NSW backs away from prison privatisation

The Junee prison, run by GEO Group for the last 30 years, will transition into public hands over the next 18 months.

The New South Wales government will take private prison Junee Correctional Centre into public hands over the next 18 months, after being operated by controversial US multinational GEO Group for more than three decades. 

The GEO Group, a US-based prison operator, has run the Junee prison since it was opened in 1993. It is a mixed-security prison housing more than 1000 people sentenced and on remand.

GEO’s current contract runs from 1 May 2009 to 31 March 2025 and is worth nearly $440 million. 

The company has now confirmed that the NSW government will not be tendering for an operator of the prison beyond this contract, and will be returning the prison to public hands in 18 months.

In a statement to the market, GEO said the company was suprised by the decision and that it was met with “much disappointment”.

“GEO will hand over operations with the proud knowledge its social endeavours are imprinted throughout the community and hope these will continue,” the company statement said.

“Even though staff are disappointed by this decision, and given the uncertainties and challenges brought about by transitioning to a new employer, GEO and its staff will work with the NSW government to ensure a smooth handover.”

There have been a number of deaths at the Junee prison in recent years, with multiple Coronial inquests calling into question the operation of the prison and standard of healthcare offered there.

In July this year a Coroner found that inmates at the prison were receiving second rate medical care. The inquest was into the death of Indigenous man Reuben Button in 2020, with the Coroner finding his treatment was hampered by significant resourcing issues at Junee.

The Coroner found that wait times to see a doctor at the prison were about 100 days. The Coroner recommended that GEO increase the ratios of doctors, nurses and Aboriginal health workers at the prison.

In 2019 Peter Gretton died at the prison. He had signalled for help from his cell before 3am on the night of his death, but an ambulance was not called until four hours later.

There were two deaths at Junee early last year, including a man who died in his cell days after he had tested positive for Covid.

Concerns were also raised about the operation of Junee in 2021 when a man’s lawyer claimed he was not provided adequate care for a hip infection. They said that the man was in a lot of pain and could not walk but was only offered paracetamol for the infection.

GEO workers at the prison went on strike earlier this year due to ongoing pay disputes and understaffing claims. 

Late last year the NSW government awarded law firm Herbert Smith Freehills a $280,000 contract to provide legal services in relation to the tender process for Junee, which ran until late October this year.

NSW’s move comes after Queensland took its last two privately-run prisons back into public hands. This was announced in early 2019 and completed by mid-2021.

After the transition at Junee is completed, there will be seven private prisons left in Australia, in New South Wales, Victoria, Western Australia and South Australia.

While GEO Group has been stripped of its contract in NSW, it is still operating two prisons in Victoria, and was recently awarded a $550 million contract to provide healthcare in public prisons in the state for up to seven years.