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 Business Case Summary: Recommissioning Dhurringile Prison
Executive Summary
Recommissioning Dhurringile Prison represents a financially responsible and strategically sound investment in Victoria's correctional infrastructure. With an estimated recommissioning cost of approximately $40 million, the project would restore an existing correctional facility at a fraction of the cost of constructing a new prison, while delivering significant economic, social and regional benefits.
Capital Investment
The estimated recommissioning cost of $40 million compares favourably with the cost of developing a new correctional facility, which can exceed $500 million to $1 billion, depending on size and security classification. Utilising existing accommodation, utilities, workshops, perimeter infrastructure and agricultural assets substantially reduces upfront capital expenditure and shortens delivery time.
Economic Benefits
Reopening Dhurringile would generate immediate employment through construction and refurbishment works, followed by the restoration of permanent correctional, administrative, maintenance, healthcare and agricultural positions.
Expected benefits include:
Restoration of approximately 150–200 direct jobs.
Creation of additional indirect employment through local contractors and suppliers.
Increased expenditure within the Goulburn Valley region.
Long-term economic stimulus for local businesses and services.
Agricultural Productivity
Dhurringile comprises approximately 259 hectares of Crown land, with around 70% of the site dedicated to productive farmland and the remaining 30% occupied by prison buildings, the historic Dhurringile Mansion, workshops, roads and supporting infrastructure.
This unique combination of correctional facilities and agricultural land provides significant opportunities for:
Livestock production.
Cropping and fodder production.
Horticulture.
Land management and environmental conservation.
Vocational training in agriculture, machinery operation, fencing, irrigation and property
These activities can reduce operating costs by contributing to food production for the correctional system while equipping prisoners with practical skills that improve employment prospects and reduce reoffending upon release.
Rehabilitation Outcomes
Minimum-security prison farms consistently demonstrate positive rehabilitation outcomes by providing structured employment, education and responsibility within a supervised environment.
Benefits include:
Increased employment skills.
Improved prisoner wellbeing.
Reduced rates of reoffending.
Better transition into community employment.
Enhanced public safety through successful reintegration.
Financial Assessment
Estimated Capital Cost
Approximately $40 million.
Operational Life Following Recommissioning
20–30 years with ongoing maintenance.
Capital Cost Comparison
Recommissioning: ~$40 million
New minimum-security prison: $500 million–$1 billion+
This represents a capital saving of more than 90% compared with constructing a new correctional facility of similar capacity.
Estimated Return on Investment
While correctional facilities are not operated for profit, recommissioning Dhurringile offers substantial value for money through:
Avoiding hundreds of millions of dollars in new construction costs.
Preserving and maximising the use of an existing government-owned asset.
Supporting regional employment and economic activity.
Delivering rehabilitation programs that can reduce reoffending and lower long-term justice system costs.
Increasing correctional capacity in a significantly shorter timeframe than a new-build project.
Strategic Advantages
Recommissioning Dhurringile would:
Increase prison capacity rapidly.
Preserve an important public asset.
Support regional jobs and economic growth.
Expand evidence-based rehabilitation programs.
Deliver excellent value for taxpayers.
Strengthen Victoria's correctional infrastructure without the substantial capital cost of constructing a new prison.
Conclusion
Based on an estimated recommissioning cost of $40 million, Dhurringile Prison represents a highly cost-effective investment. Its existing correctional infrastructure, approximately 259 hectares of productive land, established agricultural facilities and regional location provide a unique opportunity to deliver additional prison capacity, rehabilitation outcomes and economic benefits at a fraction of the cost of building a new prison.
Reopening Dhurringile would maximise the value of an existing government asset while supporting public safety, regional development and responsible long-term management of Victoria's correctional system.