The New Zealand National party passed the Corrections Amendment Act, allowing prison privatisation in 2009, amidst vehement opposition from the Labour party; the argument for such a move being the need to cut down on costs and bring innovation through private contractors.
This is not the first time that the private sector has been allowed to take part in the corrections branch of the state; in 1995, the Penal Institutions Act of 1954 was amended to allow the administration of prisons by Private institutions. Subsequently, the Auckland Central Remand Prison was put under the Australasian Correctional Management (ACM).
The Debate
The proponents argue that it is a cost saving exercise – a claim that lacks great credibility as no research has shown that savings have been significant – and firmly believe that private prisons can be expected to provide rehabilitation; a role that is entrusted upon the state. Furthermore, the proponents argue that private firms can bring about innovation as they will be competing against other private firms and public prisons – the idea of markets addressing the most suitable outcomes permeates here.