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Julian Le Vay - Competition for Prisons: Public Or Private?

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A quarter of century has passed since Margaret Thatcher launched one of her most controversial reforms, privately- run prisons, and the role of the private sector in delivering public services continues to be one of the big political issues of our time. This book, by a critical professional insider, re-assesses the benefits and failures of competition, how public and private prisons compare, the impact of competition on the public sectors performance, and how well Government has managed this peculiar quasi-market. Drawing on first person interviews with key players, including Chief Executives and prison managers in both sectors and Chief Inspectors, Julian Le Vay uses his former role as Finance Director of the Prison Service to give a wholly new analysis of comparative costs and of the impact of constant changes in competition policy. He draws out lessons from the parallel stories of the SERCO/G4S billing scandal, privately run immigration detention and the more radical approach now being taken on outsourcing probation, and looks in detail at four prisons, publicly and privately run, that failed. Concluding with a critique of the future shape of competition, he also draws some general conclusions on the way government works. This is vital reading for anyone interested in the role of competition in public services, implementation of public policy, or the state of our prisons.

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First published in Great Britain in 2016 by Policy Press University of - photo 1
First published in Great Britain in 2016 by Policy Press University of - photo 2
First published in Great Britain in 2016 by
Policy Press University of Bristol 1-9 Old Park Hill Bristol BS2 8BB UK Tel +44 (0)117 954 5940 e-mail
North American office: Policy Press c/o The University of Chicago Press 1427 East 60th Street Chicago, IL 60637, USA t: +1 773 702 7700 f: +1 773-702-9756 e:
Policy Press 2015
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
A catalog record for this book has been requested.
ISBN 978 1 44731 322 9 paperback
ISBN 978 1 44731 324 3 ePub
ISBN 978 1 44731 325 0 Mobi
The right of Julian Le Vay to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved: no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise without the prior permission of Policy Press.
The statements and opinions contained within this publication are solely those of the author and not of the University of Bristol or Policy Press. The University of Bristol and Policy Press disclaim responsibility for any injury to persons or property resulting from any material published in this publication.
Policy Press works to counter discrimination on grounds of gender, race, disability, age and sexuality.
Cover design by Qube Design, Bristol
Front cover: image kindly supplied by iStock
Readers Guide
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Contents
Tables
Figures
ASI
Adam Smith Institute
CAC
Central Arbitration Committee
CCA
Corrections Corporation of America
CNA
Certified Normal Capacity
CRCs
Community Rehabilitation Companies
DCMF
Design, Construct, Manage and Finance
FD
Finance Director
FM
Facilities Management
FoI
Freedom of Information
HAC
Home Affairs Committee
HMIP
HM Inspectorate of Prisons
HMPS
HM Prison Service
IMB
Independent Monitoring Board
IND
Immigration and Nationality Department
IP
Intellectual Property
IPSPC
Independent Public Sector Pensions Commission
IRCs
Immigration Removal Centres
KPI
Key Performance Indicator
MoJ
Ministry of Justice
MQPL
Measuring the Quality of Prison Life
NAO
National Audit Office
NOMS
National Offender Management Service
NPM
New Public Management
NPS
National Probation Service
NPV
Net Present Value
OCP
Office for Contracted Prisons
PAC
Public Accounts Committee
PBR
Payment By Results
PCSPS
Principal Civil Service Pension Scheme
PFI
Private Finance Initiative
POA
Prison Officers Association (trade union)
PPPs
PublicPrivate Partnerships
PQs
Parliamentary Questions
PRS
Prison Rating System
PSA
Property Services Agency
PSC
Public Sector Comparator
PSPC
Public Sector Pension Commission
PSPRB
Prison Service Pay Review Body
RTUs
Ready to Use Units
SCH
Secure Childrens Home
SFA
Skills Funding Agency
SFO
Serious Fraud Office
SLA
Service Level Agreement
SNP
Scottish National Party
SPOA
Scottish Prison Officers Association (trade union)
SPV
Special Purpose Vehicle
STC
Secure Training Centre
TR
Transforming Rehabilitation
TUPE
Transfer of Undertakings (Protection of Employment) Regulations 1981 and subsequent versions
UKBA
UK Border Authority
YTC
Youth Treatment Centre
I remember very clearly my reaction when I first heard of the idea that prisons might be run by private companies: some bright young thing in a think tank, wanting to show just how far outside the box he can think of course, it wont survive ten minutes contact with reality.
Twenty-five years later, the private sector runs sixteen prisons, four Secure Training Centres and nine Immigration Removal Centres, together with all prisoner escorts and all electronic tagging, at a total cost nearing 1 billion a year.
And it formed the central part of my own career. As Finance Director (FD) of HM Prison Service (HMPS) in the late 1990s, I was responsible for running competitions, and awarding and managing contracts, and also for improving the efficiency of the public sector. I then headed up competition policy in the new National Offender Management Service (NOMS). I later worked for two companies one competing with HMPS to run prisons, the other in partnership with HMPS, competing together against the private sector. So I have seen the issues from both sides of the fence and, indeed, on it. Whether that makes me an objective observer is for others to judge.
I wrote this book because this has been a long-running, controversial and important experiment in public policy, and the time now seems right to review how well or how badly it has worked.
Private provision of public services is a major political issue in this country, which has gone much further in prisons here than even the United States. And prisons have been one of the longest running and most sensitive and most controversial experiments in contracting out public services, and also one of the most complete.
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