Growers fear competition from jails

Commercial plant growers are worried private prisons may further scythe into their profits, complaining prisons already take a fair whack of their business.

Parliament's law and order select committee is considering a bill to allow private management of prisons.

The Nursery and Garden Industry Association of New Zealand, which represents about 500 plant growers, retailers and suppliers, urged MPs to prevent private prisons entering an industry where businesses were already operating or at least put in protections.

Suggestions included limiting nursery production to six prisons, ensuring prices did not undercut the market and ensuring production and sales data were provided.

Association chief Allan Criglington told the MPs the body had fought for years to get fair treatment from the Corrections Department. In 2005 an agreement was reached limiting impact on the market.

"[We are concerned] by what we see as taxpayer subsidies that result in industry prices being undercut by prisons," he said.

Association spokesman Mark Dean, who is also director of Naturally Native, said that in the 1990s, Corrections was running six nurseries producing 300,000 plants and selling them at unrealistic prices.

"This has led to an oversupply of plants and a reduction of opportunity for nursery businesses and it carries on today because, for example, we know it's pointless to put in a price for a Taranaki District Council tender because it's done through the local prisons."

Mr Dean said 90 per cent of association members employed fewer than 10 people, growing about 50,000 plants, with a turnover under $200,000.

Labour costs made up 40-45 per cent of each wholesale plant sold.

Private businesses had to pay proper salaries and pay for equipment themselves, while Corrections nursery facilities were of the highest standards, for example, they had computer-controlled irrigation systems.

Nurseries would be "irresistible" to private operators, Mr Dean said.

"They will use low-cost prison labour to produce product at cut rates that the industry cannot match."

He was concerned private prison operators would access government stores for equipment, sell plants too cheaply and not provide information about what they were doing.

Prisoners could still get training in the field without damaging businesses, Mr Dean said.

"We could have the most wonderful gardens around prisons without them going out and selling product on to the open market."

The association had previously suggested that prisons grow their own fruit and vegetables.

National MPs argued contracts could be written to protect businesses but Labour MPs said contracts could not require private businesses to come under public law. That meant they could hide behind commercial sensitivity.

The Public Service Association and Council of Trade Unions also made submissions.

- NZPA