It’s a Government objective to use private sector innovation and international experience to improve quality, efficiency and cost-effectiveness across New Zealand’s corrections system.
The contract management of Mt Eden Corrections Facility (MECF), formerly Auckland Central Remand Prison and the newly redeveloped site, is the first practical implementation of this policy. The old Mt Eden prison is being closed down.
The Mt Eden Corrections Facility (MECF) day to day management will be done by a private company (Serco), this is contract management. MECF will still be owned and maintained by the Department of Corrections. The prisoners remain the responsibility of the Chief Executive of the Department of Corrections.
In 2009, Parliament passed the Corrections (Contract Management of Prisons) Amendment Act 2009, which allows private sector organisations to tender for contracts to manage the operation of prisons, on a case-by-case basis.
Contract management of prisons is when private sector organisations competitively tender for contracts to manage the operation of a prison. The prison is operated by an external party, under the terms of a contract with Government, where Corrections remains ultimately responsible to the public and Government.
During January and February 2010, the Department consulted with unions, MEACRP (now MECF) staff, and iwi. All feedback was considered and contributed to a recommendation to the Minister. The decision to contract manage the site was announced by Government in May 2010.
New Zealand has previous experience in contract management. Auckland Central Remand Prison (ACRP) was contract managed from 2000-2005, until the legislation was reversed by the then Government.
In December 2010, the Minister of Corrections announced that global service provision company Serco Asia Pacific had been selected as the contract partner to manage Mt Eden Corrections Facility. Check out the Minister’s media release on the Beehive website.
A robust two stage procurement process (Request for Information and Request for Proposal) was followed, with probity assurance provided by Audit New Zealand.
The contract between the Department of Corrections and Serco to manage the Mount Eden Corrections Facility was signed in January 2011 and was then tabled in Parliament in accordance with the Corrections (Contract Management of Prisons) Amendment Act 2009.
You can request a copy of the contract from commdesk@corrections.govt.nz
New buildings to replace the old Mt Eden prison buildings were completed in March 2011. These buildings were taken over by Serco on 1 April 2011. Serco will make the full transition to managing the whole prison by August 2011.
By July 2011 all the prisoners in old Mt Eden Prison had been transferred to MECF. The old prison will be kept empty, but in a state of readiness - although not staffed - for use as emergency capacity.
Staff at the Mt Eden and ACRP sites were offered first priority to apply for roles with Serco at MECF. The vast majority accepted positions with the contract partner and began transferring to new employment with Serco from April 2011.
The Department ran a re-assignment process for staff who did not take jobs with Serco, to fill suitable vacant positions at other Corrections sites in the area.
It was always a key priority of the Department that as many staff as possible would remain in employment. This objective has been met, with all staff who wanted employment either with Serco or the Department being offered roles.
The old Mt Eden Prison is no longer in operation.Originally it was planned to de-commission the old Mt Eden prison. This historic site has been operating as a prison for more than 100 years. However, due to the earthquake in Christchurch, it was decided that old Mt Eden would be decoupled and remain under Department of Corrections management until such time as all prisoners have been moved out of the site either to the new facilities or elsewhere within Prisons Services. Mt Eden will then be kept in a state of readiness to provide emergency capacity if necessary.
Tthere are no longer any prisoners in the old Mt Eden prison.
Read the history of Mt Eden Prison.
Read the fact sheet on Mt Eden Corrections Facility.
It is Government policy to use private sector innovation as well as international experience in running prisons, to improve the quality, efficiency and cost effectiveness of prisons, and to share improvements across the corrections system. In order to have a world-class corrections system, we need exposure to world-class innovation and expertise.
What the Department is seeking here is different compared to other correctional jurisdictions worldwide. Achievement against these expectations will enable the Department of Corrections and Serco to deliver world class – potentially world leading – custodial services that will have significant flow on benefits for the community.
The contract provides an opportunity to inject new ideas and new innovations into the corrections sector to enhance public safety, improve rehabilitation and lower costs. The move to contract management is about improving performance across the Department and delivering value for money.
We expect the successful partnership to leverage Serco’s international experience to provide better outcomes for prisoners and real potential to reduce re-offending. The Department will measure performance based on reductions in re-offending from the third year of the contract onwards.
Reducing re-offending and improving outcomes for M?ori prisoners is a key goal for the Department. Maori make up over half of all offenders, and for the corrections system to succeed overall it must succeed with Maori offenders. Serco will drive a high level of engagement with the community overall and with Maori stakeholders specifically.
It is the philosophy of the Department that unless we succeed for Maori, we do not succeed at all.
While Serco will be operating MECF with their own employees, the prisoners remain the responsibility of the Chief Executive of the Department of Corrections. Serco will work with the wider Justice sector, eg. courts and parole services, in the same way that publicly run prisons do. Contract management means that Serco’s management of the site is an addition to the wider corrections system.
Equally, even though Serco and its employees are not working for the Department, under contract management of the prison they will still be an important part of New Zealand’s corrections system and will continue to contribute to the core goals of ensuring public safety and reducing re-offending.
The safety of the public and staff is our priority and the contract with Serco requires that they meet at least the same standards as the public prisons sites. Serco are also required to comply with all New Zealand legislation including the Health and Safety and Employment legislation. The legislation that provides for contract management of prisons specifically requires that any contract manager has a suitable number of staff.
Serco is currently one of the world’s leading service companies providing a range of services from management of facilities, projects and IT systems, through to the creation of entirely new businesses. The company’s vision is to be the “world’s greatest service company”. Serco was recently voted Britain’s second most admired companies – against 230 other nominated companies.
In terms of custodial services Serco operates four adult prisons in the UK (under contract to the Ministry of Justice’s National Offender Management Service and the Scottish Prison Service). Serco also runs two youth offender facilities in the UK. In addition, Serco operate two prisons in Australia (Acacia Prison in Western Australia and Borallon Correctional Centre in Queensland). Serco also manages nine immigration detention facilities in Australia.
| Action | Date |
| Serco takes full responsibility for site | August 2011 |
| Handover of ACRP to Serco | 1 May 2011 |
| Handover of new buildings at MECF to Serco | 1 April 2011 |
| Department and Serco sign contract | January 2011 |
| Serco announced as successful contract partner | December 2010 |
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