European Master's Degree in Human Rights and Democratisation OUTSOURCING RESPONSIBILITY: A case Study of Australia's Practice of Outsourcing Immigration Detention Centres MARCO ANTONIO BLANCO SMITH Supervisor Peter Vedel Kessing, PhD The Danish Institute of Human Rights University of Southern Denmark Academic Year 2010 – 2011 1 ABSTRACT Privatisation processes, including outsourcing arrangements are altering the very conception of governance. The drive to privatise is advocated as streamlining governance, by making it more cost efficient, creating more choice and encouraging competition. However, other voices warn that privatisation and outsourcing leads to a lack of transparency and accountability which ultimately fosters environments conducive to violating human rights. Since the inception of private actors gaining control of Immigration Detention Centres in Australia, there has been consistent calls for the State to retake control and management. In 2009 the Australian government claimed that it was not in a position to return Immigration Detention Centres to State control, due to the inability of the public sector to provide detention services. Also it was claimed that the State would be to exposured to compensation claims by private actors who had already commenced tendering to provide immigration services. This raises concerning questions about the government's capacity to protect asylum seekers and whether the State has become overly reliant on the private sector to provide governmental functions. This thesis focuses on outsourcing arrangements regarding Immigration Detention Centres involving Australia, within Australian and extraterritorially and seeks establish as to whether the State can be attributed responsibility for the actions of private actors and International Organisations. 2 I would like to thank: Peter Vedel Kessing For your support, patience and willingness to assist me at all times. Eva-Maria Larssen and Lone Groth-Rasmussen For providing me with a fantastic working environment; For allowing us to experience how human rights is implemented in practice at the inspiring Danish Institute of Human Rights. Andrew For being a great flatmate and friend. Fanny and Peter For putting up with me, sharing many good times and enhancing my experience in Copenhagen. Elettra For energising me with your beautiful smile. My Family Papa, Marisha, Carlos and Ricardo for all your love. Mum As always, everything worthwhile in my life is dedicated to you. 3 Table of Contents INTRODUCTION.............................................................................................................7 Research Question........................................................................................................8 Relevance of Topic........................................................................................................8 Methodology.................................................................................................................9 Current Literature........................................................................................................11 Scope of Thesis...........................................................................................................12 Outline of Thesis.........................................................................................................12 CHAPTER 1....................................................................................................................14 1 Outline of Chapter...................................................................................................14 PART A.......................................................................................................................15 2 Definitions...............................................................................................................15 Privatisation............................................................................................................15 Outsourcing.......................................................................................................15 3 Neo-liberalism and Privatisation Processes...........................................................16 4 Global overview of privatised/outsourced IDCs.....................................................17 5 Outsourcing Migration Detention in Australia ......................................................18 6 History of Outsourcing IDCs in Australia 1997 - 2009..........................................19 6.1 Australasian Correctional Management (ACM) 1997 – 2003........................19 ACM: Concerns and Criticisms....................................................................20 6.2 Global Solutions Limited (GSL) 2003 - 2009.................................................21 GSL: Concerns and Criticisms.....................................................................22 6.3 A New Direction?............................................................................................23 6.4 Key Immigration Values..................................................................................24 6.5 Lock in Effects ...............................................................................................25 7 Serco 2009 - Current...............................................................................................26 Contract Details ...........................................................................................27 Licence Agreement ......................................................................................27 7.1 Serco: General Concerns and Criticisms.........................................................28 Breaches of Contract ....................................................................................28 Serco Staff and confidentiality agreements..................................................29 Lack of training for Staff..............................................................................30 Serco and subcontractors..............................................................................31 8 DIAC.......................................................................................................................31 8.1 DIAC - General Concerns and Criticisms.......................................................32 8.2 Human Rights Concerns................................................................................33 4 8.3 DIAC's Response to crticism..........................................................................38 8.4 Civil Society Concerns ..................................................................................39 Transparency and Visibility ...................................................................................39 9 Summary of section ...............................................................................................40 Outsourcing Immigration Detention Centres and State responsibility.........................42 10 Outline of section..................................................................................................42 11 Private actors exercising governmental authority..........................................42 ARTICLE 5..........................................................................................................42 11.1 Analysis of Article 5 and commentary........................................................42 11.2 Travaux Préparatoires...................................................................................44 11.3 International case law..................................................................................44 11.4 Application to Serco.....................................................................................46 12 Private conduct authorised, directed or controlled by a State ..........................48 ARTICLE 8........................................................................................................48 12.1 Analysis of Article 8 and State Responsibility.............................................49 12.2 Travaux Préparatoires....................................................................................49 12.3 International case law..................................................................................50 13 Due Diligence and Indirect State Responsibility for conduct of private actors .....................................................................................................................................51 13.1 Outline of section........................................................................................51 13.2 General International case law ....................................................................52 13.3 Human Rights Jurisprudence.......................................................................52 14 Summary of Chapter 1..........................................................................................54 CHAPTER 2....................................................................................................................56 1 Outline of Chapter...................................................................................................56 PART A.......................................................................................................................57 2 Definition................................................................................................................57 3 Background into Extra-territorial Processing.........................................................57 3.1 Extra-territorial