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NZ Has Private Sector In New Prison
By radionz.co.nz
Published: 04/14/2010

A new prison planned for South Auckland will be built and run in conjunction with the private sector, the Government has announced.

The Government says there is continued pressure as the number of prisoners is growing and an extra 2,270 beds are needed by 2019.

The 1000-bed prison in Wiri is due to be operational by the end of 2014, with construction work beginning in the second half of 2012.

Infrastructure Minister Bill English says by using private companies, estimated savings of between 10% and 20% can be made over the 25 to 35-year life of the proposed contract.

Mr English says at present, it costs an average of $91,000 to keep a prisoner for a year and the Government needs to look at ways of getting that cost down.

There will be an open tender process, which will begin in the latter part of this year, and a Request for Proposal issued before mid-2011.

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