The Ashley Youth Detention Centre has been assessed by the Justice Department as a suitable site for the new proposed Northern prison.
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Corrections Minister Elise Archer on Friday said an initial evaluation by the department indicated the site was well-suited for a modern, fit-for-purpose correctional facility.
She said no decision had been made at this stage as the government needed to engage with the Meander Valley community on the future use of the detention centre.
Premier Peter Gutwein last year announced the government would close Ashley within the next three years and replace it with two smaller facilities.
The Northern prison was proposed at two separate sites at Westbury, but faced sustained community backlash from residents.
Ms Archer said consultation on the proposed use of the Ashley site for the Northern prison would start from February 9.
She said the prison project team had engaged on the proposal with the detention centre's immediate neighbours and received some feedback. Wider consultation would be undertaken over five weeks with face-to-face sessions to be provided with the project team.
Advocates and community members have overall welcomed news of the consultation, citing the lack of information and consultation done by the government when it announced the first preferred site at Westbury.
However, the news has received some criticism, with the Westbury Residents Against the Prison group stating more information was required to allow the Deloraine community to have an informed opinion.
Northern Regional Prison advocate and former Legislative Councillor Greg Hall, who has spoken publicly about his support for the Northern Prison said the Ashley Youth Detention Centre site had great potential.
However he said it was important the government struck the right balance.
"Anecdotally people are sick of the argy-bargy, they want to see something done," he said.
"You are never going to get total consensus, so you need to move on or you get paralysis by analysis."
Mr Hall served 17 years on the Legislative Council and 12 years on the Meander Valley Council.
He said access to visitation and loved ones was proven to reduce rates of recidivism and was a key factor in rehabilitating prisoners and wanted to see more decisive action following the talks.
Westbury Residents Against the Prison spokesperson Linda Poulton said the group "would not speak on behalf of Deloraine" but their position had not changed.
"We, as a group, are totally opposed to a prison site in Westbury," she said.
Ms Poulton said while consultation was needed, she was critical of the lack of detail released so far.
"There's been no information regarding what type of facility they are proposed; in the last few weeks the language [from the government] has changed," she said.
Ms Poulton said she expected the Deloraine community to make their voices heard during the consultation, and urged them to find out as much information as possible.
"We want to know if it's the same type of facility they proposed at Westbury or are they taking a different approach altogether?" she said.
Prisoners Legal Service spokesman Greg Barns said the group had long argued for the closure of Ashley and for that space to be used as a Northern corrections facility.
"However, we will only support the new facility if it is focused on health, education, and through care for prisoners," he said.
Meander Valley Council mayor Wayne Johnston said the council had not taken a position on any particular site for the proposed prison facility, but welcomed the news of consultation.
He said the previous attempt at consultation on the Westbury site had not worked for the community, but that it was a learning opportunity for everyone involved.
Ms Archer said the government would meet after the consultation period ended and make a final decision.
Written submissions on the prison site at Ashley will be open until March 14 and pop-up shops will appear in Meander Valley over five weeks before a decision is made.
Greens Leader Cassy O'Connor welcomed the consultation, but said the party "remained unconvinced" about the need for a Northern prison.
"The closure of Ashley after a century of mistreating children does provide an opportunity to protect the many natural values of the Birralee Road site near Westbury, and deliver a therapeutic, contemporary northern correctional facility," Ms O'Connor said.
"We welcome the Liberals' decision to finally consult the community about the location of their planned northern prison. It really does seem like for Meander Valley locals it's third time lucky. This time representatives from government even spoken to neighbours of the site before the public announcement.
"That certainly didn't happen when Minister Archer made her hasty decision to adopt a remnant patch of protected bushland as the preferred location."
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