Victoria's prison system: Community protection and prisoner welfare

• the establishment, management and security of prisons, and the welfare of prisoners;
• the administration of services related to community-based corrections and for the welfare of offenders; and
• other correctional services.

2.2 This performance audit report addresses matters relating to the first-stated statutory purpose.

2.4 The Government's principal correctional objectives outlined in the policy statement are:

"To protect the community and to encourage offenders to adopt law-abiding lifestyles by:

• containing and supervising offenders in a safe, secure, humane and just manner;
• providing opportunities for rehabilitation; and
• facilitating reparation to the community".

2.5 Elaboration of these 3 means of achieving the principal objectives is presented within the policy statement in the following terms:

"Security, control and supervision

In managing offenders, Correctional Services will:

• control and supervise offenders in a humane and just manner while maximising the protection of the community;
• provide for the personal safety of staff and offenders by providing a correctional environment which aims to protect the physical and emotional wellbeing of individuals; and
• encourage offenders to develop:
  • responsibility for actions they take;
  • values which reinforce law-abiding and non-violent participation in the community;
  • an acceptance of community standards; and
  • a respect for the rights of others.

Rehabilitation opportunities

Correctional Services will provide offenders with opportunities for rehabilitation with the aims of:

• reducing offending behaviour; and
• encouraging offenders to be productive and law-abiding citizens.

In order to achieve these aims, rehabilitation programs will:

• challenge offence-related behaviour;
• encourage responsibility for actions;
• promote self-esteem; and
• develop educational, social and living skills.

In particular, prisoners will be encouraged to participate in rehabilitative programs in order to earn parole.

Reparation to the community

Offenders will be required to work while in prison. Many offenders serving community-based corrections orders are already required to undertake unpaid community work as part of their orders. This emphasis on work provides benefits to the community and facilitates reparation."

2.6 No changes have been made to the core principles underpinning the policy statement in the period since its issue.

2.7 Responsibility for implementation of the Government's policy on correctional services has, since 1992, rested with the Department of Justice. In the period prior to 1992, administration of prisons was undertaken by the Office of Corrections which operated as a separate entity solely responsible for all correctional services. In October 1992, the Office of Corrections was abolished and reconstituted as the Correctional Services Division within the Department of Justice.

2.8 At an Australian Institute of Criminology Conference on 16 and 17 June 1997, the Deputy Secretary (Justice Operations) of the Department of Justice presented a paper entitled Policy Overview and Framework for Prison Privatisation in Victoria, indicating that, after its election in 1992, the Government had identified "... a number of serious, longstanding problems in the correctional system such as:

• high operating costs;
• a declining and inadequate infrastructure;
• poor productivity levels; and
• low levels of accountability".

2.9 Traditionally, all prisons in Victoria were owned and operated by government. However, this situation changed after October 1992 as the Government embarked on a major prison reform program involving as a key element participation by the private sector in the construction, operation and management of prisons.

2.10 In October 1994, the Government introduced to the Parliament amendments to the Corrections Act 1986 which provided for involvement, under contractual agreements, of the private sector in the State's prison system. When presenting the second reading speech of the Bill in the Legislative Assembly, the then Minister for Industry and Employment, who introduced the Bill on behalf of the Minister for Corrections, stated inter alia:

"By the end of 1997 almost half of the Victorian prison population will be managed in prisons that have been financed, designed, built and managed by the private sector. The overall responsibility for the operation of correctional services will however remain with the government".

2.11 This prison population target was subsequently attained in that, by the end of September 1997, approximately 45 per cent of Victoria's prison population resided in 3 privately-operated prisons. These prisons are the Fulham Correctional Centre at Sale, the Port Phillip Prison at Laverton and the Metropolitan Women's Correctional Centre at Deer Park. Information recently provided to audit by the Office of the Correctional Services Commissioner showed that, on 13 April 1999, the private prison population was still approximately 45 per cent of the total prison population.

2.12 The second reading speech for the amendment Bill also addressed some of the benefits anticipated by the Government from the involvement of the private sector. In this regard, the presenting Minister informed the Parliament that:

"The community and prisoners will receive obvious benefits through the provision of new purpose-built facilities which provide additional capacity for prisoner numbers and which will have modern security methods built into their structure. Victorians will also benefit from significant private sector investment in Victoria's infrastructure and the achievement of cost efficiency and effectiveness through the establishment of a real competition in the delivery of correctional services".

2.13 Relevant comment in relation to the attainment of these anticipated benefits is provided within the body of this Report.

Establishment of a Correctional Services Commissioner

2.14 The 1994 legislative amendments also provided for the establishment of a Correctional Services Commissioner within the Department of Justice. Acting under delegation from the Departmental Secretary, the Commissioner was assigned the role of ensuring that the correctional system operates effectively in meeting the Government's requirements for sentence management and the placement and treatment of prisoners. The Commissioner also assumed responsibility for the provision of advice on policy in relation to correctional services.

2.15 On 1 July 1995, the Office of the Correctional Services Commissioner was established as the organisational unit to assist the Commissioner in meeting the responsibilities assigned to the statutory position. The objectives and strategies of this unit as set out in the Department's Annual Report 1996-97 are to:

• "develop and set Statewide standards;
• "undertake strategic planning;
• "manage prisoner sentences, including prisoner assessment, classification and placement;
• "impartially monitor the delivery of correctional services by both public and private providers; and
• "advise the purchaser (the Minister) about the performance of providers and levels of compliance with contractual obligations".

2.16 It can be seen from the above objectives that the role established for the Commissioner in 1995 comprised a combination of standard setting, strategic planning, monitoring and operational responsibilities. The legislative changes introduced by the Government to provide for the involvement of the private sector in the State's prison system specifically identify the important function of the Commissioner in independently monitoring, on behalf of the Government, the quality and consistency of service delivery within all of the State's prisons. The position's role for this aspect of its responsibilities can be equated with that of an industry monitor.

Other changes to correctional services

2.17 Other changes introduced by the Government during the 1990s in relation to the Department's organisational framework for prisons included:

• establishment of the New Prisons Project as a departmental unit to manage the replacement of 3 public prisons (namely, the Coburg Complex, incorporating Pentridge Prison and the Metropolitan Reception Prison, and Fairlea Women's Prison) with 3 modern prisons financed, designed, constructed and operated by the private sector;
• creation of a service agency within the Department known as CORE - the Public Correctional Enterprise, with responsibility for the operation of the 10 remaining public prisons in compliance with the terms of a Framework Agreement; and
• the setting-up of a Corrections Contracts Branch to assist the Deputy Secretary (Justice Operations) of the Department in that position's role as Contract Administrator, providing a management function for the administration of contracts with private prison operators and agreements with CORE.

2.18 In summary, the various reform actions taken by the Government during the 1990s in respect of the prison system have been designed to clearly separate the roles of:

• policy formulation, standard setting and performance monitoring;
• purchasing of services under contractual arrangements or service agreements; and
• the provision of services by both private and public sector prison operators.

2.20 Under current contractual arrangements between the Minister for Corrections and the owners of the 3 private prisons, the owners are obligated to provide prison facilities for a period of 20 years (with provision for extensions within contracts) and prison services for a period of 5 years. The Minister has the option to re-tender for the provision of prison services every 3 years after the initial 5 year period.

2.21 As at 13 April 1999, 2 900 male and female prisoners were in custody in Victoria's prisons, representing an occupancy rate based on permanent capacity of 98.9 per cent.

Profile of prisons

2.22 Table 2A provides a profile of the State's 13 prisons incorporating particular data relating to each prison.

                                 Maximum,    Permanent                     
                                 medium or    capacity                     
                                 minimum      (current                     
Prison               Location    security    populatio Operator            
                                 level              n)                     

                            PUBLIC PRISONS                             

H.M. Melbourne       West        All 3             274 CORE                
Assessment Prison    Melbourne   levels          (263)                     

H.M. Prison Barwon   Lara        Maximum           272 CORE                
                                                 (263)                     

H.M. Prison Ararat   Ararat      Medium            256 CORE                
                                                 (264)                     

H.M. Prison Loddon   Castlemaine Medium/           250 CORE                
                                 Minimum         (261)                     

H.M. Prison          Beechworth  Medium            123 CORE                
Beechworth                                       (118)                     

H.M. Prison Won      Won Wron    Minimum           127 CORE                
Wron                                             (117)                     

H.M. Prison          Via         Minimum           106 CORE                
Dhurringile          Murchison                   (116)                     

H.M. Prison Langi    Trawalla    Minimum      100 (77) CORE                
Kal Kal                                                                    

H.M. Prison Bendigo  Bendigo     Medium        80 (72) CORE                

H.M. Prison          Maldon      Minimum       38 (31) CORE                
Tarrengower                                                                

                           PRIVATE PRISONS                             

Port Phillip Prison  Laverton    All 3             580 Group 4 Correction  
                                 levels          (593) Services Pty Ltd    

Fulham Correctional  West Sale   Medium/           590 Australasian        
Centre                           Minimum         (577) Correctional        
                                                       Management Pty Ltd  

Metropolitan         Deer Park   All 3             135 Corrections         
Women's                          levels          (148) Corporation of      
Correctional Centre                                    Australia Pty Ltd   

2.23 In those prisons where actual population exceeds permanent capacity, the additional accommodation has been provided by way of temporary stretcher beds or mattress places to alleviate capacity pressures in those prisons.

2.24 The combined aggregate permanent prisoner capacity of 1 305 for the 3 new private prisons represented an increase of 6.7 per cent when compared with the combined capacity of the 3 replaced public prisons.