The New South Wales (NSW) government is set to regain management of the Parklea Correctional Centre, effective October 2026. This decision marks a significant shift in the management of the facility, which has been under private control since 2009 when it was outsourced to the GEO Group by the Keneally Labor government. The transition aims to enhance safety and operational efficiency within the correctional system, as highlighted by recent government assessments.
The Parklea Correctional Centre, a 1,500-bed facility that accommodates both minimum and maximum security inmates, has faced scrutiny over the past years due to various issues, including riots and allegations of abuse by guards. In 2019, management was transferred to MTC Australia, a US-based company that secured a $1.3 billion contract for seven years. However, a recent due diligence report painted a troubling picture of safety conditions under MTC Australia's oversight.
NSW Premier Chris Minns characterized the initial outsourcing decision as a "mistake." He emphasized the necessity for the state to manage its correctional facilities directly, particularly when it comes to fundamental services.
"You’ve got to be in a position when you can call out mistakes when they happen and this was one of them," – Chris Minns
The Premier further noted that while outsourcing may appear cost-effective on the surface, it often leads to greater long-term expenses for taxpayers.
"What looks to be on the sticker price like a lower figure paid by taxpayers in the long run you end up paying a lot more," – Chris Minns
Corrections Minister Anoulack Chanthivong reiterated this sentiment, highlighting that transitioning back to public management will not only improve service delivery but also secure over 300 frontline jobs. He believes that the move will better serve the community and enhance working conditions for staff.
"By bringing Parklea back into public hands it means that the highest focus is not on the highest profit to shareholders but the greatest value to the people and taxpayers of NSW," – Anoulack Chanthivong
The decision follows a similar move in April 2025, when the NSW government took over management of the Junee Correctional Centre. This trend underscores a broader commitment to restoring public management of essential services within the correctional system.
The government plans to take over the Parklea facility six months after MTC Australia's contract concludes. Premier Minns assured that this change would incur costs comparable to those of private management, thereby negating concerns about potential financial burdens.
"We believe in the long run this is absolutely in the interests of taxpayers of NSW," – Chris Minns
Both Chanthivong and Minns have called on current employees of MTC Australia to join the public sector, emphasizing the importance of their roles within the justice system.
"We encourage them to come join the wider corrective services family, to ensure we can deliver what is a very important part of the justice system, an essential service to the people of NSW," – Anoulack Chanthivong
