Interpreting and Translation Services

Lord Beith Excerpts

Thursday 20th June 2013 Westminster Hall

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

It is a pleasure to serve under your chairmanship, Mr Pritchard, and to have the opportunity to debate our report on the Applied Language Solutions contract, supplemented by the National Audit Office report. I am glad to see Members from all parties and different parts of the country here, including my hon. Friend the Member for Redcar (Ian Swales), a member of the Public Accounts Committee, which also considered the matter in the context of the NAO report.

Although that gives me pleasure, it gives me none to report that the subject of this debate is the procurement and management process undertaken by the Ministry of Justice. Serious flaws have been exposed in the Ministry’s procedures and policies; the process was a shambles. The contractual system for court interpreting, which came into operation at the end of last January, proved unsatisfactory from the outset and was subject to a boycott by many professional interpreters whose terms and conditions of employment were adversely affected. As we say in our report, that caused the adjournment or severe delay of numerous hearings and, in criminal cases, unnecessary remands into custody, with potential implications for the interests of justice.

One need not be an expert on court processes to understand the dangers to justice that can arise from inadequate interpretation. We acknowledged in our report that performance had improved markedly since the earliest days of the contract, but our verdict was not dissimilar to the Ministry’s admission in response to our report that

“performance…under the contract has not been of a satisfactory level”.

As I shall make clear a little later, on the available measures, performance has still not reached required standards; if anything, it has slipped back.

It is good practice, and my Committee’s practice, to look again and follow up the recommendations made in reports. I advise the Minister—a former Justice Committee member—that this debate is not the end of my Committee’s interest in the subject, and it will not be possible for the Ministry to escape parliamentary scrutiny after this debate.

[Lorely Burt (Solihull) (LD)]

I congratulate my right hon. Friend on the excellent report produced by his Committee. The summary says:

“There was significant concern revealed in the consultation process that quality standards could be diminished by the imposition of a tiered system to enable a wider pool of interpreters, and by the introduction of lower levels of pay.”

Does he share my concern that that is evidence of trying to deliver an important service at the potential expense of quality? Does he think that his hon. Friend and mine, the Minister, should review and be prepared to revoke the system if it continues to be proven not to work?

[Sir Alan Beith]

I will return to how we proceed from here. I am tempted to comment that people always say that when it is proved that standards fell after big changes and that some of the predictions were fully justified. That should be a warning to the Government, as they engage in a number of other contracts. I will come back to that as well.

It is worth pointing out that the problems encountered by the Ministry in contracting for the work, while serious in themselves, also have implications for wide swathes of its other activities. The Ministry is putting out to contract 70% of rehabilitative services under the transforming rehabilitation proposals, £450 million in custodial services over the next six years and a large part of criminal legal aid, all of which will be the subject of contracts. I do not need to spell out that if things go wrong in those areas as they have in court interpreting, we face a multiple-train crash. Does the Ministry really have the capacity to do the kind of contracting on which many of its policy proposals are based? I am not arguing about whether it is a good or bad idea to contract out those things, but the Ministry must have the capacity to do so well and properly.

Before I turn to the substance of the report, I will mention another point of considerable concern to my Committee: the Government’s insistence that they acted reasonably in discouraging court staff from taking part in the online forum that we set up as part of our inquiry to seek personal experiences of interpretation standards in court. That was a retrograde step. We did something similar with prison officers. Many contributed to our online forum, and as a result, we produced a much better-informed report than we could otherwise have done. We did the same thing with court staff, but they were strongly pressed by the Government not to co-operate. That is deplorable. We shall continue to use such mechanisms where appropriate in our inquiries, not with any intention of getting civil servants to question policy, but to get a proper understanding of how it is working on the ground. If Departments repeatedly give that kind of non-co-operation injunction to their staff, they may find themselves in contempt of the House, and the whole House may seek to do something about it.

On the substance of our report, we recommended that the Ministry of Justice audit the amounts being expended on interpreter pay and travel and said that it might be necessary for the rate of pay for tier 1 interpreters —the most highly qualified—to be increased. We also said that the MOJ and Capita should prove that the framework agreement could attract, retain and deploy an adequate number of interpreters to meet the requirements of the courts and other agencies. We called on the professional interpreter community to work flexibly with the Ministry to find an acceptable way to restore their services to the justice sector.

In response, the Ministry introduced, with effect from May, a number of changes to the system of remuneration for interpreters, which it says amount to an average 22% increase in rates. Those changes involve mileage payments, cancellation fees, payment in 15-minute blocks rather than by the minute, payment in accordance with the qualification tier of the interpreter and a daily fee for incidental costs. We welcome those changes, but it is not yet clear that they will be enough to encourage many more interpreters to undertake work under Capita’s auspices, given the breakdown in relations between the Ministry and interpreters and the fact that many interpreters cleave to the view that the framework agreement is fundamentally flawed and cannot be salvaged.

The Ministry says in its response that it has met Professional Interpreters for Justice since late 2012, but goes on rather ruefully to say that it

“accepts that it will not always be possible to agree with the Professional Interpreters for Justice Group but seeks to maintain ongoing dialogue.”

I am not surprised that my hon. Friend the Minister should try to establish better relations—I would expect no less of her in going about things—but a lot more work clearly needs to be done if the professional interpreter community is to be won back.

The group has a different slant on the dialogue. It says that it was invited to a meeting with the Ministry’s interpretation project in March, at which it was presented with a package of proposed changes. It says that changes proposed at separate meetings by interpreters registered with Capita were rejected, and it does not accept that the Government’s changes will attract and retain interpreters.

The dialogue has been inauspicious from the outset. We commented that the Ministry

“did not have a sufficient understanding of the complexities of court interpreting work prior to initiating the procurement of a new service.”

We endorsed the NAO’s conclusion that the MOJ did not give sufficient weight to the concerns and dissatisfaction expressed by many interpreters, even though having sufficient numbers of skilled interpreters was essential to the new arrangements’ success, to return to the point made by my hon. Friend the Member for Solihull (Lorely Burt).

A constructive dialogue requires both sides to participate with good will. When we published our report, we were encouraged by the Minister’s commitment to repairing relations, but can she explain why she thinks relations between her Ministry and the main organisations do not appear to have improved? On what evidence or other basis did the Ministry choose to make the changes on which it lighted? How does the Ministry plan to monitor those changes to ensure that they bring about the desired improvements in the service?

On the quality of interpretation, we agreed with the NAO that the tiered system should be independently evaluated and that interpretation quality standards should be independently reviewed. The MOJ said that it would take that forward and report back to us on progress. The Minister gave us some more information in a letter dated 18 June. I am grateful to her for that. In the letter, she says that steps have been taken to “scope and initiate” the quality assessment and, following discussion with interpreter groups, Capita and others, will commission the advice and report back to my Committee in the autumn. Perhaps that should have been got on with a bit quicker, because it is a pretty fundamental prerequisite for improving the service. I urge swifter progress.

The Ministry has claimed that the changes to terms and conditions that it has made

“will increase the number and availability of Tier 1 and Tier 2 interpreters and therefore reduce the need to use Tier 3 interpreters”.

In her letter of 18 June, the Minister says that it is too early to say whether this is happening, although she notes that Capita says that there is an increased interest in accepting bookings from their existing pool of interpreters. I should like the Minister to report back to my Committee in the autumn on the extent to which the expectations have been satisfied.

We noted in our report problems with performance data being compiled to demonstrate the effectiveness of Capita in fulfilling courts’ requests. This is fundamental to a contract: there must be adequate performance data. Again, this reads across to some other contracts that the Ministry will have.

There were ambiguities about, for example, what constituted a customer cancellation, which is an ambiguous category. Professional Interpreters for Justice subtracts cancellations from the total number of requests, as well as failures by the contractor to deliver, to arrive at a figure of 80% of requests having been fulfilled by Capita, which is way below the contract requirement.

Even on the Ministry’s figures, performance is falling well short of the 98% target, and it tailed off markedly in January. That cannot be regarded as satisfactory. It is clear that, despite the substantial extra investment that the company has made since taking over from ALS, Capita continues to perform below the required standard under the contract.

[Mike Freer (Finchley and Golders Green) (Con)]

Has the Committee had an estimate of the impact of the cost of delays, extended custody and the performance off-contract on the expected savings that this outsourcing was meant to deliver?

[Sir Alan Beith]

No, but we think that the Ministry of Justice should have some reasonable estimates of those costs. Such estimates are quite hard to put together, but we have talked to people in the courts—judges, counsel, solicitors and court staff—and they all point to incidents, each of which involves significant additional costs, which clearly have to be offset against the savings.

[Andy McDonald (Middlesbrough) (Lab)]

Does the right hon. Gentleman share my concern that we are hearing from people, such as the chairman of the Bar Council, about the significant costs and money wasted when trials collapse because of failures under the terms of the contract? Does he share my view that perhaps we would be better served if we considered saving those costs, rather than embarking on a revolution in legal aid provision and putting all that at risk again?

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[Sir Alan Beith]

The hon. Gentleman is an assiduous and welcome member of my Committee, but I would not make the rather rash claim that we could meet the savings that the Government want to make in the costs of legal aid out of getting this contract right. However, we should be getting it right and so far that has not been achieved.

[Jeremy Corbyn (Islington North) (Lab)]

I am also a member of the Committee, so I am pleased that we are debating this report. When the Ministry comes back to our Committee, does not the right hon. Gentleman think that it would be helpful if it came with an analysis of the amount of money lost by the non-attendance of interpreters, which my hon. Friend the Member for Middlesbrough (Andy McDonald) mentioned, and the collapse of trials and all the costs that are loaded on to all three parties: the court, the prosecution and the defence?

[Sir Alan Beith]

I would welcome a reasonable estimate from the Ministry, but I should like it to devote most of its effort to moving from the bad situation that we have now to a better one. I would not want all its management to be occupied with collecting the figures, but if it starts to claim significant savings, I am afraid that we will all want to insist that some of those costs are set against those claims.

Quite a lot of off-contract booking is going on—courts have to do it to meet the need to go ahead with a trial —but we need more information because we do not know how extensive it is. Of course, that too is an extra cost item.

Interpreters’ organisations have been compiling dossiers of instances where court proceedings have been disrupted by failings in the interpretation service. Such information should be systematically captured by the Ministry. We recommended that there should be a user satisfaction measure, and the Ministry replied that it would discuss this with Capita and other partners. I should be grateful for an update on these discussions.

A lack of basic management information has contributed to the Ministry’s apparent inability to monitor and drive better performance. For example, there are costs of defendants being remanded in custody, additional legal aid costs and all the rest of it. We thought that the Ministry

“must get a better grasp of the costs of underperformance”.

I shall not quote the savings figures that the Ministry quotes, which are seriously at risk because of the additional costs involved.

The Minister could provide further clarification on how much of the expenditure of £13.3 million in the first year is accounted for by off-contract bookings. Perhaps she could let us have that information later, if not today.

We noted in our report that the problems arising in relation to the contract must have meant the Ministry’s incurring additional administrative costs as a result of the higher than expected level of oversight that has become necessary. The Ministry in its response gave a figure for staffing costs of the core project of £315,000 between January 2012 and March 2013, but it did not give an estimate of additional costs that it might have incurred.

We should not assume that there was some golden age under the previous arrangements for court interpreting. We concluded in our report that, despite clear administrative inefficiencies, there does not appear to have been any fundamental problem with the quality of services when sourced under the terms of the then national agreement. It is understandable that any Government would consider whether there were more efficient, cost-effective ways to provide the same service, but the principle must be to provide the same level of service. The Government signally failed to achieve that objective.

We said that there

“was clear potential for problems with ALS’ capacity to deliver on its promises which were not adequately anticipated or dealt with either by the Department or by the contractor itself”.

ALS was a small undertaking, visibly lacking the capacity to undertake anything as major as the entire national court interpreting provision.

The Ministry’s naivety at the start of the process appears to have been matched by its indulgence towards underperformance against the contract once the new arrangements came into operation. In introducing the new framework agreement, the Ministry has alienated many experienced court interpreters. The contract may have achieved a net book saving in its first year of operation, but it has not, on the available evidence, achieved any improvement in service to the courts. Indeed, on the information available to judge performance, which continues to be rather defective and limited, there has been a deterioration in performance and a negative impact on the ability of the courts to do their job properly.

The whole saga has been an inglorious one. It might almost have been constructed as a cautionary tale of what a Department should avoid in undertaking a procurement and contract management process. And this is a Department that intends to undertake several such processes, some of them much larger even than this one, so some lessons have to be learned pretty quickly. The standard of court interpretation needs to be restored, preferably by bringing back those whose experience can return the service to the standards that the courts used to expect.

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[Ian Swales (Redcar) (LD)]

It is a pleasure, Mr Pritchard, to serve under your chairmanship. I congratulate my right hon. Friend the Member for Berwick-upon-Tweed (Sir Alan Beith) not only on his diligent chairmanship of his Committee but on his comprehensive introduction to the subject today. I am a member of the Public Accounts Committee, which considered the matter on 6 December 2012 and drew some shocking conclusions.

Life on the Public Accounts Committee involves meeting twice a week and each time hearing about very different situations, usually a litany of failure or ineffectiveness. As a result, we become a little cynical or even punch drunk. However, even by those standards, the hearing on 6 December 2012 was appalling. I am reminded by the large number of people in the Public Gallery today—no doubt some of them are personally interested in the matter—that we had a large attendance in the Public Gallery on that day. It was one of the few hearings I remember when there was shaking of heads in the Public Gallery as Ministry officials responded to the Committee. That is rare, but it happened repeatedly on that day, which says something about the officials’ complacency,

Our Committee found, not surprisingly given what we have heard, that the outsourcing of interpreter services was terribly mismanaged. We concluded that the Ministry lacked management information on the previous use of interpreters and therefore did not have a clear understanding of the requirements when contracting out the service. It did not know how much it was already spending on interpreters, or even how many interpreters were required or in what languages. As a result, the system it selected was driven by bidders’ proposals rather than the actual requirements.

Applied Language Solutions, the company that was awarded the contract, was clearly incapable of delivering on such a large contract, yet it was handed £42 million a year to cover the whole country, despite a credit rating report to the Ministry recommending that ALS should not have been awarded a contract of more than £l million. Departmental officials could not adequately explain to the Committee why it had ignored that advice. It is one thing to make such a striking error in the first place, but the Committee also found that the Ministry failed to penalise ALS effectively under the contract. Its penalty was only £2,200, and there was no penalty for the first four months when its performance was at its worst. Risible levels of penalties and low expectations of performance obviously allow private companies to get away with over-promising and under-delivering.

The Ministry should draft and implement future contracts to minimise transitional problems by piloting and rolling out new systems gradually, and incentivising contractors to meet contractual requirements from the outset—for example, through the robust use of penalties. Will the Minister tell us what penalties have been levied on Capita for failure to deliver since it took over the contract? ALS, of course, was handsomely rewarded for its failure. It sold the business on to Capita for £7.5 million only 10 months after winning the contract. As we often find on our Committee, the public sector had no say in that reassignment and certainly got no financial benefit from the on-selling. That is something we see constantly in the public sector: it is now a business to win a public sector bid or a PFI contract and then trade it on. That is how companies really make money, and ALS is a good example of it.

The Ministry estimated that it would need access to 1,200 interpreters to meet its requirements. However, it allowed the contract to go live when the supplier had only 280 interpreters ready to work under the terms of the contract. The Ministry believed that many more interpreters were available to work, in line with contractual obligations, than was actually the case, because it received over-optimistic assurances from ALS and there was confusion over definitions of what important terms such as “registered” actually meant. The Ministry was also unable to confirm that all interpreters working under the contract had the required qualifications, experience and enhanced Criminal Records Bureau checks.

The company was only able to meet 58% of its bookings, initially, against a target of 98%, which is entirely unacceptable. As previous speakers have said, it is not only about the mechanics of the contract; we are talking about people’s lives and life-changing decisions that may be made on their behalf. People who needed the services have paid a heavy price for the Ministry’s incompetence. We have seen a sharp rise in the number of ineffective trials, as others have said. A trial was recently cancelled in my area because, unbelievably, the chosen interpreter was on trial in a neighbouring court at the same time. Extra costs for the Ministry are then incurred by unnecessary trial postponements and delays. Those costs have not been revealed but they will almost certainly be far more than the money saved on the contract, and I urge the Ministry to measure the waste in the courts system caused by the problem.

Whatever value-for-money considerations drove the original decision will now bear little relation to what has actually happened. It seems certain that there has been a net cost rather than a net benefit to the justice system. In short, the Public Accounts Committee found that the process descended into total chaos, and that almost everything that could go wrong, did go wrong. I hope that the Ministry will follow up the recommendations of the PAC, the Justice Committee and the National Audit Office in order to clean up the mess. Given the large potential contracts that the Ministry is looking to award, it has a lot to do to convince the public that it has learnt the lessons, and that contracts such as those involving legal aid and rehabilitation—

[Sir Alan Beith]

Before my hon. Friend concludes, I wanted to put this point to him, which is not always recognised or understood by people. What has happened in this case, as is proposed in the case of legal aid, is that instead of outsourcing to a very large number of small, usually one-person businesses and making an assessment as to whether they are capable of doing it, the whole process of obtaining interpreters has been outsourced. It has been done on such a large scale that few organisations in the country would be able to do it.

[Ian Swales]

My right hon. Friend makes a valuable point, which is of great concern to the Public Accounts Committee. We seem to have a number of Government Departments that—I suppose it is belt and braces—are making the outsourcing, or contracting-out process, so complicated that now only four or five companies can win the bid. The whole job is how a bid is won and not what the service is, because frequently the people who win the bids do not do the work. Eddie Stobart will not be providing legal aid; its expertise is winning a Government bid. That is the almost farcical situation that we have now got into. The Ministry needs to learn the lessons from that process, particularly as it seems to be about to do some very similar things on a much bigger scale.

One of the other issues that we have—we use the expression on our Committee “following the public pound” —is that the more this type of thing happens, the less access the National Audit Office has to the people who are doing the work. If the services are run by the Department, the NAO can be all over them, but typically, the contracts do not provide transparency or access, so our auditors are unable to get into the key providers.

In summary, the Minister needs to convince us about the lessons learnt, and about what improvement actions will be taken. I feel—not my Committee but I, personally—that a lot of scrutiny by a lot of people should take place before we walk into the same trap again, and I fear that the Public Accounts Committee may have a lot more work coming down the road towards it.

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[Sir Alan Beith]

Conscientious though my hon. Friend the Minister is, she will not have convinced any of us that the situation is acceptable and sustainable.

The Minister referred to court staff being told not to respond to the Committee’s survey. At no time did the Committee seek to pit the opinions of staff against those of Ministers; that would be wrong, and we would not seek to do it. Committees will continue to collect information about how contracts are operating, and if Departments maintain their current line—the Ministry of Justice has not done so on other occasions—they will be on a collision course with the House.

The Minister referred to teething problems, which is an extraordinary way to describe the total failure to meet contract requirements in the early part of the contract. That should have attracted penalty or break clauses in the contract. We questioned the head of the Courts Service, who said that there were break clauses that he could activate. As my hon. Friend the Member for Redcar (Ian Swales) said, the current situation—90% achievement against a 98% target—represents a failure to meet the contract requirements, which should probably attract a penalty.

The Minister will never convince us that the savings figures take adequate account of the additional cost to the system. I am afraid this issue will continue to be controversial.

backbench business