A significant shift in the management of New South Wales’s correctional facilities is underway as the state government moves to reclaim control of its prisons from private operators. This decision aligns with Labor’s election promise to wind back the privatization of public assets, marking a turning point in the debate over the effectiveness of private prison management.
The Minister for Corrections, Anoulack Chanthivong, announced the end of the contract with MTC Australia, a subsidiary of a controversial American private prison operator, to manage the Parklea Correctional Centre. This transition will be completed by October 2026 and follows a similar move with the Junee Correctional Centre, which is set to be returned to public hands in April. The decision reflects a broader ideological shift away from the “prison for profit” model, which critics argue prioritizes profits over rehabilitation and staff well-being.
The shift back to public management is hailed as a victory for the public service union, the PSA, which has long argued that privatization has had detrimental effects on both the prison staff and the inmates. Starting with the privatization of Parklea in 2009, the union and other critical voices have raised concerns over safety standards, rehabilitation outcomes, and the cost to taxpayers. The death of two inmates in a suspected double suicide at Parklea in early 2024 highlighted these concerns, leading to calls for urgent reform.
Despite the positive reception, the transition is not without its challenges. The state government is not planning to bring back the third privately-run prison, Clarence Correctional Centre, due to the financial implications of ending the contract. This decision underscores the complexity of unwinding years of privatization policies without incurring substantial costs or service disruptions.
Premier Chris Minns framed the decision as a recommitment to rebuilding essential services in NSW, emphasizing the stability it offers frontline staff. The end of the contract with MTC Australia marks the beginning of a new chapter in the state’s approach to corrections, one that prioritizes rehabilitation over profit, aiming for better outcomes for inmates, staff, and the wider community.
Source: https://www.theguardian.com/australia-news/2025/mar/02/parklea-correctional-centre-to-return-to-public-hands-as-nsw-reverses-failed-prison-for-profit-model
