XN000022-1996-07-05 — Page 41

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"Rather than make money, we save money for Government by producing goods which would otherwise have to be bought commercially, at a much greater cost," he said.

"CSI's primary purpose is to assist the management of institutions by eliminating the biggest threat - boredom. In the process, we hope we can inculcate useful working habits which will help the inmate on release, and encourage him or her to lead a law abiding life," he said.

In clarifying a misconception that CSI might be taking jobs away from the local jobmarket, Mr Lai said over 99 per cent of what CSI made went to the Government or quasi-government bodies.

"In addition, almost all the industrial operations carried out by CSI involve products which are not otherwise made in Hong Kong. Who else makes concrete slabs and kerbstones? Who else makes fibreglass litter bins?" he asked.

Mr Lai noted that another misconception, one which had become increasingly of concern in the last few years, was one of human rights.

"Is using prison labour in this way tantamount to forced labour, and therefore a violation of human rights? Again, I have to answer no," he said.

"The use of prisoners for labour is permitted under the 1957 Convention on the Abolition of Forced Labour, provided that the jobs and conditions are no degrading or cruel. I would rate the working conditions in CSI superior to some prisons of our critics overseas.

Another subject which often came up when discussing prison industries was the charge that exports were, in some cases, subsidised by prison made products, the Commissioner said.

"A typical example of this is a line of denim clothing very popular in Japan. Marketed as being made by murderers, rapists and the like, it goes under the brand name 'Prison Blues'.

"Made in Hong Kong? No, CSI does not export. Made in China? Actually, no. 'Prison Blues' are made in Oregon, USA," Mr Lai said.

The Commissioner said the circumstances under which CSI operated had been described as a businessman's dream - captive markets, cheap and plentiful labour, low costs, no need to make a profit and no shareholders to answer to.