THE State Government is embarking on a secret plan to privatise all Queensland prisons, starting with Lotus Glen in Far North Queensland.

Senior Government sources have confirmed that Department of Community Safety Director-General Kelvin Anderson has established a special task force to examine the feasibility of the plan.

Lotus Glen at Mareeba has been touted as the most likely candidate for stage one of the Government's out-sourcing plan because of its modern infrastructure, but more facilities would follow.

The proposal is aimed at saving money, with privately managed prisons reportedly proving 10 per cent cheaper to operate on average than public prisons, mainly because of staffing ratios - meaning fewer staff per prisoner.

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However, the move has prompted anger from the public sector union, which says privatisation would lead to more job losses.

Former Probations and Parole southern region manager Nicole Duke has been appointed project director and is undertaking a report expected to go to the Cabinet Budget Review Committee.

The aim is for the Government to call for tenders as early as July.

It is believed she's already met with heads of the GEO Group, which manages the privatised Arthur Gorrie Correctional Centre, as part of her research.

Queensland's only other privatised prison is South East Queensland Correctional Centre at Gatton, which is run by Serco Australia.

The Courier-Mail believes Ms Duke's brief is primarily to write a report presenting the pros and cons of privatising the remainder of Queensland's state-run prisons.

Aside from Lotus Glen, the State Government also controls the Brisbane Correctional Centre, Brisbane Women's, Wolston, Townsville, Maryborough, Capricornia, Numinbah and Palen Creek correctional facilities.

Community Safety Minister Jack Dempsey said Queensland has had privately managed prisons for the past 20 years, and 21 per cent of prisoners were detained in these facilities.

"From time to time, different prison management models are explored, and currently the Government is investigating all options, including keeping the status quo," Mr Dempsey said.

But the privatisation proposal has drawn an angry response from unions, who have accused the Newman government of putting dollars in front of public safety.

Together Union secretary Alex Scott said the privatisation of prisons was "sheer stupidity", which would lead to further job losses compromising public safety.

"It's making a profit at the expense of the community," he said.

Mr Scott said Premier Campbell Newman would be breaking his promise of an end to public service job cuts if the Government decides to proceed with the plan.

"The primary driver of the private sector is profit," Mr Scott said.

"It's not about the rehabilitation of prisoners and not about keeping the community safe."

Queensland's first prison privatising contracts took place in 1989-90.