Victorians have slammed a proposal that would see the state’s unused prison cells leased to other jurisdictions, accusing the government of ignoring its own spiralling crime crisis.

The idea, put forward by the Institute of Public Affairs (IPA), suggests Victoria could earn around $290 million annually by allowing states such as Queensland and South Australia to house their inmates in underused Victorian facilities.

IPA research fellow Mia Schlicht found that despite a surge in violent offending and tougher bail laws, Victoria’s prisons are currently running at about 70 per cent capacity, leaving more than 2,600 beds empty each day.

She said the additional income could be funnelled back into law enforcement and crime prevention.

“Victoria could convert idle capacity into a revenue stre

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