Report Criticises Privatisation of Adelaide Remand Centre
Concerns over the costs and safety of the Adelaide Remand Centre (ARC) have intensified following a report by the McKell Institute. The report reveals that privately managed ARC costs more per inmate than public prisons. This has raised alarms about accountability and safety.
In August 2026, Serco’s $115 million contract to manage the ARC will expire. Decisions about the prison’s future management are imminent. ‘The Failure of the Privatisation of the Adelaide Remand Centre’ highlights significant financial and operational failures during Serco’s tenure.
Since privatisation, daily staffing levels have dropped from 70 officers to about 20. Assaults on staff and inmates have doubled in five years, with 12 assaults on officers recorded in 2023-24.
Security breaches have been severe. A 2020 prison escape and a $100,000 theft from the prison safe by a senior manager are notable incidents. In January 2026, ten grams of cocaine bypassed security screenings.
Staffing and Safety Concerns
According to Charlotte Watson, the General Secretary of the Public Service Association, the findings confirm long-standing warnings. She stated, “This report proves what our members have been saying for years: privatising prisons skims profit at the direct expense of proper staffing and safety.”
The report advises the government to return ARC to public management through an 18-month transition with enforceable minimum staffing ratios. Public management is expected to enhance safety, rehabilitation, and accountability.
Hannah MacLeod, who authored the report, emphasised, “The evidence is clear. The privatisation of the Adelaide Remand Centre has fundamentally failed to deliver efficiency, safety, or value for money for South Australians.”
Costs per prisoner at ARC are now higher than at publicly run facilities like Yatala Labour Prison and Port Augusta Prison. The McKell Institute’s findings have intensified the debate over private versus public management of correctional facilities.
With the contract’s expiration looming, the South Australian Government faces pressure to address these issues. A decision regarding ARC’s future management is expected soon.
The report has sparked significant debate over the efficacy of private management in correctional facilities, leading to calls for system restructuring to prioritise safety and accountability.
