The Northern Territory government has picked a new site for a youth detention centre in Darwin and will also close the current Alice Springs youth detention facility.
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The moves follow the Royal Commission into the Protection and Detention of Children in the Territory sparked the poor treatment of youths at Darwin's Don Dale detention centre.
Territory Families Minister Dale Wakefield says the government will close the Alice Springs centre because it too is "not fit for purpose".
It will also be replaced by a new facility with the two new centres to "mark a new beginning and deliver better results for rehabilitating at-risk children in the NT", the minister said.
"We need to get at-risk children on the right path to stop this cycle of crime that's been happening for too long.
"That's why we are undertaking the most comprehensive overhaul of the youth justice system in Northern Territory history."
The new Darwin facility will be located on the site of the existing Don Dale centre, which will be bulldozed.
Design work will start next month with construction to begin in early 2019 and be completed by mid-2020.
In Alice Springs, the government is in talks with Desert Knowledge Australia, which operates a bush education precinct, to locate a new detention centre on the same location.
Ms Wakefield said the Territory government would provide another $50 million to respond to the royal commission recommendations in addition to the $20 million already allocated.
She called on the federal government to also allocate more funds.
"We are taking action to fix the problems highlighted in the report while the Australian government has walked away and is all talk and no action," Ms Wakefield said.
Australian Associated Press