Offender Management Bill

My Lords, I welcome the concept of having a moral contract; that can be only helpful. I would, however, like to give some examples of the sorts of questions that will have to be dealt with. First, should NGOs—which are by definition non-profit making—be able to include what would otherwise be described as a profit margin to allow for the short length of contracts and to allow them to build up their own legitimate reserves and cope with the possible penalties they may incur as a result of having a contract? Secondly, it will be important for private sector organisations to be able to build into their bid not only fair rates of pay for those who will be working for them but a quality service to the clients or customers of the service, while allowing that the private sector needs ultimately to make a profit. Thirdly, some quite difficult considerations may arise when probation services themselves are bidding.Will they, for example, be obliged not to put in a loss-making bid? Those are examples of the kinds of practical problems that will inevitably occur. The Government may say that they will cover them in guidance, but another way of dealing with them is to have them as footnotes to a model contract.