There were reports of two fires being lit and damage to prison property during the stand-off when a dozen prisoners from the medium-security unit refused to return to their cells from a recreational area about 3.30pm.

Police, fire and ambulance officers rushed to the scene when the standard emergency plan was activated.

Police remained to patrol the perimeter of the prison, both on foot and in vehicles, for several hours until after the emergency was called off last night.

The Prison Service Tactical Response Group was also deployed.

Correctional Services director Robert Williams, reading from a prepared statement, said last night that the situation was resolved peacefully with all bar two of the prisoners finally agreeing to return to their cells.

Two inmates asked to be moved to a different part of the prison.

Prison Action Reform spokesman Greg Barns said at the scene that he believed the stand-off had occurred because of prisoners' dissatisfaction over reduced recreational time and inferior food at weekends due to funding cuts.

But Mr Williams said that there had been no prison funding cuts because of Government budget restraints.

Mr Barns said he had not previously seen the level of police presence outside Risdon that there was during yesterday's situation.

Mr Williams said the correctional officers taken to hospital had not suffered life- threatening injuries.

It is understood they were later transferred from the Royal Hobart Hospital to a private hospital.

The prison will remain locked down today while the damage is assessed and repaired.