The Minister for Justice has published new legislation allowing him to close Mountjoy Prison.
The proposed Bill will remove a technical statutory impediment to the closure of the jail.
Mr McDowell said Mountjoy falls far short of the requirement of a modern prison and the best way forward is to replace the jail rather than refurbish it.
He denied any plan to build the new jail at Abbottstown, saying other sites had been identified.
On his proposal to allow the prison escort service to be privatised, Mr McDowell said no one would be happier than him to allow Prison Officers to continue to operate the service, if that could be done economically.
But he said the taxpayer expects him to take action to ensure that costs were reasonable, and if necessary he would contract the service out.
Tonight the Prison Officers Association criticised the decision. A spokesman said the minister had already spent up to a €100m on refurbishment and building a new prison on the outskirts of Dublin made no sense.
