Corrections Minister Judith Collins says there is "quite a lot of interest" from private companies over contracts for the management of prisons.

Against strong opposition from the Labour Party, the Government today pushed the legislation through under urgency. The bill, which allows prisons to be handed over to private firms, passed on a vote of 68 to 53.

The Corrections Department was not expected to tender but would be given the opportunity to do so, Ms Collins told Radio New Zealand.

"They've indicated to me that they would rather get someone in so they can actually have a benchmark against which they can measure themselves and improve constantly."

Corrections had indicated "they're not at all frightened of competition".

Ms Collins said the bill had been passed under urgency as it had been around for a year, National had campaigned on it, and "we're trying to make sure we get our legislation through so we can get on with it."

"We've got a full prison population at the moment... we really can't muck around."

The previous National government put Auckland Central Remand Prison under private management but when Labour won the 1999 election it refused to renew the contract.

That was the only time a New Zealand prison has been under private management, and Ms Collins said the experience had been "generally positive".

Ms Collins said she wasn't planning "wholesale privatisation" and was considering putting two new prisons under contract management.

She has previously said Auckland's Mt Eden Prison could be the first when redevelopment is completed in 2011.

Ms Collins said the legislation allowing contract management ensured public accountability and the prisons would be under the umbrella of the Department of Corrections.

"Contract prisons will have to comply with all relevant legislation, like the Bill of Rights Act, and international conventions," she said.

"There will be prison monitors with significant powers of access, reporting directly to the chief executive of the Department of Corrections."

Labour law and order spokesman Clayton Cosgrove told Radio New Zealand the party was concerned about the minister "transferring accountability" for a core government function.

Mr Cosgrove claimed that Corrections officers in the prisons did not support the bill.

"They're concerned for their safety they're concerned for their security."

He said private companies were motivated by profit rather than the safety of prison guards and prisoners.

Mr Cosgrove said there was a lack of accountability as it was more difficult to get information from private companies.

Green Party MP David Clendon said privatising prisons didn't make any more sense than privatising the courts, the police and the defence force.

He wanted to know what would happen if a privately-run prison got into serious financial difficulty.

"Would the state allow it to go broke, or would it be bailed out with taxpayer money?"

ACT's David Garrett said international data showed privately run prisons were cheaper and delivered better outcomes.

"Privatisation isn't a right-wing conspiracy, around the world it has become the norm," he said.

"And there's no tablet in stone that says incarceration of prisoners convicted by the courts must be the responsibility of the state."

- With NZPA