The Department of Corrections plans to re-open Wellington prison, which was moth-balled in September.
Wellington Prison, also known as Mt Crawford prison, is one of the oldest in New Zealand.
The department is maintaining it, so it can be re-opened at relatively short notice should the need arise. The maintenance budget for 2008/09 is $312,570.
The prison site is prime Wellington real estate, with the land alone worth $1.154 million.
Enterprise Miramar Peninsula group chairperson Allan Probert says it's not appropriate to have a prison in Wellington and reckons the costs don't warrant it anyway.
He says Rimutaka prison in Upper Hutt should be expanded instead.
However, Corrections Minister Judith Collins does not want the prison to be closed entirely.
She says Rimutaka prison already has double-bunking facilities, so it may be more efficient to expand that jail.
The minister says some of the newer prisons, such as Spring Hill in North Waikato, could also have new beds.