❓ Mr Alban questions the financial implications of returning Acacia Prison to public management. The Minister responds by highlighting savings from the Serco contract and criticises Labor's stance on privatisation, projecting significant costs if the contract were terminated.
AnsweredQoN 108Legislative Assembly
QuestionView source ↗
ACACIA
PRISON — SERCO CONTRACT
108. Mr F.A. ALBAN to the Minister for Corrective Services:
I note that Serco has been
recontracted to run Acacia Prison, with significant savings for the government.
If Acacia were returned to the public sector, what effect would this have on
the state budget?
PRISON — SERCO CONTRACT
108. Mr F.A. ALBAN to the Minister for Corrective Services:
I note that Serco has been
recontracted to run Acacia Prison, with significant savings for the government.
If Acacia were returned to the public sector, what effect would this have on
the state budget?
AnswerView source ↗
I thank the member for his question
and his interest in our prisons. I know he has two large prisons in his
electorate—obviously, Wooroloo and Acacia. The member has both those
prisons and almost one-third of the state's prison population in his
electorate, amazingly. It is worth noting what has happened in the last couple
of weeks. As I have announced here previously, we have renegotiated with a very
sharp pencil the contract with Serco to continue to run the Acacia facility for
another five years. I note that this contract was originally given to Serco by
the Labor Party when it was in government, and it had no problem with the
privatisation of these kinds of services back then. Interestingly, the savings
over the last five years —
Several members interjected.
The SPEAKER : Members!
Mr J.M. FRANCIS : Over the next five years, the savings from that
contract will deliver the taxpayers an additional net bonus of $33.2 million.
Effectively, the cost per prisoner —
Mr D.J. Kelly interjected.
The SPEAKER : Member for Bassendean, I call you to order for the
second time.
Mr J.M. FRANCIS : The cost per prisoner per day has gone down from $156
to $144. That is a net saving of $12 with no change in service. Additional to
that, we have entered into an agreement to provide an extra 75 beds at that
facility. That means 75 prisoners can come out of the public prison system and
move into the private prison system, saving the taxpayer an additional $22 million
over the next five years, so over $55 million over five years. The reason is
that when we look at the cost per prisoner per day in the private system
against the average of the entire public system —
Mr P. Papalia : You don't know what the public system costs —
The SPEAKER : Member for Warnbro!
Mr J.M. FRANCIS : The member for Warnbro is right. But when we
aggregate it across the entire public prison system, we know that it is $160
per prisoner cheaper than the public prison system—$160 per prisoner
per day cheaper.
Mr P. Papalia : You don't know. You're just making
it up.
Mr J.M. FRANCIS : I note that the member for Warnbro recently said
that the government should have just signed a one-year contract. All the member
did by making that comment was reinforce the fact that if Labor were to win the
next election, it would terminate that contract. I am not making this up. I can
read straight from the Labor Party's 2015 platform, which states —
''WA Labor will ensure that
public services, such as ... Prisons, juvenile detention centres, prisoner
transport and community justice ... are not further privatised, and where they
have been, they will be brought back into government control and operation ...''
We have to ask: what would that
cost the taxpayers of Western Australia?
Several members interjected.
Mr J.M. FRANCIS : I have done some very basic maths.
Mr P. Papalia interjected.
The SPEAKER : Member for Warnbro, this is not who can shout the
loudest. Minister, you have exactly 90 seconds.
Mr J.M. FRANCIS : We know that it is about $160 a day cheaper. We
know that 365 days by five years by 1 470 prisoners means that the net cost to
taxpayers of ripping up that contract should Labor win the next election would
be $429.25 million. Labor would blow $429 million. Think of what we could do
with that. At $15 million each, we could build 28 new primary schools. At $20 million
each, I could build 21 new career fire stations. The member for Warnbro cannot
walk into this place and question government debt when he is so dedicated to
some Cold War policy against privatisation that would cost the taxpayers an
additional $429 million if Labor won the next election. The member for Warnbro
belongs in the days of the Cold War he is so out of touch with reality. The
greatest fear for the people of Western Australia is that if Labor won the next
election and ripped up that contract, it would blow $429 million over the next
five years. Labor cannot have any credibility whatsoever on state debt.
and his interest in our prisons. I know he has two large prisons in his
electorate—obviously, Wooroloo and Acacia. The member has both those
prisons and almost one-third of the state's prison population in his
electorate, amazingly. It is worth noting what has happened in the last couple
of weeks. As I have announced here previously, we have renegotiated with a very
sharp pencil the contract with Serco to continue to run the Acacia facility for
another five years. I note that this contract was originally given to Serco by
the Labor Party when it was in government, and it had no problem with the
privatisation of these kinds of services back then. Interestingly, the savings
over the last five years —
Several members interjected.
The SPEAKER : Members!
Mr J.M. FRANCIS : Over the next five years, the savings from that
contract will deliver the taxpayers an additional net bonus of $33.2 million.
Effectively, the cost per prisoner —
Mr D.J. Kelly interjected.
The SPEAKER : Member for Bassendean, I call you to order for the
second time.
Mr J.M. FRANCIS : The cost per prisoner per day has gone down from $156
to $144. That is a net saving of $12 with no change in service. Additional to
that, we have entered into an agreement to provide an extra 75 beds at that
facility. That means 75 prisoners can come out of the public prison system and
move into the private prison system, saving the taxpayer an additional $22 million
over the next five years, so over $55 million over five years. The reason is
that when we look at the cost per prisoner per day in the private system
against the average of the entire public system —
Mr P. Papalia : You don't know what the public system costs —
The SPEAKER : Member for Warnbro!
Mr J.M. FRANCIS : The member for Warnbro is right. But when we
aggregate it across the entire public prison system, we know that it is $160
per prisoner cheaper than the public prison system—$160 per prisoner
per day cheaper.
Mr P. Papalia : You don't know. You're just making
it up.
Mr J.M. FRANCIS : I note that the member for Warnbro recently said
that the government should have just signed a one-year contract. All the member
did by making that comment was reinforce the fact that if Labor were to win the
next election, it would terminate that contract. I am not making this up. I can
read straight from the Labor Party's 2015 platform, which states —
''WA Labor will ensure that
public services, such as ... Prisons, juvenile detention centres, prisoner
transport and community justice ... are not further privatised, and where they
have been, they will be brought back into government control and operation ...''
We have to ask: what would that
cost the taxpayers of Western Australia?
Several members interjected.
Mr J.M. FRANCIS : I have done some very basic maths.
Mr P. Papalia interjected.
The SPEAKER : Member for Warnbro, this is not who can shout the
loudest. Minister, you have exactly 90 seconds.
Mr J.M. FRANCIS : We know that it is about $160 a day cheaper. We
know that 365 days by five years by 1 470 prisoners means that the net cost to
taxpayers of ripping up that contract should Labor win the next election would
be $429.25 million. Labor would blow $429 million. Think of what we could do
with that. At $15 million each, we could build 28 new primary schools. At $20 million
each, I could build 21 new career fire stations. The member for Warnbro cannot
walk into this place and question government debt when he is so dedicated to
some Cold War policy against privatisation that would cost the taxpayers an
additional $429 million if Labor won the next election. The member for Warnbro
belongs in the days of the Cold War he is so out of touch with reality. The
greatest fear for the people of Western Australia is that if Labor won the next
election and ripped up that contract, it would blow $429 million over the next
five years. Labor cannot have any credibility whatsoever on state debt.
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