SA State Budget 2009 - new Mobilong prison scrapped

THE state's multimillion-dollar planned prison project has been scrapped so the Government can spend more money on other infrastructure.

THE state's multimillion-dollar planned prison project has been scrapped so the Government can spend more money on other infrastructure.

The State Government had planned to build a new men's and women's prison at Mobilong, near Murray Bridge, as well as a co-located Forensic Mental Health Centre and a new Youth Detention Centre and pre-release centre at Cavan.

Treasurer Kevin Foley said cancelling the project would reduce the state's net debt by $500 million and the decision had been made because the Government "simply could not afford it".

The Government is expected to be hit with compensation payouts to the three bidders that had developed proposals for the project. Mr Foley said he would invite bidders to make submissions for an appropriate payout.

"This is a regrettable but necessary decision for the strength of the state's finances and allows the Government to focus on its highest infrastructure priorities in hospitals, schools, water security and public transport," Mr Foley said.

"We have had to take a very close look at the cases for the range of infrastructure projects the state is investing in, and on balance, the Government believes it is right to put water security, schools, hospitals and public transport ahead of building new prisons and secure facilities."

The Budget does provide $38 million for 232 new prison beds in Port Lincoln, Mount Gambier and Port Augusta.

This is in addition to the 374 beds provided in the past two financial years.

Mr Foley said the Department of Corrections had advised that the state's existing prisons could cope with the expected increase in prisoner numbers through to 2012-13.

Another $50 million has also been allocated to upgrade existing facilities.