Old private prison to close, inmates to be moved

Port Phillip Prison is privately operated by G4S and has been open since September 1997 with a capacity of 1087 inmates.

The state's contract with G4S was renewed in 2015 and agreement extensions were expected to continue for 20 years, depending on performance.

Workers at both closing prisons will be given the opportunity to work elsewhere within Victoria's justice system.

Inmates at Dhurringile will likely move to the Beechworth minimum security prison.

Victoria's Yoorrook Justice Commission, the truth-telling inquiry run as part of the state's treaty process with Aboriginal people, heard in 2023 the $1.1 billion Western Plains prison was sitting idle.

The decision to build the prison was made before the COVID-19 pandemic when detainee numbers were increasing, Corrections Victoria Commissioner Larissa Strong told the inquiry.

Construction was completed in November 2022 and at the time of her appearance in May 2023 at the commission, Ms Strong estimated the empty prison had cost Corrections $36 million to maintain and secure.