Clendon David: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeClendon David: Oral Questions — Questions to Ministers[Sitting date: 16 September 2015. Volume:708;Page:6667. Text is incorporated into the Bound Volume.]3.DAVID CLENDON (Green) to the Minister of Corrections: What was the reason for issuing each of the seven performance notices to Serco which were then withdrawn; and what was the dollar amount for each of those notices?Mr SPEAKER: Before I call the Minister my office has been advised this answer may be longer than normal.Hon Peseta SAM LOTU-IIGA (Minister of Corrections): Performance notices can be issued for many different reasons by the Chief Executive of the Department of Corrections under the contract to hold Serco to account for its performance at Mt Eden Corrections Facility. Since the start of the contract 55 notices have been issued for that reason. The seven notices that were issued and then withdrawn were for the following reasons: unlawful detention of a prisoner $25000; adherence to search plans $50000; incident and contingency protocols $50000; compliance with programme delivery plan $50000; compliance with Parole Board reports $50000; rate of serious assaults $50000; and compliance with initial health screening $0. There are serious issues but I am advised that five of the notices were withdrawn because clause 25 of the contract allows Serco to address the issues raised improve its performance and provide mitigating circumstances for the Department of Correction’s consideration. It is then for the chief executive to make a decision on the final outcome of each notice. Five notices were withdrawn as the required improvements had been made one notice was withdrawn as it was an error of the court not Serco and one was withdrawn as it was a duplicate of a previous notice.David Clendon: Does the fact that the Minister when questioned in the House yesterday was not aware of a $100000 penalty that had been withdrawn indicate a dysfunctional relationship between the Minister and the Department of Corrections?Hon Peseta SAM LOTU-IIGA: To the contrary actually because the member is confusing two different issues: that is notices that were issued and withdrawn which I have just alluded to and notices that were upheld but no specific deduction was made. “Written notices” means that Serco provided mitigation information and evidence considered to be robust to support the withdrawal of the notice. The notices that Mr Clendon refers to—the $100000—are performance notices that have been upheld by the department where Serco has been held to account and has rectified the issues and put in place a regime that met the department’s expectations. The two are very separate.David Clendon: Does the Minister then express his support for decisions being made by the Department of Corrections to withdraw financial penalties issued to Serco even where breaches are being upheld; if so why?Hon Peseta SAM LOTU-IIGA: As I have said the contract provides for Serco to mitigate certain circumstances and situations for it to present evidence that is contrary to the breach notice. That is under the contract. I do not as the Minister stipulate what is in that contract. It is there for both parties to meet the terms of that contract.David Clendon: Given that 14 of the 55 performance notices issued have been issued in the last year six of which were upheld how many more breaches does Serco have to be guilty of before a final warning is issued?Hon Peseta SAM LOTU-IIGA: As I have said time and time again in terms of final notices and terminations it is prudent to wait for the investigation that is currently being undertaken by the chief inspectorate.David Clendon: Given that Serco is running Mt Eden prison in order to make a profit why are very serious contract breaches nevertheless being excused and financial penalties withdrawn?Hon Peseta SAM LOTU-IIGA: That is done on a case by case basis by the chief executive. He makes that call. In terms of the contract they must follow clause 25 of the contract and I say to that member that he should go and read clause 25 because clearly he misunderstands it.David Clendon: In light of recent events does the Minister agree with former Minister of Corrections Judith Collins who said in 2010 when Serco won the contract: “I’m confident that the company will bring the high standards of professionalism safety rehabilitation and security expected by the Government to Mt Eden.”?Hon Peseta SAM LOTU-IIGA: I like all Ministers of the Crown have high expectations around contractors that provide services to the Government.David Clendon: I raise a point of order Mr Speaker. I am still unsure from the Minister’s answer whether he agrees with the sentiments expressed in that quotation.Mr SPEAKER: No I thought the answer addressed the question.David Clendon: Does the Minister believe that his performance in managing the many problems at Mt Eden will give the public confidence that our prisons are being managed safely and efficiently?Hon Peseta SAM LOTU-IIGA: Yes. I wish to table a performance notice summary of Mt Eden’s corrections performance notices for all the notices that have been issued.Mr SPEAKER: Is it something that is available to members on the internet?Hon Peseta SAM LOTU-IIGA: No it is not; it is—Mr SPEAKER: Then I will put the leave. Leave is sought to table that particular information. Is there any objection? There is none. It can be tabled.Document by leave laid on the Table of the House.