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New Zealand's chief political watchdog has recommended a Royal Commission of Inquiry be held into criminal justice, saying rational debate on the sector is almost impossible.
Ombudsman Mel Smith's inquiry estimated crime and the criminal justice system had an economic and social cost of $9.1 billion in 2003.
"These are significant costs that demand a comprehensive and high level examination of all of the issues and the development of approaches that produce a better system and reduce this huge economic cost," Mr Smith said in his report.
"Probably a Royal Commission is necessary and appropriate."
The issues of crime and criminal justice had become highly politicised and "often the subject of uninformed" comment.
Two opposite philosophies were driving policy making which each side described negatively as "penal populism" and "soft liberalism".
The advocates for a harder line argued for tougher sentences for more criminals as a deterrent, while others wanted an emphasis on rehabilitation.
A Royal Commission of Inquiry was needed because rational national debate on the issue had almost become impossible, the report said.
An all party agreement on criminal justice would the ideal scenario, "this I accept is utopian and will not come about," Mr Smith said.
"I am however bound to report that the system overall, whilst not in any imminent danger of breakdown, nevertheless is throughout the entire system, suffering from a loss of public, and from comments made, political, confidence.
This was creating morale and recruitment problems.
"These among other things issues have a serious impact on the effectiveness and efficiency of the system, add to its already huge financial cost, and put the system at serious risk."
The report says attention has to be paid to the growing prison population, which was not economically or socially sustainable.
Mr Smith said policy was often made on ad hoc basis and there was a lack of co-ordination between agencies.
He recommended Prime Minister Helen Clark create an overall minister for the justice sector, with oversight over all ministers in criminal justice sector.
This minister would chair a committee of the sector's ministers and chief executives to ensure there was co-ordinated approach and an assessment of how different policies in areas would affect other parts of the sector.
Miss Clark asked for the inquiry following the murderous rampage by Graham Burton, who killed Karl Kuchenbecker in January while on parole.
The decision followed criticism of the way Burton's parole was granted and handled.
Mr Smith is a former secretary of justice.
National's justice spokesman Simon Power said the call for a Royal Commission showed Labour was mismanaging the sector and did not have the ability to lead it into the future.
- NZPA
