The New South Wales government has announced that Parklea Correctional Centre will return to public management in October 2026, marking another step in its plan to end the privatisation of prisons.
The move follows the transition of Junee Correctional Centre back to state control, which is set to be completed in April. However, Clarence Correctional Centre—the last remaining privately run prison in NSW—will remain under private management due to the financial burden of terminating its long-term contract.
Premier Chris Minns confirmed on Sunday that while the government is committed to reducing privatisation, breaking the 20-year contract for Clarence Correctional Centre, which was signed in 2020, would not be financially viable.
“We want to ensure taxpayers get value for money, and ripping up that contract isn’t justifiable,” Minns said.
Focus on Rehabilitation Over Profit
Corrections Minister Anoulack Chanthivong said the decision aligns with the government’s election promise to bring public assets back under state control.
“Unlike private operators, Corrective Services NSW doesn’t run on a profit motive. Its focus is on rehabilitation, education, and reducing reoffending,” he said.
The union representing prison staff, the Public Service Association (PSA), has long criticized private prison management, arguing that it prioritizes profits over safety and rehabilitation.
“From the moment Parklea was privatised in 2009, we have campaigned for its return to public hands,” PSA general secretary Stewart Little said. “Privatisation hurts everyone—staff, taxpayers, and the inmates themselves.”
Parklea has faced multiple controversies, including two inmate deaths by suspected suicide last year. The incidents led the Greens to call for urgent reforms to prevent further tragedies.
Rising Prison Population Puts Pressure on System
The NSW prison population has surged, with 1,000 more inmates behind bars since Labor took office. Premier Minns attributed this to stricter bail laws, including tougher conditions for domestic violence offenders and some youth offenders.
“Since Christmas alone, prison numbers have increased by 600,” Little said.
Leon Taylor, acting commissioner for corrective services, said the shift back to public management would help modernize the system amid growing challenges.
“Inmates are arriving in record numbers, often with severe mental health issues, drug addiction, and violent tendencies. This puts immense pressure on the system,” Taylor said.
Despite the government’s decision, MTC Australia—Parklea’s current private operator—expressed disappointment.
“We are proud of the professional service our employees provide,” an MTC spokesperson said.
With Parklea and Junee returning to public hands, the NSW government is reinforcing its commitment to phasing out private prison management—though financial constraints mean full de-privatisation remains out of reach for now.