Prisons Competition

David Hanson Excerpts

Thursday 31st March 2011 Commons Chamber

[Mr Clarke]

I join my hon. Friend in congratulating the staff at Wellingborough, because they face a difficult situation, given the uncertainties caused by the unsuitable and deteriorating buildings in which they are operating. They certainly have succeeded, and my hon. Friend the Prisons Minister says that he can certainly take up the invitation to visit to see what they have achieved. I hope that the uncertainties will be resolved as soon as possible, but obviously it is difficult to find money for a large capital programme, which is what Wellingborough really needs.

[Mr David Hanson (Delyn) (Lab)]

As the Prisons Minister at the time the decision was made to undertake the market testing, I can confirm that we not only undertook the market testing but encouraged public sector bids. Now that those public sector bids have failed in Birmingham, could the Justice Secretary tell the House what will happen to the assets of Birmingham and Doncaster prisons? What is the cost of the TUPE arrangements? Will it be borne by the private sector contractor? If there are redundancies, will it be the Ministry of Justice that bears them?

[Mr Clarke]

The right hon. Gentleman was indeed involved in the competition process, so he cannot start protesting—however mildly—about the outcome. I assume that he contemplated that either the private or the public sector bids would win, and that is what has happened. The public sector has the contract at Buckley Hall and the private sector has the contract at Birmingham and the other prisons. Serco was already the contractor at Doncaster. To show how ideology is fading, the irony is that Buckley Hall, when it opened, was a private sector prison, but it has been in the public sector and this renewal of the contract has been won by the public sector again. The law on TUPE remains in place, but we are consulting on the wider implications on transfers of ownership from the public to the private sector. The outcome of this competition should be the kind of thing that the right hon. Gentleman was perfectly happy to contemplate when he was party to the decision in 2009.