I entirely understand what the hon. Member for Hayes and Harlington is getting at, but I am afraid that I do not dismiss as lightly as the hon. Lady flaws in the proposals that we are being asked to support. If they are flawed, the House should not support them.
Let me reiterate the Government’s commitment to publishing contracts for the delivery of services to low and medium-risk offenders. That includes not just draft contracts, as I have said, but final versions of the future contracts for probation services. I hope that that is some reassurance to the hon. Member for Hayes and Harlington. Likewise, I reassure him that the Government will include within the contracts for rehabilitation services a provision that enables the National Audit Office to access private providers’ records and documents for audit purposes. Of course, the NAO might require access to the community rehabilitation companies’ financial systems when there is a need for public assurance. That will be reflected in the contracts. That also answers the point made by the hon. Member for Hackney South and Shoreditch (Meg Hillier).
The new clauses seek to limit who can bid for contracts by excluding certain organisations. For example, prime providers for the Work programme could be excluded. I am afraid that that would simply reduce the diversity of the market of rehabilitation providers. Many organisations are doing important work within the Work programme, including voluntary organisations working with disabled and disadvantaged people.
The hon. Member for Darlington made a point on fraud, which the new clauses tabled by the hon. Member for Hayes and Harlington address. Let me be clear that the Justice Secretary and I are determined to ensure the integrity of future contracts to deliver value for money for the taxpayer. The Ministry of Justice is currently following a proper procurement process and will do so in future competitions. It is that process that should rightly be used to determine who can bid for contracts and who the future providers of services should be. Procurement law permits consideration of issues that affect a bidder’s eligibility, such as fraud, only at the initial prequalification stage, and not after that stage unless a bidder’s circumstances have changed.
In respect of the current competition to identify the future owners of the 21 CRCs, the prequalification stage was completed in December. Even at that stage, we would not have been legally allowed to exclude a bidder on the grounds that they were under investigation for fraud. The grounds for mandatory exclusion under procurement law are that the bidder has, or any of its directors have, been convicted of fraud. The ongoing investigation by the Serious Fraud Office into the conduct of G4S and Serco—which, I remind the House, this Secretary of State initiated—in delivering the Government’s electronic monitoring contracts would not have provided a legal basis for excluding those organisations from the current competition.
3.45 pm