“The new probation services are supposed to be run on payment by result terms aren't they? And aren't most of them going to be not for profit organisations?”
Well.....first of all G4S overcharged this country by £168 million for tagging, they lost the contract and were barred from bidding for the probation contracts.
Phase 2, G4S gave the MOJ a credit note for the overpayment, they were forgiven and can now get involved in the feeding frenzy that is the Justice system.
payment by results....how do you measure crime? The British crime survey recently reported 150,000 more crimes than were actually recorded by the police, why was that? One of them was embellishing the truth.
secondly, in order to mAke a profit you must cover your costs (without performance bonuses) add in your profit and any extra the government wants to give you is simply a bonus for the share holder. Biggest overhead? "Staff" easiest way to save money reduce staff costs, just like oakwood prison (run by g4s). Net result, extra cost in police time who often attend to resolve the frequent riots, assaults on staff and inmates alike. Why, because they employ untrained, unqualified staff who are stretched beyond breaking point.
Ok let's look at not for profit organisations? The theory is simple, back the not for profit "mutual" but ensure you and your company supply all of the admin staff, the paper, the it equipment and the infra structure at a healthy cost. The mutual pays the bill (to break even on it's agreed budget). The parent company then makes huge profits from the supply contract with the mutual. Why else would private enterprise invest in the new community rehabilitation companies? They are in the business to make money so don't let anyone tell you they are doing this country a favour..
Government rehetoric claims they want innovation, new ways of doing things and private enterprise efficiency. In reality it is an open invitation to government sponsors to carve up 700 million per year in fat juicy MOJ contracts.
Can it get any worse? Oh yes, this government is set to sign those contracts over to the likes of g4s for 10 years, that's 700 billion and the next three governments can't do anything about it even if the Tories are voted out in 2015. Is that constitutional no it is not, is it immoral, I think it is.