New prison’s economic impact outlined

A proposed 960-bed public-private partnership prison at Wiri in South Auckland will create about $1.2 billion in economic benefits to the Auckland region over 30 years, Corrections Minister Judith Collins said today.

Speaking to the Rotary Club of Auckland, Ms Collins said an additional 2270 additional prison beds will be needed throughout the country by 2019 to cope with forecast growth in prisoner numbers and the need to replace prison cells that are old and run-down.

In April the Government announced that it intended to commission a new prison on land owned by the Department of Corrections next to Auckland Region Women’s Corrections Facility where it will be close to where staff and families live, and close to where services and rehabilitation are available.

The prison would be the first in New Zealand to be designed, built and operated under a public-private partnership.

“As Minister, I’d like nothing better than to see levels of crime drop, and fewer prisoners being sent to Corrections by the courts,” Ms Collins said.

“The Police and Corrections are doing a lot of work to bring down crime, but in the meantime we have a record number of prisoners behind bars in this country and that number is forecast to keep growing.”

Ms Collins said that an economic impact report commissioned by the Department of Corrections found that during construction – which is expected to be between 2010 and 2014 - it is anticipated that the proposed Wiri prison would sustain approximately 1,900 fulltime jobs in the Auckland region, or an average of 380 jobs a year.

“In total, the construction and maintenance of the prison will inject $101.6 million in wages and salaries for construction sector workers over the lifetime of the prison.

“Corrections estimates that the facility will employ approximately 384 custodial staff, 144 prison support staff and around 115 non-prison staff for a total of 643 workers, primarily in Manukau City. The annual wage bill is expected to be $41.8 million annually.

“In addition to what is spent on wages and salaries, the prison will buy goods and services from local businesses. Even in circumstances where Corrections has national agreements with suppliers, much of what a prison needs day-to-day is bought locally.

“All up, the added value the prison is likely to generate to the Auckland region over its 30-year lifespan is approximately $1.2 billion.”

ENDS

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