The Department of Corrections is set to receive $8 million from Serco to cover the costs of stepping-in last July to manage Mt Eden Corrections Facility
Corrections Minister Judith Collins says, “An agreement with Serco has also been reached that effectively narrows down the contractual arrangements with Serco to a labour supply agreement with other transition services for the balance of the contract through to 31 March 2017.”
Serco’s contract with Mt Eden Prison will end on the 31 March 2017.
Meanwhile Corrections will carry on managing the prison with Serco providing personnel until the end of the contract.
Minister Collins says, “The longer term management structure will be determined by the government at a later date following advice from Corrections.”
Labour’s Corrections spokesperson Kelvin Davis has hit back claiming Serco is a mere labour hire outfit.
“Serco have been reduced from a state of the art innovative prison managing organisation to a labour hire outfit,” says Davis.
In July 2015, Corrections took over the management of Mt Eden Prison from Serco following allegations of assaults and fight clubs within the prison.
The Chief Inspector of Corrections’ report into Serco's management of Mt Eden Corrections Facilities is currently before the courts.