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Wednesday, September 14, 2011

Private prison costs more than public prison - you've been duped again sleepy hobbits

Prison costs reach $21m before start
The Government will spend $11 million on consultants and $10 million on internal costs before they start building a new prison in Auckland.

Department of Corrections documents released under the Official Information Act show it is already employing 18 companies, including accounting firm PricewaterhouseCoopers and British lawyers Allen & Overy, to help oversee the deal.

The 960-bed prison will be a public private partnership (PPP), in which a private company pays for, builds and runs the facility.

The Corrections Department's own analysis say this may cost more than a publicly owned prison.

Private Prisons costing more than public prisons, which is funny because we were all promised the free market version that makes corporate profit from incarceration would be cheaper.

News this week that the 960 bed private prison at Wiri had now spent so much on corporate consultants, it's now more expensive than a publicly built prison. What's the point of building a private prison where corporations make a profit from incarcerating NZers if it's more expensive than a publicly built one?

We shouldn't be surprised that the facade of private prisons being cheaper is falling over before the bloody thing is even built, because at the select committee meeting into private prisons, the CEO of GEO told the select committee that his private prison industry wouldn't save the Government money.

Our prison system works as well as our train system.

You've been duped again sleepy hobbits.



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