A group protesting the sale of prisons to private ownership outside Parliament. Pic: NZPA

Wellington, Feb 9 NZPA - Prison guards who don't want to work in private jails won't have to, Corrections Minister Judith Collins says.

A burgeoning prison population meant prison guards would be in demand, she told reporters today following a protest this morning.

The Public Service Association (PSA) and Corrections Association held a protest at Parliament against privately run prisons.

A bill allowing the privatisation of prisons was passed under urgency in November and Mrs Collins has earmarked Auckland's Mt Eden Prison and one being built at Wiri in south Auckland for such measures.

PSA assistant national secretary Jeff Osborne, Corrections Association president Bevan Hanlon and opposition MPs told a small crowd of people wearing Judith Collins masks that private prisons were more expensive to the taxpayer and led to reduced service as costs were gradually cut to increase profits.

Mr Osborne said figures from the Corrections Department showed operating costs for the Australian company that managed Auckland Remand Prison from 2000 to 2005 were $43,000 per inmate -- $7000 more than the Corrections Department costs per remand prisoner.

Mr Hanlon said if Mt Eden was privatised 450 jobs would be put on the line, and most of those lucky enough to apply for and retain work in a private capacity would have their wages significantly reduced.

He said Corrections was not allowed to contract for the running of prisons in a private capacity and any profits would go to offshore companies.

Labour Party corrections spokesman Clayton Cosgrove said running prisons was a core state responsibility and transferring that to the private sector was a "cop-out", not cost effective and a slap in the face for prison officers who did one of the toughest jobs in the country.

A big concern was that the accountability faced by the public sector in the management of prisons would disappear under a private agreement.

Mrs Collins said the unions presented partial and incorrect information about the costs, and the comparison with ACRP was inaccurate.

If guards were worried conditions would not be as good as the two private prisons they could work for one of the other 20 prisons in the country, she said.

"Unfortunately in the Corrections area we are actually a growth industry... There will be plenty of jobs with our increased prison population for people who don't wish to work in the private sector. I am not sure why anyone would need to be that worried about it."

As of Monday there were 8385 people detained in prisons, court cells and police cells. That was an increase of 74 people from a week ago. The Monday figure was 135 below Corrections' all time high of 8520 on Monday October 19 2009.

Mel Smith, Ombudsman from 2002-2007, had oversight of prisons including the ACRP.

He said there appeared to be a misunderstanding that there was a separate system for private prisons when they came under the same controls as publicly run jails.

He said the Corrections chief executive would appoint a monitor stationed in the private prisons to ensure requirements and standards were met.

"There is nothing in terms of the management of the prison that is somehow or other lesser than that in place for other prisons in the public system," he said.

Mrs Collins said the contract with the private provider would be tabled and the chief executive would be held responsible by Parliament.

She said it was healthy to have a mix of private and public prisons. Private prisons led to innovation in the public sector.

"It would be a bonus to have a saving but basically it's really about innovation and opening the prisons up to new ideas."