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G4S loses Wolds prison contract G4S loses Wolds prison contract
(35 minutes later)
Private security firm G4S has lost its contract to run Wolds prison in East Yorkshire and failed to win a number of other private jail contracts.Private security firm G4S has lost its contract to run Wolds prison in East Yorkshire and failed to win a number of other private jail contracts.
A report by HM Inspectorate of Prisons in August said HMP Wolds had "clear weaknesses", with poor behaviour and high levels of drug use among inmates.A report by HM Inspectorate of Prisons in August said HMP Wolds had "clear weaknesses", with poor behaviour and high levels of drug use among inmates.
G4S was criticised for its handling of Olympic Games security contract. G4S said it was "disappointed".
G4S said it was "disappointed" by the outcome and would be seeking feedback from the Ministry of Justice. The firm was heavily criticised for its handling of the Olympic Games security contract in the summer, but sources said the jail decision was unrelated.
Two G4S directors resigned in September after a review found the firm had failed to take account of the unique and complex nature of its contract to supply security for the Olympic Games. Two G4S directors resigned in September after a review found the firm had failed to take account of the unique and complex nature of its contract to supply security for the London Games.
The armed forces had to be drafted in when G4S failed to recruit enough staff. Armed forces personnel had to be drafted in when G4S failed to recruit enough staff.
BBC home affairs correspondent Danny Shaw says Ministry of Justice sources have indicated that the failure of G4S to retain its contract to run Wolds prison or win any of the other contracts it had been bidding for was unrelated to problems over the Olympics and was not a "political decision".
Our correspondent says: "They said the bids were determined on a case-by-case basis - and G4S's bids were not 'compelling enough'."
'Package of reforms''Package of reforms'
G4S currently runs six prisons: Altcourse, in Liverpool; Parc in Bridgend; Rye Hill, near Rugby; Birmingham Prison; Oakwood, near Wolverhampton; and Wolds. An MoJ spokeswoman said of the Wolds bid: "Our evaluation has concluded that it would be more beneficial to allow the current contract to expire and the prison to revert to public sector management."
Wolds will return to the public sector when G4S's contract runs out in July.Wolds will return to the public sector when G4S's contract runs out in July.
G4S currently runs six prisons: Altcourse, in Liverpool; Parc in Bridgend; Rye Hill, near Rugby; Birmingham Prison; Oakwood, near Wolverhampton; and Wolds.
G4S said: "As the leading private provider of prison management in the UK, we have 20 years of experience of running prisons for the Ministry of Justice.G4S said: "As the leading private provider of prison management in the UK, we have 20 years of experience of running prisons for the Ministry of Justice.
"Our performance across all six prisons we run has been to a high standard with every aspect of performance either meeting or exceeding the key performance indicators applied by the MoJ."Our performance across all six prisons we run has been to a high standard with every aspect of performance either meeting or exceeding the key performance indicators applied by the MoJ.
"We look forward to discussing the contract award decision with the MoJ within the next few days to determine why we were unsuccessful.""We look forward to discussing the contract award decision with the MoJ within the next few days to determine why we were unsuccessful."
Three companies - Sodexo, Serco and a MTC/Amey consortium - remain in the bidding process for HMP Northumberland - an amalgamation of Castington and Acklington prisons - and Moorland, Hatfield and Lindholme prisons in South Yorkshire. Three companies - Sodexo, Serco and a MTC/Amey consortium - remain in the bidding process for HMP Northumberland - an amalgamation of Castington and Acklington prisons - and Moorland, Hatfield and Lindholme prisons, in South Yorkshire.
Durham jail, Coldingley prison in Surrey and Onley in Warwickshire will remain in the public sector. Durham jail, Coldingley prison in Surrey, and Onley in Warwickshire will remain in the public sector.
The Ministry of Justice says the competition process produced a "compelling package of reforms" which they hope will save £450m over the next six years. The Ministry of Justice said the prisons competition process had produced a "compelling package of reforms" which it hoped would save £450m over the next six years.
Justice Secretary Chris Grayling said: "The cost of running our prisons is too high and must be reduced. We can do this by being more innovative and efficient, and without compromising public safety.Justice Secretary Chris Grayling said: "The cost of running our prisons is too high and must be reduced. We can do this by being more innovative and efficient, and without compromising public safety.
"That is why I have decided to take a new approach to how we compete prison services and reduce unit costs across the prison estate that will lead to better value for the taxpayer, linked to more effective services to reduce reoffending. "That is why I have decided to take a new approach to how we compete prison services and reduce unit costs across the prison estate that will lead to better value for the taxpayer, linked to more effective services to reduce reoffending."
"This is a challenge the public sector must rise to. The approach I am announcing today does not rule out further prison-by-prison competitions in the future." 'National scandal'
Frances Crook, chief executive of the Howard League for Penal Reform, said the government's decision to hand over prisons to the private sector had been "a mistake of Olympic proportions".
She said: "The government will seek to deflect criticism of its prison privatisation programme by excluding G4S from the next stage of the bidding process, but the principle of awarding lucrative contracts to private companies running prisons on the cheap remains unchallenged."
The general secretary of the Public and Commercial Services union, Mark Serwotka, called for an independent review of the private prison system.
He said: "The privatisation of our prison service ought to be a national scandal and that this has happened without any public debate is shameful.
"It is morally reprehensible that companies are profiting from locking people up and we urgently need an independent review to look at the impact on our communities, staff and prisoners."