Work on Victoria’s ambitious $750 million prison expansion program has come to a screeching halt following the discovery of mould in prefabricated units intended for use at multiple prisons across the state.
The issue, which has now affected three major correctional facilities, is threatening to cause significant cost blowouts and delays, raising concerns about the project’s future.
The issue was first uncovered at Ararat’s Hopkins Correctional Centre earlier this month when construction workers discovered mould in the prefabricated prison units prior to their delivery. In response, contractors managing the $84 million Ararat expansion decided to refuse delivery of the units until the problem could be resolved. Since then, similar issues have surfaced at both the Metropolitan Remand Centre and Barwon Prison, where the mould was found only after the units had already been constructed on-site.
The Prison Infill Expansion Program, which was launched as part of the 2019-20 state budget, is designed to increase bed capacity and upgrade existing infrastructure across five of Victoria’s prisons. However, ongoing mould issues have left some of the pre-fabricated units unfit for purpose, further jeopardising the success of the project.
Fleetwood Australia, the company responsible for manufacturing the units, has declined to comment on the issue, but the Department of Justice and Community Safety has confirmed that it is working with contractors to investigate the defects.
A spokesperson from the Department of Justice and Community Safety stated: “The pre-built accommodation units have not yet been delivered to Hopkins Correctional Centre, and they will not be commissioned for use until they are deemed safe for both prisoners and staff.”
Political backlash and growing concerns
The Shadow Minister for Corrections, David Southwick, has sharply criticised the Allan Labor government, arguing that it has failed to address the mould problem even after being aware of it for over a year. He described the delay as “unacceptable,” particularly given the prison system’s capacity strain amid increasing crime rates.
“More than a year after the government was first made aware of the dangerous mould issue that left 450 prison beds lying idle, the Labor government has learned nothing and allowed it to happen again,” Southwick said. “This failure is costing taxpayers millions and putting serious pressure on a prison system that is already bursting at the seams. We need more prison beds, not more delays.”
This comes at a time when Victoria’s prison system is already under intense pressure. In addition to the mould issues, the state’s government recently committed over $700 million in the latest state budget to increase both the number of beds and staff in the system, but some have raised concerns that these investments will be inadequate, especially with the closure of the Port Phillip Prison, which has 1,087 beds.
Impact on other prisons
In addition to the issues at Hopkins Correctional Centre, Barwon Prison and the Metropolitan Remand Centre have also been affected. Prison insiders have reported that these mould infestations have made the newly constructed units uninhabitable, with some facilities now requiring major repairs, including potential demolition of already-built wings.
In both Barwon and the Metropolitan Remand Centre, the delays in construction caused by the mould have raised questions about whether the mould problem was present before the materials were even delivered to these sites, further complicating the investigation.
Long-term consequences for Victoria’s prison system
As the state government works with contractors to resolve the mould issues, the future of Victoria’s Prison Infill Expansion Program remains uncertain. Hopkins Correctional Centre was slated to receive 94 new beds, along with a new management unit and several other refurbishments, all aimed at easing the overcrowding crisis.
However, with ongoing delays, the situation is placing significant pressure on an already overburdened system that is in desperate need of reform.
Southwick emphasized the urgency of the situation: “In the middle of a crime crisis, we need beds—not blowouts and blame-shifting.”
