Media Party, Labour Party and Corrections Union continue their Serco attacks

via RNZ


Serco New Zealand lost $10.5 million last year as the consequences of losing its Mt Eden Prison contract continued to bite.

Accounts filed with the Companies Office show the winding up of the contract that it lost in 2015 cost it a further $3.2m in 2016.

Serco’s finances were also hit by lower revenues, higher staff costs and its first income tax bill in three years.

Revenue for the 12 months to the end of December fell 18 percent to $52.1m, while staff costs increased 9 percent to $43.8m.

This has the Champion for the Criminal, Kelvin Davis, all “upset”. ?

Three years of losses were worrying, Labour corrections spokesperson Kelvin Davis said.

“It means they’re probably going to cut costs and corners when it comes to running the prison… I’ve concerns then for staff safety, I’ve concerns for prisoner safety and the safety of the community.”

Serco New Zealand was two years into a 25-year contract to run the Kohuroa Auckland South Corrections Facility in Wiri, which was jointly owned by InfraRed Capital Partners, John Laing Investments and ACC.

Which means there is a job left undone: ?the final expulsion of Serco. ? Serco is to the prison system what Charter Schools are to education.

Kelvin Davis did a pretty good hit job on Serco in Mt Eden on?Sam Lotu-Iiga’s watch. ?Sadly, Sam was not able to deal with the fallout caused by some intense spin. ?He’s lost his portfolio as a result, but the real victims were Serco.

The winners? ?The Corrections union. ? And Kelvin Davis, who will be rewarded by being out of a job by September 24.