A new maximum-security area at South Coast Correctional Centre officially opened on Thursday, although it will be a month or so before prisoners arrive.
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The 160-bed wing was officially unveiled by Minister for Counter Terrorism and Corrections, Anthony Roberts.
Mr Roberts presented the ceremonial prison keys to Governor Mick Reid at today's official opening and praised the investment in the South Coast region.
"The expansion also includes a new 200-bed minimum-security section, which opened last year," Mr Roberts said.
"These new facilities created 120 ongoing jobs based in Nowra, and will continue to inject money into the economy, which is great news for the region."
Mr Roberts said there would be a flow-on effect for the community, as the jobs would attract new residents whose families would require the services of more teachers and nurses.
Asked whether additional funds would be made available for more nursing staff, he said the question was one for the health minister.
Corrective Services NSW Commissioner Peter Severin said a renovated visitor area for the expanded maximum-security section would ensure inmates were retaining vital contact with their families.
"Family and loved ones play a critical role in the rehabilitation of offenders by providing stability and encouragement to help them turn their lives around. We want to ensure they maintain that contact in a safe and secure environment," Mr Severin said.
"Male prisoners of all classifications except for supermax will be held here. The standards for maximum security require two delay barriers and detection facility. Within that there are further barriers that keep people away from the outside fence. In minimum security, you only have one delay barrier."
Minimum, medium or maximum security designations were made by considering a range of factors, including, but not limited to, the type of offence and offending history of prisoners, Mr Severin said.
"Looking at the performance of that person in custody, obviously behaviour is a very strong indicator of stability," he said.
He said that making changes to an operational facility was challenging, and commended the work of staff to "make it happen with the minimum of fuss".
Governor Reid said the new facility was creating more work and better rehabilitation opportunities for inmates.
"This project includes a purpose-built Corrective Services Industries building where inmates will be employed in laundry, kitchen and a business unit, providing them with skills they can use to gain a job once they're released," Mr Reid said.
Managing contractor Lendlease utilised Corrective Services Industries for the project, with the modular cellblocks constructed by inmates at Cessnock.
The project was part of the Government's $3.8 billion prison expansion program.