6. What progress he has made on investigating the reported misuse of public money by private contractors who hold contracts with his Department. (900368)

We are in the process of auditing every contract that my Department holds with G4S and Serco. We will not be awarding the companies any new contracts unless or until those audits are completed to our satisfaction. We expect the audits to be completed later in the autumn.

Why will the Minister not publish the PricewaterhouseCoopers report on the activities of G4S before any future Ministry of Justice contracts are awarded?

The hon. Gentleman will be aware that these matters are currently being considered by the Serious Fraud Office. He will therefore understand that it would not be legally appropriate to publish items being considered by the SFO until it has completed its consideration.

My right hon. Friend will be more than aware of the importance of private sector suppliers to the Ministry of Justice in delivering his strategic objectives of greater efficiency and better use of public money. He will also know that those suppliers are responsible for the more efficient and innovative delivery of the whole justice agenda, so will he be sure not to throw the baby out with the bathwater and remember the terrific role that the private sector has played in achieving enormous savings for the taxpayer, which will dwarf any of the issues that he is dealing with? Will he also ensure that no mistakes are made either by the contracting departments in the Ministry of Justice or by the suppliers?

I can give my hon. Friend an assurance on both those points. It is important to remember that, notwithstanding the issues that have arisen, a large number of the people working for private contractors on behalf of the Government are doing a very good job for us. It is ironic that, before the Labour party returned to its socialist roots in the past few weeks, it too used to believe in outsourcing to the private sector. It has clearly changed its mind now; that is all part of the trip back to the days of Michael Foot and Neil Kinnock.

The Lord Chancellor will recall that prison privatisations had to be halted because of the investigations that were taking place into two private sector contractors. Does he recognise that the very small number of private contractors available to take on these major contracts and the limited skills of the civil service to manage those contracts pose a threat to the achievement of his objective of transforming rehabilitation?

It is certainly unwelcome when we have issues with private contractors. I believe that it is important for the Government to broaden their ambit in terms of the organisations that they do business with. There is a large number of organisations out there in the voluntary and private sectors with skills to bring to the Government, and I hope that we can latch on to those skills and make good use of them. It is important for the future of Government contracting that we do not become too dependent on a very small number of suppliers.