NZ’s First PPP Prison To Be Built At Wiri

The Government intends to commission a new prison at Wiri that will be designed, built and operated under a public-private partnership, Infrastructure Minister Bill English and Corrections Minister Judith Collins announced today.

The approximately 1000-bed male prison on land owned by the Department of Corrections at Wiri in South Auckland is subject to consents and the successful completion of an open tender process. It will be the first PPP undertaken by this Government.

Mr English said the Government was open to greater use of private sector expertise if it delivered enhanced services and better value for taxpayers.

"Appropriate use of public-private partnerships can introduce new design, financing, maintenance and operating techniques that provide better services and value to taxpayers,” Mr English said.

"International experience suggests that building a new prison at Wiri using a public-private partnership will offer savings of between 10 and 20 percent over conventional methods over the 25 to 35-year life of the proposed contract.

"Those are substantial gains that will leave more money available for other vital infrastructure priorities like schools, hospitals and roads.

"Raising productivity in the public sector – including through better procurement and management of major assets – is an important part of our economic plan.

"This Government has provided a big infrastructure funding boost, but we are committed to spending that money wisely in all areas, including Corrections.

Ms Collins said an additional 2270 prison beds were needed by 2019 to cope with forecast growth in prisoner numbers and the need to replace ageing existing prisons.

“In order to have a world-class corrections system, we need exposure to world-class innovation and expertise,” Ms Collins said.

“A custodial PPP is an opportunity to inject new ideas and new innovations into the corrections sector to enhance public safety, improve rehabilitation and lower costs.

“Currently it costs an average of $91,000 to keep a prisoner for a year. I think that we owe it to taxpayers to actively find ways of reducing those costs while improving standards and security across the board.”

The proposed prison will operate within the current Corrections framework. All prisoners will remain the responsibility of the Chief Executive of the Department of Corrections.

The prison will have to comply with all relevant New Zealand legislation and international obligations.

Prisoners will still have the right to complain to the Office of the Ombudsmen. The Office of the Auditor-General can at any time, investigate the way Corrections is managing its prison management contract.

The Government is committed to a strong focus on rehabilitation and reintegration of Maori offenders.

“I would expect that the successful private provider will include Maori representation and/or Maori-specific services such as rehabilitative programmes,” Ms Collins said.

A range of PPP models were explored by the Government. A custodial PPP, in which the private sector designs, builds, finances, maintains and operates the new prison, was found to deliver the best relative value for money.

Public consultation will begin shortly on resource consents. The tender process will begin before the end of the year and the prison is expected to be operational by the end of 2014.

ENDS

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