Nicholas Soames: To ask the Secretary of State for Justice when he obtained clearance from the European Commission for his Department to retain a golden share in each Community Rehabilitation Company. [198933]

Jeremy Wright, Parliamentary Under-Secretary of State, Minister for Prisons and Rehabilitation: On 19 September last year the Government launched the competition to find the future owners of the community rehabilitation companies (CRCs) who will deliver rehabilitation services in England and Wales. The European Commission does not operate a process whereby member states are required to seek clearance in order to retain special shares in a company, and instead the onus is on individual states to ensure they are operating in accordance with the law. The Department is satisfied that it is in full compliance with European law on retaining a special share within each of the new CRCs. The Transforming Rehabilitation competition will continue through 2014 with contracts being awarded and mobilised by 2015.

Nicholas Soames: To ask the Secretary of State for Justice (1) if he will place a limit on the number of the Community Rehabilitation Companies that a single external provider may control; and if he will make a statement; [198977]

(2) when he expects to transfer (a) the first and (b) the last Community Rehabilitation Company to an external provider. [198932]

Jeremy Wright, Parliamentary Under-Secretary of State, Minister for Prisons and Rehabilitation: The Transforming Rehabilitation programme is opening up the market to a diverse range of new providers, so that we can harness the best that the private and voluntary sectors has to offer to reduce reoffending. In mid December 2013, the bidders who passed the first stage of the competition to bid for the rehabilitation contracts were announced. The list includes a mix of private and voluntary sector partnerships with more than 50 organisations represented. We expect to announce the winners of these contracts by the end of 2014 and are committed to the roll out of payment by results by 2015.

The Government has been clear that we want to see a diverse market delivering probation services, rather than being dominated by just a few providers. We have set a market share restriction whereby bidders can win a maximum of 25% of market share based on the indicative contract values set out in the competition documentation. Bidders will be allowed to win multiple contracts up to the point at which their market share cap would be breached subject to meeting any other requirements set out by the authority.

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