Office of the Inspector of Custodial Services
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Privatisation comes full circle in Western Australia: improved performance at Acacia

30/07/08
Professor Richard Harding, the retiring Inspector of Custodial Services, yesterday released an Inspection Report relating to Acacia Prison. "There is a fitting symmetry in releasing this report as my last official act," he said. "The independent Office of the Inspector of Custodial Services was established as a trade-off by the Democrats and the then Labor Opposition with the then Coalition Government to permit legislation authorising privatisation of Acacia Prison to go ahead. This is the third inspection in Acacia's seven years' operation, indicating that the Inspector's Office has kept the private sector under particular scrutiny, as Parliament evidently expected in linking the two pieces of legislation in 1999."

The first inspection in 2003 had shown that the then operators, AIMS, were struggling. In some ways the prison was unsafe, and although the organisational culture was reasonably positive the regime and program delivery fell short of what the Government had expected in going down the privatisation track. Accordingly, the Inspector had decided to inspect again two years later, with a view to ascertaining whether adequate improvements had occurred before a decision as to contract renewal had to be made. That inspection, in 2005, showed that the regime was still fragile and below the contracted standard, and the Inspector accordingly advised the then Minister that the contract should be market-tested.

That process occurred in 2005/06, and SERCO, a provider new at that time to the Australian scene, successfully bid. Two years into their contract, it can now be said that the privatisation model can work well and is now doing so. The regime is constructive and equitable; offender program delivery was better than at any prison in the State; health and dental services had improved; the management of protection prisoners was good; Aboriginal prisoners special needs, particularly those from "out-of-country", are now properly recognised. The prison feels safe and staff morale has improved.

Of course, there are problems. Some of them are beyond SERCO's direct control, notably maintenance deficits which are partly the responsibility of the Department and partly of another private contractor, but for which SERCO carries the day-to-day risk. Others lie within SERCO's control, such as the under-utilisation of the Industries Block and some disorganisation within the Education area. However, since the end of the on-site phase of the inspection, these matters have been progressively addressed.

In the Overview to the Report, the Inspector commented that "with prisons, one can never absolutely guarantee that further problems will not arise." Since this Report was completed, a death by apparent suicide has occurred at Acacia – the first since it was opened seven years ago. In the Report we had commented that "there is room for substantial improvement in the ARMS and PRAG processes", though we noted that management had already started to address this matter. The Coroner will in due course determine the causation of the suicide – whether there was any link between the deficit we had noted and the circumstances of the death. On the facts that have already come to light, it is certainly plausible that a person with the characteristics of the deceased should not really have been in a prison at all but rather in a secure mental hospital ward. This epitomises one of the most enduring problems in penal administration in this State – managing people with treatable mental illnesses in a prison setting rather than a health setting.

In summary, the Inspector's view that privatisation of prisons and some other correctional and custodial services can be beneficial as long as they are made properly accountable, by independent inspection and otherwise, can now at this third inspection be seen to be fully vindicated. Acacia is now a good prison contributing positively to overall criminal justice policy and administration in Western Australia.

Richard W Harding
Inspector of Custodial Services
30 July 2008

A copy of this media release and the full Inspection Report can be downloaded below:
Download : Media Release Acacia Prison (PDF)
Download : Report of an Announced Inspection of Acacia Prison (PDF)