months is $91,000. In 2001 the department estimated that a lifetime of offending by one person costs victims and taxpayers $3 million. Despite English's concerns about the growing cost, in 2011 the government approved the building of a new 960-bed prison at Wiri estimated to cost nearly $400 million. Later that year justice sector forecasts showed a drop in the projected prison forecast for the first time. Charles Chauvel, Labour Party spokesperson for justice, and the Public Service Association both questioned the need for a new prison when there were 1,200 empty beds in the prison system. In March 2012, Corrections Minister Anne Tolley announced that the new prison would enable older prisons such as Mt Crawford in Wellington and the New Plymouth prison to be closed. Older units at Arohata, Rolleston, Tongariro/Rangipo and Waikeria prisons will also be shut down. Rehabilitation policies In 2012 the government announced that an extra $65 million would be put into rehabilitation, in an effort to reduce re-offending by 25% within five years. As part of the package, Corrections Minister Anne Tolley indicated the 14,000 offenders who spend time in prison on remand each year would become eligible for rehabilitation for the first time. On 22 November 2019, it was reported that the Department of Corrections had adopted a policy of referring to prisoners as "men in our care" and "clients." Staff were also instructed to address prisoners by their first names instead of surnames. The Minister of Corrections Kelvin Davis confirmed that this was part of the Sixth Labour Government's Hōkai Rangi strategy to address the high rate of Māori reoffending and imprisonment by "humanising" prisoners. The government's decision was criticised by Corrections staff and the Leader of the Opposition Simon Bridges as "political correctness" and "being soft on crime." Structure The department comprises three service arms and four other groups. The service arms are prisons, community probation, and rehabilitation and reintegration and each arm used to have separate internal processes, infrastructure and support staff. As of May 2012 the newly appointed chief executive, Ray Smith proposed merging the three service arms into one team. Smith said the segregated infrastructure "creates replication of work, is inefficient and has resulted in an overly layered structure." Prison Services operates the Department's 19 prisons. Juvenile youth justice residences: These are residences that are set across New Zealand for youth who have been sentenced by the youth