Prison Privatisation Report International

No. 73, July 06

Published by the Public Services International Research Unit (PSIRU) University of Greenwich, London, England. 

www.psiru.org/justice

This publication is supported by a grant from the Foundation Open Society Institute.

 

IN THIS ISSUE

 

ISRAEL UNITED STATES UNITED KINGDOM POLAND BELIZE AUSTRALIA  ICPA AND THE PRIVATE SECTOR  

RECENT PUBLICATIONS

 

ISRAEL

Supreme court update

 

The supreme court hearing into whether Israel’s private prison legislation is constitutional or not will take place on 31 August 2006 (see PPRI #72/71-64, etc).

 

Meanwhile, it has emerged that Paul Doucette, vice president of the Association of Private Corrections and Treatment Organisations in the US (APCTO, see below and PPRI #62,56, 54, etc) is managing US firm Emerald Correctional Management’s involvement in the consortium formed to finance, design, build and run  the proposed 800 bed prison at Be’er Sheva.

 

Writing in TheMarker, 29 July 2006, Doucette also said that, Israel’s private prison will have at least ten prison service personnel on site at any one time to monitor contract performance. “The Israeli model is significantly more detailed than any others abroad…it is important to note that Israel deserves appreciation for developing this unique model, much superior to other models in the world,” he said.

 

Missing from Mr Doucette’s description of Israel’s proposed ‘unique model’ are the contract details that reveal how only the least problematic prisoners will be sent to the prison. The private operator will not have to deal with political prisoners, illegal immigrants, those who are mentally or chronically ill or who need continuous medical treatment, those who have spent time in segregation in other prisons, prisoners considered a high risk of escape, women, minors or migrant workers.

 

UNITED STATES

Prison companies on the campaign trail

 

During the 2002 and 2004 election cycles, companies involved in private prisons and those affiliated with them contributed $3.3 million to candidates and state political parties, a new report has found.

 

According to the National Institute of State Money in Politics, while the companies and their officials were working the halls of state capitols to advocate their policy positions, “they also were opening their cheque books during campaign season.”

 

The report found that, “all told, the companies, their executives, directors and lobbyists gave $3.3 million in 44 states between 2000 and 2004  - a figure that includes contributions from not only private-prison firms, but also the investment and construction companies, food service providers, health-care management and counselling services that do business with them.”

 

A closer look at their contributions shows a targeted strategy of giving to candidates most likely to affect the laws and budgets related to corrections, with large portions of their contributions going to winning candidates and those already in office and not up for re-election. The companies also focused much of their giving on legislative candidates, who approve laws and budgets governing corrections in their states.

 

Private-prison interests tended to pick winners, as well as maintain their relationship with incumbents. Nearly $1.8 million of the $2.2 million that private prison interests gave to candidates went to winners or to officer holders who were not running but were raising money for upcoming campaigns.

 

Winners alone received 65 percent of the industry’s contributions, compared with the 12 percent losing candidates received. Incumbent office holders who were not running but were raising money for the next election accounted for another 17 percent of the money private-prison interests gave.

 

Florida led all states in contributions, with candidates and political parties there receiving $647,600, or almost 20 percent of the contributions. Texas and New Jersey followed, with nearly $519,000 and $323,000 in contributions, respectively. Six states received no private-prison contributions: Delaware, Iowa, Nebraska, New Hampshire, North Dakota and South Dakota.

 

Companies favoured states with some of the toughest sentencing laws, particularly those that had enacted legislation to lengthen the sentence given to any offender who was convicted of a felony for the third time. Private-prison interests gave almost $2.1 million in 22 states that had a so-called ‘three-strikes law,’ compared with $1.2 million in 22 states that did not.

 

The authors’ analysis of campaign contributions made to state-level candidates and political parties also reveals that private-prison interests:

 

● gave two-thirds of their money to candidates, who received nearly $2.2 million during the study period. The remainder went to state-level political party committees;

 

● favoured incumbents, both those seeking re-election and those not up for election but raising money for future campaigns. These incumbents received $1.6 million of the $2.2 million given to candidates, while those challenging a seated incumbent received about one-tenth of that amount, at $167,250. Candidates vying for an open seat received $410,830;

 

● backed winners, giving 65 percent of the candidate contributions to winning candidates;

 

● concentrated their giving on legislative candidates who, if elected, act on state budgets and sentencing laws. These candidates received almost half of the money given to candidates - slightly more than $1 million;

 

● gave heavily to gubernatorial candidates, who propose budgets and set policy directions and also have the authority to veto laws passed by the legislature. About $873,300 of the candidate money went to gubernatorial candidates, who have the power to suggest and to support privatization as a way of keeping their states’ budgets in balance;

 

● favoured Republicans, giving 64 percent of the industry’s $3.3 million to Republican candidates and Republican Party committees. 

 

Companies themselves and the lobbyists they hired gave the biggest portions of the funds. The companies gave almost $1.6 million, or 48 percent of the total. Lobbyists gave nearly $1.1 million, or 33 percent. The remainder came from company officials, members of the companies’ boards of directors, construction companies that work on prison projects and firms that subcontract to provide services to private prisons.

 

Lobbyists hired by the private-prison industry were the top contributors in 10 states, and the only source of private-prison money in another seven states.

 

As part of its analysis of private-prison giving, the Institute looked at corrections legislation and budgets in 10 states where contributions were highest or where legislators introduced measures of interest, such as changes to private-prison contracting procedures, private-prison oversight or sentencing laws.

 

Some states have recently begun re-examining their corrections policies as overcrowding and high costs continue.

 

Lawmakers looked at a wide variety of proposals, some of which would have benefited private prisons and others that would have shifted state funds away from them. While the success or failure of the measures can’t be definitively linked to campaign contributions, the companies and their associates typically targeted their contributions to winners and incumbents, to be as effective as possible in supporting their agenda. For example:

 

● in Florida, when the prospect of re-opening bids for the operation of five private prisons surfaced, private-prison vendors lobbied successfully for the elimination of the commission overseeing the bidding process;

 

● in Arizona, the industry contributed to 29 of the 42 members of the committees that heard a 2003 proposal to increase the number of private-prison beds in the state. Those testifying in favour of the bill included a vice president of a private-prison firm that stood to benefit from the original proposal;

 

Colorado had contracted to house out-of-state prisoners from other states to alleviate overcrowding issues in those states. But when faced with its own overcrowding problems, Colorado made plans to prohibit out-of-state prisoners. Pressure from the private-prison industry led to the rejection of the plan;

 

Texas, known for its tough-on-crime attitude, continues to elect and reelect

legislators with that attitude. The industry gave generously to powerful, well-established legislative leaders and members of committees hearing measures affecting sentencing;

 

● in Indiana, shortly after becoming governor, Mitch Daniels looked for

ways to turn government services over to the private sector. Within months, food and nursing services in state prisons were handed over to the private companies, and the state contracted for the first private prison in the state.

 

After taking office, Mississippi Governor Haley Barbour emphasised private prisons as a way of saving money.

 

The companies involved

 

Over the years, key leaders in the arena of prison privatisation have emerged. The Project focused on the seven largest firms in the private-prison industry. Institute staff added four other companies whose names appeared in contribution records. Following is a summary of each of the companies included in this report:

 

Corrections Corporation of America (CCA) -  Headquartered in Nashville, Tennessee,  CCA boasts of being the “founder of the private  corrections industry.” CCA manages “over 50 percent of all beds under contract with private operators in the United States.” Contributions from CCA, its executives, directors, and lobbyists totalled $1.13 million during the study period and spanned 36 states.

 

GEO Group, Inc. - Formerly a unit of Wackenhut Corp. and known as Wackenhut Corrections, GEO Group is headquartered in Boca Raton, Fla. Contributions from GEO Group or its predecessor, Wackenhut Corrections, and their executives, directors and lobbyists totalled $880,261 during the study period in 19 states.

 

Community Corrections Corp. - Headquartered in Roseland, N.J., Community Corrections Corp. operates 18 facilities in seven states. Community Corrections Corp. and founder John J. Clancy gave a combined total $378,750 in six states. The company also does business as Community Education Centers, Inc.

 

Cornell Companies Inc. - Headquartered in Houston, Texas, Cornell currently operates 81 facilities in 17 states and the District of Columbia. Contributions from Cornell Companies, its executives, directors and lobbyists totalled $184,983 in 19 states.

 

Correctional Services Corp. (CSC) -  Acquired by GEO Group in July 2005, CSC was originally headquartered in Sarasota, Florida. Before the acquisition, CSC had 16 facilities with approximately 8,000 beds in six states. Contributions from CSC, its executives, directors and lobbyists totalled $128,390 in seven states during the study period, which concluded before GEO Group purchased the company.

 

CiviGenics - Headquartered in Marlborough, Massachusettes, CiviGenics operates 13 facilities that house more than 3,000 prisoners in 14 states. Contributions from CiviGenics, its executives, directors and lobbyists totaled $82,259 in four states.

 

Management and Training Corp. (MTC) - Headquartered in Centerville, Utah, MTC operates 12 facilities in Arizona, New Mexico, Ohio, Texas, Australia and Canada, with a total of 9,000 beds. Contributions from MTC, its executives, directors and lobbyists totalled $45,101 in six states.

 

Avalon Correctional Services of Oklahoma, Maranatha Private Corrections of California, Minsec Corrections Corp. of Pennsylvania and LCS Corrections Services of Louisiana gave $91,650 combined, with each contributing only in the state in which it is headquartered. In addition, companies that often subcontract with private prisons to provide such services as construction, health care or food services, gave another $313,356 in contributions.

Policy Lockdown: Prison Interests Court Political Players, National Institute On State Money In Politics, April 2006, www.followthemoney.org

 

APCTO moves on Washington

 

The Association of Private Correctional & Treatment Organisations (APCTO), the US private corrections industry’s trade association and lobby group, has moved its headquarters to Washington DC to enhance its role in promoting the industry’s interests (see PPRI #62, 56, 54, 45, 44, etc).

 

The organisation has also appointed former Cornell Companies Inc. vice president Paul Doucette as its executive director. Under his leadership APCTO will focus on:

* increasing federal opportunities for public-private correctional partnerships;

* continuing to provide media, public policy think-tanks and legislators with APCTO’s key messages;

* working with the Congressional Privatisation Caucus;

*co-ordinating joint member efforts on state legislative issues; and

*increasing APCTO’s membership.

 

APCTO has stepped up its media monitoring and is playing an increasingly pro-active role. It has completed an updated press kit promoting its key arguments of cost savings, providing quality services and increased levels of accountability. Its newsletters report that the organisation “monitors the print and electronic media, seeking to inject APCTO key messages into the public debate on private corrections.”

 

APCTO’s website also currently includes ‘leading research and issues papers’ which draws heavily from material produced by APCTO and the industry or free market think tanks that promote privatisation. Of the 13 listed items three are by Geoffrey Segal, the Reason Foundation’s director of government reform; one is by Adrian Moore of the Reason Public Policy Institute; one is by the free market Washington Policy Center; two studies were commissioned by APCTO; one is a paper by a Corrections Corporation of America executive (which in turn, relies on much of the material contained in the APCTO list); one was co-authored by a former Cornell Companies executive and published by the company in 1998; and one was produced by equity analysts at Morgan Lewis Githens & Ahn.

June 2005: 101,228 in private prisons

 

Privately operated prison facilities held 101,228 prisoners or 6.7% of the total prison population as at 30 June 2005 compared to 6.6% at mid-year 2004, according to recent figures published by the Bureau of Justice (see PPRI # 70). Compared to mid-year 2004 the number of prisoners was an increase of 2.7%.  The federal system - which reported the largest increase among prisoners in private prisons, up by 2.038 –along with Texas, Oklahoma and Florida reported the largest number of prisoners in private facilities. Alaska, Hawaii, New Mexico and Wyoming, all western states,  had at least a quarter of their prisoners in private facilities. Since mid-year 2000 the number of prisoners in private prisons has grown from 90,542 (6.7% of the population) to 101,228.

US Department of Justice, Bureau of Justice Statistics Bulletin, Prison and Jail Inmates at Midyear 2005, published May 2006,

www. ojp.usdoj.gov/bjs/abstract/pjim05.htm

■ See also Sexual Violence Reported by Correctional Authorities, 2005. The Bureau of Justice Statistics report published in July 2006 contains figures for public and private prisons.

 

CCA penalised but stock still hot

 

Corrections Corporation of America (CCA) has been penalised $126,000 by the State of Colorado for short-staffing at Kit Carson County and Crowley County prisons. The state waived further fines of $46,000 for a period in October 2005 at the Kit Carson facility on the grounds that it would be unfair to penalise the company just days after a contract was signed in September 2005.  The company was also reprieved $18,000 in fines for Crowley County for October 1005. Following a riot at Crowley County prison in 2004 a state audit found CCA’s staff-to-prisoner ratio was one seventh of a state prison’s at the time. Only 33 uniformed officers were guarding 1,122 prisoners. Both the company and the state claim that staffing levels have since improved.

 

■ CCA runs 63 prison facilities in 19 states and Washington DC with bed capacity for 71,000 prisoners. BusinessWeek online 2 June 2006 reported that CCA’s shares “recently touched a 52-week high of $52.45 and the stock was up 13.6% for the year at the close on June 1. A growing US prison population suggests the Nashville-based company can continue to deliver solid profits.” On 3 May 2006 John Ferguson, CCA’s chief executive told a conference call: “We’ve never seen the wind at our back like it is today.” BusinessWeek online also reported that: “Corrections Corp isn’t the prison industry’s only breakout stock. On June 1, Houston-based Cornell reached a 52-week high of $16.36, up 18.4% on the year, Boca Raton-based Geo Group finished the day at $38.82, up 67.1% on the year but down from a 52-week high of $41.40 reached on May 23.”

 

Youth Services International’s legal settlement

 

The US department of justice and Youth Services International (YSI, see PPRI # 70, 69, 62, 61, 58, 55, 45-42, etc) have resolved a lawsuit against the company arising from alleged failures to provide services to a deaf youth in the company’s care.

 

In 2004 Youth Services International (YSI) paid an undisclosed  civil penalty, compensation for damages and equitable relief to the US and co-damages to the complainant  as a result of the company’s failure to provide specific services to a deaf resident in their care at the Victor Cullen Center, Maryland, between 1999 and 2000.

 

Between 29 August and 2 September 2005 the department conducted compliance reviews at six of the companies’ facilities in Tennessee, Florida, Iowa and South Dakota and found deficiencies in service provision for deaf or hard of hearing residents of YSI juvenile facilities. The company allegedly failed to implement “many other important provisions” of a March 2004 settlement between YSI and the US department of justice. YSI disputed the findings and contentions of the department.

 

However, under a new settlement dated 11 July 2006 YSI must ensure that children who are deaf or hard of hearing are able to fully participate in and benefit from rehabilitation programmes. If YSI complies with all the terms of the agreement the case will be dismissed after three and half years.

 

At the time of the original complaint and lawsuit YSI was owned by Correctional Services Corporation (CSC). In November 2005 CSC was acquired by The GEO Group but YSI was immediately sold on to JFS Development LLC, controlled by James Slattery the former chief executive officer of CSC.

Both settlement agreements can be found at www.ada.gov/ysi2sa.htm

 

Carter Goble: The first 31 years

 

Carter Goble is a company that has played a major role in US and international prison expansion - both public and private - and it celebrates “31 years of service” in October 2006 (see PPRI #72/71, 60 & 48).

 

Now known as Carter Goble Lee, the Columbia, South Carolina-based group of companies offers what it calls “A World of Solutions” including: planning; programme management; facility engineering and maintenance; and architectural design. The CGL companies include Carter Goble Lee, LLC; Carter Goble Associates Inc; CGL Engineering Inc; and CGA Facilities Services Inc. In 2002 the American Correctional Association’s magazine Corrections Today described the creation of Carter Goble Lee as the merging of “two of the nation’s foremost organisations in planning and maintaining criminal justice facilities.”

 

In the 1990s the then Copenhagen-based Group 4 (as was) described Carter Goble as its “associated correctional consultancy company” and had a minority stock holding in Carter Goble. Stephen Carter was, for some years, a director of Group 4 companies in the UK and at least one Group 4 director was a director of CGL International Ltd.

 

CGL’s website lists examples of its “representative prison experience” which includes 86 prison projects for justice agencies in 27 states and the District of Columbia. It also lists more than 260 US local governments, 27 state justice agencies as well as 14 state transit agencies and 10 federal/national agencies that it has worked for. The latter includes the National Institute of Corrections, National Institute of Justice, US Department of Justice, Federal Bureau of Prisons. It also lists the American Correctional Association amongst its clients.

 

In October 2002 the company produced a ten-year adult corrections master plan for the State of Alabama focusing on the “system’s facility needs from 2003 to 2012.”  In Georgia CGL Engineering provides comprehensive facility management services for 25 department of juvenile justice facilities. In Hawaii CGL recently updated the State’s 10 -Year Corrections Master Plan that was originally completed by the company in 1991. The company recommended five new facilities and four expansions by 2008 and two expansions and three new facilities as well as three replacement facilities between 2008 and 2013.

 

The company’s work abroad has included projects in Argentina, Australia, Bermuda, Canada, Israel, New Zealand, Peru, Singapore, South Africa and the United Kingdom.

In 1993 the company developed a strategy for “replacing and expanding existing prisons to serve the Israeli criminal population.”

 

Its involvement in private prison projects includes: Junee Correctional Centre in Australia; New Zealand’s Auckland Remand Centre; a comprehensive prisons system assessment, privatisation feasibility analysis and strategic development plan for the government of Peru (see PPRI # 72/71); facility programming site development and concept designs for two maximum security adult correctional institutions in South Africa ; and The Wolds and Altcourse prisons in England.

Carter Goble Lee, www.cartergoblelee.com

 

UNITED KINGDOM

Boost for private sector

 

The private sector is expected to “take the lead” as 8,000 new prison places are built in England and Wales (see PPRI #70). Following the government’s announcement on 20 July 2006, a home office spokesperson told PPRI that: “Decisions on the location and function of the new places will be determined by greatest need. Where possible, new capacity will be provided in areas of highest demand. Specific sites are still subject to acquisition and planning consent. We expect the private sector to take the lead on the provision of new prisons. Our outline plans are that around half the places will be provided by expanding public sector prisons and half will be provided through the private sector. We expect to publish an estate plan, setting out the details, in the autumn.” There are currently 11 privately run prisons in England and Wales holding around 10% of the prisoner population.

 

Education inadequate

 

“The overall effectiveness of the provision is inadequate,” stated inspectors from the UK’s Adult Learning Inspectorate in their report on G4S- run Parc prison in Wales (see PPRI # 65-63, 60, 56, 48, 44-42, etc).

 

“The prison’s leadership and management are inadequate, as is its approach to equality of opportunity and quality improvement. Training is satisfactory in health, public services and care, ICT, leisure, travel and tourism and arts, media and publishing. Training in engineering and manufacturing technologies and preparation for life and work is inadequate.”

 

Although the inspection team “had some confidence in the reliability of the self-assessment process” they noted that the first self-assessment report in December 2005 “does not effectively use data to support judgements” and that “there is insufficient textual evidence to support the [identified] strengths and weaknesses.”

 

The prison was first inspected by the ALI in September 2002 and re-inspected in September 2004. Inspectors “judged provision to be inadequate to meet the reasonable needs of those receiving it at both inspections.” In May 2005 the prison operator took over responsibility for all education and training from a local college subcontractor.

However “the provider has demonstrated that it has sufficient capacity to make improvements” and following the previous inspection “the prison has made progress in introducing a range of strategies to improve the quality of provision.”

 

The ALI has a grading system ranging from grade 1 – outstanding to grade 4 –inadequate. Parc’s overall effectiveness was grade 4.

 

Other recent reports on private prisons published by the Adult Learning Inspectorate (ALI) this year include Doncaster, Altcourse and Wolds.  At Doncaster, which opened in 1994 (see PPRI #72/71, etc) and is now run by Serco, inspectors found that the overall effectiveness was Grade 3 – satisfactory. “The prison’s leadership and management and arrangements for quality improvement and equality of opportunity are satisfactory. Provision is good in retail and commercial enterprise. It is satisfactory in health, public services and care, engineering and manufacturing technologies, information and communications technology (ICT), arts, media and publishing and preparation for life and work. In construction, planning and the built environment, the provision is inadequate.”

 

The inspectors found that “some areas of learning have insufficient staff. Preparation for life and work is operating with two staff vacancies in significant areas of the provision. Construction has been without a bricklayer for a considerable length of time, although an appointment has very recently been made. All areas of learning have insufficient staff to provide cover arrangements for long- or short-term absence. Contingency arrangements are only sufficient for short-term cover.”

 

They also reported that:  “insufficient vocational, work and education programmes are provided to meet the needs of all offenders. Literacy and numeracy programmes are not supported above level 2, and the programmes offered have waiting lists. The range of arts and ICT programmes available is narrow. Catering learners who work in the main kitchen do not have the opportunity to work towards an NVQ that learners in the vocational training kitchen enjoy.”

 

The inspectors identified Doncaster’s key challenges as:

• introduce more work with accredited training;

further develop the range of courses and progression opportunities for learners;

• ensure regular reinforcement of health and safety;

further develop literacy, numeracy, language and key skills training across the provision;

• implement actions to deal with insufficient staffing;

• maintain and further improve the good standard of teaching and learning;

further improve accommodation and learning environments;

 

A report on GSL-run Altcourse (see PPRI #69, 36, 35, etc) was published in April 2006. Previously inspected in February 2005, the inspectors noted that: “leadership and management, equality of opportunity and its arrangements for quality assurance were satisfactory. Training was good in information and communications technology and satisfactory in engineering, technology and manufacturing, retailing, customer service and transportation, and visual and performing arts and media. In hospitality, sport, leisure and travel, and foundation programmes, the quality of training was unsatisfactory. At the end of the reinspection process, the quality of training in hospitality, sport, leisure and travel is satisfactory and in foundation programmes it is good.”

 

“At the previous inspection, teaching was unsatisfactory. Teaching has now improved

and is satisfactory. Since the previous inspection, a thorough review of all teaching has taken place.”

 

The inspectors also noted that, at the previous inspection, “the range of learning resources was insufficient with learners spending much of their time completing photocopied worksheets. Although some progress has been made with this issue, this still remains a weakness. Learners now have a choice of developing their literacy and numeracy skills by completing a project on a topic of interest to them. However, there is still repetitive use of worksheets. Tutors have developed some innovative learning activities that have included quizzes and game activities and these have helped to develop learners’ literacy and numeracy skills. However, these are not used on a sufficiently frequent basis. Some learners working towards literacy at level 1 and 2 have access to information technology and can use colour and graphics within their learning programme. These facilities are not available to all learners. In some lessons there is more use of video resources in response to learners. requests and plans are being implemented to widen the use of  audiovisual materials.”

 

The ALI ‘s report on Wolds (see PPRI #69, 45, 35, etc), also run by GSL,  was published in February 2006. The inspectors noted: “At the previous inspection in November 2004, leadership and management overall were unsatisfactory. At the end of the re-inspection process all aspects of leadership and management were found to be satisfactory. In the areas of ICT, visual and performing arts and media, and foundation programmes, the satisfactory standards found at the previous inspection are being maintained.”

 

Despite these improvements the inspectors also reported that: “There still remain insufficient work opportunities and accredited training for learners who wish to access employment and gain new skills. Learners have too little appropriately stimulating, purposeful activity and, as a result, many participate in the compulsory education programme reluctantly.”

Inspection Report, HMP & YOI Parc, 13 January 2006, published 30 June 2006, Adult Learning Inspectorate, www.ali.gov.uk Reports on Doncaster, Altcourse, Wolds, Bronzefield (December 2005) and Dovegate (April 2005) as well as a number of publicly-run prisons can also be found at www.ali.gov.uk

 

Private sector pay still inferior

 

Basic grade staff in privately run prisons and immigration centres in England and Wales continue to earn significantly less than their public sector counterparts. But senior officers and directors in the private sector continue to earn significantly more than their (see PPRI #65).

 

The most recent study carried out for the government-appointed Prison Service Pay Review Body found that:

 

● in the private sector, starting pay for operational support grades (OSG) and prison custody officers (PCOs) is seven per cent and eleven per cent less than their public sector counterparts;

 

average basic pay for OSGs is 11% less but PCOs earn 41% less than prison officers in the public sector;

 

differentials for OSGs have halved since 2002 as companies have increased rates;

 

average basic pay for private sector middle managers is 4% higher than public sector principal officers;

 

average basic pay for private prison directors and centre managers is 33% higher than public prison governors. This difference has increased from 29% since 2004;

 

public sector pensions are superior to the private sector. For example, the salary values of pensions for public sector OSGs, prison officers and senior officers are 13.7%, 16.0% and 16.1% more than the private sector.  The contributions for prison service staff give them guaranteed benefits whereas those for most privates sector staff do not. The prison service retirement age is 60 whereas it is 65 for many private sector staff;

 

prison service staff receive an average of around seven more days holiday per year than the average for their private sector counterparts.

 

● All the companies have sick pay schemes but with significantly less generous benefits to those in the prison service;

 

● there are regional variations such as the south of England where PCOs and DCOs receive over £2000 more than their private sector colleagues elsewhere;

 

private companies “all have freedom to gear their pay specifically to the local market in which each prison or centre has to operate. While the prison service does operate a local pay policy in London and the South East, pay is otherwise national.”

 

all the companies determine pay and some aspects of conditions separately for each contract. Most staff, especially up to supervisor level, are recruited locally.

 

● uniformed staff in the prison service are contracted to work an average 39 hour week  on shifts covering 24 hours and seven days. Average weekly working hours for private sector OSGs and PCOs vary between 39 and 44, with most between 39 and 42. One private prison operates an annual hours scheme based on 2132 annual hours (including holidays, equivalent to an average 41 hour week).

 

According to the consultants, the public/private sector differences are explained by the following two principal factors:  “Pay costs are the largest element in the costs of managing a prison or immigration centre. In order to compete successfully to win or retain contracts while remaining profitable, the companies are therefore under sharp pressures to keep pay costs down, while still attracting, retaining and motivating staff.”

 

They also noted that “this is not to say that the prison service is not under any such pressures but there is a wider range of factors that influence pay settlements: for example relativities with other parts of the public sector.” The differences in average pay are also “because prison officers have much greater opportunity for pay progression.” Other findings included:

 

many prison officers have very long experience. By contrast “55% of private sector staff at levels equivalent to OSG, officer and senior officer levels have less than two years service and only 20% more than five years.”

 

formal training arrangements in companies are very similar to those in the prison service. More staff fail to complete their training in the private sector than in the prison service. However, without further research it was not possible to fully answer the question of whether training ... is of comparable quality;

 

resignations of PCO/DCO staff in the private sector averaged 27%, a slight increase over last year’s 25%. The rate of resignations among public sector prison officers was almost unchanged at only 3%. Resignations of OSGs and equivalent averaged 37% of staff in post compared with 7% of OSGs in the prison service.  At supervisor level private sector resignations averaged 16%. The explanation given for the high private sector resignation levels included: the dislike of shift patterns; new recruits finding that the reality of the job is something with which they cannot after all cope; and competition from more highly paid jobs in the prison and probation services where the skills learned by PCO and OSG equivalents are directly relevant.

 

Unlike in previous years all four prison operators - GSL, Serco, UK Detention Services Ltd  and Group 4 Securior -  supplied information for this study.

Privately Managed Custodial Services, Prison Service Pay Review Body, MCG Consulting, September 2005.

 

Money go round

 

Bridgend Custodial Services Ltd, the operator of Parc prison in Wales, made a pre-tax profit of £4.35 million (£3.96m in 2004) on a turnover of £29.64 million (£29.22m) for the financial year ended 30 September 2005.  A dividend of £2 million was paid during the year.

■On 18 July 2006 Swedish construction firm Skanska announced that it was selling its 9% stake in the consortium for £3.8 million, making a capital gain of £2.65 million.  The sale price is more than three times the company’s initial investment and represents an average annual return of 30%.  Parc prison opened in 1997 and was one of the first privately financed, designed, built and operated prisons in the UK. The company’s stake has been bought by the investment fund Innisfree.

Scotland: contract confirmed

 

The Scottish Prison Service has confirmed that Addiewell Prison Ltd has been appointed to finance, design, build and operate a new 700 bed prison in West Lothian (see PPRI # 70). The new company - along with Addiewell Prison (Holdings) Ltd - was incorporated in October 2005 and registered in Scotland. It is owned by Sodexho Investment Services Ltd, Royal Bank Project Investments and Interserve PFI 2005 Ltd. The prison is Scotland’s second private prison and is expected to be fully operational by 2009.

 

POLAND

Prison plans and PPP conference

 

Poland’s prison service is considering fully private or semi-private prisons for new facilities in the next two years. A feasibility study is underway.  Meanwhile, Poland’s largest television network toured a private prison run by US firm Emerald Correctional Management in Texas, according to the Association of Private Correctional & Treatment Organisations (APCTO, see above). APCTO’s May 2006 newsletter reported that “APCTO staff provided an interview … and used the opportunity to discuss the advantages of public-private correctional partnerships.”

 

Warsaw was the venue for MGG’s June 2006 conference on ‘co-operation in public private partnerships’ with a range of speakers from DEPFA Bank, Hochtief PPP Solutions and Polish law firm Wiercinski, Kwiecinski, Baehr. Amongst the topics discussed were amendments to Poland’s PPP Act, ways to overcome legal obstacles to PPPs and EU funding. In September 2006 MGG will hold another event in Warsaw ‘public private partnership - the final legal shape’ with international consultants PricewaterhouseCoopers.

 

BELIZE

Rotarians manage prison

 

The Kolbe Foundation is a not-for-profit organisation that was formed in 2002 specifically to take over the management of the Belize Central Prison in Hattieville under contract from the ministry of home affairs (see PPRI #46).

 

According to its website the Foundation is “made up of a board of directors, primarily drawn from Belize City Rotary Club [which] brings a myriad of skills to the task…” The website also lists many of the Foundation’s achievements in bringing improvements over the last three years, including the development of a ‘supermax’ facility at the prison during 2003-04.

 

Missing from the website, however, is any reference to a report released by the US Department of State on 8 March 2006 which, as well as noting “improvements in the prison system” reported: “During the year there were reports that prison authorities brutalised troublesome prisoners, including placing inmates in a small unlit and unventilated punishment cell called ‘supermax’. Inmates claimed that prison officials sometimes withheld food and water as further punishment, conducted strip searches and beatings, and exhorted money for transfers to better conditions.” However, as the report also notes: “The Kolbe Foundation investigated reports of abuse or excessive force by prison officials. On May 9 the Kolbe Foundation, by means of an internal tribunal, dismissed three senior prison officers, including the chief of security, for alleged brutality and bribery. Matters of inmate-on-inmate abuse were directly turned over to the police.”

Kolbe Foundation www.kolbe.bz/kolbe_foundation.php

Belize - Country Reports on Human Rights Practices-2005, Released by the Bureau of Democracy, Human Rights and Labor, 8 March 2006, www.state.gov/g/drl/rls/hrrpt/2005/61716.htm

 

AUSTRALIA

Queensland re-tenders contracts

 

The Queensland government is calling for tenders for Borallon and Arthur Gorrie Correctional centres, Queensland’s two privately managed prisons (see PPRI # 67,62, 61, 59, 56, 55, etc ). Borallon opened in 1990 and Arthur Gorrie in 1992 and both contracts expire in December 2007. The GEO Group runs the Arthur Gorrie Correctional centre and Management & Training Corporation operate Borallon.

 

Corrections minister Judy Spence announced in July 2006 that: “The tender process is about ensuring value for money in the establishment of new contracts that are aligned with recent changes within Queensland’s corrective services system. The call does not reflect on the performance of the current operators and in fact they will be eligible to participate in the process.” Expressions of interest will close on 31 August 2006.

 

South Australia: no privatisation

 

The recently re-elected Labor government has issued a ‘no privatisations decree’ stating that “there will be no privatisation of State Government assets during the entire term …” The decree was signed by premier Mike Rann on 20 March 2006.

 

ICPA AND THE PRIVATE SECTOR

Focus on developing countries

 

The International Corrections and Prisons Association (ICPA) continues to provide a platform for the private prison industry (see PPRI #60 & 48). At the ICPA’s 2001 conference, the private sector professional group meeting described one of its objectives as “presenting our capabilities without being seen as soliciting contracts,” (see PPRI #48).

 

The ICPA’s last conference took place in Edinburgh, Scotland, between 30 October and 4 November 2005 and opened with a session from private sector contributors. As the ICPA News, March 2006, notes, “this is a ‘first’ for ICPA and offers private sector sponsors the opportunity to outline their work.”

 

Stephen Carter of Carter Goble Lee also chaired a ‘directed discussion session’ on the private sector. The published conference minutes note that “a good mix of public and private sector representatives were in attendance” and that the main discussions for the session “would be on the management of violent offenders and the role of the private sector has to play in this, and how to advance effective interventions in developing countries.” Ironically, “no representatives from developing countries were present within the group” but “there were a number of individuals representing organisations that have had significant dealings with developing country correctional contracts.”

 

The minutes noted that, according to a representative from Serco UK, the company “would not be willing to work in a country or region that could potentially damage their global reputation. It was added that it is important for the private sector to attempt to sell the benefits of effective interventions and the human rights issue in general on an economic basis. It costs less to keep prisoners reasonably content within an establishment than to build a new establishment after fires and riots.”

 

A representative from Group 4 mentioned that: “the organisation has operations in 110 countries worldwide. A quantitative investment appraisal is carried out followed by a qualitative appraisal that considers issues such as the standards of the judiciary, police services, etc, in any particular country … in most circumstances this process ensures they are operating in countries that match their principles and values.” One member of the group said that: “there needs to be different assessment criteria if a contract relates to community corrections rather than prison corrections.”

 

Private sector more influential?

 

It was suggested that: “the experience from the previous [ICPA] conference in Beijing has shown that the private sector can potentially have more influence in some countries than any public sector organisations. In many countries today, the private sector may be the only external link between a developing country and the developed world. It was felt that this gives the private sector a very important role in the development of effective interventions in these developing countries. However, it was added that public influence is still important in many parts of the world. The example of Turkey’s recent application into the European Union is tied closely to their human rights record and attitude to corrections.”

 

The group “saw staff training as a major force for change within developing countries.” One suggestion was “that the UK government could sponsor a delegation from the ICPA to travel to developing countries to attempt to persuade governments that effective interventions are important and in the end represents value for money. It was felt that this is better than financial donations alone.”

 

It was also suggested that healthcare is one issue which unites correctional services throughout the world. It was “highlighted that in many circumstances the private sector can do things that the public sector cannot for political reasons.” Finally, on the issue of how far the private sector should go in developing effective interventions, “it was felt that once within a contract a private contractor could not stray from the customer’s mandate, as there is then a risk of losing the contract in the future. It was generally agreed by the group that this was a major restriction to private sector involvement.”

 

The minutes of the ‘reflection on conference themes’ noted that: “the healthcare provision within private prisons was often superior to that which the offender would meet with outside agencies and that this has proved to be a barrier towards effective interventions in the past.” Another factor influencing effective healthcare is the actual physical state of prisons and “private prisons are generally newer builds and consequently have more modern facilities to utilise than their public sector counterparts who are often restricted by housing offenders in Victorian era prisons and conditions.”

 

“A question was raised in regards to how the private sector can advise developing countries on how to improve their correctional facilities. A view was shared that there is both an uneven economic playing field and significant cultural/political differences in offender rehabilitation in developing countries. These differences may need to be addressed before conducive private sector involvement is effective. A representative from the United States indicated that an organised effort to meet pharmaceutical companies from developing countries may reap some rewards in highlighting healthcare issues within prisons. Perhaps a pilot approach would be beneficial in demonstrating the benefits of such collaboration between agencies.”

 

On the issue of effective management of prisoner populations “it was generally agreed that private prisons should have more input into developing interventions, contributing towards policy and incorporating technological advances into prison management.”

 

“Stephen Carter concluded proceedings with one final question: how could the directed discussion groups, and indeed ICPA conference as a whole be improved?” One suggestion from “a representative from a private firm in England” was that “ policy makers and commissioners should be involved in future meetings as significant power resides in these individuals and it would be an opportunity to educate and communicate.”