuse of the previous legislation, which was never intended to be used in this way, and I think that is why the other place inserted the clause.

I have been angry and have shouted about the subject in this House, and it is not good for my health. This is, however, a leap in the dark, and I am fearful for my constituents. As with other privatisations, there is a financial risk, but that is nothing in comparison with the risk to life and limb. As a result of this leap in the dark, there could be safety problems that will bear down on Ministers in the future.

I warn the House that if we allow this Bill to go through and any of our constituents suffer and are harmed in some way as a result of an offender not being properly supervised, we will, quite properly, be held responsible. The hon. Member for Southport (John Pugh), my hon. Friend the Member for Rotherham (Sarah Champion) and my right hon. Friend the Member for Dwyfor Meirionnydd (Mr Llwyd) have made exactly this point: why not ensure that the alternatives proposed by the Government are properly tested? Setting up pilots and then ending them without taking any account of them seems extraordinary and completely illogical.

In previous debates, we seized on the risk register because advisers to the Government were saying that there were risks. As my right hon. Friend the Member for Dwyfor Meirionnydd has said, there is an 80% risk of failure in some instances. The Secretary of State argued that the risk registers are only there at the beginning to point out a range of issues that will then be addressed, so we asked, “Why not publish the risk register and make it completely public, and why not publish those mechanisms you have put in place to address the specific risks? At least then we could be assured that they have been properly addressed and, perhaps, overcome.” As my right hon. Friend has said, we are walking into the dark and putting our constituents at risk as a result.

As other Members have explained, the experience of privatisation in the justice service has given us sufficient warnings that we need to tread very carefully. I do not want to go over those again, but many of us have had experience of the justice system over the years and I have never seen the system so vulnerable as a result of private interventions. There are riots almost monthly, and concerns expressed within our prison system. The introduction of the Serious Fraud Office into investigations of companies that provide services within the justice system is ironic, to say the least.

I support the amendments tabled by my hon. Friends on the Front Bench, which are supported by the chair of the justice unions parliamentary group and by the group overall. We have also tabled a number of other proposals that are somewhat bureaucratic but, I think, important: new clauses 10, 9, 11 and 13, which are all in my name. They are simple suggestions. First, if the Government are going down this path let us have full and open transparency. The new clauses suggest that the contracts should be fully published. The Minister has said that the draft contracts should be published, but I think that it is important that the full contract should be published so that we can all see it, in particular the elements of the contract that include the requirements and expectations of the providers’ performance. It is important that in future the National Audit Office can investigate and assess the effectiveness, economy and efficiency of the implementation of the contracts.

One change that I have suggested is just common sense: no company that has been investigated for fraud should be able to bid for the contract. I do not wish to see sleight of hand, with the suggestion that such companies will not be the primary providers but can be part of a consortium. They will play a key role within those consortia because of the resources they have.

New clause 9 suggests that companies that are the prime contractors for the Work programme in an area should not be able to bid, and I say that because there is a potential conflict of interest. If one company is implementing the Work programme at the same time as the new probation system for those with sentences of less than 12 months and there is a sanction, the Work programme will lose out. That introduces a conflict of interest within the system. What worries me is that a number of companies will bid for a range of contracts in an area, across the piece, with the result that mini-monopolies will be built up in particular geographical areas.

My new clauses are simply administrative amendments. New clause 13 says that we need an annual report to Parliament and I know that that is a standard amendment that we table for a range of legislation, but in this instance it is vital. I want to know from an annual report from the Government exactly how the contracts are being performed against, how safe my constituents are, how safe the offenders are and how successful the implementation of the new system is.

I do not want to go over everything I have said before. I am extremely worried and I will hold Ministers to account if any of my constituents are injured as a result of the Bill. I have said that twice before. In fact, the late Paul Goggins advised me that I was threatening Ministers and I said, “Yes, I am actually, because they are threatening my constituents with this legislation.” I hope that today we will be able to defeat it or at least pass some amendments that will stabilise the system and enable us to gain some accountability. If not, I hope that the other place will say no and introduce an element of common sense to the debate.

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[Jeremy Wright]

The point I am making is that the rules, which pre-existed this Government by the way, are very clear: investigation is not the same thing as conviction. We have made it very clear, however, that we have initiated our own investigations. I have warned the hon. Lady before that she is sitting in a very large glass house and that she should think before throwing stones. This is a contract negotiated by her Government and substantially abused, it would seem, during her Government’s term in office. That abuse was discovered by this Government and acted on by this Government. She is hardly in a position to suggest that we have behaved in any way improperly. In any event, I remind the House that both organisations, Serco and G4S, are not on the list of lead providers.

The hon. Member for Hayes and Harlington raised the question of whether those organisations could act in a supporting role. The answer is that we will want to look very carefully not just at the process of corporate renewal those companies are undergoing at the moment but at the specific bids they are making. However, they are not on the list of lead providers. I remind Opposition Members that we were told not so very long ago that the proposals could never work without G4S and Serco, that no one would be interested in bidding. We have a list of 30 different bidders, comprising 50 different organisations at lead bidder level. The Opposition are simply wrong about the level of interest.

[John McDonnell]

I just want to get this absolutely clear and on the record. What the Minister is saying is that the two organisations that the Serious Fraud Office is investigating will be allowed to bid as part of a consortium for some of these contracts. In addition, I see that also on the list are A4E, which, if I remember rightly, was forced to hand back money to the Government as a result of its failure on contracts—in fact, some fraudulent activity on contracts—for the Department for Work and Pensions. We are opening up this whole network to a group of villains.

[Jeremy Wright]

The hon. Gentleman needs to be very careful with his language. He needs to understand that someone being investigated is not the same thing as someone being found responsible for poor conduct. It is important for a Justice Minister, in particular, to recognise that distinction. I assure him that in relation to each and every bid we receive we will look very carefully not just at the bid but at the organisations making the bid. He has heard me say on many occasions that we will not be awarding contracts to any organisation we think unfit to hold them.

Let me make the point, because it has been raised, that all the bidders on our list have experience of either working with offenders or across the wider criminal justice system. This is exactly the broad market that we want to see deliver these services. Below the community rehabilitation company level, we want to ensure that smaller organisations from the voluntary community and social enterprise sectors are able to play a key role in delivering rehabilitation.

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[Jeremy Wright]

I do not agree with the hon. Gentleman’s characterisation of the Work programme, and anyway, as he might have heard me say more than once, this proposal is not a clone of that programme. It is a different proposal, as it must be, because the criminal justice system is a different entity. It is important to recognise that.

On smaller voluntary organisations, about which people have understandable concerns, the House might be interested to know that along with the 30 lead providers that have passed the competition’s first stage, a further 800 organisations have expressed an interest in playing a role as part of the wider supply chain, with more than 550 voluntary sector organisations among them. In the process of contract management, we will want to manage properly the relationships between the larger and smaller players to ensure that those relationships are sustainable in the long term.

[John McDonnell]

Let me explain to the Minister why some of us feel strongly about this matter and why some of our language is strong. The Government awarded the contract for unpaid work in Greater London—so this affects our constituencies—to Serco. I will briefly set out some of the problems that have occurred: works shops have been closed, shutting down placements for women high-risk offenders; offenders recently complained to a probation officer in north-west London—my area—that no supervisors were available onsite; and rival gang members have been placed on the same scheme and transported in the same way. In addition, a known sex offender was alleged to be on the same placement as a victim. That is why we are angry.

[Jeremy Wright]

I understand the hon. Gentleman’s concern, but I do not agree with his characterisation of Serco’s contract. As he would expect, we have looked closely at its performance under the contract and, again, I assure him that we will look closely at all those who bid for this work. As with all competitions, the decision to award each contract depends on our being satisfied that bidders can meet our standards in respect of quality of service and price and, in this case too, on our being satisfied about the financial risk being taken to reduce reoffending and ensuring good value for the taxpayer. If we are not satisfied that overall bidders can meet our requirements, we will not award them contracts.

Hon. Members have raised the issue of the management of high-risk offenders, so let me make it clear exactly what will be involved. We are creating a new national probation service to manage directly all offenders who pose a high risk of serious harm and any sexual or violent offenders subject to multi-agency public protection arrangements. After an offender has been sentenced, the NPS will make an initial assessment of an offender’s risk of causing harm, and all offenders assessed as posing a high risk of serious harm will be the responsibility of the NPS. For low and medium-risk offenders, CRCs will be required to manage any risk of serious harm that the offender might present and to have appropriately trained staff and robust procedures in place for the management of cases where the risk of serious harm escalates to high during the offender’s supervision. They will also be contractually required to refer cases back to the NPS if they consider that the risk of serious harm might be escalating. In the end, the decision will be taken by the NPS.

New clauses 5 and 13 deal with reports by the Secretary of State to Parliament and the public on the impact of the reforms we intend to make. I want to reassure the House that the Government are already committed to acting in the spirit of those amendments. We are already considering how we can provide information about reoffending rates broken down by CRCs and the NPS. As Members will know, the MOJ already publishes reoffending statistics, not just annually but every three months, broken down by probation trust, prison and upper and lower-tier local authorities. I am happy to commit to the House that, in the future, the reports will break down reoffending rates for the different CRCs and the NPS. Indeed, as a first step, we have already published on the MOJ website a set of indicative figures to show what reoffending rates and cohort sizes in each contract package area would have looked like had the new structure been in place for the 2005-10 period. We are also piloting the justice data lab, about which I have spoken before, which will give providers the opportunity to match the performance of their cohort with something comparable.

On freedom of information, CRCs will be required in contracts to assist the MOJ in discharging its obligations under the Freedom of Information Act—very much along the lines of what my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith), the Chairman of the Select Committee, outlined earlier, and in accordance with his Committee’s reports and conclusions.

On penalties, we are developing a performance framework that will include financial penalties for services not delivered to time or to quality. Contracts for CRCs will reflect that and, as I have said, the House will be able to see that this is the case when we publish those contracts in draft. I do not want to lose sight—nor should the House—of the major prizes here: first, expanding support for offenders released from short sentences and, secondly, developing a through-the-gate system for offenders released from prison. I think that that commands a broad measure of support.

That brings me to new clause 6, tabled by the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd). I want to reassure him that as part of our reforms there will be a new resettlement service provided in custody for all offenders before their release. This will be tailored to the individual’s needs, but is likely to include support in finding accommodation, family support, mentoring and financial advice. Services in custody will be underpinned by the changes to the way in which the prison estate is organised. That will mean that, in most cases, the same professional can work with offenders in custody and continue their rehabilitation work in the community.

As the right hon. Gentleman would expect, the Ministry of Justice and the National Offender Management Service are working closely together to ensure that the Prison Service is well prepared to implement these proposals. Right from the outset of these reforms, we established a joint working group on this topic that reports to senior officials and ultimately to Ministers. The working group has commissioned an analytical model of prisoner flows through the prison estate. That allows us to test the impact on prisoner flows and locations from implementing the resettlement prison allocation model. Furthermore, I can reassure the right hon. Gentleman that the Prison Service is undertaking a full review of facilities and staffing levels at all proposed resettlement prisons. Together all these things will ensure that the changes we are proposing are deliverable and sustainable, which I think is exactly his concern.

On new clause 4, I understand that the case of Opposition Members is that this is a huge leap in the dark and that no testing of what we are doing is or will be going on. That is not the case. Let me set out to the House the key elements that make up our reforms, what we are doing to test them and the steps we have built in to assess how effectively they are working at key stages of implementation.

First, there are the reforms at the heart of the Bill: the extension of licence and supervision to offenders released from short custodial sentences. There are lawyers among Opposition Members, and they will know, and ought to appreciate, that with a change to the sentencing framework of this magnitude, it cannot be desirable to introduce it one part of the country but not another. To do so would risk postcode justice, with some offenders getting different sentences from others.

To expand supervision to the under-12-month group, as we all say we want to do, we need to make the changes at a national level. That means funding those changes at a national level. The savings to fund the changes come from two sources; first, the efficiencies generated by competing supervision of low and medium-risk offenders and, secondly, the back office savings from moving to 21 from 35 CRCs, along with a single national probation service. Competing services in only one area of the country, if that is what is being proposed—I have heard little detail as to what sort of piloting is being proposed here—would extend supervision to short-sentenced offenders but, in every other respect, we are carrying out extensive local testing of the reforms in no fewer than 14 probation trusts. There is also the testing we are carrying out on the new operating model for the CRCs and the NPS. Those tests will enable us to inform how the new processes will operate once implemented. The first round of tests has already started and will continue over the coming months.

Secondly, there is the important fact that the 21 CRCs that we are creating will remain in public sector ownership for some months after their creation until the conclusion of the competition. This gives us further opportunities to carry on testing and to refine the system. Caseloads will not all necessarily transfer at the point the NPS and CRCs come into being, and we have made it clear to trusts that where there is a case for doing so, we will give greater latitude to allow for caseload transfer to operate more slowly than the people transfer process. That will avoid disruption and the type of dangers that that might create, which Opposition members have described.

Thirdly, there is the testing that we are carrying out of our approach to payment by results. We have consulted extensively on this and there are also pilots under way to test different approaches to payment by results. Opposition members would have us believe that there has been no piloting and that there is no piloting. Neither of those two things is true.

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[Rory Stewart]

I thank the hon. Lady very much for her offer and I would love to take it up.

On the penultimate intervention, the provision of mobile phones is a simple example of a very important point that every Member has raised so far: what we do know about veterans who offend and reoffend is that the military provides a very powerful possible support network. Unlike other sectors of society, it provides an instrument or lever that could be incredibly helpful and supportive to backing people in their recovery process. Trying to make sure that we get the very best out of institutions that already exist will be the key. We have an obligation to the individuals who offend and reoffend; we have a particular obligation towards the military; and we have an obligation towards society as a whole.

[John McDonnell]

I add my congratulations to my hon. Friend the Member for Barnsley Central (Dan Jarvis) and, in particular, to the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd). I attended the first session he held in Portcullis House about two and a half years ago, which was also supported, I think, by the ubiquitous Harry Fletcher, and we were shocked at the scale of the numbers of ex-military who were in prison and at the scale of the trauma they were experiencing. I welcome the review. It will be useful to get clarity on time scales and on how the recommendations will be dealt with by the Government at a later stage. I appreciate that.

I want to speak to new clause 12, which stands in my name and relates to domestic abuse. The scale of domestic abuse and the figures involved are always shocking. Last year, 7% of women reported some form of domestic violence or abuse against them. Two women a week are killed by partners or lovers, and the number of sexual assaults is about 70,000.

The existing probation service established national programmes in response to the issue. There is a 30-week programme in which perpetrators are placed, but there are concerns that it will be lost as this privatisation rolls out. I therefore suggest in my new clause 12 that programmes for tackling domestic abuse on which offenders are placed should remain with the national probation service. That would give the assurance that such work will continue and that there is consistency of approach. It would also allay several fears. I do not want to make this a contentious point, but one of the fears that has been excited relates to the unpaid work programme that Serco has taken over, in that some women’s workshops have been closed as a result of that privatisation. We do not want that to be experienced by such important programmes as those currently provided by the probation service, but they would be laid waste if privatisation took place.

The new clause is fairly straightforward. It would ensure consistency of approach, as well as the maintenance of such programmes, and the best way to do that is to retain those programmes within the state sector.