The Labour Party has said it would in government introduce new legislation requiring district court judges to explain in writing the reasons why they put people in jail.
It also said the imprisonment of children in St Patrick's Institution is a violation of human rights and should cease immediately.
The party's penal policy document released today said there should be more and smaller prisons built on the basis of a geographical breakdown of criminals and prisoners.
Labour said the country's penal policy is not working, that Irish prisons are costly, overcrowded and ineffective, and that it would bring in measures to change this if in government.
It says it will bring in a new Sentencing Act for the judiciary, based on the principal of imprisonment, as a last resort.
District Court judges in particular would have to consider all alternatives to prison and provide written explanations for sending someone to jail.
The imprisonment of children at St Patrick's Institution is, Labour said, a clear violation of Ireland's human rights obligations and should cease immediately.
The party says it would increase the number of Garda Juvenile Liason Officers, the resources of the Probation Service and the HSE to support children and teenagers at risk of becoming involved in crime.
Labour says that many inmates, women in particular, should not be in jail, but on diversion programmes, and more should be held in open prisons.
The party also said a section of Thornton Hall should be an open prison.
Banking inquiry
Labour will also hold a public inquiry into the banking crisis if the party forms part of the new government.
It said all those who were a party to the decision to give the blanket guarantee to the banks will be compelled to appear before the inquiry, which will be held by Paliamentary Committee.
Labour's Justice Spokesman Pat Rabbitte said the people who will have to give evidence in public include Taoiseach Brian Cowen, Finance Minister Brian Lenihan, former Governor of the Central Bank John Hurley, former Financial Regulator Patrick Neary and former Chairman of Anglo Irish Bank Sean FitzPatrick.
Mr Rabbitte also accused the Taoiseach of misleading the Dáil by not disclosing all his contacts and conversations with Sean FitzPatrick.