The North West Star has seen the proposal submission from Mount isa City Council as outgoing Mayor Tony McGrady pushes the plan.

The plan is for a low to medium correctional facility to be based in the city which council says would have many benefits for the widen region.

"Offenders from the Mount Isa region would not have to be transferred out of the region which has serious impact on their mental health, family relationships and community reintegration due to bitterness at the whole process," the report to the state government said.

"There would also be significant savings to government in logistical costs incurred by Police and Corrections in the current process."

Other benefits include reducing overcrowding in other facilities, crating long term local sustainable employment, boosting local businesses through purchases of goods and services, invigorating local community support agencies, and offering culturally appropriate healing programs to Aboriginal and Torres Strait Islander people.

Mayor McGrady said local community consultation showed overwhelming public support for the proposal.

"I have made numerous public statements through the press and radio and the public response has been positive," Cr McGrady said.

"The construction and operation of a correctional facility would be an immense boost to Mount Isa."

He said there would be an opportunity to develop partnerships with local health, education and community service providers to support the delivery of services into the facility.

The mayor said he was working on an initiative to reduce crime with the North West Queensland Indigenous Catholic Social Services group.

The NWQCSS has brokered an agreement with a private company called Holistic Justice and Community Services (HJCS)headed by former department of Corrections boss Keith Hamburger and they were hoping to meet with the department to discuss how they could work together.