TNAG-1642-FCO40-2289-Public-finance-in-Hong-Kong-Supplementary-Appropriation-(198-1987 — Page 52

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

7.46 The Commissioner of Correctional Services accepted that productivity was low but felt that the CSI should be compared with the private sector. Whilst each prisoner produced only one pair of trousers a day against the target of three pairs, that target was an ideal. Comparison with blind factory workers was not appropriate because the blind workers had more experience and since they earned $40 a day against an average weekly prisoner's wage of $18-considerably more incentive.

7.47 The Commissioner fully accepted the need to improve efficiency and to have better material standards but the CSI had given priority to quality control in order to obtain more orders from Government departments. Efficiency standards were now being addressed. He hoped to see improvements within 18 months. In the meantime, he hoped that the freeze on investment in his workshops, proposed by the Director of Audit's report, would not apply to the diversification of products.

7.48 The Commissioner acknowledged that the carpentry workshop recovered only 55% of the material from teakwood logs. Given better skills and improved supervision it might be possible to achieve a 62% recovery rate. A 75% recovery was possible but this would mean using pre-cut teakwood planks. These were more expensive than logs. The CSI were updating their clients' specifications with a view to using less expensive materials. Because of the strong market competition, the Commissioner doubted whether he could win back Government's furniture contracts. However, he hoped to diversify the carpentry workshop's products and win a Housing Department contract for making flush doors.

7.49 The Commissioner explained that the CSI shoemaking plant had over capacity because it was the smallest available. The spare capacity could not be used to supply the disciplined services with their requirements for 39,000 pairs of moulded rubber soled shoes. It had been necessary to purchase a new plant, again the smallest available, to meet this demand. The Commissioner was confident that the shoes from the new plant would meet the standards required by the client departments. The shoes had been tested by the British Standards Institute. He thought he would get the orders, but acknowledged that the Police Force had not confirmed that they would accept the shoes.

7.50 In a bid to raise product confidence, the CSI had mounted a major drive on quality and officers had visited Government departments with samples. The reaction had been favourable. Earlier resistance had now been overcome. The Secretary for Security added that the CSI produced garments and other textile items for 20 Government departments: this showed how successful the department had been in selling its products.

7.51 The Secretary for Security agreed with the Committee's request to look upon the Director of Audit's report in a positive and objective way with a view to improving the standard of efficiency of the Correctional Services Industries.

7.52 Conclusions and Recommendations. The Committee are concerned that the manufacturing workshops of the Correctional Services Industries (CSI), which are producing goods valued at $52 million a year, are only just able to cover costs despite the low labour costs.

7.53 The Committee accept that it is unrealistic to expect the CSI to achieve commercial standards of productivity. Nevertheless, the Committee believe that the productivity in the garment-making workshops is too low.

7.54 The Committee are concerned at the high rate of wastage of teakwood in furniture manufacturing but are encouraged by the efforts being made to improve on the situation.

7.55 The Committee note that in the recent expansion of the shoe-making workshop positive assurances were not obtained from the large potential users that they would accept the shoes produced. The Committee recommend that in future every possible effort be made to evaluate the potential market for CSI products, and if possible, to improve the marketing techniques.

7.56 The Committee further recommend that the Administration takes additional measures to eliminate any possible prejudice within Government departments against CSI products. It should give further encouragement to departments to use CSI products subject to specification, quality, price and delivery requirements being met.

7.57 Paragraphs 87–89. The failure of the disciplined services to make full use of the Correctional Services Industries (CSI) in the manufacture of uniforms for their staff. The Secretary for Security stressed the importance for disciplined staff of smartness. The public had to have confidence in them. It was therefore essential for them to have made-to-measure uniforms. On the question of why the garment-making workshop in the CSI had been expanded with the capacity to make stock-size uniforms when the disciplined services required made-to-measure uniforms, he said that the CSI already produced garments and uniforms for 20 other Government departments. The Commissioner of Correctional Services added that the increase in the capacity of the workshop was not done to produce uniforms for the disciplined services. The CSI manufactured nurses and Post Office staff uniforms but the flow-line production method could produce only stock-size uniforms. These did not meet the requirement of the disciplined services. He said that there was already a high workload in the workshop and that he was anticipating more orders.

7.58 The Commissioner confirmed that officers of the Correctional Services Department wore stock-size uniforms with the exception that senior staff had their uniforms made-to-measure. His staff were satisfied that stock-size uniforms were smart. The Secretary for Security was however reluctant to ask the other disciplined services to try stock-size uniforms even on an experimental basis, because they were continuously in the public's view. If stock-size uniforms were issued to the disciplined services, alterations to the stock sizes to fit the people concerned would require an expensive army of tailors. However, he agreed to examine the possibility and to calculate the cost. He also stated that he would have no objection to the disciplined services using CSI stock-size uniforms provided that the specifications, delivery dates, price and quality requirements were acceptable and provided that the end result was up to standard.

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