Brief
Labor condemns Coalition’s plan to turn Long Bay prison into 12,000 homes
Planning Minister Paul Scully and Attorney‑General Michael Daley say the scheme would overwhelm infrastructure and lack a clear rehousing plan for inmates.
By Felo News Desk · Published
On October 28, 2026, the New South Wales Coalition unveiled a proposal to close Long Bay prison and build 12,000 homes on the 50‑hectare site. Labor ministers immediately rejected the plan as unrealistic, calling it a "multibillion‑dollar bill to the taxpayer masquerading as a housing plan," according to the Sydney Morning Herald.
What happened
The Coalition’s plan, announced ahead of the March state election, includes establishing a delivery authority to oversee the prison’s closure within 100 days if elected. The proposal envisions up to 12,000 dwellings on a site that currently houses about 1,200 inmates. Labor ministers Michael Daley, Paul Scully and Corrections Minister Anoulack Chanthivong gathered outside Long Bay jail on Wednesday to publicly denounce the scheme.
What the reports add
The article notes that the plan would create a density three times that of Green Square without new transport infrastructure. Scully highlighted that Anzac Parade, the only road serving the peninsula, is already "chock‑a‑block" during morning peak periods. Premier Chris Minns has previously said a nearby metro station would be required for the redevelopment, but the government has no such project in the pipeline.
What was said
Planning Minister Paul Scully told reporters, "What we’ve seen from the member for Vaucluse and the Liberal Party is a plan to not have housing in Woollahra. This is a distraction and a fantasy of an idea." He added that the density would fail basic planning tests. Attorney‑General Michael Daley said the uplift in density was unworkable because the sole access road was already saturated. Opposition leader Kellie Sloane questioned why a prison occupies prime real‑estate land and suggested selling the site could raise up to $2 billion for the government.
How it came about
The Long Bay proposal follows a broader housing debate in NSW, where Labor’s National Housing Accord target is reportedly 40 percent behind schedule. Earlier this month, the Coalition also released plans for large‑scale redevelopments in Woollahra and Edgecliff, seats held by Labor MPs, intensifying the political rivalry over high‑density housing in affluent eastern suburbs.
Key facts
- The Coalition proposes to close Long Bay prison and build 12,000 homes on the 50‑hectare site. (smh.com.au)
- Long Bay currently houses about 1,200 inmates. (smh.com.au)
- Labor ministers called the plan a "fantasy" and said it would create density three times that of Green Square. (smh.com.au)
- Planning Minister Paul Scully said Anzac Parade is already "chock‑a‑block" and lacks capacity for the proposed development. (smh.com.au)
- Opposition leader Kellie Sloane suggested the land could fetch up to $2 billion if sold to developers. (smh.com.au)
Sources
- [1] smh.com.au — originally reported as “Labor attacks Coalition’s 12,000-home Long Bay plan”








