Press Release - The Operational Performance of PFI Prisons
18 June 2003
Sir John Bourn, head of the National Audit Office, reported to
Parliament today that the seven operational PFI prisons are
bringing benefits to the Prison Service.
One of the key benefits is that the existence of PFI prisons has
encouraged the public sector to improve its performance. For
instance, Prison Service management teams have recently won
competitions with the private sector for the operation of prisons.
Furthermore, better staff-prisoner relationships in privately
managed prisons have helped the drive to improve decency in
publicly managed prisons.
The best PFI prisons (Parc and Altcourse) performed as well as
the best public prisons (Lancaster Farms and Swansea) while the
worst PFI prison (Ashfield Young Offenders Institution) has been
among the worst in the prison estate. PFI prisons tend to perform
better than public prisons in areas related to decency and the
activities of prisoners, but less well in areas such as safety and
security.
The performance of PFI prisons against their individual
contracts has been mixed. With the exception of Forest Bank, all of
the PFI prisons have incurred financial deductions from contractual
payments for poor performance. These deductions tend to be highest
in the first year of operation and then reduce over subsequent
years. However, in Ashfield's case these deductions have increased
over time. The problems at Ashfield culminated in the Prison
Service taking control of the prison for five months in 2002. It
has since returned Ashfield to Premier, although the prison is
currently operating at only 50% of its capacity.
Sir John Bourn said today:
"The experience of the prison sector shows that the use
of the PFI is neither a guarantee of success nor the cause of
inevitable failure. Like other methods of providing public
services, there are successes and failures and they cannot be
ascribed to a single factor. PFI has brought some results which are
encouraging and some which are disappointing. But what is clear is
that competition has helped to drive up standards and improve
efficiency across the prison system as a whole."
Notes for Editors
- The Prison Service, an executive agency of the Home Office, is
responsible for holding those remanded or sentenced to custody by
the courts in England and Wales. Custodial services are provided in
137 prisons. The Prison Service became an Agency in 1993, and until
recently, it contracted out the management of custodial facilities
under powers conferred on the Home Secretary by the Criminal
Justice Act 1991. In March 2003, this function was transferred to
the Commissioner for Prison Service, a Permanent Secretary in the
Home Office.
- The prison population in England and Wales has increased by 36
per cent since January 1996, when the Prison Service let the first
PFI prison contract. The seven operational PFI prisons (Altcourse,
Ashfield, Dovegate, Forest Bank, Lowdham Grange, Parc, and Ryehill)
now account for about five per cent of the prison estate and hold
5,000 prisoners (around 7% of the total prison population). There
are four private sector contractors: Group 4, Securicor, UKDS and
Premier. Two further PFI prisons (Ashford and Peterborough) are due
to be built (by UKDS).
- Press notices and reports are available from the date of
publication on the NAO website at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 47/03
All enquiries to Mark Strathdene, NAO Press Office:
Tel: 020 7798 7183
Pager: 07699 788580