United Future says the Ombudsman is being flooded with complaints from prison inmates, and the party fears compensation payouts could become more common.
The High Court last month awarded five criminals a total $130,000 compensation for the way they were treated in solitary confinement.
The Government is preparing legislation which will give victims the first call on any compensation granted to criminals.
United Future MP Murray Smith, the party's justice spokesman, said he had obtained figures showing that in the year to the end of June, 44 per cent of the 5878 complaints to the Ombudsman were from prison inmates.
"The volume of complaints from prisoners clearly suggests that the internal processes for resolving complaints at our prisons are failing," Mr Smith said.
The number of prisoner complaints to the Ombudsman had increased by 20 per cent since 2000, when 2170 complaints from inmates were received.
The numbers raised serious concern about the management and operation of state-run prisons, said Mr Smith.
Compensation payouts for mistreated prisoners could become more common if the number of complaints to the Ombudsman was anything to go by.
Each case cost $380 to investigate. Staff from the Office of the Ombudsman visited each prison throughout the country on average nine times a year.
- NZPA
Grumbling inmates prompt compensation bill warning
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