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Private Prison Management Pioneer Achieves Astonishingly Low Recidivism Rate

AUCKLAND, NEW ZEALAND - AUGUST 01: Protestors rally at Mt Eden Prison on August 1, 2015 in Auckland, New Zealand. Prison management company Serco is under pressure over reports of prisoner abuse. (Photo by Hannah Peters/Getty Images)

A company specializing in private prison management has achieved a surprisingly low recidivism rate and has been remunerated handsomely as a result. South Auckland prison run under Serco, a UK-based company, boasted a meager 13.6 percent recidivism within two years following the release of the inmates. This contrasted sharply with the near 34 percent at institutions supervised by Corrections. Factors largely attributed to this disparity are the kind of inmates at South Auckland prison, largely long-term inmates with a history of serious offenses. Despite this, Serco managed to rake in a sizable $6 million in performance incentives over the past four years.

Serco’s achievements have piqued the curiosity of international operators who are continuously seeking to curb the high recidivism rates. Around the world, recidivism tends to hover around 30 to 40 percent. Yet how they quantify it differs, with some regions not even maintaining such records. Even Norway, renowned for its low recidivism, posts rates about 20 percent, around 50 percent higher than those of Serco.

The disparity in recidivism rates between Serco and the ministry figures was ambiguous, with a possible explanation being that the ministry statistics also included remand and maximum-security inmates, categories that are not included in the Serco comparisons. The Corrections department refrained from comparing its rehabilitative services with that of Serco, providing no explanation in their official response under the Freedom of Information Act.

Attempting to juxtapose the recidivism rates would be to make a somewhat incorrect comparison, as stated by the Research Manager at Corrections. Serco’s triumphant performance since 2021, evidenced by the $6 million bonuses, could likely rekindle international interest. However, no explicit study or examination of this relapse into criminal behavior has so far been identified or discovered so far.

In the wake of the public-private contract established in 2012 with Auckland, Serco has not reached the bonus threshold twice, notably between 2018 and 2020. This bonus incentive is not open to scrutiny or renegotiation throughout the quarter-century-long contract duration. However, since 2020-21, Serco has consistently achieved the highest bonus of $1.5 million per annum, notwithstanding occasional fines amounting to a few hundred thousand dollars for episodes of violence or other violations.

Interestingly, the recidivism rates for both public and privately managed prisons have shown a year-on-year decline, with Serco experiencing a more accelerated decrease, slashing its rates by half since 2017 from a previous 26 percent. Furthermore, the rates among M?ori inmates have also observed a decline, though they remain significantly higher compared with the overall figures.

The intriguing paradox here is the progressively decreasing ‘Reoffending Index’ from Corrections, juxtaposed with an incrementally rising prison population. Today’s prison muster stands at around 10,000 inmates, marking a substantial rise of approximately 2000 from three years prior.

Reoffending reduction through efficacious rehabilitative measures is a top priority for the government’s agenda for prisons. However, an official review from 2022 discovered that the rehabilitative services at Auckland South were not fully up to par. There has been evident improvement since 2017, yet the need for such services still outpaces the capacity of provisions.

Emphasizing its commitment to providing rehabilitation, Corrections explained the complicated process of matching willing inmates from a waitlist according to the type of rehab required and its level of urgency. As a collaborator with Serco on several rehab programs, Corrections currently offers up to 90 different programs and activities inside prison walls.

The ‘recidivism index’ that Serco operates under basically takes into account those prisoners who relapse into criminal conduct within two years post their release. For short-term prisoners this is around 50 percent, while it’s almost half for those who serve longer sentences:

In the face of Corrections’ claim that the disparity in recidivism rates between the two entities was a matter of demographics, the department also stated elsewhere that this index made a comparison between equivalent inmate types. Referring to inmates attending rehabilitation programs in other establishments before transferring to South Auckland, authoritative studies held that this could have negative impacts by disrupting the continuity of rehabilitation services.

Data showed Serco’s staff attrition rates at South Auckland were about half of those documented in all other prisons, with the exception of Rolleston. The vital role of cultural programs aimed at reconnecting inmates to their cultural roots and families, like P?whakamua scheme started by a former offender, has been affirmed by the company.

Indeed, Serco reiterated its commitment to maintaining a secure and safe environment, fostering the successful rehabilitation of its inmates. The company’s success, reflected in the low recidivism rates and its performance bonuses, while intriguing, is not yet fully understood due to a lack of comprehensive studies comparing private and public recidivism rates.

Despite the disparities and ambiguity, what remains consistent is the overarching fact of declining recidivism rates across both public and private prison operation models. This trend points to constantly improving methods of rehabilitating inmates and reintegrating them into society successfully, hinting towards the possibility of more developments to explore in the area of criminal rehabilitation.

In conclusion, despite the comparison hurdles, the example of Serco sets a standard for other private entities and public institutions to strive towards. Their achievements also pave the way for studying, comparing and understanding the parameters that contribute to lowering recidivism rates. This could be a key factor in shaping future policies for more effective rehabilitation and prison management.