New report finds private operation of city remand centre has ‘failed’
Calls are growing for the state government to take back control of the Adelaide Remand Centre as a new report details dozens of incidents ranging from violence, drugs and an escape attempt at the city facility. The contract expires in August.
The 2019 privatisation by the Marshall Liberal government of the Adelaide Remand Centre (ARC) on Currie Street in the Adelaide CBD has “failed”, a new report has found, sparking new calls for the state government to take back control of the facility the report says is plagued with violence, drugs and a high-profile escape attempt.
The report, written by progressive research institute The McKell Institute and commissioned by the Public Service Association (PSA), claims a litany of “systemic problems… undermine staff safety, staff wellbeing [and] accountability”.
“The privatisation of the Adelaide Remand Centre has failed to deliver its intended outcomes and must return to South Australian Government control,” the report found.
“When announcing the intention to privatise the ARC, the former South Australian Government promoted it as a mechanism to improve efficiency, reduce public costs and introduce innovation into public services.
“Instead, it has resulted in systemic problems that undermine staff and prison safety, staff wellbeing, accountability, and call into question the efficiency outcomes that were touted.”
Private company Serco has been running the centre since 2019, when the former Liberal Marshall government signed a $115 million, seven-year contract.
This contract is due to expire in August 2026, and the Public Service Association (PSA) is calling on the state government to take control, with a deadline for awarding Serco another five-year contract ending this month.
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Corrections Minister Michael Brown said, “There are a number of serious challenges that arise in trying to reverse Liberal privatisation and discussions are ongoing.”
McKell Institute SA/NT executive director Hannah MacLeod said in the report that promised cost savings by using a private operator to run the centre had not eventuated.
“Data from the South Australian Auditor General’s recent 2025 annual report shows the cost per prisoner at the ARC is now higher than some other prisons across South Australian correctional facilities, including Yatala Labour Prison and Port Augusta Prison,” the report reads.
“This demonstrates that private operation is not necessarily the most cost-effective.”
The ARC houses people arrested by police who have not yet been convicted or sentenced, and sits near Adelaide’s courthouses in Victoria Square. It is one of two SA correctional facilities privately operated, alongside Mount Gambier Prison, which is operated by G4S Custodial Services.
Recently, the ARC has been at the centre of controversy. The union representing correction officers (the PSA) claimed three officers were assaulted in February, leading to two hospitalisations, while in late January, a prisoner was found in possession of 10 grams of cocaine.
In 2020, a prisoner escaped from the ARC and spent two days in the community before being captured, an SA government review finding the escapee was able to exploit multiple operational and infrastructure weaknesses within the ARC.
At the time, then Opposition Leader – now Premier – Peter Malinauskas said on social media that “the privatisation of the Adelaide Remand Centre has led to cuts in the number of staff and now we have seen a prisoner escape from the maximum-security prison”.
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“When the Liberals privatise a public service, the public pays the price,” he said in a post on Facebook.
Other issues raised by the report included extended lockdowns due to alleged understaffing and delays in medical treatment.
PSA general secretary Charlotte Watson said the ARC was a “human rights disaster”.
“I would be absolutely livid if my relative was in the Adelaide Remand Centre, because the way they’re being treated is completely unacceptable,” she said.
“It’s outrageous that this has been privatised and we’re in a bit of shock to be honest that the Labor Government hasn’t come out and gone, ‘of course we’ll bring it back in’.
The failures were “particularly concerning” in a remand facility, the McKell Institute report found.
“The inability to maintain robust security standards undermines the core function of the correction system and raises broader public safety concerns about whether private operators can maintain the rigorous security standards required in such environments.”
A Serco spokesperson said the company takes “any commentary about safety, staff wellbeing, and service quality seriously”.
“Operating a remand centre presents unique challenges. The population is complex and dynamic and this is reflected across public and private correctional systems globally. Our teams are trained to manage these risks and respond to incidents professionally and safely,” she said.
“Our focus remains on delivering safe, secure, and respectful operations for everyone at the centre, in line with our contractual obligations and the expectations of the South Australian Government.
“ARC works closely with community organisations such as OARS Community Transitions to support the rehabilitation and successful reintegration of prisoners.”
She added that the company maintained “strong oversight, reporting, and assurance processes, working transparently with government to address issues as they arise”.
“Serco remains committed to supporting the safety and wellbeing of our people and those in our care.”
The state government was contacted for comment.
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