Privatization and reconstruction
of the Karlau correctional facility
New prison for all
"Build and they will come": that is the motto
of a U.S. prison company in contact with EUCC. Descriptive of its
expansion plans, the motto likewise heralds the EUCC plans to reconstruct
the Karlau correctional facility. Building two new prison buildings
will increase the number of available beds from 450 to 900, thus
increasing the number of people the state is able to incarcerate.
In the past two years the number of prisoners in Austria has already
increased by 10 percent.
EUCC aims to build high capacity prisons in Europe.
In doing so, the most important concerns are cost efficiency and
economic viability. Therefore, within the grounds of the Karlau
correctional facility, new prison tracts will be built on unprofitable
areas such as agricultural and soccer fields.
Although the number of prisoners will more than
double, the EUCC will be able to save on prison guards. The state
will pay EUCC per prisoner, allowing the EUCC to rake in a high
profit. Consistent with the existing conditions in the Karlau correctional
facility, the inmates will be obliged to work for a low wage. The
inmates' purchases will be limited exclusively to the correctional
facility shops, which will be run as a subsidiary of the EUCC. Therefore,
it is assured that the prisoner's wages will flow for the most part
back into the corporation.
Founding of a enterprises
EUCC will take over the Karlau correctional facility's
food store, drugstore, and tobacco shop. In future, only preordered
goods will be issued to prisoners to avoid the high costs of storage.
Based on the model of British prisons, visitors will be prohibited
from bringing the prisoners candies or articles for personal hygiene.
This measure is to maximize the enterprise's profits in the correctional
In-cell TV for all
The inmates' private televisions will be confiscated
for security reasons. As is already the case in privatized prisons
in Great Britain, televisions will be rented for a fee so that the
prisoners are able to receive special, suitable informational and
entertainment programs via the "in-cell TV." This is meant to control
the inmates and keep them busy and by doing so, EUCC contributes
to the smooth running of the penal system.
Business location Austria
EUCC aspires to collaborations with corporations
such as Microsoft, IBM, Boeing, and textile companies, which should
build production facilities in the Karlau correctional facility
as they have in U.S. prisons. The Austrian government is challenged
to create the necessary legal framework. For example, at a prison
in the U.S. the Boeing subsidiary Microjet successfully produces
supplies for airplane construction. The prisoners are remunerated
with less than one dollar an hour for their work.
Prisoner labor as opportunity
The prisoners are required to work. Their wages
are only a fraction of what employees outside of prison receive
for the same work. Thus, the more that is produced in Austrian prisons,
the more competitive and inexpensive are the Austrian goods. Prisoners
in U.S. prisons produce goods equaling a value of nine billion dollars
Private enterprises cleverly obtain enormous profits
through prison work, in Great Britain alone, more than £ 50 million
yearly. EUCC will pursue the following business strategy in Austria:
Rather than expensive resocialization concepts through which criminals
are reintegrated into society, mandatory labor and the maximization
of prisoner numbers will transform prisons into profit centers.
This becomes a matter of course in an era in which top priority
is given to budget consolidation.
Investment through the changing of laws
So that EUCC can also make sensible investments
in future in Austria, and build further penal institutions, the
corporation will first negotiate with the Austrian government. EUCC
strives for legal regulations such as those in effect in California.
After two prison terms, those sentenced to a third can receive a
life sentence, even for a minor offence. Through the lower rotation
in the cells and the longer stays, the EUCC saves costs and increases
The business philosophy of EUCC is to separate
the rooms of the prison into small, cage-like cells. The time in
which the prisoners are able to move outside of their cells, will
be kept to a minimum thus saving personnel and also costs.
Rebuilding prisons revives the economy
In the U.S., renowned banks such as Goldman Sachs
and Merrill Lynch turn over two to three billion dollars a year
in investment funds for the rebuilding of private penal institutions.
The corporations American Express and General Electric are already
million dollar investors in private prisons in Oklahoma and Tennessee.
Telecommunication companies such as AT&T, Sprint, and MCI vie for
exclusive contracts, since the monopoly position in penal institutions
allows them to charge the prison inmates six times the normal rate
for long distance calls. EUCC is already negotiating with numerous
European investors to bring this successful model here, to this
Expansion to Germany
EUCC joins the offense-oriented advertising campaign
of the Corrections Corporation of America: "We will help provincial
governments in Germany to handle the increasing crime rates, which
especially in the areas of violent crime and juvenile and child
delinquency, will continue to rise in the future. Therefore, we
have complete confidence in presenting your government our complete
facility projects with quite affordable, long-term lease agreements
and very special services."
Excerpt from correspondence from the Corrections Corporation
of America to the judicial administrations of the German provinces.
Privatization on the European continent
EUCC, like other companies, will support the complete
or partial privatization of prisons in Europe. Also Austria is meant
to create the necessary conditions. The French government has already
given contracts for 1.4 billion Euros to build twenty-eight new
prisons for 13,200 prisoners. Private companies will finance, plan,
and build the penal facilities that will then be leased to the government
for thirty years.
Security with a future
EUCC aims to reconstruct the Karlau correctional
facility and make it into the most secure prison in Europe. There
will be more than four-times the current fifty-eight surveillance
cameras. Modern CCTV-surveillance systems will control the prison
inmates around the clock, and the personnel will be retrained specifically
for the new technology. The aim is more efficient control with a
Discipline and control
Like in the current Karlau correctional facility,
the new prison tracts will also have special segregation cells built
in the cellar where prisoners can be locked up as a disciplinary
measure. Based on the model of the British prison in Doncaster,
which is run by a subsidiary of the U.S. corporation Wackenhut,
cells are equipped with standard mechanisms to conduct water or
teargas into each unit to combat rebellious prisoners.
Lucrative business with prison canteens
The U.S. corporation Aramark demonstrates exactly
how lucrative the business with prisons can be. Aramark is a specialist
in catering and cleaning prisons with a yearly turnover of 7.3 billion
dollars. Over the past six years, a profit of over 1.6 billion dollars
has been made. As soon as Aramark takes over a prison canteen, prices
go up and are sometimes even doubled. Prisoners are forced to produce
the prison ration package or to work in the prison cafeteria. EUCC
aspires to a permanent contract with Aramark for the Karlau correctional