HC Deb 09 May 1995 vol 259 cc388-90W
Mr. George Howarth

To ask the Secretary of State for the Home Department (1) what financial penalties he proposes to build into the contracts for Fazakerley and Bridgend prisons which could be invoked if, by a decision of Government, the contracts were terminated; [21221]

(2) if he will place copies of the tender documents and proposed contract documents from Fazakerley and Bridgend prisons in the Library; [21219]

(3) if he will list the types of circumstances in which the successful tendering for the operation of Fazakerley and Bridgend prisons under the terms of the proposed contracts can be held to be in breach of contract; [21223]

(4) what review periods and at what frequency he proposes to build into the proposed contracts for Bridgend and Fazakerley prisons; [21218]

(5) what duration he proposes to put on the contracts for Fazakerley and Bridgend prisons; [21222]

(6) what financial or other kinds of penalties he proposes to build into the contracts for operating Bridgend and Fazakerley prisons; penalties could be invoked. [21220]

Mr. Michael Forsyth

Responsibility for these matters has been delegated to the Director General of the Prison Service, who has been asked to arrange for a reply to be given.

Letter from Derek Lewis to Mr. George Howarth, dated 9 May 1995: The Home Secretary has asked me to reply to your recent Questions about the contracts for the prisons to be built at Fazakerley and Bridgend. Evaluation of the bids to design, construct, manage and finance the prisons at Fazakerley and Bridgend has not yet been completed and, therefore, it is not yet possible to set out the exact terms and conditions relating to performance and termination that will be included in the final contract. However, the Prison Service has proposed that the contracts should be for the provision of a custodial service for 25 years. Also, the Authority will retain the right to terminate the contracts both voluntarily and in the event of default by the contractor. A system of performance measurement will be included in the final contracts, providing the ability to penalise the contractor for sub-standard performance. The financial settlement due in respect of any of the above events is still a matter included in the above negotiations, but the invitation to tender described the amount to be paid on termination for default as whichever is the lesser sum of the value of the project to the contractor or the contractor's loan liabilities at the time. I have arranged for a copy of the invitation to tender to be placed in the library, and shall arrange for a copy of the final unpriced version of the contracts to be placed in the library when the have been signed.