Corrections' regional prisons programme, which will see four new prisons built to meet a forecast increase in the prison population, is the subject of ongoing discussion between Corrections and Treasury.
According to the latest Ministry of Justice forecasts, by 2007 there will be 20 percent more people in prison than there are now. More prison beds are needed to manage this increase, says Corrections' Chief Executive, Mark Byers.
These comments follow the release of two Treasury reports from late last year, which discuss the need for options to accommodate the increasing prison population.
After considering options, which included expanding existing prisons and building larger sized prisons, plans have been underway since 1997 to build four new facilities: Northland Region Corrections Facility (currently under construction) and Auckland Women's, Spring Hill and Otago facilities.
Mr Byers confirms that the options for housing inmates beyond 2008 would be reviewed by Corrections, in consultation with Treasury.
"As with any strategy that is eight years old, we agree with Treasury that the regional prison policy should be tested and validated to ensure it still meets the country's needs," he says.
"However, it's important to consider the Treasury reports in context," says Mr Byers. "We're experts in prison management and are well placed to give recommendations on the best way to manage inmates. New Zealand prisons are among the most efficient in the world, with the cost per inmate being less than other countries that we compare our performance against including Canada, Australia, England and Wales.
"We are confident that what we are doing now, and the way we are doing it, is up to standard. The ongoing discussion ensures that decisions about funding are transparent.
"We will continue to work with Treasury to provide information and analysis to aid decision-making. Both organisations are happy that a way forward has been agreed.
"It's Treasury's job to keep us on our toes, and the issues raised were sorted to everyone's satisfaction," says Mr Byers.
This information has been released under the Official Information Act, and omissions have been made that are consistent with the grounds for withholding information under the Official Information Act.