‘We don’t have the money’: Port Phillip Prison shock closure, inmates to move to new facility

The maximum-security jail will close its doors and relocate some of the state’s most dangerous inmates by the end of next year but the Allan government has refused to say how much it will cost to break the contract with the prison’s operator.

The Allan government is refusing to say how much it will cost taxpayers to break a lucrative 20-year contract with the operator of Port Phillip Prison.

The maximum-security prison will close by December 31 next year, with prisoners to be transferred to other maximum security prisons including the soon-to-be-opened Western Plains.

Western Plains, which has 1200 beds, will begin housing inmates from the middle of next year.

Port Phillip Prison is Victoria’s largest prison and is run by global security company G4S.

Corrections Minister Enver Erdogan said the government was within its rights to part ways with G4S correction services as part of the shock decision to shut Port Phillip Prison within the next 18 months.

From mid next year, hundreds of the state’s worst offenders will be progressively moved to Western Plains Correctional Centre in Lara.

The $1.1bn Western Plains Correctional Centre, which has been sitting empty for almost two years, will be run by government agency Corrections Victoria.

The state government has spent about $35m per year on maintaining and patrolling the property.

But the government is remaining tight-lipped on how much it would have to pay, if anything, to rip up its contract with G4S correction services.

Port Phillip Prison will close by December 31 next year. Picture: David Caird

In late 2015, the government agreed to extend the contract with the correction service for up to 20 years, but it was subject to the performance of G4S.

On Wednesday, Mr Erdogan said the shift from Port Phillip in Truganina to Western Plains represented a major modernisation of the state’s prison system.

“We’ve been very clear that we are exercising rights within that contract,” he said.

“I’m not going to go into details of the contract (as it’s) commercial in confidence … and a number of other reasons.

“But we’re exercising our rights and we believe we’re within our rights to shut down that prison.”

Some of the state’s worst offenders will be moved from Port Phillip Prison. Picture: David Caird

The 59-year-old Dhurringile Prison, near Shepparton, will also close by September this year, due to a dwindling demand for minimum security prisons.

Some of the prisoners at Dhurringile will be released by September, in line with their sentences, while the majority of prisoners will be transferred to Beechworth prison.

Corrections Minister Enver Erdogan said the prison closures were part of a major modernisation to the state’s corrections system.

“We are delivering better facilities for people in custody, a safer working environment for our staff and a safer community for Victorians,” he said.

Staff at Port Phillip will have the opportunity to transfer to other maximum security facilities, while employees of Dhurringile will be offered other positions within the justice system.

“We want to keep them,” Mr Erdogan said.

Western Plains Correctional Centre has been sitting empty since it was completed in November 2022. Picture: Mitch Clarke

Opposition corrections spokesman Brad Battin said the Allan government had wasted $36m a year to keep the prison empty.

“Western Plains Prison was built at a cost of $1.1bn to house more than 1200 prisoners. Other than the requirement to relocate prisoners during recent fires in Beaufort to protect staff and inmates, the $1.1bn facility has sat empty,” he said.

“Finally, the Allan Labor government has conceded the prison must open and operate to stop pouring millions of dollars down the drain that could be used to keep Victorians safe.”

The state government will undertake a major recruiting drive as it commits to opening the Western Plains Correctional Centre at Lara by the middle of next year.

The prison is a 1248-bed facility that has been sitting empty since it was completed in November 2022.

A cell inside Western Plains Correctional Centre. Picture: Alison Wynd

In announcing a major overhaul of Victoria’s prison system, Mr Erdogan visited Lara on Wednesday where he said the Western Plains facility would require more than 600 employees.

An expression of interest process will open shortly, with Mr Erdogan saying he expected strong interest from residents of Greater Geelong and Melbourne’s western suburbs.

Mr Erdogan said the prison would be a “great source of employment”.

He also said the opening up would also provide opportunities for businesses in the Geelong region.

Mr Erdogan said the Port Phillip Prison site may be transformed into a “prospective mixed-use site” similar to what has been built on the former Pentridge site.

He refused to say whether the government was looking to sell the site but said there would be a community consultation process.

“The government will consider all options,” he said.

“It’s a large site of approximately 60ha in the heart of the west.

“The facility and the land size is a unique prospect.”

Mr Erdogan refused to say how much it cost taxpayers to break the contract with Port Phillip operator G4S.

Victorian Minister for Corrections Enver Erdogan says the facility will require 600 staff. Picture: Alison Wynd

Corrections Victoria commissioner Larissa Strong said high-risk prisoners would be moved to Western Plains in “batches”.

“We won’t bring in all 600 prisoners at once,” she said.

A CPSU spokesman confirmed the Port Phillip Prison closure on Wednesday, saying the union remained focused on maintaining jobs for prison staff.

The spokesman said the Western Plains facility would offer vacancies for exisiting workers with enough time for them to transition between prisons.

It is believed Port Phillip staff were on Wednesday morning in meetings about the closure.

Port Phillip Prison staff were informed on Wednesday about the decision to close. Picture: David Caird

A G4S spokesman said the company acknowledged the government’s decision to shut the Port Phillip Prison.

“We thank all our staff and partners for their professionalism and dedication to create a modern, safe and humane maximum security prison system that works to maintain public safety,” he said.

“G4S will work with our staff and partners to ensure a smooth closure and staff are re-deployed where possible.

“Since 1997, Port Phillip Prison has played an important role in Victoria’s corrections system, helping rehabilitate people in our care and reduce recidivism by providing nation-leading training and education opportunities.”

Port Phillip Prison employs more than 800 staff.

Corrections Victoria data shows that the number of prisoners in Victoria has dropped by more than 20 per cent. Picture: Mitch Clarke

Corrections Victoria Commissioner Larissa Strong last year told the Yoorrook Justice Commission the prison was built based on a pre-Covid spike in the number of detainees in Victoria.

“We don’t have money to operate that prison because our demand has dropped, so we don’t need to use those beds,” she told the inquiry.

“You do want to know that someone hasn’t broken into it and built a tunnel, should you ever want to use it into the future.”

The projected rise in the number of people on remand followed Victoria’s bail laws being tightened in 2018.

Those laws were wound back this year after it was found they disproportionately impacted Aboriginal people and women.

Ms Strong told the truth-telling inquiry that Western Plains was initially designed as a remand facility.

Corrections Victoria data shows that the number of prisoners in Victoria has dropped by more than 20 per cent to 6342 since 2019, when the number of inmates peaked at 8216.

The most recent estimated prison population is at its lowest level since 2015.

Originally published as ‘We don’t have the money’: Port Phillip Prison shock closure, inmates to move to new facility