§ Mr. BeithTo ask the Secretary of State for the Home Department if he will present to Parliament a report on the operation of all private finance initiative contracts made by his Department; and if he will make a statement. [93025]
§ Mr. StrawI have no present plans to present a report to Parliament on the operation of all private finance initiative contracts made by my Department, but the current status of my Department's private finance initiative (PFI) contracts is summarised as follows
Immigration and Nationality Directorate (IND) Casework ProgrammeDevelopment of the Information Technology system was delayed, but is now with IND for testing. The IND's reorganised caseworking operation was introduced prior to delivery of the Information Technology system. After an initial deterioration in service to the public, Siemens Business Services (SBS) and IND have co-operated to restore output broadly to previous levels.Secure Training Centres (STC)Medway STC opened in April 1998. There were problems in the early months, which were outlined in the Social Services Inspectorate (SSI) Report published in January. A further inspection by SSI in April 1999 found that considerable improvements had been made to provide a more positive regime.Rainsbrook STC opened on 1 July 1999 and there have been no problems to date. Hassockfield STC is due to open in September 1999.United Kingdom Passport Agency (UKPA)There are two PFI contracts in operation in the UKPA. SBS are responsible for data capture, and Security Printing and Systems (SP & S) are responsible for the manufacture of passports.Roll out of services for all six Passport Agency offices was planned for early 1999. Because of difficulties encountered at the first two offices (Liverpool and Newport) to change over to the new system, further roll out has been postponed. Productivity on the new system has been less than that needed to meet demand; backlogs have built up; customer inquiries have increased; and the Agency's performance against a backdrop of high seasonal demand for passports has seriously declined.Service credits have been levied on both companies. The UKPA is working closely with SBS to improve productivity, which continues to rise as further system improvements are made. Both SBS and the UKPA have recruited additional staff to deal with backlogs.
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Prisons in England and Wales operating contracted out shops £ Prisons with contracted out shops Formal tender Supplier Expected approximate savings Acklington Yes Aramark 45,000 Ashwell No Aramark 25,000 Belmarsh No Sutcliffe Not available Castington Yes Aramark 15,000 Coldingly Yes Aramark 21,000 Deerbolt Yes Aramark 30,000 Drake Hall Yes Eurest 15,000 Durham Yes Aramark 53,000 Foston Yes Eurest 1None Frankland Yes Aramark 72,000 Full Sutton Yes Sutcliffe 40,000 Garth Yes Aramark 17,500 Guys Marsh Yes Aramark 30,000 Hatfield No Aramark Not available Holme House Yes Sutcliffe 104,000
Gatwick Detention Facilities (Tinsley House)Under this project, accommodation is provided by the British Airports Authority and the operation is run by Wackenhut (UK) Ltd. No reductions in payment have been made on either contract and there have been no operational difficulties.PrisonsThere are currently three Design, Construct, Manage and Finance (DCMF) prisons operating: Her Majesty's Prison Altcourse, Her Majesty's Prison Parc, and Her Majesty's Prison Lowdham Grange.Despite some early teething troubles, in particular at Her Majesty's Prison Parc where an action plan to improve performance was implemented, all three prisons are now operating satisfactorily and provide much needed accommodation for the Prison Service. A Prison Service appointed controller provides permanent on site contract monitoring at each prison with contract management and performance audits being administered by Prison Service Headquarters centrally. Where performance does not meet the standards specified in the contracts, contractors incur financial penalties. Following performance improvements, the level of penalties imposed on contractors has decreased substantially.Contracts for three further DCMF prisons, Forest Bank, Ashfield and Onley have been signed, but they have not yet opened (Onley was signed on 22 July 1999).The contract for Coldingley prison industries workshop was terminated on 31 January 1999.Prison PABX SystemDelays were experienced during the installation phase of the contract, and this resulted in a reduction in payment. Since completion of the installations in October 1997, the systems have performed well and are providing a good service. The Prison Service holds regular meetings with the supplier to ensure that the quality of service is maintained.