H.—2o,

At the Invercargill Borstal modern machinery has been installed with a view to providing facilities for technical instruction in woodwork, boot-repairing, and various phases of metal work and fitting, and, in addition, several technical classes in artisan trades are taught by qualified instructors. A fully balanced round of educational activities, hard work, and industrial training, plus recreation facilities, constitutes the general basis of the scheme of reclamation in vogue in our penal institutions. This, coupled with a careful regard for the physical and mental well-being of inmates, through the provision of fresh nourishing food and healthy occupations, as far as possible in the open air, conduces to the attainment of the best results from a practical point of view. The spiritual and moral well-being is also regarded as of primary importance, and this is catered for by the regular visiting Ministers of the various religious denominations and other social workers who regularly visit the institutions and take a personal interest in the inmates. All concerned in the care of the inmates strive to make a careful study of their personalities with a view to understanding and assisting them to overcome their difficulties and weaknesses. The results of an administration dealing with human equations cannot be expressed in balancesheet figures (though in this respect, from a practical point of view, it is recognized that the most eifective marshalling of the available labour and the efficient management of industries keep down the cost to the general taxpayer, and at the same time afford an added interest to those employed) nor can the results be entirely demonstrated by means of statistics. Nonetheless it is interesting to observe that with respect to the first point the revenue earned by the Department last year was £69,075, and with respect to the second point, that (apart from petty recidivists upon whom short sentences have little or no effect, and habitual criminals who are more or less wedded to a life of crime), of all those released after serving sentences of reformative detention or other substantial terms of imprisonment, only 21 per cent, have relapsed into crime, and of those who have passed through the Borstal institutions since their inception only slightly over 14- per cent, have again appeared before the Courts. Revenue and Expenditure. A detailed comparative statement of expenditure and revenue for the past ten years is hereunder : —

The year ended 31st March, 1938, showed a prison-earned revenue totalling £69,075. This is slightly more than the amount earned during the previous year, and in view of the lower prison population the result can be considered satisfactory. This revenue averaged £81 per prisoner which is higher per head than any previous year on record. As was to be expected, due primarily to the rise in costs of materials and to the effect of the salary increases and shortened hours involving additions to the staff, the gross expenditure of £164,132 was approximately £17,800 higher than the previous year. The net vote increase after deducting the increased revenue was £17,400. The principal increases are under the following headings :— £ Salaries . . . . .. . . .. .. .. 5,900 Purchase of Foodstuffs .. .. .. .. .. 1,350 Farm Expenditure .. .. .. .. .. .. 10,600 The last-mentioned, item is larger than usual, due to the fact that the autumn live-stock and fertilizer purchases were made earlier than usual and payment for same was cleared before the 31st March, instead of as normally in April. The current year will be relieved of considerable expenditure under this head in consequence. The rise in expenditure was exceptional, but it is still below that of the years immediately preceding the depression. On a per capita basis of prison population the gross expenditure is higher than eight years ago, but, of course, this is inevitable as the diminished musters reduce the spread of the total cost. In considering this cost it should be borne in mind that this does not all represent the cost of maintaining prisoners. In New Zealand the rather unique position obtains that a prisoner's dependants are also maintained by the Department to the extent of £1 6s. Bd. per week, but, in

5

Daily Gross Expenditure. ; Credits. Net Expenditure. Year. i . 7 7 .Number of Inmates. Total. Per Head. Total, j Per Head. Total. : Per Head. £ £ £ £ £ £ 1928-29 .. .. 1,502 163,451 108-83 73,994 49-27 89,457 59-56 1929-30 .. .. 1,425 172,248 120-83 83,806 58-87 88,442 62-04 1930-31 .. .. 1,525 171,382 112-36 70,669 46-33 100,713 66-03 1931-32 .. .. 1,641 152,581 92-93 55,867 34-03 96,714 58-90 1932-33 .. .. 1,661 142,940 86-04 52,412 31-84 90,528 54-49 1933-34 .. .. 1,488 138,193 92-88 54,823 36-77 83,370 56-11 1934-35 .. .. 1,306 137,484 105-25 60,242 46-12 77,242 59-13 1935-36 .. .. 1,170 144,460 123-47 69,933 59-77 74,527 63-70 1936-37 .. .. 985 146,314 148-54 68,661 69-70 77,653 78-83 1937-38 .. .. 852 164,132 192-64 69,075 81-07 95,057 111-56