Safety and cost effectiveness of private prisons

Expected to be tabled in March 2018


Objective To determine whether Victoria’s private prisons are safe and cost-effective.

Issues There are two privately operated full-service prisons in Victoria—Port Phillip Prison and Fulham Correctional Centre. These prisons currently manage approximately 28 per cent of Victoria’s prison population.

Corrections Victoria—part of DJR—is responsible for ensuring the safe and secure management of prisoners. It oversees the private operators and monitors their performance and compliance with the contracts as well as relevant legislation, standards and regulations.

The state has recently extended the full-service prison contracts that have been in place since 1997 for up to a further 20 years, subject to performance. These contracts represent a combined nominal investment by the state of over $4.5 billion over the life of the contracts.

We will use our follow-the-dollar powers under section 15(2) of the Audit Act 1994.

Proposed agencies Corrections Victoria (within DJR) and the Department of Treasury and Finance (DTF).

Associated entities Australasian Correctional Investment Ltd (provision of services at Fulham Correctional Centre) and G4S Correctional Services (Australia) Pty Ltd (provision of services at Port Phillip Prison).