Why privatisation is a good idea

It is a good idea for a private prison regime with robust contracts.

Judith Collins explains to Richard Harman at Politik:

She’s been back four months and yesterday came one of her first “wins” with the news that the private prisoner operator Serco was to pay the Government $8 million in compensation over it’s after the Department of Corrections had to take over the management of Mt Eden Corrections Facility.

Corrections will continue to manage Mt Eden Corrections Facility with Serco providing personnel at cost until the end of the contract. Serco will make no profit from the arrangement.

She sees this as a vindication of the private public partnership model she so vigorously backed in her first incarnation as Corrections Minister.  

“If things go wrong in the private sector then if we have a strong enough contract we will end up getting paid for it,” she says.

“That’s a confirmation that the contract has ultimately worked.”

Corrections is involving the private sector and non-governmental organisations increasingly in its day to day operations, a move she predictably approves of.

“Corrections doesn’t have to do everything but what they do need to do is be responsible for what’s done.”

Serco breached the contract, therefore Serco has to pay penalties. There are consequences.

Contrast that with state run organisation where no one ever gets held accountable for misdeeds. Civil servants always escape.

With the private sector there are contracts and penalties.


– Politik


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  • Gazza

    OK so lets wait to hear the left-wing spin on that news…..that said congrats to JC on sorting that little mess

  • Ross15

    In contrast the deaths in Corrections run prison since the Serco incident are “swept under the carpet” with no consequences for those involved.

  • herewego

    Why not privatise Corrections – best of both worlds?

    A meaningful outcome based model (and that what public policy is all about) and a financial model that supports the taxpayer get the outcomes we required.

    Better than tinkering around the edges with individual PPPs on individual prisons

    And we can retain ownership of the bricks and mortar.