Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Private prison deal details revealed - finally

18 October 2012

Private prison deal details revealed - finally

The formal tabling in Parliament of a $900 million deal that National has struck with a private sector consortium to build and operate a new 960-bed private prison at Wiri has finally taken place – on the last possible day that it could legally be revealed, Labour’s Justice spokesperson Charles Chauvel says.

“Serco – the consortium member that will operate the prison once it is built - advised the London Stock Exchange on 11 September that it anticipates revenues of just under $30m per year once the prison is built, with revenues before then of around $4m, on the basis of a revenue stream stretching out till 2040.

“An initial perusal of the contract, and a consideration of the business model necessary to run a prison for gain, suggests that much of this income will end up as profit, headed directly offshore.

“Serco has an unsatisfactory record as a private operator of public entities, in New Zealand and elsewhere. As operator of the Mt Eden Remand Centre it has a track record of escapes, bungling and missed performance targets.

“In the UK, its delivery of health services was investigated recently by the health watchdog following allegations that it has been so understaffed as to put patient safety at risk and over admissions that data has been manipulated.

“In Australia, serious concerns have been expressed Serco’s operation of immigration detention centres. It is said that a deliberate policy of short-staffing centres such as Villawood, in Sydney, has exacerbated security and human rights issues encountered there.

“The risks faced by the taxpayer in having a prison built and operated by a private operator, a first for New Zealand, are obvious from these and other overseas examples. Yet National has committed nearly $1billion of taxpayer money over the next 25 years to just such an arrangement.

“All this at a time when there are 1000 surplus beds in the prison system, and where forward projections indicate that the prison population is trending downward.

"National has made a poor decision here, driven more by ideology than by need. The members of the Secure Future Wiri Ltd Consortium need to remain on notice that Labour reserves the right to review the arrangement, with the taxpayers' interests prioritised, when we become Government,” Charles Chauvel said.
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Drone Strikes And Judith Collins‘ Last Stand

The news that a New Zealand citizen was killed last November in a US drone attack in Yemen brings the drones controversy closer to home.

To the US, drones are a legitimate response to the threat posed by the al Qaeda organisation and its franchisees... To the US, the drones carry the added advantage of not putting US troops at risk on the ground, and minimises the need for putting them in large numbers in bases in the countries concerned, always a politically sensitive point.

The counter-argument, well articulated by security analyst Paul Buchanan on RNZ this morning, is that this particular drone attack can be said to amount to an extra-judicial execution of a New Zealand citizen by one of our military allies, in circumstances where the person concerned posed no threat to New Zealand’s domestic security. More>>

 

Parliament Today:

Policies: Labour’s Economic Upgrade For Manufacturing

Labour Leader David Cunliffe has today announced his Economic Upgrade for the manufacturing sector – a plan that will create better jobs and higher wages. More>>

ALSO:

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy. More>>

ALSO:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>

ALSO:

Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>

ALSO:

With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>

ALSO:

Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>

ALSO:

Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>

ALSO:

Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news