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Private jail bosses 'putting profits offshore'

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Private jail bosses 'putting profits offshore'

Post by falkor » Tue May 24, 2011 8:23 am

by Laurie Hanna, Daily Mirror 23/05/2011
PRIVATE jail bosses paid from the public purse are putting profits offshore to avoid tax, MPs will be told this week.

Firms making millions out of the privatisation of British justice are not paying their due, says a Prison Officers’ Association report.

Taxpayers pick up the bills for land and buildings of these jails. But the people running them have parent companies which the POA has traced to tax havens such as Jersey and investment banks.

The report says: “Billions of pounds of taxpayers’ money is being diverted from essential public service provision that could benefit society as a whole.

“Often those that benefit most are registered in tax havens.”

POA general secretary Steve Gillan said it was “a national scandal”. Justice Secretary Ken Clarke recently announced plans to let contractors run large prisons in Birmingham and Doncaster plus ­a new one near Wolverhampton.

They will join 11 jails in England and Wales and four young offender units which are run privately.

The report says: “Making a profit out of incarceration is morally repugnant. Companies have a vested interest in keeping the prison population high to maximise profits.” It says firms have no incentive to go along with Mr Clarke’s “rehab­­ilitation revolution” – aimed at cutting the ­crippling expense of ­prisons by
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