Judith Collins

Wellington, May 11 NZPA - The prison officers' union says 450 Corrections officer jobs are at risk because of a government decision to allow two existing prisons to be privately managed.

Corrections Minister Judith Collins yesterday said the joint Mt Eden-Auckland Central Remand Prison (ACRP) will be put under private management and the successful tenderer will be announced by the end of this year.

Ms Collins said private management was an opportunity to inject new ideas and innovations into the sector to enhance public safety, improve rehabilitation and lower costs.

Corrections Association spokesman Beven Hanlon said the union disagreed that private prisons fostered innovation, saying the international experience did not bear that out and rehabilitation rates were no better.

"If the Government really wants to act in society's interests they would be looking at ways of reducing the numbers of people coming into the criminal justice system rather than increasing the size of the prison estate and creating a long -- term private vested interest in keeping prison populations high."

Mr Hanlon said claims of cheaper running costs, less escapes and better rehabilitation rates were misleading and the move would put 450 jobs at risk.

He said those workers may not be re-hired or face pay cuts.

The Labour Party has also been critical of the move. Its law and order spokesman, Clayton Cosgrove, said last night it was National Party ideology that was driving prison privatisation.

"It is National's mantra that what is private must work better than something run by government employees -- no matter what the evidence says," he said.

"It is a huge insult to Corrections staff and management to imply that they cannot implement new approaches and innovations that proved effective overseas."

Mr Cosgrove disputed the cost factor.

"The last time this happened, when National let a private contract to an Australian company to run Auckland Remand Prison, it cost more per prisoner -- $43,000 -- than the Corrections Department's own operating costs for remand prisoners of $36,000 per inmate," he said.

The decision has been anticipated since the Government passed legislation for the private management of prisons late last year.

"ACRP was under private management between 1999 and 2005 when the Labour government ended the contract on ideological grounds," Ms Collins said.

"In order to have a world class corrections system, we need exposure to world class innovation and expertise."

Ms Collins said contract management was an opportunity to inject new ideas and new innovations into the corrections sector to enhance public safety, improve rehabilitation and lower costs.

"The size and location of Mt Eden-ACRP, as well as the new facilities being built, combine to make this prison an excellent choice for contract management."

The Government last month announced its intention to commission a new prison at Wiri, to be designed, built and operated under a public-private partnership.

Mt Eden Prison was built over 120 years ago and replacement facilities were being built. ACRP, built on the adjoining site, opened about 10 years ago, initially under a contract manager. Although the two have remained as two separate prisons since then, they will be integrated once the replacement facilities are completed.