Oral Answers to Questions

Nicholas Dakin Excerpts

Tuesday 11th November 2014 Commons Chamber

[Mr Speaker]

Mr Barry Sheerman is not here. I call Mr Nic Dakin.

[Nic Dakin (Scunthorpe) (Lab)]

4. What progress has been made on investigations into the alleged misuse of public money by private providers holding contracts with his Department.

[The Lord Chancellor and Secretary of State for Justice (Chris Grayling)]

Investigations into misuse of public money are complete, with £179.4 million reclaimed from the well-publicised settlements with two of the Department’s major suppliers. Taxpayers can be assured that the work has not stopped there. A 12-month programme of diligent and detailed assurance across all major contracts held has uncovered no other further misuse of public money.

[Nic Dakin]

The Secretary of State has inserted unprecedented clauses into privatised probation services guaranteeing a decade of lost profits should a future Government walk away from these contracts. How much will the taxpayer have to pay the likes of Working Links, Sodexo, Interserve and Mitie in those circumstances?

[Chris Grayling]

That is a complete misunderstanding of the way in which government works. I simply refer the hon. Gentleman back to the contracts for the flexible new deal set in place under the previous Government, which contained standard penalty clauses for the termination of contracts. We have followed the same principles set out then by the Treasury in establishing these new contracts.