Tuesday 4 December 2018

What Could Possibly Go Wrong?

As we all know, privatisation of public services is going really well and everyone seems to think Rory Stewart is a really good Prisons minister. What could possibly go wrong? This from Civil Service World:-

Public sector bids barred from next round of prisons contracts, confirms MoJ

Public sector providers will not be allowed to bid for contracts in the next competition to operate prisons, the government has confirmed, with HM Prison and Probation Service only able to provide a comparator to external bidders. Justice minister Rory Stewart announced the launch of the competition, which support plans announced by the Ministry of Justice in June to add up to 10,000 new prisons places, in a written statement to the House of Commons yesterday.


Through the competition, the MoJ will appoint and framework of prison operators, from which it will select the operator for each new prison in shorter ‘call-off’ competitions, he said. The framework will only be open to private companies unless bids do not meet a given standard, Stewart said. The new framework will be used to appoint companies to operate prisons that are already under private management once the existing operators’ contracts run out, and to award contracts for new-build prisons.

The first contracts to be opened to a call-of competition will be two new-build prisons in Wellingborough, in Northamptonshire and Glen Parva in Leicestershire. Construction of both prisons will be funded using public capital. “HMPPS will not bid in the competition but will provide a ‘public sector benchmark’ against which operators’ bids will be rigorously assessed. If bids do not meet our expectations in terms of quality and cost, HMPPS will act as the provider,” Stewart said.

The MoJ announced plans for the Wellingborough facility in 2016, four years after HMP Wellingborough closed, taking with it 600 places. Construction is set to begin in December, so that the prison can open in 2021. The construction of Glen Parva prison was initially intended to be privately-funded, but in last month’s Budget it was announced the government would fund it. The facility will open in 2022. In a written statement earlier this month, Stewart said the public funding would “enable the prison to open earlier than originally planned to meet the needs of the growing and complex prison population.”

The announcement comes at a time when private prisons contracts are coming under intense public scrutiny. In August the Ministry of Justice was forced to take over control of HMP prison from the private contractor G4S after an inspection showed high levels of violence and self-harm. In his statement yesterday, Stewart said the framework “should reinvigorate the prison market by encouraging new providers to enter the custodial arena”.

“It will also enable MoJ to more effectively and efficiently manage a pipeline of competition over the next decade,” he said. Earlier this year, Stewart said the MoJ was expecting the prison population to rise by around 10,000 to 93,000. He said he wanted to reduce “if not eliminate” shorter prison sentences of up to 12 months, although there is no legislation currently in train to make this happen,

Mark Fairhurst, national chair of the POA – the trade union for prison officers and secure psychiatric workers – branded the move to limit bids to private providers an “insult” to taxpayers.

“It’s an absolute disgrace that taxpayers’ money is being used to build prisons to be run by to profiteers, without the public sector being allowed to bid,” he said. “Prisons are not for profit and we’ve proven time and time again that private providers are not fit for purpose,” he said, pointing to the example of HMP Birmingham.

He said the union would fight “tooth and nail” to prevent any publicly-run prisons from transferring into the hands of private operators, which would mean prisons officers who are now civil servants moving into private employment.

“The question that remains now, is are they going to bar G4S and Serco from bidding?” he asked. The two companies, which between them run 10 of the 14 contracted-out prisons across the UK, are both under criminal investigation by the Serious Fraud Office over their running of electronic monitoring contracts.

He also said the union would “insist” the HMP Birmingham remain under public management, and would take “all necessary steps to show our discontent” if it were returned to G4S.

Shadow justice secretary Richard Burgon said prisons privatisation had been a “costly failure”, and that the statement showed the government was doubling down on its commitment to privatisation “instead of learning the lessons and changing direction”.

17 comments:

  1. What could go wrong?
    There's an investigation report published today that responds to the Panorama undercover documentary at G4s run Brook House. Not particularly good.
    There's also the full inspection report published today on HMP Birmingham. It's damning, and by itself should prevent G4s bidding for any more contracts to run prisons. (What ever happened to no more contracts until after the SFO investigation?) it's still ongoing isn't it?

    https://www.bbc.co.uk/news/uk-england-birmingham-46427754

    More generally what could go wrong? Carillion syndrome perhaps? Interserve are likely to go sub 20p a share today, and other outsourcers are in dire straits too, and could go belly up at anytime.
    Outsourcing public services has become as risky as playing on the stock market in today's political climate. It should stop. It to big a gamble.

    And just a personal indulgence. But I find it ironic with all the Brexit talk of taking back control from the EU, when most of our public services are continually being outsourced to European owned companies. What will Brexit bring for French caterers and the like?

    'Getafix

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  2. It is clear that this government is ideologically wedded to the outsourcing and privatisation of public services. I also think it is an easy sell for them in many respects. The soundbites promoted of greater efficiency, modernisation, drawing on the innovation, investment and dynamism of the private sector meet with a majority of the public who don't care as long as their immediate needs are met, which means, the bigger picture, often the needs of others, is disregarded. The fact that the claims are increasingly mythical is another matter. I do forsee as time passes, that this movement if unchecked will proceed. Fundamentally there is no particular reason why the Fire Service and other public services cannot be privatised. What do you care as long as they turn up in good time and put out your house fire? However, as this blog and others have tried to expose it really is not that simple. How to elaborate that wider appreciation to the wider public is a starter question. It certainly is not happening in any meaningful way.

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  3. https://www.thebookseller.com/news/profile-snaps-compelling-investigation-uk-prison-system-901876

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  4. Trader view of Interserve today: "They breached their banking covenants and overran their banking facilities so without the increased banking facilities they would have hit the buffers already. It's just an increased overdraft facility, but it is only a temporary respite to get them through to 2021."

    Shares closed at just over 20p. Estimates are current rate of decline means one more week & shares will hit zero value, & speculation sub-20p will spark stock exchange intervention. Lots of trader annoyance at Carillion-like silence from Interserve.

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    1. I think Interserv going Carillion is a carnage we can do without. However, public services in the hands of such operators is well dubious. I do not ever recall a Chief Probation Officer touting the idea that Probation work might not be in the best interests of the organisations survival!!!!!

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  5. Of course we wouldn’t know about the ongoing SFO investigation if it hadn’t been for a certain David Raho asking questions https://www.whatdotheyknow.com/request/outcome_of_the_investigation_of_2

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    1. "I neither confirm nor deny whether or not we hold any information relevant to the remainder of your request"

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    2. From SFO web page:

      "G4S and Serco

      The SFO is conducting a criminal investigation into G4S and Serco electronic monitoring contracts.

      Page published on 12 Nov 2014 | Page modified on 28 Apr 2016

      Case status - Under investigation

      Investigation announced - 4 Nov 2013"


      Info Courtesy "NotDavidRaho"

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    3. The FOI confirmed the investigation was ongoing and it was made when the information had disappeared from the SFO website. I am a journalist who writes for a national newspaper and I can assure you that FOIs are a crucial source of information as official websites are often economical with the truth.

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    4. 5 years and no sign of it being finished. that is insane

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  6. An interesting legal wrangle is to be pursued against the MoJ for not ensuring its outsourced workers are paid correctly.

    https://www.lawgazette.co.uk/practice/union-to-sue-lord-chancellor-for-unlawful-discrimination/5068567.article

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    1. A trade union representing cleaners, security guards and receptionists who work at the Ministry of Justice is preparing to sue the lord chancellor for unlawful discrimination as its members gear up for a three-day strike over pay.

      Around 50 security guards and receptionists represented by union UVW will stage a three-day strike in January. They will be joined by around 20 cleaners who went on strike for three days in August. The workers are demanding to be paid the London living wage of £10.55 an hour, and to have parity with civil servants over sick pay and annual leave allowances.

      UVW has told the Gazette that it will also lodge a claim in the employment tribunal or High Court over the ministry's outsourcing structure. The union argues that the ministry has breached its public sector equality duty under the Equality Act 2010 because nearly all cleaners, security guards and receptionists are BAME (black, asian and minority ethnic) or migrant workers.

      UVW says it will coordinate its strike at the ministry with outsourced workers at the Department for Business, Energy & Industrial Strategy who are members of the PCS union.

      The national minimum wage is currently £7.83 for workers aged over 25. The London living wage is £10.55.

      The ministry was questioned by Labour MP Catherine West about how much the department pays staff inside and outside Greater London at a rate below the UK living wage, which is sometimes referred to as the 'real living wage'.

      In October, justice minister Edward Argar replied that all MoJ employees are paid at least the national minimum wage and national living wage. Argar said the UK living wage and London living wage are voluntary rates set by the Living Wage Foundation: 'These are not statutory figures which relate to the government policy in this area, and so are not legally binding on employers.'

      In Greater London, the ministry has 395 staff paid at a rate below the London real living wage. Outside Greater London, the ministry employs 1,479 staff paid at a rate below the National real living wage.

      A spokesperson for the ministry told the Gazette: 'The support staff at the Ministry of Justice are valued colleagues. The independently advised National Living Wage has helped to deliver the fastest wage growth for the lowest paid in 20 years and the most recent rise in April meant full-time workers will earn an extra £600 a year. We strictly enforce the National Living Wage in all our contracts.'

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  7. What's going on at Interserve? SP up more then 40pc yet this from their chat line.
    "27After the Carillion collapse, no one in government would put there reputation on the line protecting a private company. The exchange below occurred on Monday 3rd December.

    Jon Trickett Shadow Minister (Cabinet Office), Shadow Lord President of the Council -
    Asked the Minister for the Cabinet Office, whether the Crown Commercial Service has plans to issue guidance to public sector bodies on the financial risks associated with contracting with Interserve?

    Oliver Dowden The Parliamentary Secretary, Cabinet Office response :
    It is the responsibility of contracting authorities to carry out appropriate due diligence checks on potential suppliers and financial monitoring on existing suppliers when they are contracting out, to ensure that those suppliers are able to deliver the public services for which they are contracted..

    And yet they still are giving Interserve work.."

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  8. https://www.corpcommsmagazine.co.uk/features-and-analysis/view/best-in-house-team-internal-communications-2018-public-sector

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    1. BEST IN-HOUSE TEAM: INTERNAL COMMUNICATIONS 2018 - PUBLIC SECTOR

      Her Majesty’s Prison and Probation Service is responsible for the management of prison and probation services, to change the lives of offenders and protect the public. Around 44,500 people are employed by the service across more than 300 locations in England and Wales, but at any point in time there are also around 88,000 people in custody and 200,000 people on probation.

      The role of the 27 person internal communications team is to engage and inform staff and service users of its work. But with 24 per cent slashed off its budget since 2010, the team has to take a creative approach to maintain both its standards and volume of communications work. Unsurprisingly, perhaps, the team relies heavily on the skills of its individuals to offer everything from strategy to events to videography. It also uses free and low cost options where possible, such as harnessing partnerships and in-house opportunities: all campaign materials are produced in the prison print shops, providing employment opportunities for prisoners.

      It also works with charity partners like National Prison Radio and prison newspaper Inside Time to support and engage with serving prisoners through trusted non-government channels at little or no cost. It has launched staff awards, which also involve people in custody and on probation, as well as family and victims, in the decision making process. These form a key part of the service’s national reward and recognition strategy for staff. After this year’s service, 94 per cent of employees felt more valued.

      A campaign to reduce the number of suicides in custody has raised awareness of the support available and provided information on coping mechanisms. In 2016, prison suicides totalled 122. Last year, this number had fallen to 70 - the lowest number recorded in five years. On any given day, 2,000 people are judged to be at risk of suicide.

      As a result of the prison radio element of the campaign, 58 per cent said they took some form of actions, such as speaking to others about mental health or trying new coping techniques. Training videos produced for staff received almost 10,000 views in the first month, while 82 per cent of staff say they now understand their responsibilities. But as well as reducing the stress that afflicts those affected by suicide, reducing the incidences is estimated to save £125 million per year.

      Another campaign supported the implementation of a smoke free environment in 116 prisons. When Australian prisons went smoke free, prisoners rioted. But the entire prison estate of HMPPS went smoke free without incident. Support is also growing for a Great and Good Ideas scheme. More than 170 people submitted ideas in its first three months, against just 12 the previous year.

      In total, over nine months, the team’s business as usual activities plus support for 25 change projects generated 19 million Intranet views, 30 million page views, 129 global emails, 601 senior leader bulletin articles, 12 national or regional events and 36 teleconferences.

      ‘This was a massive undertaking that achieved great results,’ said the judges. ‘Amazing work.’

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    2. Fuck me - "19 million Intranet views, 30 million page views, 129 global emails, 601 senior leader bulletin articles, 12 national or regional events and 36 teleconferences."

      Who's gonna clear that pile o'shite up? The Outsourced cleaners are on strike!

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  9. https://mg.co.za/article/2018-12-07-00-prison-company-stalls-court-actions

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