National would allow the private sector to tender for the management of prisons on a case-by-case basis, leader John Key said today.
There was one privately run prison under the last National government, but Labour overturned this following the 1999 election.
Mr Key also pledged to boost the number of prisoners learning industry-based skills and double those receiving intensive drug and alcohol treatment.
He said re-offending rates were too high and inmates had to learn to change their behaviour.
"At present, 43 percent of all prisoners, and 65 percent of those under 20, re-offend within a year of release, and we must do more to change that," Mr Key said.
"It's a waste of taxpayer money to let these people serve their time without challenging them to change their behaviour - only to release them and then throw them back into prison again when they re-offend." Imprisonment should not just be a punishment but also give an opportunity for rehabilitation.
"Prisoners work just 15 hours per week on average, and that has to change. It's not good for anyone to have these people sitting around all day doing nothing," Mr Key said.
A National-led government would boost the number of prisoners learning industry-based skills through Corrections Inmate Employment by 1000 by 2011, at an estimated cost of $7 million. That would increase the number of prisoners in skills-based work to 3500.
Mr Key said National was also concerned at the lack of drug and alcohol treatment beds for prisoners.
National would double the number of prisoners who are able to receive such treatment to 1000 by 2011. This was estimated to cost $3.4 million.
Mr Key said National will be looking for a much better performance from the Corrections Department.
"There is also widespread public scepticism resulting from facilities such as under-floor heating and flat screen televisions now available to prisoners, especially in the new prisons," Mr Key said.
"The National Party believes prisoners should be treated humanely, but that prison facilities should be in keeping with public expectations, reflecting the fact that prisoners are paying a debt to society."
National would also:
* Ensure prisoners who are able to work but refuse are not eligible for parole;
* Carry out a stock-take of support available to released prisoners, including substance abuse treatment, accommodation and employment;
*Talk to private enterprise about opportunities for meaningful work and training for prisoners;
* Investigate whether money earned from inmate labour could be directed into victim reparations, families, or a savings fund for their release; * Re-visit the rules around eligibility for rehabilitation programmes;
* Review screening and treatment of prisoners with mental health problems;
* Expand prison literacy programmes.