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Dovegate Prison: Fines

Volume 488: debated on Wednesday 25 February 2009

To ask the Secretary of State for Justice what financial penalties the operators of Dovegate prison have incurred in respect of failures to meet contractual obligations in each year since it opened; and in each case (a) what penalty was imposed, (b) when it was imposed and (c) what action was taken to remedy the breach. (257467)

There is a mechanism contained within the Dovegate contract that allows the authority to recover the cost of services which have not been provided but have been agreed by the parties under the terms of contract.

The financial deduction is dealt with under a “performance measure” that means events or circumstances in respect of which there may be a reduction in the amount payable to the contractor. If the contractor fails to achieve the required and previously agreed output then “performance points” are levied. Fines are not imposed on the contractor. Performance points have a financial value which is a pre-estimated loss (between authority and contractor) of services not provided. Any claim for services not provided is deducted from the monthly operating fee invoice.