Victoria's prison system:
Community protection and prisoner welfare

Part 1 Executive Summary
PART 1.1 OVERALL AUDIT CONCLUSION
1.1.1 Traditionally, all prisons in Victoria were owned and operated by government. This situation began to change after October 1992 as the Government embarked upon a major prison reform program involving, as a key element, participation by the private sector in the construction, operation and management of prisons.

1.1.2 In the period since 1992, the Department of Justice has been responsible for overseeing a difficult transitional period as the prison industry moved to reflect a multi-service provider environment. It had the initial task of managing the bidding and selection process for the appointment of successful contractors and then establishing the framework for the development of appropriate contractual arrangements which would enable the introduction of 3 new private prisons within tight time frames.

Well managed bidding and selection process

1.1.3 It is pleasing for audit to report that the bidding and selection process was undertaken in a manner consistent with the Government's Infrastructure Investment Policy for Victoria, and significant attention was directed to probity issues during the process. In addition, a sound documentary trail was available to support decisions reached at each major stage. Need to strengthen independence of Commissioner

1.1.4 Legislative changes passed by the Parliament in 1994 to provide for the involvement of private sector prison operators in the industry clearly articulated the important monitoring responsibilities of the newly-established Correctional Services Commissioner. Within this Report, audit has evaluated the performance of the Commissioner's Office in monitoring prison operations against 7 principal criteria which were formulated in consultation with that Office and prison operators.

1.1.5 The audit examination of the operational environment of the Commissioner's Office identified several elements of this environment which adversely impact on the independence and overall effectiveness of the Office in discharging its key monitoring functions. Audit has concluded that the evolving prison industry, encompassing a mix of State-managed and privately-operated prisons, now requires a regulatory framework which features a truly independent Correctional Services Commissioner.

1.1.6 Two options have been cited by audit in this Report as worthy of consideration for enhancing the independence and operational effectiveness of the Commissioner. Both of these options place the Commissioner at arms-length to the Department. In audit opinion, implementation of either option would enable the Commissioner to operate more effectively as an independent industry monitor. Other avenues for change which might focus on improving the structural position of the Commissioner within the organisational setting of the Department, but not take advantage of an arms-length relationship, are also available for consideration by the Government.

1.1.7 The nature and absolute importance of the Commissioner's role, particularly if it is operating in an independent manner, makes it imperative that the Government is always assured that the Commissioner's Office is effectively resourced to meet its vital statutory responsibilities for the impartial monitoring of industry performance. On the basis of matters raised in this Report, there is great scope to upgrade the resource capability of the Office relating to its monitoring role. A sufficiently resourced and effective industry monitor would be a vital source of independent confirmation to the Government that management of the industry is carried out in a manner conducive to ensuring the safety of the community and the welfare of prisoners.

Real competition is yet to occur

1.1.8 It was the Government's initial intention to present legislation to the Parliament during the 1998 Spring Session which would provide for the corporatisation of CORE, the organisational unit within the Department of Justice responsible for the operation of the State's public prisons. Audit understands that the planned action has been subsequently postponed for consideration by the Government at a later date. It is considered that any action ultimately taken to corporatise CORE would complement the Government's high level aim, as presented in the 1994 second reading speech to the amendment Bill providing for private sector operators, of establishing real competition in the delivery of prison services. Such real competition is yet to occur. In any event, it is critical that CORE is subject to the same monitoring regime and performance expectations and rewards as the private operators and there is a level playing field for assessing the performance of all industry participants.

Service delivery outcomes do not encourage service excellence

1.1.9 The service delivery outcomes set out in contractual agreements, which are used to determine the level of annual performance remuneration paid to private prison operators, are not considered by audit to encourage service excellence. In particular, the outcomes were established on the basis of average, or in some cases less than average, results achieved in the outdated prisons which had been identified for replacement. The outcomes are also primarily quantitative in nature and do not address key areas of qualitative performance such as the results of prisoner rehabilitation programs and the quality of staff training. These shortcomings, coupled with provisions which enable performance remuneration to be paid even where the service delivery outcomes have been only partly met, are not conducive to achieving the improvements in the quality of services which were expected to flow from the establishment of new prisons.

1.1.10 It seems very important at this stage of the industry's evolution that priority be given to expanding the range of service delivery outcomes to encompass qualitative performance measures and establishing a reward system which encourages a high level of service delivery in all key operational areas. The Department will have the opportunity to address this matter at the progressive expiration of the period of each contractual agreement with the private operators and the service agreement with CORE.

1.1.11 Several government agencies such as the Ombudsman, the Department of Human Services and Victoria Police have a responsibility or role within the prison industry. The activities undertaken by these agencies serve to complement the accountability processes embodied in the contractual agreements with prison operators and to give the community confidence in the overall management of the industry. Their existence also demonstrates to the community that, although the Commissioner fulfils the key role in overseeing the activities of the prison system, there are additional avenues in place for individuals to provide input or receive assurance on the safe custody and welfare of prisoners.

Absolute importance of effective prisoner management functions

1.1.12 Part 6 of this Report addresses the prisoner management function which goes to the heart of the Government's principal correctional objectives of protecting the community and encouraging offenders to adopt law-abiding lifestyles. The proper placement of a prisoner during a prison term, effective case management of individual prisoners, and participation by prisoners in relevant and useful programs represent key avenues for providing opportunities for prisoner rehabilitation and facilitating reparation to the community.

1.1.13 A major audit finding arising from examination of the prisoner management function is that the Department needs to adopt more effective long-term planning strategies for the prison system. In the past, strategic planning for prisons has not been well co-ordinated and limited attention has been directed to strategic consideration of the future capacity requirements of the prison system.

1.1.14 This position has restricted the ability of the Department to effectively manage the prisoner management process because the absence of projected numbers of prisoners with particular profiles prevents accurate determination of the nature and level of required accommodation to suit the needs of such profiles. With circumstances such as those experienced currently in the State, where the prison system is operating with capacity pressures, there has been a critical shortage of appropriate accommodation for certain specific categories of prisoners including women and prisoners in need of protection. More recently, the Department has moved through structural changes to upgrade the quality of its overall strategic planning. This action is positive and should encourage better co-ordination of policy and planning issues relating to prisons.

1.1.15 Audit has identified a number of serious deficiencies in the prisoner management process which require remedial action by the Department. Some of the weaknesses cited by audit stem from the absence within Victoria of minimum standards for the case management of individual prisoners. Audit has strongly suggested to the Department that such standards be formulated as a matter of priority. An outworking of such standards should be specification of the manner in which information is to be recorded on individual management plan files so that files consistently represent a well structured record of objectives developed for each prisoner's case plan and the status of progress against those objectives.

1.1.16 On the question of prisoner programs, audit considers that the Commissioner's Office needs to urgently review the nature and quality of programs provided in each prison and to determine whether existing evaluation strategies, both internal and external to prisons, are conducive to adequately measuring the effectiveness of programs. The importance of sufficient attention to program delivery is accentuated by the fact that, if programs are well structured in design and content and adequately address the identified needs of individual prisoners, there is a greater likelihood that some prisoners will successfully rehabilitate and avoid re-entering the system. The resultant benefits to both the community and prisoners are obvious.

1.1.17 A further challenge to the Commissioner's Office in terms of program delivery is that the move towards a competitive environment for the industry has contributed to the isolation of program staff within individual prisons. There is now a reduced opportunity for the sharing of expertise and ideas between prisons and limited integration of programs across the public and private prison operators. The Commissioner's Office has the task of overcoming this problem and engendering to the extent possible among program managers across the system a sense of unity in direction and purpose in case management for prisoners.

Security, catering and health services in prisons

1.1.18 The audit included examination of operational areas of key significance that are not heavily monitored by the Commissioner. In this regard, specialists engaged by audit assessed the appropriateness of security, catering and health care services in 3 private and 3 public prisons.

1.1.19 At the time of audit examination, each prison generally met the audit criteria for the delivery of appropriate security, catering and health care services. However, audit found some issues of a systemic nature together with specific issues relating to the operation of individual prisons that, if addressed, would lead to more effective delivery of prison services and greater alignment with the Government's correctional objectives. Key suggestions for improvement in the 3 operational areas are presented in Part 8 of this Report.

Greater disclosure to Parliament needed in annual reports

1.1.20 The limited range of information dealing with the industry communicated to the Parliament to date in the Department's annual report falls far short of the level necessary to effectively meet its accountability obligations relating to operation of the prison system. It also compares quite unfavourably with the degree of public reporting on prison operations by other Australian jurisdictions. The fact that the operation of the prison system involves annual outlays of taxpayers' funds in excess of $160 million reinforces the importance of appropriate corrective action.

1.1.21 As such, the Department should move to incorporate in future annual reports more extensive information (some suggestions are identified by audit in Part 5) as a key means of discharging the Government's accountability to the Parliament and community for the operation of such a significant State industry.

Overall management direction in the Department is positive

1.1.22 Finally, while a number of important areas requiring attention are identified in this Report, audit considers that the overall management direction for prisons within the Department under the current Secretary is positive. The Department is well placed to implement change in some key strategic areas and further enhance its overall framework for the management and supervision of this major area of government responsibility.

 


PART 1.2 SUMMARY OF MAJOR AUDIT FINDINGS
BIDDING AND SELECTION PROCESS FOR THE 3 NEW PRIVATE PRISONS

MONITORING THE PROVISION OF PRISON SERVICES


PRISONER MANAGEMENT


CONTRACTUAL FRAMEWORK


PRISON SECURITY, CATERING AND HEALTH CARE SERVICES
Prison security

Prison catering

Health care services

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Last updated 27 May, 1999