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Cathy Corrie

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The Case for Private Prisons

Posted: 21/02/2013 00:00

This government has made competition a corner stone of its public service reform agenda.

As David Cameron said in 2011, "We will create a new presumption...that public services should be open to a range of providers competing to offer a better service". Nowhere has this had more impact than in the Ministry of Justice where the coalition government has set out its intention to open up all services, from prisons to probation to rehabilitation, to competition.

Governments of all parties have used the private sector in the management of prisons to drive better performance since 1992. These two decades gives us a more robust and long term evidence base about the relative performance of the public and private sectors than we have in any other public service.

However, in November last year the Ministry of Justice performed a u-turn. Now the government's "new approach" limits the role of private companies to smaller contracts, such as for rehabilitation services and facilities management. Public sector prisons will see the momentum of competitive market pressures replaced with an "efficiency benchmark" instead.

The government's own statistics show that reducing the scope of competition in prisons is the wrong call. New Reform analysis of official Ministry of Justice figures show that private prisons are more effective at preventing prisoners from committing further crimes and they perform better than comparable public sector institutions on most official performance measures, from operational effectiveness to relationships between staff and prisoners.

Evidence suggests that this delivers benefits across both public and private prisons as competitive pressures incentivise improved outcomes in more cost-effective solutions. Whether public or private, the best providers must be allowed to set the pace of innovation.

The private sector has delivered these more efficient, better and cheaper prisons through freedom from national workforce regulations as Reform has showed in 'It Can Be Done'. Market facing pay and adaptable staffing arrangements in prisons have not only reduced cost considerably, but also improved staff prisoner relationships and internal cultures within prisons. With personnel costs typically making up at least two-thirds of prison expenditure, these freedoms are essential for achieving more for less in prisons.

The government needs to build on these achievements in privately run prisons by expanding not limiting competition. Market testing prisons would allow the best providers to take over delivery to improve quality and drive down costs. Fixed term contracts would ensure both more meaningful accountability and a more effective focus on outputs across the board.

Put simply, the government cannot afford to close the doors to competition. Contracting prisons has delivered better services at a lower price; the current financial challenge means this transformation in service delivery is more important now than ever.

Twenty years of private prisons has created an effective market which is ready to grow. Only by opening up prison services to greater competition will the government advance the "rehabilitation revolution" which Ministers want to deliver.

 
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This government has made competition a corner stone of its public service reform agenda. As David Cameron said in 2011, "We will create a new presumption...that public services should be open to a ra...
This government has made competition a corner stone of its public service reform agenda. As David Cameron said in 2011, "We will create a new presumption...that public services should be open to a ra...
 
 
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Joe Cottrell-Boyce
11:14 PM on 02/23/2013
A fundamental problem with Reform's analysis is that prisons are not the only factor influencing recidivism. Home Office research has shown that the quality of post-release support has just as significant an impact on re-offending and therefore the performance of - public sector - Probation Trusts must also be taken into account.

Five of the seven private prisons held up for lower than average re-offending rates turn out to be in probation areas with lower than average re-offending; attributing success to an individual prison is problematic.

Within some probation areas private sector prisons are performing significantly worse than comparable public sector institutions. The private male local prison HMP Forest Bank has a re-offending rate of 60.48% amongst short-term prisoners. This is below the national average of 62.33% but significantly higher than HMP Manchester; a public sector male local prison within the same probation area.

Beyond its dodgy re-offending claims, 'The case for private prisons' utilises very selective statistics to support its other key arguments.

The report claims that per-place costs are lower in private sector prisons, again relying on research from 1998. This ignores statistics provided by the National Offender Management Service in 2007 which showed that the per-place costs of private prisons were significantly higher than public sector prisons.

Reform's clumsy, agenda driven research and bad statistics only go to show the inherent weakness of their position.

http://www.huffingtonpost.co.uk/joe-cottrellboyce/against-private-prisons_b_2734193.html
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08:59 PM on 02/23/2013
public safety.........at all cost....no to private prisons....no to private police....no to private army.....no to private firefighters......and a massive big NO to private health care. You can not cut services and if it becomes private, services will be cut.......its all about making money, they wouldn't do it for any other reason.
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07:15 PM on 02/23/2013
"The private sector has delivered these more efficient, better and cheaper prisons through freedom from national workforce regulations"

And that's something to be proud of?
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HUFFPOST SUPER USER
London Diplomat
Diplomacy is worth a fight
12:19 AM on 02/22/2013
An utterly abhorent article - prisons, like other public services, should never have a profit motive. Look over the pond to see what private prisons will do over the long run - the industry has no motivation to prevent reoffending whatsoever.
Secondly, "reducing costs" simple means screwing workers down. "Adaptable staffing" means no job security. Please take a moment there to appreciate the delicious irony!
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Dombeyandson
07:01 PM on 02/21/2013
There is no case for private prisons whatsoever. Being in prison may seem like a holiday hotel for some today BUT it isn't. None should profit from another's mysery. The State should face up to its responsibilites for which we pay to provide community services including the provision of prisons. It is not a matter of making profit
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OH72
06:47 PM on 02/21/2013
Sorry, but would you suggest privatising national defense? I mean, think about it: You hire three different mercenary brigades and after you get overrun by the enemy, you decide who is to blame....

If that doesn't sound too appealing to you, why is competition in other fields of executive power such a great thing?

The problem here is not the least that a key point of "quality" in prison administration is the prevention of recidivism. But you only see how well that works out years after the inmates have been released. Especially with the suggestion of "short term contracts", that will make it nigh impossible to hold those responsible accountable.

What prison privatisation leads to is one or more of three things: a)skimping on security, as it is expensive, b)skimping on recidivism prevention, as it is expensive, c)if holding prisoners is profitable, expect a strong inclination towards corruption not just getting prison contracts, but also prison sentences passed by the courts...
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novelist2000
veritas non olet
02:58 AM on 02/22/2013
It has seriously been suggested in the US to privatize national defence and welfare/social security. Big money looks for profits. After taking over electricity, transport etc. their profits from these ventures seek a home and what better home to look at than public payments, here prisons. But education is on their radar, too.

Filling the private prisons in the US means that you cannot change laws which could reduce the prison population. The author does not have a clue apparently that 'adaptable' staffing, work hours etc makes it impossible for people to buy a house, because they can't get a mortgage, which then affects fhe finance industry, construction etc.

The Americans have already privatised part of their defence, i.e. Blackwater and similar organisations. I watched Louis Theroux's Florida prison docu and thought that the training regime of those who could gain an early release through that, would fit traning for Blackwater - but that was just my thought; he did not say that.
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rudabaga
09:56 PM on 02/26/2013
Correct. Private prison corporation in the U.S. sign contracts that require the government keep them 90% occupied at all time or face penalties. No reason to think they wouldn't have the same requirement in the U.K. Otherwise they cannot guarantee a profit for their shareholders. Also, don't forget, there are very few companies with the capacity to deliver this service and once they get their claws into those lucrative private contracts, even fewer companies can compete in the marketplace so it quickly becomes a monopoly. Then the company can get and do whatever it wants or threaten to close down the prison and there go the jobs, etc. The beauty of private enterprise at work for the public.
06:26 PM on 02/21/2013
Spoken like a spokeswoman for Serco. Those "relationships between prisoners & staff", why are they better ? Well in Scotlands private prisons, it's because the prisoners are running the show.
The profit motive, with target driven policy will lead to no good. Look at the US, people farms.
05:12 PM on 02/21/2013
Maybe we should be allowed to sponsor a prisoner, and receive letters, and updates of their progress?
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novelist2000
veritas non olet
03:01 AM on 02/22/2013
You'd be allowed I think, because there is no law against it, as far as I am aware.
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Bloofer Lady
02:02 PM on 02/21/2013
Because private prisons in the US are working out so well. *sarcasm*
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treborc
once Labour now none voter...
03:21 PM on 02/21/2013
Real Sarcasm, bring the Americans in to run our Prison well why not run our government between Blair and Cameron they may as well
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ideaville
I have sexdaily, I mean dyslexia, Danm!
01:36 PM on 02/21/2013
Prisons in the USA are privatised and the companies that run them squealed with delight when people started getting 40 years for spitting on the side walk. Now that those prisoners are in their 60's, 70's and 80's however, the prisons are looking for a way to release them rather than pay for their escalating healthcare costs. Why do goverments always announces these big plans before asking a broad range of intelligent people "what are the potential problems we couldn't see?"?
06:36 PM on 02/21/2013
I love quoting this, Donald Rumsfelds "unknown, unknowns".
What is known is that the 'Market' isn't suitable for every area in public life.
This seems like one of the more obvious ones.
What next, the private prisons going 50/50 with the old lags on staying out for 6 months, so as to claim the bonus.
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ideaville
I have sexdaily, I mean dyslexia, Danm!
01:30 PM on 02/21/2013
In a country where we let American venture capitalists buy a chain of carehomes, strip all the assets and let the business fail, how would we expect the privitisation of prisons to work? Comet was purchased for £2, the new owners managed to take £49m out of the business as it failed before handing the bill for wages, redundancy and holiday pay to the taxpayer for roughly that amount.
Why don't we allow the crooks who would want to run our prisons for profit to come forward, give them £1m each to go away and leave the prisons in the public sector? It will be cheaper.
Run down houses in Liverpool are being sold for £1 each with the proviso that they are renovated, what do you think the chances are of an unemployed builder being allowed to buy one? If you are an Eton educated property developer though, you are sorted!
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Ian Rennie
It irritates people that I'm a librarian :)
12:45 PM on 02/21/2013
libertarian cobblers based on the false idea that the market always knows best. I want my justice system to be in the business of justice not in turning a profit.
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treborc
once Labour now none voter...
03:22 PM on 02/21/2013
Maybe you and I do, sadly not Politicians.
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mmartini54
Roll on 2015!
12:34 PM on 02/21/2013
Thanks mods, I wondered why my original post wasn't allowed and now I've worked out why. It's a shame we don't get any feedback on disallowed posts, because a lot of us spend time on these posts in good faith and with no intention to insult or create controversy for it's own sake!
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treborc
once Labour now none voter...
03:23 PM on 02/21/2013
I think they work on a percentage, if you post six one of them may be nasty and it might be this one so they ban it.
11:29 PM on 02/21/2013
my best ones I Ctrl+c while they pend.. :) only if it took me a long time to write. so far none have been thrown out, unless it was in reply to a comment that has already been deleted.
But yes, it can take a while to write something succinctly and its upsetting for it to disappear.
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mmartini54
Roll on 2015!
12:24 PM on 02/21/2013
Privatisation is OK if the companies are restricted to niche roles, like the current arrangements with the prisons.

But all the evidence to date indicates that deregulating to the private sector generally is a disaster for social cohesion and efficiency. Some things are just not profitable, and the consumer is always at the bottom of the pile while being told they are 'central' to the process. Whether it's splitting the rail network into regional monopolies who deliver poorly and expensively, G4S fiascos, Southern Cross' tender ministrations to our elderly, PFI making profit from NHS trusts and LEA schools, etc -the result of (often incompetent) government outsourcing is always very expensive for the taxpayer and very lucrative for the private provider.

We now have a government which is dodging it's responsibilities to the people by fragmenting services among myriad private providers like never before. It means ultimately that those responsible for our social welfare are not our elected representatives, but the CEOs, employees and (crucially) shareholders of these private companies.

We'll be clearing up this fiasco for years to come.