Question to the Ministry of Justice:

To ask the Secretary of State for Justice, what amounts were paid to G4S in relation to Medway Secure Centre outside of amounts agreed in the initial contract.

The original 15 year contract commenced in 1998 for the design, build, finance and operation of a 40-bed Secure Training Centre at Medway had a projected total value of £109.5 million.

The operator at Medway STC was initially Rebound ECD ltd a wholly owned subsidiary of Global Solutions Limited. Global Solutions Limited was acquired by G4S in 2008 at which point G4S became the operator.

In 2002 the contractual capacity was increased to 76 places and extended for three years beyond the original planned contract length. Indexation rates, which determine the variable element of the contract price, also impacted on the costs, compared with the original, standard indexation projections. The total lifetime value of payments made under the 18 year extended contract between 1998 and 2016 was therefore increased to £210.3 million.

The changes made to the contract prevent direct comparisons between the original contract value and the eventual whole life spend. No payments were made to G4S as the operator of Medway outside of contractual agreements.