Ministers urged to act on Yarl's Wood

Detention centres for asylum seekers should return to government control in the wake of the closure of the Yarl's Wood complex, say the Liberal Democrats.

Simon Hughes, the party's home affairs spokesman, argues the move would solve the insurance problems that led to the temporary shutdown of Yarl's Wood on Sunday.

It must be important to get the stock back into use and the places available

Simon Hughes
Lib Dem spokesman

A riot in February led to a fire which caused about £38m damage at the 900-person centre in Clapham, Bedfordshire.

Loss adjusters are believed to have offered a renewed insurance policy which fell short of the estimated damage costs, and to have added restrictive clauses.

Mr Hughes told BBC Radio 4's World At One programme on Tuesday: "It would be better to say asylum and immigration matters should be kept within the public estate, should be dealt with by the public service.

"In that case the consequence follows there is not an insurance issue because it is the government that owns them and runs them and the insurance is as for all government activities and is perfectly secure."

Haste needed

Mr Hughes said an "absolute guarantee" of insurance was essential, especially to reassure nearby residents of the centre.

He urged ministers to put the undamaged part of Yarl's Wood, which had held 84 asylum seekers, back into use "as quickly as possible".

The Lib Dem spokesman said the use of private companies for immigration detention, rather than for running prisons, had never been debated.

The Yarl's Wood problems are a setback for Blunkett's asylum policy

The Group 4 security firm, which runs Yarl's Wood, announced services at the centre were suspended from midnight on Sunday.

The 84 asylum seekers still being held there were transferred to other centres.

A Group 4 spokesman said: "The insurance cover was due for renewal from midnight 31 March.

"The cover that the insurers were prepared to pay was considerably reduced and not considered adequate.

"The contract that Group 4 has with the Home Office stipulates that there must be adequate cover and Group 4 would not run an operation without it."

The centre was considered state-of-the-art

No staff cuts are planned and a skeleton staff will remain on site.

Talks between Group 4 and the Home Office to secure new insurance cover are expected to take place "in the coming weeks," the Group 4 spokesman said.

The Home Office told BBC News Online on Tuesday that it was still in talks with the consortium which includes Group 4.

"I doubt that we would make any further comment until the negotiations have finished," said a spokeswoman.

Two accommodation blocks were destroyed in the fire at Yarl's Wood which was started on 14 February.

The state-of-the-art centre had only been launched in November last year and included healthcare, recreational and religious facilities.

'Thinking the unthinkable'

The Yarl's Wood fire and another at Harmsworth detention centre in west London just days later, have raised the issue of insurance risks.

Malcolm Tarling of the Association of British Insurers said: "Companies will look at the risk they are being asked to insure against and if that risk has grown materially they may feel they are unable to provide cover.

"September 11 meant that companies had to start thinking the unthinkable.

"They will have to look at the chances of a claim arising from fire, damage and take in security and risk management."