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Corrections Minister Damien O'Connor says an overhaul of the prisoner transportation system will start at the top.
A Corrections report into Liam Ashley's violent death in a prison van on August 24 detailed a series of miscommunications, errors and misunderstandings that culminated in the teenager's murder.
Ian Ashley, father of the dead 17-year-old, said the family were considering suing the department for putting his son in the same compartment of the prison van as his killer, George Baker.
Questioned in Parliament, Mr O'Connor said he would oversee changes to the Corrections system to prevent such a tragedy happening again.
"The overhaul of prison transportation, as I have announced, will start right at the top, at head office, to clarify who has responsibility for laying down policies and reflecting changes in legislation.
"The overhaul will go all the way through the Corrections system to any contractors that may be involved in the transportation of prisoners at any time in the Corrections system."
Mr O'Connor said the Ashley family wanted an absolute assurance that the lessons learned from this terrible tragedy would not be lost.
"I have offered the Ashleys my deepest sympathy at this terrible loss. I can understand their frustration and I, too, am alarmed at the mistakes made in the Corrections system."
Department chief executive Barry Matthews had a "clear responsibility to carry out actions and changes to make sure this situation will not occur in the future", the minister said.
Mr Matthews had been directed to urgently draft a plan of action to implement all of the recommendations outlined in the report.
"There will be further changes as necessary."
Mr O'Connor said that immediately after Liam's death he had directed the department to ensure all prisoners under the age of 18 were kept separate in all circumstances when outside prison.
That practice would continue.
Mr O'Connor said on Monday the Corrections Inspector's report showed his department and the Chubb security firm had failed to prevent Liam's death, which could have been avoided if rules had been applied.
"There has been no one person identified at fault. It was a systems fault," the minister said.
National Party justice spokesman Simon Power has said that while Mr O'Connor is not to blame for Liam's death, he is "politically responsible for the litany of shortcomings in his department" and should resign.
- NZPA