The benefits of private operators

The left wing moans endlessly about privatising the operation of things like prisons and hospitals but they over look the benefits of the system….like penalising them when things go wrong.

The operator of Mt Eden prison has been fined $150,000 after a prisoner escaped.

The company, Serco, and the Corrections Department have carried out a review of security after notorious inmate Aaron Forden escaped from the prison in the early hours of October 10 last year.

The two groups say both operational security and the physical security of the building infrastructure have now been enhanced.

Department of Corrections Chief Executive Ray Smith says a portion of the payment to Serco for the management of Mount Eden prison is performance-related.

He says it’s appropriate to levy a financial penalty for the escape.

If the state was still operating the prison there would be no penalty and no corresponding incentive to conduct a review and improve security as a result. The problem with the astate operating anything is a complete lack of accountability. Serco has now found out what accountability in the private sector looks like.

There is nothing like a short sharp shock to the bottom line to improve performance.

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