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Victoria plans to shut down its Port Phillip Prison and Dhurringile Prison in light of the inauguration of the new 1,200-bed Western Plains Correctional Facility near Geelong and a shrinking prison population.

About 160 employees of Dhurringile Prison will be displaced as a result of the closure at the end of this year, and plans are in place to relocate them elsewhere in the criminal justice system. Even with these adjustments, the government wants to continue to modernize the penal system and improve safety and reintegration initiatives.

However, given the volatility of crime rates, questions remain regarding the institution's future capability, reported ABC.net.au.

Enver Erdogan, the minister of corrections, said Wednesday that Port Phillip Prison in Melbourne's west, Truganina, will close by the end of 2025. Erdogan also announced that the government had terminated its contract with British private security company G4S, which has been in charge of the maximum-security institution since its establishment in 1997.

However, he did not address the cost to taxpayers.

The prison can hold up to 1,087 convicts. The year 2017 saw the $1.8 billion corporate contract being renewed for a further 20 years; however, the extension was conditional on performance.

To guarantee usage, improve efficiency, and maybe reuse the older facility, convicts from Port Phillip Prison will be transferred to the $1.1 billion Western Plains jail in Lara, which has been vacant since 2022, The Guardian reported.

"When the decision was made to open Western Plains, we did see an increase in the prison population – it was approaching approximately 8,000. Since the pandemic, we've seen a 25% drop," he said.

"It's fair to say that the pandemic was an intervening event. But, at that time, there was a need for a new state-of-the-art prison and we make no apologies for investing in modern facilities. We're going to see better outcomes of rehabilitation and recidivism."

The Community and Public Sector Union (CPSU) is negotiating with the state administration to reassign employees impacted by the closures. Concerned about the short notice, CPSU industrial organizer Donna Shell stated, "It's heartbreaking for staff that turn up to work today to be told that within two months, they're not gonna have a job."

Shell underlined the necessity of providing Dhurringile Prison employees with appropriate compensation packages and priority placement.