HL Deb 04 May 2004 vol 660 cc987-9

2.56p.m.

Lord Avebury asked Her Majesty's Government:

Whether they have any influence over the proposed sale by Group 4 Falck of its subsidiary Global Solutions Limited, which operates HM Prisons Wolds, Altcourse and Rye Hill, and the Immigration Detention Centres Oakington, Campsfield House and Yarl's Wood.

Lord Bassam of Brighton

My Lords, all the contracts for prisons and immigration detention centres require the contractor to obtain the Home Secretary's consent to a change in the ownership of the contractor. We are currently considering Group 4 Falck's request for consent to the sale of Global Solutions to Bridgepoint Capital Limited.

Lord Avebury

My Lords, how was it that the Home Office appeared to know nothing about the proposed sale of GSL when Beverley Hughes answered a Question on the matter on 18 March, considering that the chief executive of Group 4 Falck had made an announcement that it was proposing to sell the company 12 days earlier? Will the noble Lord also say whether in this transfer the Government will make it a condition that the successor company implements the 29 recommendations made by Stephen Shaw in his inquiry into racism and other matters at Yarl's Wood, and that the recommendations of that report and of the Chief Inspector of Prisons are applied not only in Yarl's Wood but throughout the detention estate?

Lord Bassam of Brighton

My Lords, as I explained at the outset, the Home Secretary is currently considering the request for consent regarding Global Solutions. No final decision has been made on that, although my understanding is that a decision will be made shortly. As regards Stephen Shaw's very excellent investigation and report into allegations of racism and abuse at Yarl's Wood, given the importance of those recommendations I have no doubt that they will be studied very closely and that the important and salient conclusions which Stephen Shaw reached will find their way into improving the quality of practice across the detention centre and prison estate.

The Lord Bishop of Worcester

My Lords, I wonder whether the Minister can help us by telling us what are the criteria that operate in the mind of the Home Secretary when deciding whether to grant permission for a change of ownership or not. In particular, does he bear in mind the need to sustain patterns of regime and delivery of crime reduction objectives, or is it simply a financial consideration of viability that is in his mind?

Lord Bassam of Brighton

My Lords, the Home Secretary will have to pay very careful regard to the financial standing of the company and the way in which it responds to change in the marketplace. For that reason the Home Secretary takes very careful account of legal and financial advice that is given. Of course, the Home Secretary will have regard to other matters as it is very important that contracts which specify particular issues of importance in terms of policy are understood by the operating company and those who own the contract.

Baroness Anelay of St Johns

My Lords, can the Minister clarify slightly his response to the noble Lord, Lord Avebury, with regard to last week's report on Yarl's Wood, which is run by GSL? No doubt the Minister has, like me, read the report. The earlier remarks appeared to imply that the charges of racism had been proved correct. So far as I understand it, the initial allegations were not found to be proved by the ombudsman, and the recommendations involve additional training in race relations and cultural awareness but do not as such find an allegation of racism proved against those running the facility.

Lord Bassam of Brighton

My Lords, I am grateful to the noble Baroness for her question. She is right to focus on the particular, because that is exactly what Stephen Shaw, the ombudsman, did. It is important that he specifically did not find that there was a general culture of racism, abuse or violence, an allegation that has been made on a number of occasions. That is not to say that the events recorded by the Daily Mirror were not deeply shocking. I am satisfied, as I am sure other noble Lords are, that those involved in the incidents no longer work in the Prison Service. One of them resigned and the other was sacked. I hope that that draws a line under the matter. All the recommendations made by Stephen Shaw have been accepted, and it is the Home Secretary's intention to put an action plan in place to ensure that they are very carefully followed through.

Lord Hodgson of Astley Abbotts

My Lords, in the light of the Minister's assurance that government consent has to be given for change of ownership, did the Government consent to Capita subcontracting part of its work on the Criminal Records Bureau to Hays PLC in India?

Lord Bassam of Brighton

My Lords, that is extremely wide of the Question, and I am afraid that I am not in a position to answer it this afternoon.

The Earl of Caithness

My Lords, can the Home Secretary insist on a change of terms of the contract when a sale or transfer takes place?

Lord Bassam of Brighton

My Lords, my understanding is that when it is the desire of the contractor to change ownership, the Home Secretary has to take all such points carefully into consideration. As a consequence of a change of the holding of the contract, there may well be some changes, but I suspect that those would be carefully negotiated and the subject of very careful advice.

The Earl of Caithness

My Lords, the changes have to be carefully considered by the Home Secretary, but does he have the power to alter a contract on a transfer?

Lord Bassam of Brighton

My Lords, we should deal with matters that relate to the detail of contracts carefully. I am happy to provide the detail that the noble Earl requires in writing, because that is a better way of dealing with it. He will get more precision from me. I believe in giving noble Lords the best, most truthful and most direct answer.