TNAG-1585-FCO40-2159-Hong-Kong-prisons-and-prisoners-1986 — Page 2

5

no

A further drawback of the present system is that interest is paid on the balance held in the deposit account. This is because, under section 23(3) of the Public Finance Ordinance (Chapter 2) any interest received on the deposit forms part of the general revenue.

Proposals

6

In order that the donations may be administered more efficiently and effectively it is proposed that there should be established a Prisoners Welfare Fund which would be administered in line with the Correctional Services Department Welfare Fund. Moneys due to the Prisoners' Welfare Fund would be paid to the Director of Accounting Services who would credit them to an account entitled "Deposits - Prisoners'

Prisoners' Welfare Fund". The fund would be managed by the Commissioner of Correctional Services. Disbursements would be charged directly to the account set up by the Director of Accounting Services. Funds surplus to requirements could be placed on call/time deposit to earn interest. Clause 3 of the Bill and rule 7 of the amendment rules give effect to the provisions set out in this paragraph.

7

The Prisoners' Welfare Fund would have the following sources of income

(a)

(b)

(c)

(d)

the balance of moneys in the existing Prisoners' Welfare Donation Fund;

sums resulting from or donated in connection with public performances by prisoners (for example, by the Tai Tam Girls Marching Band and the Cape Collinson Institution Band);

Correctional

net sums received at any function organised to raise money for the fund;

of

moneys confiscated and sums derived from the sale

articles confiscated by Superintendents of the Correctional Services Department under rule 23 (1) of the Prison Rules;

(e)

any

other

donation

or

voluntary

contributions; and

(£)

any interest or dividends that may accrue a result of investment of moneys in the Fund.