Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 40-59)

HOME OFFICE, NATIONAL OFFENDER MANAGEMENT SERVICE, G4S JUSTICE SERVICES AND SERCO HOME AFFAIRS

15 MARCH 2006

  Q40 Greg Clark: What was the reason?

  Mr Riall: Again, there were one or two performance measures where we narrowly missed the required thresholds.

  Q41  Greg Clark: Do you know which ones?

  Mr Riall: For example, the requirement to report 100% of all breaches of Adult Curfew Orders on time. There have been occasions when we have slipped below the 100% requirement which has resulted in a financial deduction.

  Q42  Greg Clark: I understand, Sir David, last week the Home Office had to settle, including an ex gratia payment, with two offenders who had been tagged. Their tags failed to work. Their bracelets came off, I understand, and they were returned to prison. As I understand it, they alleged that the equipment was defective and they should not have been returned to prison and the Department had to settle out of court on this. Can you give me an update on that, Sir David?

  Sir David Normington: I am afraid I do not know about that. I thought I had prepared myself for all the questions that might come up but I am afraid I do not know that. I will have to find out about that. I did not know that that had happened.

  Q43  Greg Clark: Presumably this does not happen terribly often. Have you encountered other cases in which you have had to settle?

  Sir David Normington: No, that is why I am surprised I do not know about it. I would have expected to know about it, particularly if it was a significant amount of money because I would have had to sign it off and I do not recall doing that. I would have known if I had done it. I am sorry, I am not aware of it.

  Q44  Greg Clark: The information we have is that the order was approved by the High Court on Tuesday 7 March, which may help you. If you are able to write to the Committee as soon as possible that would be extremely helpful.

  Sir David Normington: I will, of course.[5]

  Q45 Greg Clark: Turning to some of the breaches and the particular point of reporting breaches on time, Mr Taylor-Smith. You seem to regard your performance as being satisfactory on this. Can you explain why?

  Mr Taylor-Smith: For the period that the Report covers I would not consider our performance to be satisfactory. Our performance since the commencement of the new contracts where there are much more appropriate service level measures in place—the Home Office is measuring us more appropriately on the things which are most important—in this particular area is satisfactory.

  Q46  Greg Clark: So they have changed the measurements.

  Mr Taylor-Smith: That is right.

  Q47  Greg Clark: Is it still the case that you are required to report breaches within 24 hours?

  Mr Taylor-Smith: That is correct.

  Q48  Greg Clark: Does that continue to be measured under the contract, the number of failures to report within the 24 hours?

  Mr Taylor-Smith: That is correct.

  Q49  Greg Clark: So that continues to be something that you are measured on. According to the Report at page three, paragraph 11, 22% of breaches took between one day and three days to report and 13% took over three days. It seems worrying that during the period this Report was being drawn up that level of failure took place. Can you explain what was wrong with the system that you were operating?

  Mr Riall: Can I just pick up on that point? Under the first generation of contract there was a much greater emphasis placed on the need to verify whether a breach had or had not occurred rather than the immediate reporting of a suspected breach.

  Q50  Greg Clark: I was talking about what is reported here. Perhaps you can turn to page three, paragraph 11, which says that the majority of breaches were reported to the Home Office within 24 hours but 22% took between 24 hours and three days. That is a fact, is it not?

  Mr Riall: It is a fact. The point that I was making was particularly during the time that the NAO Report was being put together there was much greater emphasis placed by us as contractors on establishing whether a breach had or had not occurred rather than reporting. Those lessons have been learned and you will see that the standards of reporting are significantly better.

  Q51  Mr Bacon: Can I just interrupt for a minute. You are saying there has been a significant change in the performance since the publication of this Report.

  Mr Riall: Correct, in terms of—

  Q52  Mr Bacon: The Report was only published on 1 February 2006. Did you or the Home Office inform the NAO of this change?

  Mr Riall: It is an ongoing thing. The period that is being referred to in the Report, as I understand it, was predominantly the first six months of 2005. A new contract was entered into on 1 April 2005 and we are now some nine or 10 months into the new contract and there is a much tougher—

  Q53  Mr Bacon: Did you or the Home Office supply the NAO with the performance information out of this new contract?

  Mr Riall: The information supplied to the NAO was partly out of the old contract and the first two months of the new contract.

  Q54  Mr Bacon: Only the first two months of the new contract?

  Mr Riall: Correct.

  Q55  Mr Bacon: Would the NAO like to comment on this?

  Ms Murphie: When contracts are changing it is obviously quite difficult to make an assessment and the new contracts are quite different from the old ones. I think if the performance is improving to that extent then that is gratifying and that is what we would all like to see.

  Mr Bacon: Perhaps if the NAO were to revisit this subject in a few years' time we would be able to see whether the performance had been maintained.

  Q56  Greg Clark: I am not sure it has much to do with the contract, either breaches are being reported on time or they are not, why should that be influenced by the contract? You were already contracted before to report breaches within 24 hours and yet 22% took between 24 hours and three days and 13% took more than three days. Why should the contract have made a difference to that, that was already part of your requirement?

  Mr Taylor-Smith: May I take that up? It is worth putting it into context. This was a new service and was the largest service of its kind in the world and when it commenced the focus initially was very much about equipment and technology and explanations.

  Q57  Greg Clark: Sorry, can I stop you there. That was not the case. We are talking about a sample that the National Audit Office took last year, I assume, so we are not talking about the beginning of your previous contract, we are talking about a relatively short period of time ago in which a very large number of breaches were not reported on time.

  Sir David Normington: I think you will find, and I stand to be corrected by the NAO, they took a sample of cases adding up to 35, for instance, in the breaches of the curfew over three years from 2002 until the end of the contract, some cases in each year, and they looked at those. They are reporting on that sample of 35 cases. The numbers vary in each case but they took a sample over a period of a number of years.

  Q58  Greg Clark: Can I ask the NAO to clarify this. Was the sample a recent sample or was it looking back to right at the beginning?

  Ms Murphie: We took a sample of cases of Adult Curfew Orders and Home Detention Curfew Orders but over the three years that the system had been underway.

  Q59  Greg Clark: When you reviewed these examples did you notice an improvement during those three years?

  Ms Murphie: I think that would be difficult to say actually.



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